Changes to International Data Submissions by Large Air Carriers (Form 41 Schedules T-100, T-100(f), and P-1.2)

DEPARTMENT OF TRANSPORTATION

14 CFR Parts 217 and 241

[Docket No. OST-96-1049; Notice No. 96-2]

RIN 2105-AC34

Changes to International Data Submissions by Large Air Carriers

(Form 41 Schedules T-100, T-100(f), and P-1.2)

AGENCY: Office of the Secretary, Transportation.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Department of Transportation (DOT or the Department)

proposes to reduce the period of confidential treatment of

international nonstop segment and on-flight market data from three

years to immediately following the Department's determination that the

database is complete, but no sooner than six months after the date of

the data. The Department also proposes to collect aircraft capacity

data from foreign air carriers and to rescind the requirement that

Group III (large, U.S.) air carriers specify passenger revenues,

passenger enplanements, passengers transported, and seating capacity by

cabin configuration. This action is taken on the Department's

initiative in order to make data available for planning and efficient

resource allocation purposes, to ensure the accuracy of the data that

are used by the Department in administering its program

responsibilities, and to eliminate data that are no longer needed for

regulatory purposes.

DATES: Comments are due April 15, 1996.

ADDRESSES: Comments should be directed to the Docket Clerk, Docket OST-

96-1049, Room PL 401, Office of Secretary, Department of

Transportation, 400 Seventh Street, SW, Washington, DC 20590. Comments

should identify the regulatory docket number and seven copies should be

submitted. The Department encourages commenters who wish to do so also

to submit comments to the Department through the Internet; our Internet

address is [email protected].1 Note, however, that

at this time the Department considers only the paper copies filed with

the Docket Clerk to be the official comments. Comments will be

available for inspection at this address from 10:00 a.m. to 5:00 p.m.,

Monday through Friday both before and after the closing date for

comments. Commenters wishing the Department to acknowledge receipt of

their comments must submit with those comments a stamped, self-

addressed postcard on which the following statement is made: Comments

on Docket OST-96-1049. The postcard will be date/time stamped and

returned to the commenter.

\1\ Our X.400 e-mail address is G=DOT/S=dockets/OU1=qmail/O=hq/

p=gov+dot/a=attmail/c=us.

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FOR FURTHER INFORMATION CONTACT: John Harman, Office of Aviation

Analysis, or John Schmidt, Office of Aviation and International

Economics, Office of the Assistant Secretary for Aviation and

International Affairs, Office of the Secretary, U.S. Department of

Transportation, 400 Seventh St. SW, Washington, DC 20590 at (202) 366-

1059 or 366-5420, respectively.

SUPPLEMENTARY INFORMATION:

Program Requirements for and Importance of T-100 Data

The Department uses the traffic and capacity data reported on

Schedules T-100 and T-100(f) to administer its aviation program

responsibilities. In the original NPRM proposing the adoption of the T-

100 data system (52 FR 26500-26502, July 15, 1987), the Department

provided details of the 21 specific program areas that the T-100 data

would support. The Department's responsibility in these program areas

continues today and will continue into the future. Since the emphasis

in this current rulemaking is on international T-100 data, the

Department specifically recognizes the critical importance of accurate

and reliable T-100 data that support evaluations of bilateral

negotiations and international aviation developments. These data are

also necessary in analyzing proposed operating plans in international

air carrier selection cases, in developing international mail rates,

and in establishing regulatory benchmarks for evaluating international

fares and rates and International Air Transport Association agreements.

The availability and reliability of aviation data have recently

taken on increased importance. The Department's U.S. International Air

Transportation Policy Statement issued in April 1995 (60 FR 21841-

21845, May 3, 1995) emphasized ``the importance of sound economic

analysis based on sufficient data in developing policies and strategies

for achieving our overall aviation goals.'' The General Accounting

Office (GAO) also reflected this recent emphasis on aviation data in

its April 1995 Report to Congressional Requesters, entitled

International Aviation, Airline Alliances Produce Benefits, but Effect

on Competition is Uncertain. In its assessment, GAO

[[Page 5964]]

recommended, among other things, that the Secretary of Transportation

``direct the agency's new economic unit to analyze DOT's existing data

* * * to determine if the U.S. airline industry or consumers have been

negatively affected before reapproving all strategic alliances and any

other alliance that the Secretary deems significant.'' Furthermore, in

his July 11, 1995, testimony before the Senate Committee on Commerce,

Science, and Transportation, the Secretary of Transportation reiterated

the importance of quality data when he stated, ``we would emphasize the

importance of sound economic analyses based on the best available data

in developing policies and strategies for achieving our aviation

goals.'' This present rulemaking is one means of achieving the

Department's overall goal of requiring and using accurate, reliable,

and consistent aviation data.

