Aviation Economic Rules

Federal RegisterAug 22, 1995

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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Parts 200, 201, 203, 204, 206, 215, 232, 271, 272, 291, 294,

296, 297, 298, 300, 313, 324, 325, 372, 379, 398, and 399

[Docket No. OST-95-397]

RIN 2105-AC-27

Aviation Economic Rules

AGENCY: Department of Transportation, Office of the Secretary.

ACTION: Final rule.

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SUMMARY: The Department is amending various provisions regarding

aviation economic rules in order to eliminate obsolete provisions and

correct outdated organizational and statutory references.

EFFECTIVE DATE: The rule shall become effective on September 21, 1995.

FOR FURTHER INFORMATION CONTACT: Carol A. Woods, Air Carrier Fitness

Division, X-56, Department of Transportation, 400 Seventh Street, S.W.,

Washington, DC 20590, (202) 366-9721.

SUPPLEMENTARY INFORMATION: In his Regulatory Reinvention Initiative

Memorandum of March 4, 1995, President Clinton directed Federal

agencies to conduct a page-by-page review of all of their regulations

and to ``eliminate or revise those that are outdated or otherwise in

need of reform.'' In response to that directive, the Department has

undertaken a review of its aviation economic regulations as contained

in 14 CFR Chapter II. This rule is one result of those efforts.

Subsequent rulemakings will address other regulations.

We had conducted a review of a number of our aviation economic

regulations in 1992 and eliminated Parts 202, 231, 263, 288 and 292 and

revised Parts 200, 201, 203, 204, 206, 232, 291, 294, 296, 297, 298,

and 372 at that time (see 57 FR 38761, Aug. 27, 1992, and 57 FR 40097,

Sept. 2, 1992). We reexamined the rules we revised in 1992 as part of

our current regulatory review and found that they and a number of other

regulations (including Parts 215, 271, 272, 300, 313, and 398) now

require only minor changes to eliminate obsolete provisions and to

correct outdated titles of Department organizations and officials, and

definitions and other terminology necessitated by legislative changes,

including the revision and recodification of the Federal Aviation Act

within Subtitle VII of Title 49 of the United States Code

(Transportation) by action of Pub. L. 103-272, enacted July 5, 1994.

Part 398 is being amended in order to incorporate the service

upgrades for ``basic'' essential air service contained in the Airport

and Airway Safety and Capacity Expansion Act of 1987 (Pub. L. 100-223,

December 30, 1987). In general, the upgrades consist of (a) service

with 15-seat or larger aircraft, (b) service with pressurized aircraft

in cases where such service is regularly operated at altitudes

exceeding 8,000 feet, (c) service to a large or medium hub, (d) service

with no more than one intermediate stop, (e) seating capacity based on

an average load factor of 60 percent, and (f) a provision that flights

be operated at reasonable times, taking into account the needs of

passengers with connecting flights. The Department actually implemented

the required upgrades during Fiscal Year 1992 when Congress

appropriated the necessary program funds. We are now formalizing those

requirements in the Department's regulations. Finally, Pub. L. 100-223

also contained provisions for a higher level of service called

``enhanced'' essential air service. Because ``enhanced'' service has

not been funded or implemented, however, we are not incorporating its

provisions within Part 398 at this time.

In addition, Parts 324 and 379, and several sections in Parts 325

and 399 are being eliminated due to obsolescence.

Part 324 contains procedures for establishing final subsidy rates

for air carriers providing temporary, compulsory service at small

communities under 49 U.S.C. 41734 in cases where the rates would be

applied retroactively--i.e., when the period of compulsory service has

already begun or has concluded. Part 324 was established to compensate

carriers for losses after the fact. Subsequent revision of the

governing statute, however, permits the Department to establish such

compensation prospectively under the existing provisions contained in

14 CFR Part 271 at the beginning of the period of compulsory service.

Because the Department now practices prospective ratemaking routinely,

Part 324 is no longer necessary and is being eliminated.

Part 325 contains general guidelines for the Department's

establishment of communities' essential air service determinations

under 49 U.S.C. 41733. We are eliminating Sec. 325.7 through

Sec. 325.9, which establish a three-member panel and special procedures

for handling appeals. That process has become increasingly unwieldy and

unresponsive. Without the appeal process, communities can directly seek

review of such Department actions under Sec. 302.37--Petitions for

Reconsideration or Review by the DOT Decisionmaker. We expect that this

change will considerably improve the Department's response time by

streamlining the process and removing a bureaucratic layer between

communities and the DOT decisionmaker.

Part 379 was established by the CAB to ensure that no person, on

the grounds of race, color or natural origin, would be excluded from

participation in, be denied the benefits of, or be otherwise subjected

to discrimination under any program or activity receiving federal

financial assistance from the CAB. The Civil Aeronautics Board Sunset

Act of 1984 (P.L. 98-443) transferred that agency's remaining authority

to the Department as of January 1, 1985. The CAB regulations

implementing Title VI of the Civil Rights Act of 1964 were virtually

identical to those implemented by the Department under 49 CFR Part 21.

Under the circumstances, the old CAB regulations are redundant, and

Part 379 is being eliminated.

We are also removing three sections of Part 399 (Secs. 399.20, .38,

and .90) that are no longer needed. Section 399.20 is a policy

statement issued by the CAB covering procedures for processing

applications of long-haul general commodities motor carriers and

railroads for authorization to act as air freight forwarders. U.S.

companies proposing to operate as air freight forwarders are no longer

required to file applications for such authority, in accordance with

the blanket exemption granted by Sec. 296.10. Foreign companies

proposing to act as air freight forwarders file applications that are

processed in accordance with Part 297. Therefore, Sec. 399.20 may be

removed. Section 399.38 concerns the establishment of temporary subsidy

rates for air carriers serving small communities under 49 U.S.C. 41734

in cases where subsidy

[[Page 43522]]

payments are deemed necessary for the continuation of service until

final rates are estabished at a later date. As a practical matter, the

Department now routinely establishes all rates as final. Therefore,

section 399.38 is no longer necessary. Section 399.90 states the CAB's

policy on making public interest determinations concerning non-

transport activities of air carriers that received mail transport

subsidy under former section 406 of the Federal Aviation Act. Carriers

no longer receive subsidy for transporting mail; therefore, the

Department no longer makes public interest determinations concerning

their non-transport activities. Section 399.90 can thus be eliminated.

We have also identified certain regulations that require

substantive revision (including Parts 205, 207, 208, 212, 302, 323,

380, and 385), which will be treated in separate rulemakings in the

near future.

Executive Order 12866 (Regulatory Planning and Review)

The Department has analyzed the economic and other effects of the

proposed amendment and has determined that they are not ``significant''

within the meaning of Executive Order 12866. The amendment will not

have an annual effect on the economy of $100 million or more or

adversely affect in a material way the economy, a sector of the

economy, productivity, competition, jobs, the environment, public

health or safety, or State, local, or tribal governments or

communities. It will not create a serious inconsistency or otherwise

interfere with an action taken or planned by another agency, and it

will not materially alter the budgetary impact of entitlements, grants,

user fees, or loan programs or the rights and obligations of recipients

thereof. Nor does it raise any novel legal or policy issues arising out

of legal mandates, the President's priorities, or the principles set

forth in Executive Order 12866. Therefore, a regulatory impact analysis

is not required.

DOT Regulatory Policies and Procedures

The amendments are not significant under the Department's

Regulatory Policies and Procedures, dated February 26, 1979, because

they do not involve important Departmental policies; rather, they are

being made solely for the purposes of eliminating obsolete

requirements, correcting out-of-date references, and enhancing the

organization of the regulations used by the Department to administer

its aviation economic regulatory functions. The Department has also

determined that the economic effects of the amendment are so minimal

that a full regulatory evaluation is not required.

Regulatory Flexibility Act

In accordance with the Regulatory Flexibility Act, the Department

has evaluated the effects of this action on small entities. For

purposes of its aviation economic regulations, Departmental policy

categorizes air carriers operating small aircraft (60 seats or less or

18,000 pounds maximum payload or less) as small entities for purposes

of the Regulatory Flexibility Act. Based upon this evaluation, the

Department certifies that the amendment would not have a significant

economic impact on a substantial number of small entities.

