Electronic Filing of International Airline Passenger Rules Tariffs

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Part 221

[Docket No. 50355; Notice No. 95-5]

RIN 2105-AC23

Electronic Filing of International Airline Passenger Rules

Tariffs

AGENCY: Office of the Secretary, DOT.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Department of Transportation proposes to amend its

regulations governing the filing of airline tariffs. Under the proposed

rule, carriers would be authorized to electronically file the rules

governing passenger fares and their conditions of service, subject to

certain format requirements necessary to enable the Department to work

with differing filing systems. The Department's regulations have

permitted the electronic filing of passenger fares since 1989. The

Department is proposing this action at the request of tariff publishing

agents in order to extend the efficiencies of electronic data

transmission and processing to the filing of rules tariffs. Filers

could, however, continue to file fare rules on paper if they preferred.

DATES: Comments should be received no later than June 19, 1995.

ADDRESSES: Five (5) copies of any comments should be sent to the

Documentary Services Division, C-55, U.S. Department of Transportation,

400 7th Street, SW., Washington, DC 20590-0002, and should refer to

this docket. To receive acknowledgment of comments, include a stamped,

self-addressed postcard which the Docket Clerk will return stamped with

time and date.

FOR FURTHER INFORMATION CONTACT: Mr. John H. Kiser, Pricing and

Multilateral Affairs Division, Department of Transportation, at the

address above. Telephone: (202) 366-2435.

SUPPLEMENTARY INFORMATION:

Background

On January 19, 1989, the Department published a final rule that

allows international passenger fares tariffs (fares and associated

data) to be filed electronically, as an alternative to the filing of

paper tariffs.1 54 FR 2087, January 19, 1989. The rule, contained

in subpart W of part 221, established a number of criteria that have to

be met for carriers or their agents to make such filings, including a

signed agreement or agreements providing for the maintenance and

security of the on-line tariff database. Approval by the Department of

an application containing various hardware and software service

commitments, as well as the filer's proposed format, is also required.

\1\Associated data include arbitraries, footnotes, routing

numbers and fare class explanations. See 14 CFR 221.4 and 221.283.

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The 1989 rule was issued in response to an emergency petition for

rulemaking by the Airline Tariff Publishing Company (ATPCO), requesting

an expedited amendment to part 221 to permit the electronic filing of

international passenger fares on an experimental basis. The Notice of

Proposed Rulemaking was issued on July 8, 1988, at 53 FR 25615.

Although ATPCO and other commenters then urged that the rule be

broadened to include all international tariffs, the Department

determined to address the filing of passenger fare rules and cargo

tariffs in subsequent proceedings, citing the need for expedition as

well as the need for a period of operational experience to determine

whether the filing criteria and procedures set forth in Subpart W

adequately meet regulatory needs.

ATPCO, a publishing agent owned by and representing a number of

U.S. and foreign airlines, was initially the only entity that applied

for authority to make electronic fare filings under the rule. It began

test filings in July 1989, and in December 1989 it received final

approval from the Department to commence official electronic filings.

On November 28, 1990, ATPCO filed a petition for rulemaking in Docket

47288, requesting the amendment of part 221 to permit the alternative

electronic filing of all international tariffs. The petition included

suggested regulatory changes to accommodate the filing of passenger and

cargo rules, and cargo rates.

In February 1992, the Department permitted ATPCO to begin filing

electronic passenger rules on an unofficial test basis. The official

rules, however, continue to be filed on paper.

By a Notice of Proposed Rulemaking issued October 15, 1992, in

Docket 48385, 57 FR 47303, the Department proposed extensive revisions

to part 221 to permit the electronic filing of all international

tariffs. Following a comment period and a public meeting, the proposal

was withdrawn for further study of various technical issues, and the

proceeding was terminated. 58 FR 12350, March 4, 1993.

Requests for Further Action

Since the termination of the 1992 rulemaking, ATPCO has informally

urged the Department to take whatever actions may be necessary to

develop the capability for the acceptance and processing of all tariffs

electronically.

