[Federal Register Volume 67, Number 181 (Wednesday, September 18, 2002)]
[Rules and Regulations]
[Pages 58687-58691]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-23614]


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Parts 217, 241 and 298

[Docket No. OST-00-7735]
RIN 2139-AA07


Amendment to the Definitions of Revenue and Nonrevenue Passengers

AGENCY: Office of the Secretary, DOT.

ACTION: Final rule.

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SUMMARY: The Office of the Secretary and the Bureau of Transportation 
Statistics (BTS) are revising the Department's definitions of revenue 
passenger and nonrevenue passenger to specify that a passenger 
traveling on a ticket or voucher received as compensation for denied 
boarding or as settlement of a consumer complaint is considered to be a 
revenue passenger. The revised definitions will also be added to other 
regulatory provisions. Based on this final rule, the definitions will 
be in harmony with the definitions of revenue and nonrevenue passenger 
adopted by the International Civil Aviation Organization (ICAO). 
Harmonizing DOT's and ICAO's

[[Page 58688]]

definitions will relieve air carriers from being required to keep two 
sets of traffic enplanement statistics--one for reporting to ICAO and 
one for reporting to DOT. This action is taken at DOT's initiative.

DATES: This rule is effective October 18, 2002.

FOR FURTHER INFORMATION CONTACT: Clay Moritz or Bernard Stankus, Office 
of Airline Information, K-14, Bureau of Transportation Statistics, 
Department of Transportation, Room 4125, 400 Seventh Street, SW., 
Washington, DC, 20590-0001, (202) 366-4385 or (202) 366-4387, 
respectively. You can also contact either party by e-mail at 
[email protected] or [email protected] or by fax at (202) 366-
3383.

SUPPLEMENTARY INFORMATION:

Electronic Access

    An electronic copy of this document may be downloaded by using a 
computer, modem, and suitable communications software from the 
Government Printing Office's Electronic Bulletin Board Services at 
(202) 512-1661. Internet users may reach the Office of the Federal 
Register's home page at: http://www.nara.gov/fedreg and the Government 
Printing Office's database at: http://www.access.gpo.gov/nara. You can 
also view and download this document by going to the webpage of the 
Department's Docket Management System (http://dms.dot.gov/). On that 
page, click on ``search.'' On the next page, type the last four digits 
of the docket number shown in the heading of this document. Then click 
on ``search.''

Background

    On August 22, 2000, the Department issued a Notice of Proposed 
Rulemaking (NPRM) (65 FR 50946) to revise the definitions of revenue 
and nonrevenue passenger in 14 CFR 217.1, 241.03, and 298.2. The 
Department proposed to classify as revenue passengers those passengers, 
traveling on a ticket or voucher received as compensation for denied 
boarding or as settlement of a consumer complaint. Previously, these 
passengers were classified as nonrevenue passengers.
    The proposals were intended to harmonize the Department's 
definitions of revenue and nonrevenue passengers with the definitions 
adopted by the International Civil Aviation Organization (ICAO). The 
proposed change in the Department's definitions would negate the need 
for carriers to maintain two sets of statistics to record passenger 
enplanements. This rule is being issued jointly by the Office of the 
Secretary and BTS.

Public Comments

    Comments were received from American Airlines, United Air Lines, 
and Southwest Airlines. The three carriers support the Department's 
action to harmonize its definitions of revenue and nonrevenue 
passengers with ICAO's definitions. Southwest believes that common 
reporting guidelines will benefit airlines by allowing for greater 
reporting accuracy and efficiency.
    However, the carriers did express concerns that the revision in the 
definitions could have the unintended consequence of subjecting more 
passengers to Passenger Facility Charges (PFCs). American Airlines 
points out that although a passenger may now be defined as a revenue 
passenger that passenger has paid no additional amounts. United Air 
Lines requests that the Department clarify that the change in 
definitions does not impact or expand the collection of PFCs by either 
making a statement to this effect or revising 14 CFR 158.9(a)(3).
    DOT agrees with the air carriers. The sole purpose of the revisions 
in the definitions of revenue and nonrevenue passengers is to harmonize 
the classifications of passenger enplanements between the Department 
and ICAO. Thus, the changes adopted in this final rule are for air 
carrier traffic and financial reporting purposes and are not meant to 
expand the universe of passengers required to pay PFCs.

