[Federal Register Volume 68, Number 26 (Friday, February 7, 2003)]
[Notices]
[Pages 6530-6531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-2694]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket No. 29303]
RIN 2120-AG58


Policy Regarding Airport Rates and Charges

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Advance notice of proposed policy, withdrawal.

-----------------------------------------------------------------------

SUMMARY: The FAA is withdrawing a previously published Advance Notice 
of Proposed Policy that sought suggestions for replacement provisions 
for the portions of the Policy Statement Regarding Airport Rates and 
Charges that were vacated by the United States Court of Appeals for the 
District of Columbia Circuit. We are withdrawing the document because 
the Department of Transportation is considering similar rate and charge 
issues in its study of congestion pricing at airports.

FOR FURTHER INFORMATION CONTACT: David L. Bennett, Director, Office of 
Airport Safety and Standards, Federal Aviation Administration, 800 
Independence Avenue, SW., Washington, DC 20591, telephone 202-267-3053.

SUPPLEMENTARY INFORMATION: 

Background

    In June 1996, the FAA adopted a policy for evaluating the 
reasonableness of landing fees and other charges paid by air carriers 
to airports (61 FR 31994, June 21, 1996). The United States Court

[[Page 6531]]

of Appeals for the District of Columbia Circuit partially vacated the 
policy, disallowing the portion dealing with historic cost valuation of 
airport property. Air Transport Association of America v. Department of 
Transportation, 119 F.3d 38 (D.C. Cir. 1997), as modified on rehearing, 
Order of Oct. 15, 1997. The Department of Transportation, Office of the 
Secretary, and the FAA published an Advance Notice of Proposed Policy 
seeking suggestions for replacement provisions of those portions the 
Court vacated (63 FR 43228, August 12, 1998).
    The Department of Transportation is conducting studies related to 
the use of market pricing to manage demand at congested airports. 
Substantial overlap of the issues exists between the Department study 
and the published Advance Notice of Proposed Policy Regarding Airport 
Rates and Charges. To avoid duplication of effort and resources, and to 
allow more complete analysis of the issues, the FAA is withdrawing the 
Advance Notice of Proposed Policy Regarding Airport Rates and Charges.

Discussion of Comments

    In response to the advance notice, we received comments from the 
Air Transport Association (ATA), Airports Council International `` 
North America (ACI-NA), National Business Travel Association, the Kauai 
Helicopter Operators Association, and 13 airports. The time period for 
comments and reply comments was extended at the request of ATA and ACI-
NA.
    Commenters offer their perspective on existing fee structures and 
methodologies, distinctions between fees charged for airfield versus 
non-airfield assets, and evidence of airport monopoly power. Comments 
from ATA, ACI-NA and Los Angeles World Airports include economic 
discussions from consulting economists. In general, air carriers favor 
historical cost accounting as the basis for aeronautical rates and 
charges, while airports favor basing rates and charges on fair market 
value of aeronautical assets. Air carriers express concern that any new 
policy should prevent airports from adding imputed interest to funds 
derived from airfield and other essential aeronautical facilities. 
Issues and recommendations presented by commenters will require further 
study, but will not be pursued within the course of the Policy 
Regarding Airport Rates and Charges addressed by this document, because 
the Department of Transportation will consider these and related issues 
in its study of congestion pricing at airports.

Conclusion

    The Department of Transportation's current study of congestion 
pricing at airports will encompass many of the rates and charges issues 
addressed in the Advance Notice of Proposed Policy entitled Policy 
Regarding Airport Rates and Charges. Therefore, the FAA withdraws the 
Advance Notice of Proposed Policy published at 63 FR 43228 on August 
12, 1998. Withdrawal of the Advance Notice of Proposed Policy does not 
preclude the FAA from issuing another notice on the subject matter in 
the future or commit the agency to any future course of action.

    Issued in Washington, DC, on January 31, 2003.
Woodie Woodward,
Associate Administrator for Airports.
[FR Doc. 03-2694 Filed 2-6-03; 8:45 am]
BILLING CODE 4910-13-P