In addition, another entity has demonstrated interest in filing

international tariffs electronically with the Department. The Societe

Internationale de Telecommunications Aeronautiques (SITA), a tariff

publishing service which developed an electronic tariff filing system

for use in Europe and elsewhere, has demonstrated its ProFile system to

the Department's staff and is making modifications to accommodate U.S.

requirements and procedures. On June [[Page 26849]] 21, 1994, SITA

submitted an application under Sec. 221.260 for the necessary

Department approvals to permit it to begin electronic filing of

international passenger tariffs, encompassing fares and rules to the

extent authorized by the Department. The application included a signed

agreement for the maintenance and security of the on-line tariff

database, as well as certain other information and undertakings

required by section 221. SITA is working with the staff to resolve any

remaining areas of nonconformity. We expect SITA to begin filing

passenger fares and rules on an unofficial test basis in the near

future, and we will then act on its application to file official

tariffs based on experience with the test filings.

Proposal

The Department proposes to amend Sec. 221.251 of subpart W of its

tariff filing regulations, 14 CFR part 221, to authorize the electronic

filing by all airlines and tariff publishing agents of any or all rules

relating to the provision of passenger services. Like the filing of

passenger fares already authorized, this alternative to the traditional

paper format and procedures set forth in part 221 is permissive in

nature, and would be governed by the provisions of subpart W. If

amended as proposed, subpart W would authorize the electronic filing of

all tariff material relating to passenger services that airlines are

required to file with the Department, although the existing

requirements for final approval of a particular tariff filing system

and its associated formats, set forth in subpart W, must be complied

with before the Department will accept authorized electronic filings as

official tariffs.

The Department is also proposing to amend Sec. 221.283 of subpart W

to add certain minimum tariff format requirements to provide a basic

framework for the processing of tariff rules, which differ from fare

filings in many technical respects. The existing format requirements

set forth in Sec. 221.283(b)(8), developed largely for the processing

of fares and associated data, would not be changed but would be

described as specifically applicable to the filing of fares. The new

format requirements for the filing of passenger fare rules would be set

forth in a new Sec. 221.283(b)(9). Consequential amendments would be

made to provisions regarding maintenance of historical data (paragraph

(c) of Sec. 221.283, and Sec. 221.260(b)(7) ).

Basis for the Proposal

Since the adoption of the present provisions of subpart W in 1989,

and the beginning of test processing of unofficial electronic passenger

fare rules in 1992, both ATPCO and SITA have developed and/or refined

their software to provide comprehensive formats for the electronic

filing of specific passenger fare rules as well as fares.2 While

neither system has been formally approved for official filing of

electronic rules tariffs, we believe that sufficient progress has been

made for us to remove the legal impediment in Sec. 221.251(a) to

considering such approvals. Similarly, there may be other entities

interested in testing competing filing systems, for whom the authority

to offer a fuller range of filing services could be a marketing

benefit.

\2\A ``specific fare rule'' is one that applies exclusively to a

particular fare type, for which specific fare levels are filed in

each city-pair market where the fare applies.

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The industry currently files about 42,000 official tariff rule

pages per year, in nearly 9,000 submissions. Nearly all of these rule

changes are filed for effect on less than bilateral/statutory notice

with an accompanying Special Tariff Permission Application (STPA). The

carriers are thus filing each rule provision on paper twice, once with

the STPA and once as the formal tariff submission.

Under the proposed amendments, a single electronic filing could

replace two paper filings for most rules, significantly reducing the

industry's submission, printing, and dissemination costs. Similarly,

the Department's review, filing, and archival costs will be

substantially reduced.

The Department's staff has utilized its experience with existing

paper and electronic filing systems to identify those specific tariff

rule provisions that we currently believe are necessary for providing

sufficient information and for the effective processing and use of

electronic rules formats developed by any filing agent. The provisions

would not necessarily have to be presented in the same order as listed

in proposed Sec. 221.283(b)(9), but each rule would have to include at

least all of the listed provisions.3 Most individual format issues

have been and will continue to be resolved through consultations

between the Department and individual filing agents, as provided in

Sec. 221.260(b)(1) of the current regulations. However, the Department

recognizes the need to propose further amendments to part 221 to deal

comprehensively with general format and procedural issues, as well as

with the question of the appropriate filing fees to be charged in the

future, as soon as adequate data and experience are available. In the

interim, we believe that the limited action being proposed here is

warranted because it will facilitate increased speed and efficiency in

the tariff filing process with direct cost savings to the carriers, the

traveling public, and the taxpayer; it will help provide carriers, for

the first time, with a choice of electronic filing agents and services;

and it will provide valuable experience that will facilitate the

drafting of a more comprehensive rule.