Revenue Passengers

    The following types of passengers are examples of revenue 
passengers: (1) Passengers traveling on publicly available tickets; (2) 
passengers traveling on frequent flyer awards; (3) passengers traveling 
on barter tickets; (4) infants traveling on confirmed-space tickets; 
(5) passengers traveling on vouchers as compensation for denied 
boarding or passengers traveling free in response to consumer 
complaints or claims; and (6) passengers traveling on preferential 
fares (Government, seamen, military, youth, student, etc.). This list 
is not exhaustive and is provided for illustrative purposes only.

Nonrevenue Passengers

    The following types of passengers are examples of nonrevenue 
passengers when traveling free or pursuant to token charges: (1) 
Directors, officers, employees, and others authorized by the air 
carrier operating the aircraft; (2) directors, officers, employees, and 
others authorized by the air carrier or another air carrier traveling 
pursuant to a pass interchange agreement; (3) travel agents being 
transported for the purpose of familiarizing themselves with the 
carrier's services; (4) witnesses and attorneys attending any legal 
investigation in which such carrier is involved; (5) persons injured in 
aircraft accidents, and physicians, nurses, and others attending such 
persons; (6) any persons transported with the object of providing 
relief in cases of general epidemic, natural disaster, or other 
catastrophe; (7) any law enforcement official, including any person who 
has the duty of guarding government officials who are traveling on 
official business or traveling to or from such duty; (8) guests of an 
air carrier on an inaugural flight or delivery flights of newly-
acquired or renovated aircraft; (9) security guards who have been 
assigned the duty to guard such aircraft against unlawful seizure, 
sabotage, or other unlawful interference; (10) safety inspectors of the 
National Transportation Safety Board or the FAA in their official 
duties or traveling to or from such duty; (11) postal employees on duty 
in charge of the mails or traveling to or from such duty; (12) 
technical representatives of companies that have been engaged in the 
manufacture, development or testing of a particular type of aircraft or 
aircraft equipment, when the transportation is provided for the purpose 
of in-flight observation and subject to applicable FAA regulations; 
(13) persons engaged in promoting air transportation; (14) air marshals 
and other Transportation Security officials acting in their official 
capacities and while traveling to and from their official duties; and 
(15) other authorized persons, when such transportation is undertaken 
for promotional purpose. This list is not exhaustive and is provided 
for illustrative purposes only.

Reporting Burden

    DOT believes that this final rule is not a revision to an 
information collection for the purposes of the Paperwork Reduction Act. 
It is not adding or removing any data items. Rather, it is changing 
definitions to simplify carrier reporting and preclude the need for 
affected air carriers to maintain two separate systems for identifying 
revenue and nonrevenue passengers for DOT and ICAO reporting. Under 
Article 67 of the 1944 Chicago Convention, the United States, as a 
party to the treaty, is obligated to supply certain individual U.S. air 
carrier data to ICAO. By harmonizing DOT's definitions of revenue and 
nonrevenue passengers with ICAO's definitions, DOT will be able to 
supply ICAO with U.S. air

[[Page 58689]]

carrier data from DOT's own data base. U.S. carriers will not be 
required to submit special traffic reports in order to meet this U.S. 
treaty obligation. Some carriers may, however, have a one-time 
reprogramming task to classify, as revenue passengers, those passengers 
traveling on vouchers or tickets received in response to consumer 
complaints or as compensation for denied boardings.
    In the NPRM, DOT specifically sought comments from any carrier that 
believed it would experience a reporting burden as a result of the 
change in the definitions of revenue and nonrevenue passengers. DOT did 
not receive any comments on this issue.

Rulemaking Analyses and Notices

Executive Order 12866 and DOT Regulatory Policies and Procedures

    DOT does not consider this final rule to be a significant 
regulatory action under section 3(f) of Executive Order 12866. It was 
not subject to review by the Office of Management and Budget.
    DOT does not consider the final rule to be significant under its 
regulatory policies and procedures (44 FR 11034; February 26, 1979). 
The purpose of the rule is to revise the Department's definitions of 
revenue passenger and nonrevenue passenger. This action will negate the 
need for air carriers to keep two sets of traffic records. Presently, 
air carriers maintain one set of records for tracking revenue 
passengers for DOT reporting purposes, and a set of records for ICAO 
reporting. Therefore, this action will result in a positive economic 
impact on reporting air carriers.

Federalism

    DOT analyzed this final rule in accordance with the principles and 
criteria contained in Executive Order 13132 (``Federalism'') and the 
rule will not have a substantial direct effect on the states, on the 
relationship between the national government and states, or on the 
distribution of power and responsibilities among the various levels of 
government. The rule does not impose substantial direct compliance 
costs on State and local governments or preempt state law. Thus, the 
BTS has determined that the rule does not have sufficient federalism 
implications to warrant the preparation of a Federalism Assessment.