Executive Order 12612 (Federalism)

These amendments have been analyzed in accordance with the

principles and criteria contained in Executive Order 12612. The

Department has determined that the amendments do not have sufficient

federalism implications to warrant the preparation of a Federalism

Assessment. The amendments will not have a substantial direct effect on

the States, on the relationship between the national government and the

States, or on the distribution of power and responsibilities among the

various levels of government.

National Environmental Policy Act

The Department has also analyzed the amendments for the purpose of

the National Environmental Policy Act. The amendments will not have any

significant impact on the quality of the human environment.

Paperwork Reduction Act

There are no reporting or recordkeeping requirements associated

with the amendments.

Notice and Opportunity for Public Comment Unnecessary

Under the Administrative Procedure Act (5 U.S.C. Sec. 553), the

Department determines that notice and an opportunity for public comment

are impracticable, unnecessary, and contrary to the public interest.

The amendments made in this document are ministerial, removing obsolete

and redundant material or making minor technical and terminology

changes. These changes will have no substantive impact, and the

Department would not anticipate receiving meaningful comments on them.

Comment is therefore unnecessary, and it would be contrary to the

public interest to delay unnecessarily this effort to eliminate or

revise outdated rules.

List of Subjects

14 CFR Part 200

Air transportation.

14 CFR Part 201

Air carriers, Reporting and recordkeeping requirements.

14 CFR Part 203

Air carriers, Air transportation, Foreign relations, Insurance,

Reporting and recordkeeping requirements.

14 CFR Part 204

Air carriers, Reporting and recordkeeping requirements.

14 CFR Part 206

Air carriers, Emergency medical services, News media.

14 CFR Part 215

Air carriers, Reporting and recordkeeping requirements, Trade names

14 CFR Part 232

Administrative practice and procedure, Air carriers, Postal

Service.

14 CFR Part 271

Air carriers, Grant programs--transportation.

14 CFR Part 272

Air carriers, Grant programs--transportation, Pacific Islands Trust

Territory.

14 CFR Part 291

Administrative practice and procedure, Air carriers, Reporting and

recordkeeping requirements.

14 CFR Part 294

Air taxis, Canada, Charter flights, Reporting and recordkeeping

requirements.

14 CFR Parts 296 and 297

Air carriers, Freight forwarders.

14 CFR Part 298

Air taxis, Alaska, Canada, Insurance, Reporting and recordkeeping

requirements.

14 CFR Part 300

Administrative practice and procedure, Conflict of interests.

14 CFR Part 313

Air carriers, Energy conservation.

14 CFR Part 324

Administrative practice and procedure, Air carriers, Grant

[[Page 43523]]

programs--transportation, Reporting and recordkeeping requirements.

14 CFR Part 325

Administrative practice and procedure, Air transportation,

Intergovernmental relations, Reporting and recordkeeping requirements.

14 CFR Part 372

Charter flights, Military air transportation, Reporting and

recordkeeping requirements, Surety bonds.

14 CFR Part 379

Administrative practice and procedure, Civil rights.

14 CFR Part 398

Air transportation.

14 CFR Part 399

Administrative practice and procedure, Air carriers, Air rates and

fares, Air taxis, Consumer protection, Small businesses.

Final Rule

For the reasons set out in the preamble, Title 14, Chapter II of

the Code of Federal Regulations is amended as follows:

PART 200--[AMENDED]

1. The authority citation for part 200 is revised to read as

follows:

Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417, 461.

Sec. 200.1 [Amended]

2. In Sec. 200.1 introductory text and in paragraphs (d) and (e),

remove the word ``Act'' and add, in its place, the word ``Statute'';

add new paragraphs (f) and (g) to read as follows:

Sec. 200.1 Terms and definitions.

* * * * *

(f) Statute when used in this chapter means Subtitle VII of Title

49 of the United States Code (Transportation).

(g) FAA means the Federal Aviation Administration, U.S. Department

of Transportation.

PART 201--AIR CARRIER AUTHORITY UNDER SUBTITLE VII OF TITLE 49 OF

THE UNITED STATES CODE--[AMENDED]

3. The heading of part 201 is revised to read as set forth above.

4. The authority citation for part 201 is revised to read as

follows:

Authority: 5 U.S.C. 1008; 49 U.S.C. Chapters 401, 411, 413, 415,

417.

Sec. 201.1 [Amended]

5. In Sec. 201.1(a), remove the words ``section 401 of the Federal

Aviation Act and for domestic all-cargo air service certificates under

section 418 of the Act, or amendments thereof,'' and add, in their

place, the words ``section 41102 of the Statute and for interstate all-

cargo air transportation certificates under section 41103 of the

Statute''.

Sec. 201.4 [Amended]

6. In Sec. 201.4(c), remove the words ``and overseas''; remove the

words ``section 401'' where they appear twice, and add, in their place,

the words ``section 41102 of the Statute''; remove the words ``domestic

all-cargo air transportation under section 418'' and add, in their

place, the words ``interstate all-cargo air transportation under

section 41103 of the Statute''.

Sec. 201.6 [Amended]

7. In Sec. 201.6, remove the words ``section 401 or section 418 of

the Act'' and add, in their place, the words ``section 41102 or section

41103 of the Statute''.

Sec. 201.7 [Amended]

8. In Sec. 201.7(a), remove the words ``title IV of the Act'' and

add, in its place, the word ``Statute''; remove the words ``section

401(g) of the Act'' and add, in their place, the words ``section 41110

of the Statute''.

9. In Sec. 201.7(d), remove the word ``service'' and add, in its

place, the word ``transportation''; remove the word ``domestic'' and

add, in its place, the word ``interstate''.

10. In Sec. 201.7(e), remove the words ``Regulatory Analysis

Division'' and add, in their place, the words ``Special Authorities

Division''.

PART 203--[AMENDED]

11. The authority citation for part 203 is revised to read as

follows:

Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417.

Sec. 203.3 [Amended]

12. In Sec. 203.3, remove the words ``Regulatory Analysis

Division'' and add, in their place, the words ``Special Authorities

Division''.

PART 204--[AMENDED]

13. The authority citation for part 204 is revised to read as

follows:

Authority: 49 U.S.C. Chapters 401, 411, 417.

Sec. 204.1 [Amended]

14. In Sec. 204.1 remove the word ``point'' and add, in its place,

the word ``place''.

15. and 16. In Sec. 204.2, paragraphs (a), (f), and (i) are

removed; paragraphs (e), (k), (l), (m), (n), and (o) are redesignated

paragraphs (d), (i), (j), (k), (l), and (m), respectively; paragraphs

(b), (c), (d), (g), (h), and (j) are redesignated paragraphs (a), (b),

(c), (e), (f), and (g), respectively, and revised and paragraph (h) is

added to read as follows:

Sec. 204.2 Definitions.

* * * * *

(a) All-cargo air carrier or section 41103 carrier means an air

carrier holding an all-cargo air transportation certificate issued

under section 41103 of the Statute authorizing the transportation by

aircraft in interstate air transportation of only property or only

mail, or both.

(b) Certificate authority means authority to provide air

transportation granted by the Department of Transportation or Civil

Aeronautics Board in the form of a certificate of public convenience

and necessity under section 41102 of the Statute or an all-cargo air

transportation certificate to perform all-cargo air transportation

under section 41103 of the Statute. Certificated carriers are those

that hold certificate authority.

(c) Citizen of the United States means:

(1) An individual who is a citizen of the United States;

(2) A partnership each of whose partners is an individual who is a

citizen of the United States; or

(3) A corporation or association organized under the laws of the

United States or a State, the District of Columbia, or a territory or

possession of the United States, of which the president and at least

two-thirds of the board of directors and other managing officers are

citizens of the United States, and in which at least 75 percent of the

voting interest is owned or controlled by persons that are citizens of

the United States.

* * * * *

(e) Eligible place means a place in the United States that--

(1) Was an eligible point under section 419 of the Federal Aviation

Act of 1958 as in effect before October 1, 1988;

(2) Received scheduled air transportation at any time between

January 1, 1990, and November 4, 1990; and

(3) Is not listed in Department of Transportation Orders 89-9-37

and 89-12-52 as a place ineligible for compensation under Subchapter II

of Chapter 417 of the Statute.

