[Federal Register Volume 82, Number 239 (Thursday, December 14, 2017)]
[Proposed Rules]
[Pages 58777-58778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-26708]


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Part 241

[Docket No. RITA-2011-0001]
RIN 2105-AE31


Ancillary Airline Passenger Revenues

AGENCY: Office of the Secretary, Department of Transportation.

ACTION: Proposed rule; withdrawal.

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SUMMARY: The Department of Transportation (the Department) is 
withdrawing a notice of proposed rulemaking (NPRM) published on July 
15, 2011 that proposed to collect detailed revenue information 
regarding airline imposed fees from those air carriers meeting the 
definition of a large certificated air carrier. We are withdrawing this 
rulemaking in light of the comments we received. The withdrawal of this 
rulemaking corresponds with the Department's and Administration's 
priorities and is consistent with the Executive Order 13771, Reducing 
Regulation and Controlling Regulatory Costs, January 30, 2017.

DATES: Amendatory instructions 3 through 6 of the proposed rule 
published July 15, 2011 (76 FR 41726), are withdrawn as of December 14, 
2017.

ADDRESSES: Electronic Access: You can view and download related 
documents and public comments by going to the website http://www.regulations.gov. Enter the docket number DOT-RITA-2011-0001 in the 
search field.

FOR FURTHER INFORMATION CONTACT: Zeenat Iqbal and Blane A. Workie, 
Office of Aviation Enforcement and Proceedings, 1200 New Jersey SE, 
Room W96-414, Washington, DC 20590, (202) 366-9893, 
[email protected] (email).

SUPPLEMENTARY INFORMATION: 

Background

    On July 7, 2011, the Office of the Secretary issued a notice of 
proposed rulemaking (NPRM) proposing to collect detailed information 
about ancillary fees paid by airline consumers to determine the total 
amount of fees carriers collect through the a la carte pricing approach 
for optional services related to air transportation. The Department 
also proposed to alter its matrix for collecting and publishing data on 
mishandled baggage and to collect information regarding damage, delay 
or loss of wheelchairs and scooters transported in the aircraft cargo 
compartment. The final rule relating to reporting of data for 
mishandled baggage and wheelchairs (2104-AE41) was issued on November 
2, 2016 (81 FR 76300). We are withdrawing the other topic covered in 
the proposed rule, the reporting of airline fee revenue.

The NPRM

    In the NPRM, the Department proposed to create two stand-alone 
reporting forms, designated P-9 and P-9.1, to capture ancillary 
revenues. Specifically, air carriers with annual reporting revenue of 
$20 million or more would be required to submit the P-9 form quarterly 
and air carriers with annual reporting revenue below $20 million would 
be required to submit the form P-9.1 on a semiannual basis. The 
information required by the two proposed schedules was identical; they 
differed only in the required reporting frequency. The NPRM also 
proposed to define ancillary revenues as those charges paid by airline 
passengers that are not included in the standard ticket fare. The 
Department solicited comments on which items should be specifically 
identified as ancillary revenues, and proposed to collect data on 19 
separate charges for optional services. The categories included: (1) 
Booking fees, (2) priority check-in and security screening, (3) 
baggage, (4) in-flight medical equipment, (5) in-flight entertainment/
internet access, (6) sleep sets, (7) in-flight food/non-alcoholic 
drinks, (8) alcoholic drinks, (9) pets, (10) seating assignments, (11) 
reservation cancellation and change fees; (12) charges for lost ticket; 
(13) unaccompanied minor/passenger assistance fee; (14) frequent flyer 
points/points acceleration; (15) commissions on travel packages; (16) 
travel insurance; (17) duty-free and retail sales; (18) one-time access 
to lounges and (19) other.

Comments Received

    In response to the 2011 NPRM, the Department received approximately 
280 comments from airlines, airports, trade associations, unions, 
consumer groups and private citizens who use this data. There was wide 
support among consumers and consumer rights groups for the proposed 
rule's reporting requirements. Consumers and consumer rights groups, as 
well as ACI-NA and Southwest Airlines, commented that the reporting 
requirement would bring the benefits of both increased transparency and 
improved data corroboration regarding the impact of ancillary fees on 
the Airport and Airway Trust Fund.
    On the other hand, most airlines and industry organizations 
commented that the proposed rule will not benefit the public because 
the Department has not demonstrated a need for this information. They 
asserted that the rule will not increase the transparency of pricing 
for airline revenues. Airlines also commented that if the justification 
for this rule is to tax ancillary revenues, the Department must state 
that justification. In addition, several airlines and industry groups 
suggested that the Department underestimated the proposed rule's 
economic burden on industry.
    With regard to the proposed 19 categories, industry groups, 
consumer groups and airlines commented that the Department failed to 
justify the proposed categories and suggested various changes to the 
list of 19 charges for which air carriers would have to report revenues 
under the proposed rule. Carriers also expressed concern that the 
proposed reporting requirements would require carriers to reveal 
proprietary information to their competitors. Some carriers suggested 
that there is no correlation between a carrier's disclosure of itemized 
aggregate revenue data and consumer concerns regarding fare 
transparency. Southwest Airlines, which supported the Department's 
stated goal of making ticket pricing more transparent for

[[Page 58778]]

consumers, also urged the Department to reduce the number of categories 
by half.

Reason for Withdrawal

    The purpose of this rulemaking was to make airline pricing more 
transparent to consumers and airline analysts. Although we believe 
there would be benefits of collecting and publishing the proposed 
aviation data, the Department also takes seriously industry concerns 
about the potential burden of this rule. The Department is withdrawing 
this rulemaking proposal. The withdrawal of this rulemaking corresponds 
with the Department's and Administration's priorities and is consistent 
with the Executive Order 13771, Reducing Regulation and Controlling 
Regulatory Costs, January 30, 2017.

    Issued in Washington, DC, on December 5, 2017.
Elaine L. Chao,
Secretary of Transportation.
[FR Doc. 2017-26708 Filed 12-13-17; 8:45 am]
 BILLING CODE P