Regulatory Flexibility Act

    We certify this final rule will not have a significant economic 
impact on a substantial number of small entities, as the total cost of 
the rulemaking is insignificant, although there should be a minor cost 
savings in harmonizing the definition of revenue passenger. There are 
about 100 small air carriers that report traffic data to DOT. However, 
the rule's most significant change is the treatment of passengers 
traveling on a ticket or voucher received as compensation for denied 
boarding. The denied boarding regulations are not applicable to small 
air carriers. Therefore, the final rule does not have a significant 
impact on small air carriers.

Unfunded Mandates

    Under section 201 of the Unfunded Mandates Reform Act (UMRA) (2 
U.S.C. 1531), DOT assessed the effects of this final rule on State, 
local and tribal governments, in the aggregate, and the private sector. 
DOT determined that this regulatory action requires no written 
statement under section 202 of the UMRA (2 U.S.C. 1532) because it will 
not result in the expenditure of $100,000,000 in any one year by State, 
local and tribal governments, in the aggregate, or the private sector.

National Environmental Protection Act

    The DOT has analyzed the final rule for the purpose of the National 
Environmental Protection Act, and has determined that the changes will 
not have any impact on the quality of the human environment.

Regulation Identifier Number

    A regulation identifier number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
April and October of each year. The RIN number 2139-AA07 contained in 
the heading of this document can be used to cross reference this action 
with the Unified Agenda.

List of Subjects

14 CFR Part 217

    Foreign air carriers, Traffic reports.

14 CFR Part 241

    Air carriers, Reporting and recordkeeping requirements, Uniform 
System of accounts.

14 CFR Part 298

    Air taxis, Commuter and small certificated air carriers, Reporting 
and recordkeeping requirements.


    Accordingly, the Office of Secretary amends 14 CFR parts 217, 241 
and 298 as follows:

PART 217--[AMENDED]

    1. The authority citation for part 217 continues to read as 
follows:

    Authority: 49 U.S.C. 329 and chapters 401, 413, 417.

    2. Definitions for revenue passenger and nonrevenue passenger are 
added in alphabetical order to Sec.  217.1 to read as follows:


Sec.  217.1  Definitions.

* * * * *
    Nonrevenue passenger means: a person traveling free or under token 
charges, except those expressly named in the definition of revenue 
passenger; a person traveling at a fare or discount available only to 
employees or authorized persons of air carriers or their agents or only 
for travel on the business of the carriers; and an infant who does not 
occupy a seat. (This definition is for 14 CFR Part 217 traffic 
reporting purposes and may differ from the definitions used in other 
parts by the Federal Aviation Administration and the Transportation 
Security Administration for the collection of Passenger Facility 
Charges and Security Fees.)
    The definition includes, but is not limited to the following 
examples of passengers when traveling free or pursuant to token 
charges:
    (1) Directors, officers, employees, and others authorized by the 
air carrier operating the aircraft;
    (2) Directors, officers, employees, and others authorized by the 
air carrier or another carrier traveling pursuant to a pass interchange 
agreement;
    (3) Travel agents being transported for the purpose of 
familiarizing themselves with the carrier's services;
    (4) Witnesses and attorneys attending any legal investigation in 
which such carrier is involved;
    (5) Persons injured in aircraft accidents, and physicians, nurses, 
and others attending such persons;
    (6) Any persons transported with the object of providing relief in 
cases of general epidemic, natural disaster, or other catastrophe;
    (7) Any law enforcement official, including any person who has the 
duty of guarding government officials who are traveling on official 
business or traveling to or from such duty;
    (8) Guests of an air carrier on an inaugural flight or delivery 
flights of newly-acquired or renovated aircraft;
    (9) Security guards who have been assigned the duty to guard such 
aircraft against unlawful seizure, sabotage, or other unlawful 
interference;
    (10) Safety inspectors of the National Transportation Safety Board 
or the FAA in their official duties or traveling to or from such duty;
    (11) Postal employees on duty in charge of the mails or traveling 
to or from such duty;

[[Page 58690]]