(f) Essential air service is that air transportation which the

Department has found to be essential under

[[Page 43524]]

Subchapter II of Chapter 417 of the Statute.

(g) Fit means fit, willing, and able to perform the air

transportation in question properly and to conform to the provisions of

the Statute and the rules, regulations and requirements issued under

the Statute.

(h) Interstate air transportation means the transportation of

passengers or property by aircraft as a common carrier for

compensation, or the transportation of mail by aircraft--

(1) Between a place in--

(i) A State, territory, or possession of the United States and a

place in the District of Columbia or another State, territory, or

possession of the United States;

(ii) Hawaii and another place in Hawaii through the airspace over a

place outside Hawaii;

(iii) The District of Columbia and another place in the District of

Columbia; or

(iv) A territory or possession of the United States and another

place in the same territory or possession; and

(2) When any part of the transportation is by aircraft.

* * * * *

Sec. 204.3 [Amended]

17. In Sec. 204.3(o), remove the word ``Act'' both times it appears

and add, in its place, the word ``Statute''.

18. The heading of Sec. 204.4 is revised to read as follows:

Sec. 204.4 Carriers proposing to provide essential air service.

Sec. 204.4 [Amended]

19. In Sec. 204.4 introductory text, remove the word

``transportation'' and add, in its place, the word ``service''.

PART 206--[AMENDED]

20. The authority citation for part 206 is revised to read as

follows:

Authority: 49 U.S.C. Chapters 401, 415, 417, 419.

Sec. 206.1 [Amended]

21. In Sec. 206.1, remove the words ``section 401(a) of the Act''

and add, in their place, the words ``section 41101 of the Statute'';

remove the words ``section 403 of the Act'' and add, in their place,

the words ``Chapter 415 of the Statute''.

Sec. 206.2 [Amended]

22. In Sec. 206.2, remove the words ``the first sentence of section

405(b) of the Act'' and add, in their place, the words ``section

41902(b) of the Statute''.

Sec. 206.3 [Amended]

23. In Sec. 206.3, remove the words ``sections 401(a) and 403 of

the Act'' and add, in their place, the words ``section 41101 and

Chapter 415 of the Statute''.

Sec. 206.4 [Amended]

24. In Sec. 206.4, remove the words ``section 403 of the Act'' and

add, in their place, the words ``Chapter 415 of the Statute''.

Sec. 206.5 [Amended]

25. In Sec. 206.5(a) introductory text, remove the words ``section

401 of the Act'' and add, in their place, the words ``section 41102 of

the Statute''; remove the words ``requirements of the Act'' and add, in

their place, the words ``requirements of the Statute''; remove the

words ``section 407 of the Act'' and add, in their place, the words

``section 41708 of the Statute''.

26. In Sec. 206.5(b), remove the words ``section 403 or section

404(b) of the Act'' and add, in their place, the words ``Chapter 415 or

section 41310 of the Statute''.

PART 215--[AMENDED]

27. The authority citation for part 215 is revised to read as

follows:

Authority: 49 U.S.C. Chapters 401, 411, 413, 417.

PART 232--[AMENDED]

28. The authority citation for part 232 is revised to read as

follows:

Authority: 49 U.S.C. Chapters 401, 419.

Sec. 232.1 [Amended]

29. In Sec. 232.1 (a) and (b) introductory text, remove the words

``section 405(b) of the Act'' and add, in their place, the words

``section 41902 of the Statute''.

Sec. 232.4 [Amended]

30. In Sec. 232.4 (a) and (b) introductory text, remove the words

``section 405(b) of the Act'' and add, in their place, the words

``section 41902 of the Statute''.

PART 271--[AMENDED]

31. The authority citation for part 271 is revised to read as

follows:

Authority: 49 U.S.C. Chapters 401, 417.

Secs. 271.3, 271.4, 271.5, 271.6, 271.7, 271.8 [Amended]

32. In Secs. 271.3 introductory text, 271.4(a)(4)(ii), 271.4(b),

271.5(a)(2), 271.7(a), 271.8(a) introductory text, and 271.8(a)(3),

remove the word ``Board'' and add, in its place, the word

``Department''.

Secs. 271.3, 271.4, 271.5, 271.6, 271.8 [Amended]

33. In Secs. 271.3 introductory text, 271.3(c), 271.4(a)

introductory text, 271.4(a)(4), 271.5(a) introductory text, 271.6, and

271.8(c), remove the word ``transportation'' and add, in its place, the

word ``service''.

Secs. 271.3, 271.4, 271.5, 271.6, 271.7, 271.8 [Amended]

34. In Secs. 271.3 introductory text, 271.3(a), 271.3(b), 271.3(c),

271.3(d), 271.4(a) introductory text, 271.4(a)(2)(i), 271.4(a)(4)

introductory test where it appears twice, 271.4(a)(4)(ii), 271.5(a)

introductory text, 271.5(a)(1), 271.5(a)(2), 271.6, 271.7(b)(1),

271.8(a)(1), 271.8(a)(2), 271.8(a)(4), and 271.8(c), remove the word

``point'' and add, in its place, the word ``place''.

35. Section 271.1 is revised to read as follows:

Sec. 271.1 Purpose.

This part establishes the guidelines required by 49 U.S.C. 41736 to

be used by the Department in establishing the fair and reasonable

amount of compensation needed to ensure the continuation of essential

air service to an eligible place under 49 U.S.C. 41731 and 41734. These

guidelines are intended to cover normal carrier selection cases and

rate renewal cases, and not necessarily emergency carrier selection

cases.

36. Section 271.2 is revised to read as follows:

Sec. 271.2 Definitions.

As used in this part:

Eligible place means a place in the United States that--

(1) Was an eligible point under section 419 of the Federal Aviation

Act of 1958 as in effect before October 1, 1988;

(2) Received scheduled air transportation at any time between

January 1, 1990, and November 4, 1990; and

(3) Is not listed in Department of Transportation Orders 89-9-37

and 89-12-52 as a place ineligible for compensation under Subchapter II

of Chapter 417 of the Statute.

Essential air service is that air transportation which the

Department has found to be essential under Subchapter II of Chapter 417

of the Statute.

Sec. 271.4 [Amended]

37. In Sec. 271.4(a)(1)(i), remove the word ``historic'' and add,

in its place, the word ``historical''.

38. Paragraph (a)(2)(ii) of Sec. 271.4 is revised to read as

follows:

Sec. 271.4 Carrier costs.

(a) * * *

(2) * * *

(ii) By comparing the carrier's systemwide indirect operating

expenses

[[Page 43525]]

to those submitted by the carrier for the eligible place; or

* * * * *

39. Paragraph (c) of Sec. 271.4 is removed.

Sec. 271.6 [Amended]

40. In Sec. 271.6, remove the words ``not more than''.

41. In Sec. 271.7, the introductory text of paragraph (b) is

revised to read as follows:

Sec. 271.7 Subsidy payout formula.

(a) * * *

(b) While a carrier's subsidy rate will not vary even if actual

revenues or costs differ from projections, the actual amount of each

payment may vary depending on the following factors:

* * * * *

Sec. 271.7 [Amended]

42. In Sec. 271.7(b)(3), remove the words ``Sec. 271.4(c) or''.

43. In Sec. 271.7, paragraph (c) is removed; paragraph (d) is

redesignated paragraph (c).

Sec. 271.8 [Amended]

44. In Sec. 271.8(a)(5), correct the word ``othe'' to read

``other''.

Sec. 271.9 [Amended]

45. In Sec. 271.9(a)(2), remove the words ``part 379 of this

chapter'' and add, in their place, the words ``49 CFR part 21''.

46. In Sec. 271.9(a)(3), after the number ``1973'' add the

punctuation and words ``, 49 CFR part 27,''.

47. In Sec. 271.9(c), remove the words ``Secs. 379.4 and 382.21''

and add, in their place, the words ``49 CFR parts 20, 21, 27 and 29,

and Sec. 382.21''.