Background

When the Department instituted its Schedule T-100 reporting

requirements for onboard traffic data, it granted a three-year

confidentiality period to foreign carriers' data in order to address

concerns by those carriers about disclosure of sensitive data. In order

not to put U.S. carriers at a competitive disadvantage, the Department

provided a three-year confidentiality period for U.S. carriers'

international traffic data as well. The rule required U.S. air carriers

to report capacity data, however, because of the concerns of foreign

carriers and governments over the possible burden of reporting

requirements, the Department elected not to require capacity data from

foreign carriers, but to rely instead on commercial data sources.

After working with the data for five years, the Department and

other users have found that three-year-old data are not relevant to the

current conditions existing in the rapidly changing world of

international commercial aviation. In addition, the Department has

found the commercially available data on aircraft capacity to be

unreliable for administering its program responsibilities.

Therefore, the Department proposes to narrow the confidentiality

period on international data from three years to immediately following

the Department's determination that the database is complete, but no

earlier than six months. The Department also proposes to require

foreign carriers to report two capacity data items already reported by

U.S. air carriers: total available seats and available payload weight.

The current international data reporting requirements for the largest

(Group III) U.S. air carriers would be reduced by consolidating the

data required into a smaller number of reporting elements.

(Specifically, the reporting of cabin configuration (first, middle, and

coach) data for the data elements of passengers enplaned, passengers

transported, and available seats would be eliminated and a total by

aircraft would be reported for each element. The reporting of

corresponding transport revenue data by First Class and Coach on

Schedule P-1.2, Statement of Operations, would also be eliminated.

These data are not collected from foreign air carriers.)

Confidentiality of International T-100 Data

The Department published its final rule on November 16, 1988 (53 FR

46284), implementing the T-100 reporting system. The rule was effective

January 1, 1990, and adopted a three-year confidentiality period for

detailed nonstop segment and on-flight market data. By a separate final

rule published January 25, 1991 (56 FR 2842), the Department eliminated

the restrictions on disclosure of U.S. carriers' domestic Schedule T-

100 data, making the data immediately available to the public after DOT

validating, editing, and processing. Detailed international T-100 data

submitted by U.S. and foreign air carriers continues to be withheld

from public disclosure for a three-year period.

The Department has, as a matter of policy, consistently favored

public release of information. This accords with the Administration's

policy on dissemination of information. The President in his Freedom of

Information memorandum of October 4, 1993, stated that, ``Each agency

has a responsibility to distribute information on its own initiative

and to enhance public access through the use of electronic information

systems.'' T-100 international data are valuable resources to airline

and airport planners, consumers, academics, and others interested in

the functioning of air transport markets. Exchanges of these types of

data are usually regarded as procompetitive.

With the increasing globalization of the airline industry in the

late 1980's and the 1990's, the public need for these data has grown.

Air travel markets have become more open: large markets now usually

enjoy economic competition among several carriers of various

nationalities. International cross-ownership and cooperative marketing

agreements, including the use of capacity on a given flight by more

than one airline and other code-sharing arrangements, have become

commonplace. Air travel consumer choice in any given market is more and

more determined by service and price competition without regard to the

carriers' nationalities, and less and less by division of markets

through international agreements.