    (12) Technical representatives of companies that have been engaged 
in the manufacture, development or testing of a particular type of 
aircraft or aircraft equipment, when the transportation is provided for 
the purpose of in-flight observation and subject to applicable FAA 
regulations;
    (13) Persons engaged in promoting air transportation;
    (14) Air marshals and other Transportation Security officials 
acting in their official capacities and while traveling to and from 
their official duties; and
    (15) Other authorized persons, when such transportation is 
undertaken for promotional purpose.
    Revenue passenger means: a passenger for whose transportation an 
air carrier receives commercial remuneration. (This definition is for 
14 CFR Part 217 traffic reporting purposes and may differ from the 
definitions used in other parts by the Federal Aviation Administration 
and the Transportation Security Administration for the collection of 
Passenger Facility Charges and Security Fees.) This includes, but is 
not limited to, the following examples:
    (1) Passengers traveling under publicly available tickets including 
promotional offers (for example two-for-one) or loyalty programs (for 
example, redemption of frequent flyer points);
    (2) Passengers traveling on vouchers or tickets issued as 
compensation for denied boarding or in response to consumer complaints 
or claims;
    (3) Passengers traveling at corporate discounts;
    (4) Passengers traveling on preferential fares (Government, seamen, 
military, youth, student, etc.);
    (5) Passengers traveling on barter tickets; and
    (6) Infants traveling on confirmed-space tickets.
* * * * *

PART 241--[AMENDED]

    3. The authority citation for part 241 continues to read as 
follows:

    Authority: 49 U.S.C. 329 and chapters 401, 411, 417.


    4. The definitions in part 241 Section 03 for passenger, nonrevenue 
and passenger, revenue are revised to read as follows:

Section 03--Definitions for the Purposes of This System of Accounts and 
Reports

* * * * *
    Passenger, nonrevenue means: a person traveling free or under token 
charges, except those expressly named in the definition of revenue 
passenger; a person traveling at a fare or discount available only to 
employees or authorized persons of air carriers or their agents or only 
for travel on the business of the carriers; and an infant who does not 
occupy a seat. (This definition is for 14 CFR part 241 traffic 
reporting purposes and may differ from the definitions used in other 
parts by the Federal Aviation Administration and the Transportation 
Security Administration for the collection of Passenger Facility 
Charges and Security Fees.)
    The definition includes, but is not limited to following examples 
of passengers when traveling free or pursuant to token charges:
    (1) Directors, officers, employees, and others authorized by the 
air carrier operating the aircraft;
    (2) Directors, officers, employees, and others authorized by the 
air carrier or another carrier traveling pursuant to a pass interchange 
agreement;
    (3) Travel agents being transported for the purpose of 
familiarizing themselves with the carrier's services;
    (4) Witnesses and attorneys attending any legal investigation in 
which such carrier is involved;
    (5) Persons injured in aircraft accidents, and physicians, nurses, 
and others attending such persons;
    (6) Any persons transported with the object of providing relief in 
cases of general epidemic, natural disaster, or other catastrophe;
    (7) Any law enforcement official, including any person who has the 
duty of guarding government officials who are traveling on official 
business or traveling to or from such duty;
    (8) Guests of an air carrier on an inaugural flight or delivery 
flights of newly-acquired or renovated aircraft;
    (9) Security guards who have been assigned the duty to guard such 
aircraft against unlawful seizure, sabotage, or other unlawful 
interference;
    (10) Safety inspectors of the National Transportation Safety Board 
or the FAA in their official duties or traveling to or from such duty;
    (11) Postal employees on duty in charge of the mails or traveling 
to or from such duty;
    (12) Technical representatives of companies that have been engaged 
in the manufacture, development or testing of a particular type of 
aircraft or aircraft equipment, when the transportation is provided for 
the purpose of in-flight observation and subject to applicable FAA 
regulations;
    (13) Persons engaged in promoting air transportation;
    (14) Air marshals and other Transportation Security officials 
acting in their official capacities and while traveling to and from 
their official duties; and
    (15) Other authorized persons, when such transportation is 
undertaken for promotional purpose.
    Passenger, revenue: means a passenger for whose transportation an 
air carrier receives commercial remuneration. (This definition is for 
14 CFR part 241 traffic reporting purposes and may differ from the 
definitions used in other parts by the Federal Aviation Administration 
and the Transportation Security Administration for the collection of 
Passenger Facility Charges and Security Fees.) This includes, but is 
not limited to, the following examples:
    (1) Passengers traveling under publicly available tickets including 
promotional offers (for example two-for-one) or loyalty programs (for 
example, redemption of frequent flyer points);
    (2) Passengers traveling on vouchers or tickets issued as 
compensation for denied boarding or in response to consumer complaints 
or claims;
    (3) Passengers traveling at corporate discounts;
    (4) Passengers traveling on preferential fares (Government, seamen, 
military, youth, student, etc.);
    (5) Passengers traveling on barter tickets; and
    (6) Infants traveling on confirmed-space tickets.
* * * * *

    5. Part 241 Sec. 19-7 is amended by removing the term revenue 
passenger from Section X, ``GLOSSARY OF TERMS'' in Appendix A to Sec. 
19-7--Instructions to Air Carriers for Collecting and Reporting 
Passenger Origin-Destination Survey Statistics.