PART 272--ESSENTIAL AIR SERVICE TO THE FREELY ASSOCIATED STATES

48. The heading of part 272 is revised to read as set forth above.

PART 272--[AMENDED]

49. The authority citation for part 272 is revised to read as

follows:

Authority: 49 U.S.C. Chapters 401, 402, 416, 461, 1102; sec.

221(a)(5) of the Compact of Free Association, and paragraph 5 of

Article IX of the Federal Programs and Services Agreement in

implementation of that Compact (Pub. L. 99-239; Pub. L. 99-658);

Pub. L. 101-219.

Secs. 272.1-272.10, 272.12 [Amended]

50. In Secs. 272.1 where it occurs the second time, 272.2 where it

occurs twice, 272.3 section title, 272.3(a), 272.4, 272.5 section

title, 272.5(a), 272.5(b), 272.6 section title, 272.6(a) introductory

text, 272.6(b) where it occurs the first time, 272.6(c), 272.7(a)(1),

272.7(a)(2) where it occurs twice, 272.8(a) where it occurs three

times, 272.8(c), 272.8(d), 272.9 section title, 272.9(a) where it

occurs twice, 272.9(b) where it occurs twice, 272.9(c), 272.9(d),

272.9(e), 272.9(f) introductory text, 272.9(f)(1), 272.9(f)(2) where it

occurs twice, 272.9(g), 272.9(h) introductory text, 272.9(h)(2),

272.9(h)(3), 272.9(h)(5)(i) where it occurs twice, 272.10(a)

introductory text, 272.10(a)(1), 272.10(b), 272.10(c), and 272.12 first

paragraph, remove the word ``transportation'' or ``Transportation'' and

add, in its place, the word ``service''.

Secs. 272.1-272.3, 272.5-272.9 [Amended]

51. In Secs. 272.1, 272.2 where it occurs twice, 272.3 section

title, 272.3(a), 272.3(b) where it occurs twice, and 272.5(a), remove

the word ``points'' and add, in its place, the word ``places''; in

Secs. 272.6(a) introductory text, 272.7(a) introductory text where it

occurs twice, 272.7(a)(1), 272.7(a)(2), 272.8(a) where it occurs five

times, 272.8(c) where it occurs twice, 272.8(d), 272.9(a) where it

occurs twice, 272.9(b) where it occurs twice, 272.9(c), remove the word

``point'' and add, in its place, the word ``place''.

Secs. 272.2, 272.6 [Amended]

52. In Secs. 272.2 and 272.6(b), remove the initial capitalization

from the words ``Essential Air''.

53. The title of Sec. 272.4 is revised to read as follows:

Sec. 272.4 Applicability of procedures and policies under 49 U.S.C.

41731-42.

Sec. 272.4 [Amended]

54. In Sec. 272.4, remove the words ``section 419 of the Federal

Aviation Act'' and add, in their place, the words ``49 U.S.C. 41731-

42.''.

Sec. 272.5 [Amended]

55. In Sec. 272.5, paragraph (a) is removed; the paragraph

designation ``(b)'' in paragraph (b) is removed; in formerly designated

paragraph (b), remove the words ``section 419(f)'' and add, in their

place, the words ``49 U.S.C. 41737''; remove the words ``Sec. 325.7

(except Secs. 325.7(a)(2) and 325.7(b)(9));''.

Sec. 272.8 [Amended]

56. In Sec. 272.8(b), remove the number ``324'' and add, in its

place, the number ``271''.

PART 291--CARGO OPERATIONS IN INTERSTATE AIR TRANSPORTATION

57. The heading of part 291 is revised to read as set forth above.

58. The authority citation for part 291 is revised to read as

follows:

Authority: 49 U.S.C. Chapters 401, 411, 415, 417.

59. Section 291.1 is revised to read as follows:

Sec. 291.1 Applicability.

This part applies to cargo operations in interstate air

transportation by air carriers certificated under section 41102 or

41103 of the Statute. It also applies to applicants for an all-cargo

air transportation certificate under section 41103 of the Statute.

60. Section 291.2 is revised to read as follows:

Sec. 291.2 Definitions.

All-cargo air transportation means the transportation by aircraft

in interstate air transportation of only property or only mail, or

both.

Interstate air transportation means the transportation of

passengers or property by aircraft as a common carrier for

compensation, or the transportation of mail by aircraft--

(1) Between a place in--

(i) A State, territory, or possession of the United States and a

place in the District of Columbia or another State, territory, or

possession of the United States;

(ii) Hawaii and another place in Hawaii through the airspace over a

place outside Hawaii;

(iii) The District of Columbia and another place in the District of

Columbia; or

(iv) A territory or possession of the United States and another

place in the same territory or possession; and

(2) When any part of the transportation is by aircraft.

Section 41102 carrier means an air carrier certificated under

section 41102 of the Statute to transport persons, property and mail or

property and mail only.

Section 41103 carrier means an air carrier holding a certificate

issued under section 41103 of the Statute to provide all-cargo air

transportation.

61. The title of Subpart B is revised to read as follows:

Subpart B--All-Cargo Air Transportation Certificates

62. The title of Subpart C is revised to read as follows:

Subpart C--General Rules for All-Cargo Air Transportation

63. Section 291.20 is revised to read as follows:

[[Page 43526]]

Sec. 291.20 Applicability.

The rules in this subpart apply to cargo operations in interstate

air transportation performed by air carriers certificated under

sections 41102 or 41103 of the Statute. Section 41103 carriers that

operate passenger-only or combination aircraft under section 41102,

part 298 of this chapter, or other Department authority, must comply

with the rules in this subpart in connection with cargo operations in

interstate air transportation, whether provided on all-cargo or

combination aircraft, operated pursuant to this authority or otherwise.

In case a carrier may operate a particular flight under either a

section 41102 certificate or a section 41103 certificate, the flight is

presumed to be operated under the carrier's section 41103 authority.

Sec. 291.22 [Amended]

64. In Sec. 291.22, remove the words ``all-cargo air service in

domestic cargo transportation'' and add, in their place, the words

``all-cargo air transportation''.

Sec. 291.23 [Amended]

65. In Sec. 291.23(a), remove the words ``domestic cargo'' and add,

in their place, the words ``interstate air''; remove the word ``Board''

and add, in its place, the word ``Department''.

66. In Sec. 291.23(b), remove the words ``domestic cargo'' and add,

in their place, the words ``interstate air''.

Sec. 291.24 [Amended]

67. In Sec. 291.24, remove the words ``domestic cargo'' where they

appear twice, and add, in place of the first occurrence, the words

``cargo operations in interstate air'', and add, in place of the second

occurrence, the words ``interstate air''.

68. The title of Subpart D is revised to read as follows:

Subpart D--Exemptions for Cargo Operations in Interstate Air

Transportation

Sec. 291.30 [Amended]

69. In Sec. 291.30, remove the words ``domestic cargo'' and add, in

their place, the words ``cargo operations in interstate air''.

70. Section 291.31 is revised to read as follows:

Sec. 291.31 Exemptions from the Statute.

(a) Each section 41102 or 41103 air carrier providing cargo

operations in interstate air transportation is, with respect to such

transportation, exempted from the following portions of the Statute

only if and so long as it complies with the provisions of this part and

the conditions imposed herein, and to the extent necessary to permit it

to conduct cargo operations in interstate air transportation:

(1) Sections 41310, 41705,

(2) Chapter 415, and

(3) Chapter 419 for all-cargo operations under section 41103.

(b) Each air carrier providing cargo operations in interstate air

transportation under section 41103 of the Statute is exempted from the

provisions of section 41106(a) of the Statute to the extent necessary

to permit it to compete for and operate cargo charters in interstate

air transportation for the Department of Defense under contracts of

more than 30 days' duration.

(c) The Department of Defense is exempted from section 41106(a) of

the Statute to the extent necessary to permit it to negotiate and enter

into contracts of more than 30 days' duration with any section 41103

carrier for operation of cargo charters in interstate air

transportation.

Secs. 291.32, 291.33, 291.34 [Removed]

71. Sections 291.32, 291.33 and 291.34 are removed.

Sec. 291.41 [Amended]

72. In Sec. 291.41(a), remove the words ``domestic cargo'' and add,

in their place, the words ``cargo operations in interstate air'';

remove the words ``section 401'' and add, in their place, the words

``section 41102''.