Carriers have stated that they use traffic data extensively for

route studies, passenger traffic forecasts, market share analyses, and

other planning activities. The failure of the Department to release

international traffic data may impede the ability of carriers to enter

new markets and to continue efficient and responsive operations in

existing markets. At least one carrier (Alaska Airlines, Docket 46101)

has stated its belief that the unavailability of traffic data may very

likely result in the misapplication of carrier resources, may decrease

the number of carriers entering new markets, and may decrease the level

of competition among carriers as market decisions are made on imperfect

and incomplete information. The T-100 data are particularly useful

since, with extremely limited exceptions, they cover all passengers and

all carriers in the markets where they are collected, and because their

collection is comparatively economical, efficient, and accurate. There

are relatively few other traffic data available. The Immigration and

Naturalization Service (INS) currently collects information concerning

passengers on international flights into the United States, including

whether they are U.S. citizens or aliens (I-92 report), which has been

made publicly available to planners and analysts. These data are not

comparable with T-100 data either in terms of market coverage,

collection methodology, or reliability. Moreover, there is some concern

on the part of the public that the INS data may no longer be made

available because of budget restrictions.

With globalization of the airline industry, more carriers appear to

be supporting the advantages of greater data availability and fewer

appear to be concerned with the disadvantages of loss of

confidentiality. Some shifts of position came to light in the comments

on the 1991 rulemaking (Docket 46101). More recently, DOT staff

involved in international air negotiations and aviation data collection

have received similar informal comments from carriers that they would

no longer have objections to their international data being released

and would have an interest in using the data for planning.

DOT proposes to reduce the confidentiality period from three years

to immediately following the

[[Page 5965]]

Department's determination that the database is complete, but no

earlier than six months, for detailed international on-flight market

and nonstop segment data in Schedules T-100 (U.S. carriers) and T-

100(f) (foreign carriers). In order that U.S. air carriers not be

placed at a competitive disadvantage because of data disclosure

incomparability, DOT will continue to restrict availability of on-

flight market and nonstop segment data for segments involving no U.S.

points, for three years. (U.S. air carriers report all market and

segment records, while foreign carriers only report those market and

segment records that have a U.S. point.)

In sum, the benefits of changing the period of confidentiality from

three years to six months are considerable. Six-month old data are much

more relevant for planning and analysis than three-year old data. They

also are significantly more useful than data released after one year

since they would enable analysis and planning for the next season's

schedules and operations (i.e., one year after the date of the data).

The impact on the reporting carriers will be minimal. Data released

after six months are not so current as to allow day-to-day competitive

strategies to be undermined. The requirement maintains a level playing

field by reducing the time period for all carriers. Furthermore, the

Department already makes domestic T-100 data immediately available to

the public after DOT processing, and the T-100(f) data would enjoy

greater protection. Because of the number and diversity of the carriers

reporting international T-100 data (over 80 U.S. carriers and 170

foreign carriers), it would take a considerably longer time to edit and

release them to the public even if they were to be made available

immediately.

Reporting of Capacity Data by Foreign Air Carriers

Under the requirements of the final rule previously mentioned, 53

FR 46284, foreign air carriers are not required to report available

seats and available payload weight. Instead, the Department decided

that it would rely upon existing data sources in the private sector to

estimate aircraft capacity data for foreign air carriers. At the time

of issuing the final rule, the Department stated that these procedures

for estimating capacity data would be effective for a trial period and,

if they proved inadequate, the Department would employ ad hoc reporting

requirements or would impose requirements to submit actual capacity

data. As a result of its experience under this trial procedure, the

Department has tentatively determined that the present methods for

estimating capacity data are unreliable and proposes in this rulemaking

to require foreign air carriers to report capacity data.

The Department's determination that the capacity estimates are

unreliable is based, in part, upon the fact that use of the private

sector sources for data on available aircraft seats has resulted in

several instances of constructed load factors in excess of 100 percent

for various foreign carriers, for various time periods, and in various

markets. In constructing capacity figures from private sources, the

Department encountered such problems as aircraft types not being on

file or the same aircraft type for the same carrier having different

capacities based on cabin configuration (first class, business, and

coach, or all coach). In these scenarios, an estimate had to be used,

which may not be close to the carrier's actual operation.2

\2\ For example, suppose a carrier had two seating

configurations for a B-747-400 aircraft (three class configuration

for a total of 350 seats and single class configuration of 425

seats), which means the Department has three choices--the high of

425 seats, the low of 350 seats, or an average of 388 seats. None of

these choices may approximate the carrier's actual operations.