PART 298--[AMENDED]

    6. The authority citation for part 298 is revised to read as 
follows:

    Authority: 49 U.S.C. 329 and chapters 401, 411, 417.


    7. The paragraph designations are removed, the definition of ton is 
transferred to correct alphabetical order, and definitions for 
Nonrevenue passenger and Revenue passenger are added in alphabetical 
order to Sec.  298.2 to read as follows:


Sec.  298.2  Definitions.

* * * * *
    Nonrevenue passenger means a person traveling free or under token 
charges, except those expressly named in the definition of revenue 
passenger; a person traveling at a fare or discount

[[Page 58691]]

available only to employees or authorized persons of air carriers or 
their agents or only for travel on the business of the carriers; and an 
infant who does not occupy a seat. (This definition is for 14 CFR part 
298 traffic reporting purposes and may differ from the definitions used 
in other parts by the Federal Aviation Administration and the 
Transportation Security Administration for the collection of Passenger 
Facility Charges and Security Fees.) The definition includes, but is 
not limited to, the following examples of passengers when traveling 
free or pursuant to token charges:
    (1) Directors, officers, employees, and others authorized by the 
air carrier operating the aircraft;
    (2) Directors, officers, employees, and others authorized by the 
air carrier or another carrier traveling pursuant to a pass interchange 
agreement;
    (3) Travel agents being transported for the purpose of 
familiarizing themselves with the carrier's services;
    (4) Witnesses and attorneys attending any legal investigation in 
which such carrier is involved;
    (5) Persons injured in aircraft accidents, and physicians, nurses, 
and others attending such persons;
    (6) Any persons transported with the object of providing relief in 
cases of general epidemic, natural disaster, or other catastrophe;
    (7) Any law enforcement official, including any person who has the 
duty of guarding government officials who are traveling on official 
business or traveling to or from such duty;
    (8) Guests of an air carrier on an inaugural flight or delivery 
flights of newly-acquired or renovated aircraft;
    (9) Security guards who have been assigned the duty to guard such 
aircraft against unlawful seizure, sabotage, or other unlawful 
interference;
    (10) Safety inspectors of the National Transportation Safety Board 
or the FAA in their official duties or traveling to or from such duty;
    (11) Postal employees on duty in charge of the mails or traveling 
to or from such duty;
    (12) Technical representatives of companies that have been engaged 
in the manufacture, development or testing of a particular type of 
aircraft or aircraft equipment, when the transportation is provided for 
the purpose of in-flight observation and subject to applicable FAA 
regulations;
    (13) Persons engaged in promoting air transportation;
    (14) Air marshals and other Transportation Security officials 
acting in their official capacities and while traveling to and from 
their official duties; and
    (15) Other authorized persons, when such transportation is 
undertaken for promotional purpose.
* * * * *
    Revenue passenger means a passenger for whose transportation an air 
carrier receives commercial remuneration. (This definition is for 14 
CFR part 298 traffic reporting purposes and may differ from the 
definitions used in other parts by the Federal Aviation Administration 
and the Transportation Security Administration for the collection of 
Passenger Facility Charges and Security Fees.) This includes, but is 
not limited to, the following examples:
    (1) Passengers traveling under publicly available tickets including 
promotional offers (for example two-for-one) or loyalty programs (for 
example, redemption of frequent flyer points);
    (2) Passengers traveling on vouchers or tickets issued as 
compensation for denied boarding or in response to consumer complaints 
or claims;
    (3) Passengers traveling at corporate discounts;
    (4) Passengers traveling on preferential fares (Government, seamen, 
military, youth, student, etc.);
    (5) Passengers traveling on barter tickets; and
    (6) Infants traveling on confirmed-space tickets.
* * * * *

    Issued in Washington, DC on September 10, 2002.
Read C. Van de Water,
Assistant Secretary for Aviation and International Affairs, Office of 
the Secretary.
Ashish Sen,
Director, Bureau of Transportation Statistics.
[FR Doc. 02-23614 Filed 9-17-02; 8:45 am]
BILLING CODE 4910-FE-P