73. In Sec. 291.41(b), remove the words ``domestic cargo'' and add,

in their place, the words ``cargo operations in interstate air'';

remove the words ``section 418'' and add, in their place, the words

``section 41103''.

74. Section 291.41(c), remove the word ``domestic cargo'' where it

appears twice, and add, in their place, the words ``cargo operations in

interstate air''; remove the words ``section 418'' and add, in their

place, the words ``section 41103''.

75. The title of Sec. 291.42 is revised to read as follows:

Sec. 291.42 Section 41103 financial and statistical reporting.

76. In Sec. 291.42(a)(1), remove the words ``section 418'' where

they appear twice, and add, in their place, the words ``section

41103''.

77. In Sec. 291.42(b) introductory text, remove the words ``section

418'' and add, in their place, the words ``section 41103''.

78. Section 291.50 is revised to read as follows:

Sec. 291.50 Enforcement.

In case of any violation of any of the provisions of the Statute,

or this part, or any other rule, regulation, or order issued under the

Statute, the violator may be subject to a proceeding pursuant to

section 46101 of the Statute before the Department, or sections 46106

through 46108 of the Statute before a U.S. District Court, as the case

may be, to compel compliance therewith; or to civil penalties pursuant

to the provisions of section 46301 of the Statute.

PART 294--[AMENDED]

79. The authority citation for part 294 is revised to read as

follows:

Authority: 49 U.S.C. Chapters 401, 417.

Sec. 294.1 [Amended]

80. In Sec. 294.1, remove the words ``Federal Aviation Act'' and

add, in their place, the words ``Subtitle VII of Title 49 of the United

States Code (Transportation)''; remove the words ``provisions of the

Act'' and add, in their place, the words ``provisions of the Statute''.

Sec. 294.2 [Amended]

81. In Sec. 294.2, remove paragraph (a); paragraphs (b) through (j)

are redesignated paragraphs (a) through (i).

Sec. 294.10 [Amended]

82. In Sec. 294.10 introductory text, remove the word ``Act'' and

add, in its place, the word ``Statute''.

83. In Sec. 294.10(a), remove the words ``Section 402'' and add, in

their place, the words ``section 41302''.

84. In Sec. 294.10(b), remove the words ``Section 404(a)(2)'' and

add, in their place, the words ``section 41501''.

85. In Sec. 294.10(c), remove the words ``Section 404(b)'' and add,

in their place, the words ``section 41310''.

Secs. 294.20, 294.21, 294.22, 294.40 [Amended]

86. In Secs. 294.20 introductory text, 294.20(b), 294.21(b),

294.21(e)(1), 294.22 introductory text, and 294.40, remove the words

``Regulatory Analysis Division'' and add, in their place, the words

``Special Authorities Division''.

Sec. 294.30 [Amended]

87. In Sec. 294.30(c), remove the words ``section 402 of the Act'';

and add, in their place, the words ``section 41302 of the Statute'';

remove the words ``section 416 of the Act'' and add, in their place,

the words ``section 41701 of the Statute''; remove the words ``section

402'' and add, in their place, the words ``section 41302''.

Sec. 294.50 [Amended]

88. In Sec. 294.50(b), remove the words ``section 402'' and add, in

their place, the words ``section 41302''.

[[Page 43527]]

Sec. 294.70 [Amended]

89. In Sec. 294.70, remove the word ``Act'' the first two times it

occurs and add, in its place, the word ``Statute''; remove the words

``sections 1002 and 1007 of the Act before the Department or'' and add,

in their place, the words ``section 46101 of the Statute before the

Department, or sections 46106 through 46108 of the Statute before'';

remove the words ``section 901(a) of the Act'' and add, in their place,

the words ``section 46301 of the Statute''; remove the words ``section

902(a) of the Act'' and add, in their place, the words ``section 46316

of the Statute''.

PART 296--[AMENDED]

90. The authority citation for part 296 is revised to read as

follows:

Authority: 49 U.S.C. Chapters 401, 417.

Sec. 296.1 [Amended]

91. In Sec. 296.1, remove the words ``Federal Aviation Act'' and

add, in their place, the words ``Subtitle VII of Title 49 of the United

States Code (Transportation)''.

92. The title of Sec. 296.10 is revised to read as follows:

Sec. 296.10 Exemption from the Statute.

Sec. 296.10 [Amended]

93. In Sec. 296.10(a) introductory text, remove the words ``Title

IV of the Act'' and add, in their place, the words ``the Statute''.

94. In Sec. 296.10(a)(1), remove the words ``Subsection 403(b)(2)''

and add, in their place, the words ``Section 41510(b)''; remove the

words ``section 403(b)(2)'' and add, in their place, the words

``section 41510(b)''.

95. In Sec. 296.10(a)(2), remove the words ``Section 404(a)'' and

add, in their place, the words ``Section 41702''.

96. In Sec. 296.10(a)(3), remove the words ``Subsection 404(b)''

and add, in their place, the words ``Section 41310''.

97. In Sec. 296.10(a)(4), remove the words ``Section 407(a)'' and

``407(e)'' and add, in their place, the words ``Section 41708'' and

``41709'', respectively.

98. In Sec. 296.10(a)(5), remove the words ``Section 411'' and add,

in their place, the words ``Section 41712''.

99. In Sec. 296.10(a)(6), remove the words ``Section 413'' and add,

in their place, the words ``Section 40102(b)''.

100. In Sec. 296.10(a)(7), remove the words ``Section 415'' and

add, in their place, the words ``Section 41711''.

101. In Sec. 296.10(d), remove the words ``section 403 of the Act''

and add, in their place, the words ``Chapter 415 of the Statute''.

Sec. 296.20 [Amended]

102. In Sec. 296.20, remove the word ``Act'' the first two times it

occurs and add, in its place, the word ``Statute''; remove the words

``sections 1002 and 1007 of the Act before the Department or'' and add,

in their place, the words ``section 46101 of the Statute before the

Department, or sections 46106 through 46108 of the Statute before'';

remove the words ``section 901(a) of the Act'' and add, in their place,

the words ``section 46301 of the Statute''.

PART 297--[AMENDED]

103. The authority citation for part 297 is revised to read as

follows:

Authority: 49 U.S.C. Chapters 401, 417.

Sec. 297.1 [Amended]

104. In Sec. 297.1, remove the words ``the Act'' and add, in its

place, the words ``Subtitle VII of Title 49 of the United States Code

(Transportation)''; remove the punctuation and word ``, overseas,''.

Sec. 297.2 [Amended]

105. In Sec. 297.2, remove the words ``and overseas''.

106. The title of Sec. 297.10 is revised to read as follows:

Sec. 297.10 Exemption from the Statute.

Sec. 297.10 [Amended]

108. In Sec. 297.10(a) introductory text, remove the words ``the

Act'' and add, in their place, the words ``the Statute''.

109. In Sec. 297.10(a)(1), remove the words ``Section 402'' and

add, in their place, the words ``Section 41302''.

110. In Sec. 297.10(a)(2), remove the words ``Section 403(a) and

403(b)(1)'' and add, in their place, the words ``Sections 41504 and

41510(a)''.

111. In Sec. 297.10(a)(3), remove the words ``Section 403(b)(2)''

and add, in their place, the words ``Section 41510(b)''.

112. In Sec. 297.10(a)(4), remove the words ``Subsection

404(a)(2)'' and add, in their place, the words ``Section 41501''.

113. In Sec. 297.10(a)(5), remove the words ``or overseas'' where

they appear twice; remove the word ``Act'' and add, in its place, the

word ``Statute''.

114. In Sec. 297.10(a)(6), remove the words ``Subsection 404(b)''

and add, in their place, the words ``Section 41310''.

115. In Sec. 297.10(b), remove the words ``section 403 of the Act''

and add, in their place, the words ``Chapter 415 of the Statute''.

Sec. 297.12 [Amended]

116. In Sec. 297.12(a), remove the words ``section 401, 402, 416,

or 418 of the Act'' and add, in their place, the words ``section 41102,

41103, 41302, or 41701 of the Statute''.

117. In Secs. 297.12(b) and 297.12(c), remove the words ``and

overseas''.