\3\Under this proposal, we would consider each provision of an

electronic tariff rule to be a ``record'' for purposes of assessing

filing fees under 14 CFR 389.20(b) and 389.25(b).

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Three format issues warrant additional discussion here. First, we

note that our proposed format criteria do not yet provide for the

filing of so-called ``general'' fare rules and ``unpublished fare''

rules. General fare rules typically include provisions applicable to

all passengers, relating to general conditions of carriage such as

liability, baggage, fare construction, and refunds. Unpublished fare

rules typically establish discounts for certain classes of traffic not

limited to specific markets, e.g., children and infants, agents, tour

conductors, emigrants and cargo attendants. Electronic formats for

filing general and unpublished fare rules are still under development.

Second, we propose not to accept ``Intentionally Left Blank'' as a

category entry in an electronic fare rule, nor would we accept the

complete omission of a rule category to serve as a default to a general

rule.4 These practices, which have been a source of confusion in

the paper filing environment, would become increasingly confusing in an

environment where the fare rules are filed electronically but the

general rules are still filed on paper. Where carriers wish to default

to a general rule for a particular condition, we propose to require

that electronic rules contain a specific entry for each category in the

rule. The entry could be either a specific reference to the relevant

general rule or specific conditions extracted from the general rule.

\4\ Where a particular provision is intentionally left blank in

a rule, no such provision applies to the fare covered by the rule.

For example, where the ``group requirements'' section is left blank,

it means there are no group requirements.

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And third, in the test electronic rules we have received thus far,

carriers have been including some extraneous material that is not

properly part of a tariff and of which we take no regulatory notice,

e.g., provisions concerning ticket and booking codes and annotations,

wait listing procedures, and reservation record requirements. We

recognize that carriers submit such material to their filing agents

along with associated fare and rule changes for non-regulatory

[[Page 26850]] purposes, such as notifying computer reservations

systems of the carriers' technical procedures. However, this extraneous

material will not be approved by the Department, and its inclusion in

official electronic rules will only cause confusion. We, therefore,

propose to preclude such material in official electronic tariff

filings.

The proposed amendment to Sec. 221.251, as drafted, does not

encompass the filing of cargo rates and rules tariffs. By a Notice of

Proposed Rulemaking issued October 24, 1994, in Docket 49827, the

Department proposed a blanket exemption for all carriers from the

statutory and regulatory duty to file international property (cargo)

tariffs with the Department. If the proposed rule is adopted, carriers

will soon cease filing cargo rate and rules tariffs in any format. To

the extent that a filing requirement might be retained, electronic

format issues can be addressed at a later date.

The amendments proposed here would leave in place the procedural

and technical requirements of subpart W, which each electronic filer

must satisfy before official electronic rule filings may be accepted.

In addition to those listed in Sec. 221.260, for example, are

provisions such as those in Sec. 221.500 regarding the submission of

machine-readable copies of records existing when electronic filing is

implemented, and the cancellation of records from the paper tariff. As

noted above, Sec. 221.260 includes the requirement that the Department

approve the precise format used by each electronic filer before

official filings can be made. This is normally done by letter once a

period of successful test filings has been accomplished and the

Department is satisfied that the filing system meets regulatory needs.

However, subpart W also imposes continuing performance requirements,

violations of which could lead to enforcement action or even withdrawal

of electronic filing privileges.

Finally, we would note that the success of electronic rules filing

will depend on scrupulous adherence to the Department's regulatory

requirements by both carriers and their filing agents. The Department's

staff will be closely monitoring performance in this regard, and will

work with parties to ensure the utility and integrity of the electronic

tariff system.

The Department is providing less than the usual 60 days for comment

because the proposal is merely offering an alternative method of

compliance.

Regulatory Analyses and Notices

Executive Order 12866 and DOT Regulatory Policies and Procedures

The Office of Management and Budget (OMB) has determined that this

proposal is not a significant regulatory action under Executive Order

12866 and, therefore, not subject to OMB review. The Department has

determined that the proposal is not significant under the Department's

Regulatory Policies and Procedures (44 FR 11034, Feb. 26, 1979). The

proposal would, if adopted, reduce the paperwork burden for all U.S.

and foreign air carriers now filing their passenger rules tariffs on

paper. The Department expects the economic impact of the proposal,

however, to be modest. The proposal would not result in any required

additional costs to carriers or the public. It would simply provide an

alternative method of meeting the statutory tariff-filing requirements.