Secs. 297.20, 297.21, 297.24 [Amended]

118. In Secs. 297.20(b) (two occurrences), 297.21, and 297.24(a),

remove the words ``Regulatory Analysis Division'', and add, in their

place, the words ``Special Authorities Division''.

Sec. 297.22 [Amended]

119. In Sec. 297.22(e), remove the words ``section 402 of the Act''

and add, in their place, the words ``section 41302 of the Statute''.

Sec. 297.50 [Amended]

120. In Sec. 297.50, remove the word ``Act'' the first two times it

occurs and add, in its place, the word ``Statute''; remove the words

``sections 1002 and 1007 of the Act before the Department or'' and add,

in their place, the words ``section 46101 of the Statute before the

Department, or sections 46106 through 46108 of the Statute before'';

remove the words ``section 901(a) of the Act'' and add, in their place,

the words ``section 46301 of the Statute''; remove the words ``section

902(a) of the Act'' and add, in their place, the words ``section 46316

of the Statute''.

PART 298--EXEMPTIONS FOR AIR TAXI AND COMMUTER AIR CARRIER

OPERATIONS

121. The heading of part 298 is revised to read as set forth above.

122. The authority citation for part 298 is revised to read as

follows:

Authority: 49 U.S.C. Chapters 401, 411, 417.

Sec. 298.1 [Amended]

123. In Sec. 298.1, remove the words ``Title IV of the Federal

Aviation Act'' and add, in their place, the words ``Subtitle VII of

Title 49 of the United States Code (Transportation)''; before the words

``air transportation'' add the words ``interstate and/or foreign'';

remove footnote 1.

124. In Sec. 298.2, paragraph (a) is removed; paragraphs (b)

through (x) are redesignated paragraphs (a) through (w); newly

designated paragraphs (b), (d-1), and (d-2), are revised to read as

follows:

Sec. 298.2 Definitions.

* * * * *

(b) Air Transportation means interstate air transportation, foreign

air transportation, or the transportation of

[[Page 43528]]

mail by aircraft as defined by the Statute.\1\

\1\ ``Interstate air transportation'' is defined in section

40102(a)(25) as the transportation of passengers or property by

aircraft as a common carrier for compensation, or the transportation

of mail by aircraft (1) between a place in (i) a State, territory,

or possession of the United States and a place in the District of

Columbia or another State, territory, or possession of the United

States; (ii) Hawaii and another place in Hawaii through the airspace

over a place outside Hawaii; (iii) the District of Columbia and

another place in the District of Columbia; or (iv) a territory or

possession of the United States and another place in the same

territory or possession; and (2) when any part of the transportation

is by aircraft. NOTE: Operations wholly within the geographic limits

of a single State are not considered ``interstate air

transportation'' if in those operations the carrier transports no

more than a de minimus volume of passengers or property moving as

part of a continuous journey to or from a point outside the State.

``Foreign air transportation'' is defined in section

40102(a)(23) of the Statute as the transportation of passengers or

property by aircraft as a common carrier for compensation, or the

transportation of mail by aircraft, between a place in the United

States and a place outside the United States when any part of the

transportation is by aircraft.

Air transportation also is defined to include ``the

transportation of mail by aircraft.'' Section 5402 of the Postal

Reorganization Act, 39 U.S.C. 5402, authorizes the carriage of mail

by air taxi operators in some circumstances under contract with the

Postal Service.

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

* * * * *

(d-1) All-cargo air carrier or section 41103 carrier means an air

carrier holding an all-cargo air transportation certificate issued

under section 41103 of the Statute authorizing the transportation by

aircraft in interstate air transportation of only property or only

mail, or both.

(d-2) Certificated carrier means an air carrier holding a

certificate issued under section 41102 of the Statute.

* * * * *

Sec. 298.2 [Amended]

125. In newly designated Sec. 298.2(w), remove the words ``section

401 of the Act'' and add, in their place, the words ``section 41102 of

the Statute''.

Secs. 298.11, 298.13 [Amended]

126. In Secs. 298.11 introductory text and 298.13, remove the words

``Title IV of the Act'' and add, in their place, the words ``the

Statute''.

127. In Sec. 298.11(a), remove the words ``Section 401(a)'' and

add, in their place, the words ``Section 41101''.

128. In Sec. 298.11(b)(1), remove the words ``Section 403'' and

add, in their place, the words ``Section 41504''; remove the words

``section 403 of the Act'' and add, in their place, the words ``Chapter

415''.

129. In Sec. 298.11(c) introductory text, remove the words

``Section 404(a)'' and add, in their place, the words ``Section

41702''.

130. In Sec. 298.11(d), remove the words ``Section 404(b)'' and

add, in their place, the words ``section 41310''.

131. In Sec. 298.11(e), remove the words ``Section 405(b)'' and

add, in their place, the words ``Section 41902''.

132. In Sec. 298.11(f), remove the words ``Sections 407(b), (c),

and (d)'' and add, in their place, the words ``Section 41708''.

Sec. 298.21 [Amended]

133. In Sec. 298.21, paragraph (c)(1) footnote 6 and paragraph

(c)(4), remove the words ``Regulatory Analysis Division'' and add, in

their place, the words ``Special Authorities Division''.

134. In Sec. 298.21(d), after the words ``scheduled passenger

service'' add the words ``as a commuter air carrier''; remove the word

``point'' and add, in its place, the word ``place''.

Sec. 298.36 [Amended]

135. In Sec. 298.36(a), remove the words ``section 604 of the Act''

and add, in their place, the words ``section 44702 of the Statute''.

Sec. 298.62 [Amended]

136. In Sec. 298.62(c)(1), remove the words ``section 419 of the

Federal Aviation Act'' and add, in their place, the words ``section

41732 of the Statute''.

Sec. 298.80 [Amended]

137. In Sec. 298.80, remove the word ``Act'' the first two times it

occurs, and add, in its place, the word ``Statute''; remove the words

``sections 1002 and 1007 of the Act before the Department or'' and add,

in their place, the words ``section 46101 of the Statute before the

Department, or sections 46106 through 46108 of the Statute before'';

remove the words ``section 901(a) of the Act'' and add, in their place,

the words ``section 46301 of the Statute''; remove the words ``section

902(a) of the Act'' and add, in their place, the words ``section 46316

of the Statute''.

PART 300--[AMENDED]

138. The authority citation for part 300 is revised to read as

follows:

Authority: 18 U.S.C. 20(b)(c); 49 U.S.C. Subtitle I and Chapters

401, 411, 413, 415, 417, 419, 449, 461, 463.

Sec. 300.0 [Amended]

139. In Sec. 300.0, remove the words ``resulting from the transfer

of authority under Section 1601(b)(1) of the Federal Aviation Act of

1958, as amended by the Civil Aeronautics Board Sunset Act of 1984''

and add, in their place, the words ``involving aviation economic and

enforcement proceedings''.

Sec. 300.1 [Amended]

140. At the beginning of Sec. 300.1, remove the words ``Under the

transfer of authority under section 1601(b)(1) of the Federal Aviation

Act of 1958, certain of DOT's functions'' and add, in their place, the

words ``Certain of DOT's functions involving aviation economic and

enforcement proceedings''.

Secs. 300.2, 300.3 [Amended]

141. In Secs. 300.2(c)(8) and 300.3(a)(5), remove the words

``section 419 of the Federal Aviation Act, 49 U.S.C. 1389'' and add, in

their place, the words ``49 U.S.C. 41731-42.''.

Sec. 300.4 [Amended]

142. In Sec. 300.4(c), remove the words ``sections 401 or 402 of

the Act'' and add, in their place, the words ``49 U.S.C. 41102 and

41302''.

Sec. 300.10 [Amended]

143. In Sec. 300.10, remove the words ``or the Civil Aeronautics

Board'' where they appear in the title and in the text of the section.

Sec. 300.10a [Amended]

144. At the beginning of Sec. 300.10a, remove the words ``Due to

the transfer of authority under 1601(b)(1) of the Federal Aviation Act

of 1958, the'' and add, in their place, the word ``The''.

Sec. 300.14 [Amended]

145. In Sec. 300.14, remove the words ``Civil Aeronautics Board

members and employees and'' in the title of the section; remove the

words ``the Board or'', and ``Board member or Board employee or'' in

the text of the section.

146. Section 300.20(d) is revised to read as follows:

Sec. 300.20 Violations.

* * * * *

(d) In the case of any violation of the provisions of this part,

the violator may be subject to civil penalties under the provisions of

49 U.S.C. 46301. The violator may also be subject to a proceeding

brought under 49 U.S.C. 46101 before the Department, or sections 46106

through 46108 of the Statute before a U.S. District Court, as the case

may be, to compel compliance with civil penalties which have been

imposed.

PART 313--[AMENDED]

147. The authority citation for part 313 is revised to read as

follows:

Authority: 42 U.S.C. 6362(b), 49 U.S.C. Chapter 401.

Secs. 313.1, 313.2, 313.7 [Amended]

148. In Secs. 313.1(c), 313.2(d) and 313.7(b), remove the word

``EPCA'' and

[[Page 43529]]

add, in its place, the words ``42 U.S.C. 6362''.

Sec. 313.1 [Amended]

149. In Sec. 313.1(a), remove the words ``The Energy Policy and

Conservation Act (42 U.S.C. 6201 et seq., hereinafter ``EPCA'')'' and

add, in their place, the words ``Chapter 77 (Energy Conservation) of

Title 42 (The Public Health and Welfare);'' remove the words ``section

382 of EPCA'' and ``Section 382(b) of EPCA'' and add, in their place,

the words ``42 U.S.C. 6362'' and ``42 U.S.C. 6362(b)'', respectively.

150. In Sec. 313.1(b), remove the words ``Section 204(a) of the

Federal Aviation Act of 1958, as amended (hereinafter ``Act'')'' and

add, in their place, the words ``Section 40113 of Subtitle VII of Title

49 of the United States Code (Transportation) (``the Statute'')'';

remove the word ``Act'' at the end of the paragraph, and add, in its

place, the word ``Statute''.

Sec. 313.2 [Amended]

151. In Sec. 313.2(a), remove the word ``EPCA'' and add, in its

place, the words ``Chapter 77 of Title 42''; remove the words ``section

102 of the Federal Aviation Act (49 U.S.C. 1302)'' and add, in their

place, the words ``section 40101 of the Statute''; remove the word

``Act'' in the last sentence and add, in its place, the word

``Statute''.

152. In Sec. 313.2(d), remove the word ``Act'' and add, in its

place, the word ``Statute''.

153. In Sec. 313.3, paragraphs (a) and (d) are removed; paragraphs

(b), (c), (e), and (f) are redesignated paragraphs (a), (b), (c), and

(d); new paragraph (e) is added to read as follows:

Sec. 313.3 Definitions.

* * * * *

(e) Statute means Subtitle VII of Title 49 of the United States

Code (Transportation).

154. Paragraph (b)(1) of Sec. 313.4 is revised to read as follows:

Sec. 313.4 Major regulatory actions.

* * * * *

(b) * * *

(1) Tariff suspension orders under section 41509 of the Statute,

emergency exemptions or temporary exemptions not exceeding 24 months

under section 40109 of the Statute and other proceedings in which

timely action is of the essence;

* * * * *

155. In Sec. 313.4(c)(1), remove the word ``Act'' and add, in its

place, the word ``Statute''.

Sec. 313.7 [Amended]

156. In Sec. 313.7(a), remove the words ``detailed environmental

negative declaration'' and add, in their place, the words ``finding of

no significant impact''; remove the words ``Procedural Regulations''

and add, in their place, the word ``procedures''; remove the words

``procedures of DOT's NEPA regulations'' and add, in their place, the

words ``DOT's NEPA procedures''.

PART 324--[REMOVED]

157. Part 324 is removed.

PART 325--[AMENDED]

158. The authority citation for part 325 is revised to read as

follows:

Authority: 49 U.S.C. Chapters 401, 417.

Secs. 325.7, 325.8, 325.9 [Removed]

159. Sections 325.7, 325.8, and 325.9 are removed.

PART 372--[AMENDED]

160. The authority citation for part 372 is revised to read as

follows:

Authority: 49 U.S.C. Chapters 401, 411, 413, 417.

Sec. 372.1 [Amended]

161. In Sec. 372.1, remove the words ``section 401 of the Act'' and

add, in their place, the words ``section 41102 of Title 49 of the

United States Code (``the Statute'')''.

Sec. 372.2 [Amended]

162. In Sec. 372.2 definition of Overseas military personnel

charter operator, remove the words ``section 101(13) of the Federal

Aviation Act (49 U.S.C. 1301(13))'' and add, in their place, the words

``section 40102(a)(15) of the Statute''.

163. In Sec. 372.2, add a definition at the end of the section to

read as follows:

Sec. 372.2 Definitions.

* * * * *

Statute when used in this chapter means Subtitle VII of Title 49 of

the United States Code (Transportation).

Sec. 372.4 [Amended]

164. In Sec. 372.4, remove the word ``Act'' the first two times it

occurs, and add, in its place, the word ``Statute''; remove the words

``sections 1002 and 1007 of the Act before the Department or'' and add,

in their place, the words ``section 46101 of the Statute before the

Department, or sections 46106 through 46108 of the Statute before'';

remove the words ``section 901(a) of the Act'' and add, in their place,

the words ``section 46301 of the Statute''; remove the words ``section

902(a) of the Act'' and add, in their place, the words ``section 46316

of the Statute''.

Sec. 372.10 [Amended]

165. In Sec. 372.10, remove the words ``section 401 of the Act''

and add, in their place, the words ``section 41102 of the Statute''.

Sec. 372.30 [Amended]

166. In Sec. 372.30(a), remove the words ``Regulatory Analysis

Division'' and add, in their place, the words ``Special Authorities

Division''.

Appendix A to Part 372 [Amended]

167. In the ninth paragraph of Appendix A, which begins with the

words ``This bond is effective on . . .'', remove the opening quotation

marks and the words ``Regulatory Analysis Division (P-57)'' and add, in

their place, the words ``Special Authorities Division (X-57)'' with no

quotation marks.

PART 379--[REMOVED]

168. Part 379 is removed.

169. and 170. Part 398 is revised to read as follows:

PART 398--GUIDELINES FOR INDIVIDUAL DETERMINATIONS OF BASIC

ESSENTIAL AIR SERVICE

Sec.

398.1 Purpose.

398.2 Number and designation of hubs.

398.3 Specific airports.

398.4 Equipment.

398.5 Frequency of flights.

398.6 Seat guarantees.

398.7 Timing of flights.

398.8 Number of intermediate stops.

398.9 Load factor standards.

398.10 Overflights.

398.11 Funding reductions.

Authority: 49 U.S.C. Chapters 401, 417; Airport and Airway

Safety and Capacity Expansion Act of 1987 (Pub. L. 100-223, Dec. 30,

1987).

Sec. 398.1 Purpose.

The purpose of this part is to establish general guidelines for the

determination of basic essential air service for each eligible place

under 49 U.S.C. 41731 and 41732. Procedures for the determination of

the essential air service level for a place are contained in part 325

of this chapter.

Sec. 398.2 Number and designation of hubs.

(a) What is a hub? The Department considers hubs as belonging to

any one of three classifications:

(1) A large hub is a place accounting for at least 1.00 percent of

the total enplanements in the United States;

(2) A medium hub is a place accounting for at least 0.25 percent

but less than 1.00 percent of the total enplanements in the United

States; and

[[Page 43530]]

(3) A small hub is a place accounting for at least 0.05 percent but

less than 0.25 percent of the total enplanements in the United States.

(b) How many hubs? (1) As a general matter, the Department will

require service to one large or medium hub.

(2) In Alaska or when the nearest large or medium hub is more than

400 miles from the eligible place, the Department may instead require

service to a small hub or nonhub.

(3) In some cases, the Department may require service to two hubs,

of which at least one will be a large or medium hub. The Department

will require service to two hubs if an eligible place has close

commercial, geographic, and political ties to both hubs and if there is

sufficient traffic from the eligible place to support two round trips a

day to both hubs. If traffic is not sufficient, the Department may

require one round trip a day to both hubs if the community requests

such service.