The potential estimated savings are discussed below.

Executive Order 12612

This proposal has been analyzed in accordance with the principles

and criteria contained in Executive Order 12612 (``Federalism''), and

the Department has determined the rule does not have sufficient

federalism implications to warrant the preparation of a Federalism

Assessment.

Regulatory Flexibility Act

I certify that this rule, if adopted, will not have a significant

economic impact on a substantial number of small entities. The tariff

filing requirements apply to scheduled service air carriers. The vast

majority of the air carriers filing international (``foreign'')

passenger rules tariffs are large operators with revenues in excess of

several million dollars each year. Small air carriers operating

aircraft with 60 seats or less and 18,000 pounds payload or less that

offer on-demand air- taxi service are not required to file such

tariffs.

Paperwork Reduction Act

With respect to the Paperwork Reduction Act, this proposal would

replace two paper filings for most rules with a single electronic

filing. Thus, while this proposal will significantly reduce the

paperwork burden on industry and government, it does not eliminate

information collection requirements that require the approval of the

Office of Management and Budget pursuant to the Act.

If the proposed amendments to existing regulations are implemented,

the Department estimates that filing of passenger tariff rule pages in

paper format would be reduced by about ninety percent, with the

remaining ten percent continuing to be filed in paper form. A total of

about 42,000 passenger tariff rule pages and about 6,400 Passenger

Special Tariff Permission Applications (STPA's) were filed in 1994. At

a filing fee of $2 a rule page and $12 a passenger STPA, we estimate

the carriers could save as much as $145,000 annually in filing fees

paid to the Department. In addition, ATPCO charges the carriers $35.00

for each filed tariff page and up to $30.00 for each STPA. On this

basis, we estimate that implementation of the proposal could save

carriers an additional $1,500,000 in associated fees paid to ATPCO,

producing potential total savings to the carriers in excess of

$1,600,000 per year.

While not estimated, we expect that costs of governmental review,

filing and archiving of paper tariff rule filings will be similarly

reduced.

The reporting and recordkeeping requirement associated with this

rule are being submitted to OMB for approval in accordance with 44

U.S.C. chapter 35 under OMB NO. 2105-AC23; Administration: Department

of Transportation; TITLE: Electronic Filing of Passenger Service Rules

Tariffs; NEED FOR INFORMATION: Authorizes the electronic filing of

rules governing the provision of passenger services; PROPOSED USE OF

INFORMATION: Authorization is based on the request of tariff publishing

agents to extend the efficiencies of electronic data transmission and

processing to the filing of rules tariffs; FREQUENCY: An initial

passenger tariff rule filing is required of each respondent; changes

are voluntary, whenever an air carrier elects; BURDEN ESTIMATE: 5.34

hours for an STPA or a passenger rule page; RESPONDENTS: 45; FORM(S)

48,400 pages or applications per annum; AVERAGE BURDEN HOURS PER

RESPONDENT: 5530 hours.

For further information on paperwork reduction contact: The

Information Requirements Division, M-34, Office of the Secretary of

Transportation, 400 Seventh Street, SW., Washington, DC. 20590, (202)

366-4735 or DOT Desk Officer, Office of Management and Budget, New

Executive Office Building, Room 3228, Washington, D.C. 20503.

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 contained in the

[[Page 26851]] heading of this document can be used to cross reference

this action with the Unified Agenda.

List of Subjects in 14 CFR Part 221

Agents, Air carriers, Foreign air carriers, Tariffs.

This rule is being issued under authority delegated in 49 CFR

1.56(j)(2)(ii). For the reasons set forth in the preamble, 14 CFR Part

221 would be amended to read as follows:

PARTS 221--TARIFFS

Subpart W--Electronically Filed Tariffs

1. The authority citation for part 221 would continue to read as

follows:

Authority: 49 USC 40101, 40109, 40113, 46101, 46102, Chapter

411, Chapter 413, Chapter 415, and Subchapter I of Chapter 417,

unless otherwise noted.

2. Section 221.251 Applicability of the subpart is amended by

revising Paragraph (a) to read as follows:

Sec. 221.251 Applicability of subpart.

(a) Any carrier, consistent with the provisions of this subpart,

and this part 221 generally, may file its international passenger fares

tariffs and international passenger rules tariffs electronically in

machine-readable form as an alternative to the filing of printed paper

tariffs as provided for elsewhere in this part 221. This subpart

applies to all carriers and tariff publishing agents and may be used by

either if the carrier or agent complies with the provisions of this

subpart W. Any carrier or agent that files electronically under this

subpart must transmit to the Department the remainder of the tariff in

a form consistent with this part 221, subparts A-V on the same day that

the electronic tariff would be deemed received under Sec. 221.270(b).

* * * * *

3. Paragraph (b)(7) of Sec. 221.260, Requirements for filing, is

revised to read as follows:

Sec. 221.260 Requirements for filing.

* * * * *

(b) * * *

(7) The filer shall maintain all fares and rules with the

Department and all Departmental approvals, disapprovals and other

actions, as well as all Departmental notations concerning such

approvals, disapprovals or other actions, in the on-line tariff

database for a period of two (2) years after the fare or rule becomes

inactive. After this period of time, the carrier or agent shall provide

the Department, free of charge, with a copy of the inactive data on a

machine-readable tape or other mutually acceptable electronic medium.

* * * * *

4. Paragraph (b)(8) of Sec. 221.283, The filing of tariffs and

amendments to tariffs, is amended by revising the introductory text,

and by adding a new paragraph (b)(9) to read as follows:

Sec. 221.283 The filing of tariffs and amendments to tariffs.

* * * * *

(b)* * *

(8) Fares tariff, or proposed changes to the fares tariffs,

including:

* * * * *

(9) Rules tariff, or proposed changes to the rules tariffs,

including:

(i) Title: General description of fare rule type(s) and geographic

area(s) under the rule;

(ii) Application: Specific description of fare class(es),

geographic area(s), type of transportation (one way, round- trip,

etc.);

(iii) Period of Validity: Specific description of permissible

travel dates and any restrictions on when travel is not permitted;

(iv) Reservations/ticketing: Specific description of reservation

and ticketing provisions, including any advance reservation/ ticketing

requirements, provisions for payment (including prepaid tickets), and

charges for any changes;

(v) Capacity Control: Specific description of any limitation on the

number of passengers, available seats, or tickets;

(vi) Combinations: Specific description of permitted/restricted

fare combinations;

(vii) Length of Stay: Specific description of minimum/maximum

number of days before the passenger may/must begin return travel;

(viii) Stopovers: Specific description of permissible conditions,

restrictions, or charges on stopovers;

(ix) Routing: Specific description of routing provisions, including

transfer provisions, whether on-line or inter-line;

(x) Discounts: Specific description of any limitations, special

conditions, and discounts on status fares, e.g. children or infants,

senior citizens, tour conductors, or travel agents, and any other

discounts;

(xi) Cancellation and Refunds: Specific description of any special

conditions, charges, or credits due for cancellation or changes to

reservations, or for request for refund of purchased tickets;

(xii) Group Requirements: Specific description of group size,

travel conditions, group eligibility, and documentation;

(xiii) Tour Requirements: Specific description of tour

requirements, including minimum price, and any stay or accommodation

provisions;

(xiv) Sales Restrictions: Specific description of any restrictions

on the sale of tickets;

(xv) Rerouting: Specific description of rerouting provisions,

whether on-line or inter-line, including any applicable charges; and

(xvi) Miscellaneous provisions: Any other applicable conditions.

5. Paragraph (c) of Sec. 221.283 is amended by redesignating

existing paragraphs (c) (8) through (15) as paragraphs (c) (9) through

(16), respectively, and by adding a new paragraph (c) (8) to read as

follows:

Sec. 221.283 The filing of tariffs and amendments to tariffs.

* * * * *

(c) * * *

(8) Rule text;

* * * * *

Issued in Washington DC, on May 15, 1995.

Patrick V. Murphy

Acting Assistant Secretary for Aviation and International Affairs.

[FR Doc. 95-12372 Filed 5-18-95; 8:45 am]

BILLING CODE 4910-62-P