(4) In no event will essential air service consist of service to

more than two hubs.

(c) Which hub? (1) In designating hubs, the Department will weigh

all of the following factors:

(i) The extent to which candidate hubs provide access to the

national air transportation system;

(ii) The commercial, geographic, and political ties of candidate

hubs to the eligible place;

(iii) The traffic levels to candidate hubs, as shown by traffic

studies and origin and designation data;

(iv) The distance of candidate hubs from the eligible place; and

(v) The size of candidate hubs. Large size will be a positive

factor, but principally as substantiating the access and community-ties

factors.

(2) For Alaska, rather than requiring service to a hub, the

Department may instead require that service from an eligible place be

provided to a nearby focal point for traffic which, in turn, has

service to a hub.

Sec. 398.3 Specific airports.

(a) At an eligible place, essential air service may be specified as

service to a particular airport. In the case of hyphenated places,

essential air service will be specified as service to more than one

airport only if clearly necessary and if the multi-airport service is

economically feasible and justified on the basis of traffic levels at

those airports.

(b) At a hub, essential air service is not usually specified as

service to a particular airport.

Sec. 398.4 Equipment.

(a) Except in Alaska, service will be provided by aircraft offering

at least 15 passenger seats, unless:

(1) Average daily enplanements at the place did not exceed 11

passengers for any fiscal year from 1976 through 1986;

(2) The requirement would necessitate the payment of compensation

in a fiscal year for service at the place when compensation would

otherwise not be necessary; or

(3) The affected community agrees in writing to the use of smaller

aircraft to provide service at the place.

(b) The aircraft must have at least two engines and use two pilots,

unless scheduled air transportation has not been provided to the place

in aircraft with at least two engines and using two pilots for at least

60 consecutive operating days at any time since October 31, 1978.

(c) The aircraft must be pressurized when the service regularly

involves flights above 8,000 feet in altitude.

(d) All aircraft must meet the applicable safety standards of the

Federal Aviation Administration.

(e) The aircraft must be conveniently accessible to passengers by

stairs rather than over the wing.

Sec. 398.5 Frequency of flights.

(a) Except in Alaska, at least two round trips each weekday and two

round trips each weekend.

(b) In Alaska, a level of service at least equal to that provided

in 1976, or two round trips each week, whichever is greater, except

that the Department and the appropriate State authority of Alaska may

agree to a different level of service after consulting with the

affected community.

(c) An essential air service level may be set at more than that

stated in paragraphs (a) and (b) of this section if:

(1) Historical traffic data and studies of traffic-generating

potential for the place indicate that more frequent service is needed

to accommodate passengers and accompanying baggage with the aircraft

used at that place;

(2) More flights are needed because the capacity available to the

eligible place is being shared with traffic destined for an

intermediate stop or for a place beyond the eligible place;

(3) More flights are needed to accommodate passengers because

smaller aircraft are being used at the place;

(4) More flights are needed in order to ensure adequate connecting

opportunities as provided for by Sec. 398.7; or

(5) For Alaska, the appropriate state agency agrees that more

frequent service is needed to accommodate cargo traffic with the

aircraft used at the eligible place.

(d) For eligible places where traffic levels vary substantially

with the season, a two-tier level of essential air service may be

established with required flight frequencies changing accordingly.

Sec. 398.6 Seat guarantees.

(a) The number of seats guaranteed at the eligible place will be

sufficient to accommodate the estimated passenger traffic at an average

load factor of 60 percent, except that an average load factor of 50

percent will be used when service is provided with aircraft having

fewer than 15 passenger seats.

(b) Only under unusual circumstances will an eligible place's

essential air service level be set at a number of flights that will

accommodate more than 40 passengers a day in each direction (a total of

80 inbound and outbound passengers). Generally, 40 passengers can be

accommodated by guaranteeing 67 seats a day in each direction (a total

of 134 inbound and outbound seats).

(c) The Department may guarantee an eligible place more than 67

seats a day if:

(1) The number of stops between or beyond the eligible place and

the hub results in available aircraft capacity being shared with

passengers at those other places;

(2) The distance between the eligible place and the designated hub

requires the use of large aircraft;

(3) The eligible place has suffered an abrupt and significant

reduction in its service that warrants a temporary increase in the

maximum guaranteed capacity; or

(4) Other unusual circumstances warrant guaranteeing the eligible

place more than 67 seats a day.

Sec. 398.7 Timing of flights.

To qualify as essential air service, flights must depart at

reasonable times, considering the needs of passengers with connecting

flights at the hub. It is the policy of the Department to consider the

reasonableness of the time in view of the purpose for which the local

passengers are traveling. If travel is primarily to connect with other

flights at the hub, local flight times should be designed to link with

those flights. If travel is primarily local (i.e., to and from the

hub), there should be at least one morning flight in each direction and

one late-afternoon or evening flight in each direction.

Sec. 398.8 Number of intermediate stops.

(a) Except in Alaska, no more than one intermediate stop is

permitted in

[[Page 43531]]

providing essential air service between the eligible place and its hub,

unless otherwise agreed to with the community. In cases where an

eligible place receives service to two hubs, however, more than one

intermediate stop is permitted between that place and its secondary

hub.

(b) In Alaska, more than one intermediate stop is permitted if

required by low traffic levels at the eligible place or by the long

distance between the eligible place and its hub.

(c) The Department may specify nonstop service when necessary to

make the service viable.

(d) Where an eligible place normally is an intermediate stop that

shares available capacity with another place, it is the policy of the

Department either to require additional capacity (more flights or

larger aircraft) between the eligible place and its hub or to specify

some turnaround operations on that route segment.

Sec. 398.9 Load factor standards.

The load factor standards used in this part may be raised for

individual eligible places under either of the following circumstances:

(a) The place is served by the carrier as part of a linear route;

or

(b) It would be in the interest of the community, the carrier, or

the general public to raise the load factor standard for that place.

Sec. 398.10 Overflights.

The Department considers it a violation of 49 U.S.C. 41732 and the

air service guarantees provided under this part for an air carrier

providing essential air service to an eligible place to overfly that

place, except under one or more of the following circumstances:

(a) The carrier is not compensated for serving that place and

another carrier is providing by its flights the service required by the

Department's essential air service determination for that place;

(b) Circumstances beyond the carrier's control prevent it from

landing at the eligible place;

(c) The flight involved is not in a market where the Department has

determined air service to be essential; or

(d) The eligible place is a place in Alaska for which the

Department's essential air service determination permits the

overflight.

Sec. 398.11 Funding reductions.

(a) If, in any fiscal year, appropriations for payments to air

carriers remain at or below the amounts estimated as necessary to

maintain subsidy-supported essential air service at the places

receiving such service, and Congress provides no statutory direction to

the contrary, appropriations shall not be available for essential air

service to otherwise eligible places within the 48 contiguous States

and Puerto Rico that have a rate of subsidy per passenger in excess of

$200.00, or are located:

(1) Less than 70 highway miles from the nearest large or medium hub

airport;

(2) Less than 55 miles from the nearest small hub airport; or

(3) Less than 45 highway miles from the nearest nonhub airport that

has enplaned, on certificated or commuter carriers, 100 or more

passengers per day in the most recent year for which the Department has

obtained complete data.

(b) The rate of subsidy per passenger shall be calculated by

dividing the annual subsidy in effect as of July 1 of the prior fiscal

year by the total origin-and-destination traffic during the most recent

year for which the Department has obtained complete data.

PART 399--[AMENDED]

171. The authority citation for part 399 is revised to read as

follows:

Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417, 419, 461.

Sec. 399.20, 399.38, 399.90 [Removed]

172. Sections 399.20, 399.21, 399.38, and 399.90 are removed.

Sec. 399.21 [Amended]

173. In Sec. 399.21, remove the words ``section 401 of the Act''

and add, in their place, the words ``section 41102 of Title 49 of the

United States Code''.

Issued in Washington DC, on August 14, 1995.

Mark L. Gerchick,

Acting Assistant Secretary for Aviation and International Affairs.

[FR Doc. 95-20502 Filed 8-21-95; 8:45 am]

BILLING CODE 4910-62-P

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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