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Furthermore, the calculation of load factors in excess of 100

percent, while a definite indication of inaccurate data, does not

enable the Department to evaluate how inaccurate the data are. DOT has

also, on occasion, found reason to question whether a load factor may

be too low, although it is obvious that the Department cannot reject it

with the same degree of certainty that it would a load factor above 100

percent.

As with seat capacity data, the Department has tentatively decided

that it no longer will depend upon commercially available data with

regard to available payload weight for foreign air carriers to ensure

that its program responsibilities are administered based on the most

accurate data possible. The Department thus is proposing to require

that the foreign air carriers report both available seats and available

payload weight. Since U.S. air carriers now report those data,

requiring foreign air carriers to report them will also further the

Department's effort to achieve data reporting comparability.

Reduction of Capacity Detail Requirement for U.S. Carriers

The Department proposes to relax the current regulation requiring

that Group III U.S. air carriers (those U.S. air carriers with total

annual operating revenues of more than one billion dollars) report

available seats, passenger enplanements, and passengers transported for

each of three cabin configurations--first class cabin, middle class

cabin, and coach class cabin--for all international operations. Thus,

if this regulation is adopted, all carriers would report total

available seats, total passenger enplanements, and total passengers

transported by aircraft type. This action would reduce the reporting

burden on U.S. air carriers while providing for data comparability

among all reporting air carriers.

Form 41 Revenue Passenger Data by Fare Class

Since the Department is proposing not to collect passenger traffic

and capacity data by cabin configuration, it is also proposing to

collect a single passenger revenue figure rather than passenger revenue

for first class and coach service on Form 41 Schedule P-1.2, Statement

of Operations.

Rulemaking Analysis and Notices

Executive Order 12866 and DOT Regulatory Policies and Procedures

This notice of proposed rulemaking is not considered a significant

regulatory action under section 3(f) of Executive Order 12866, and

therefore it was not reviewed by the Office of Management and Budget.

The rule is not considered significant under the regulatory

policies and procedures of the Department of Transportation (44 FR

11034), because it does not change Departmental policy concerning

aviation information collection.

The economic impact of this regulation is not great. The proposed

change in confidentiality restriction has no impact at all on the

reporting burden of the carriers. The proposed changes in requirements

for reporting capacity and revenue data by the eight largest U.S. air

carriers will reduce the reporting burden for these air carriers by

approximately 96 hours annually. On the other hand, the foreign air

carriers will incur an increase in reporting burden. However, the

Department does not believe that the increased reporting burden will be

significant or onerous because this regulation adds only two capacity

data items which are readily available from the carriers' computerized

data files or other easily accessible reference documents. In order to

quantify broadly the increased burden, the Department assumed that each

of the 176 foreign air carriers would submit two new data items each

month and that the process of collecting and transmitting the data

would take no more than one hour each month. The

[[Page 5966]]

resulting hourly burden would not exceed 12 hours on an annual basis

for any foreign air carrier, and the resulting total hourly burden on

an annual basis for all the foreign air carriers as a group would be

2,112 hours. For all air carriers, this would be a net burden of 2,016

hours annually or $20,966 based on an estimated industry salary rate of

about $10.40 an hour. (See 60 FR 61478, November 30, 1995.)

The benefits to the public, the industry, and the Department of

accurate capacity data reported on a reliable and consistent basis,

although unquantifiable, outweigh the limited increase in reporting

burden.

Executive Order 12612

This proposed rule has been analyzed in accordance with the

principles and criteria contained in Executive Order 12612

(``Federalism'') and DOT has determined the proposed rule does not have

sufficient federalism implications to warrant the preparation of a

Federalism Assessment.

Regulatory Flexibility Act

I certify this proposed rule will not have a significant economic

impact on a substantial number of small entities. The proposed

amendments would affect only large U.S. certificated air carriers and

foreign air carriers.

Paperwork Reduction Act

The reporting and recordkeeping requirement associated with this

rule is being sent to the Office of Management and Budget for approval

in accordance with 44 U.S.C. Chapter 35 under OMB NO: 2139-new,

formerly OMB NO: 2138-0040; ADMINISTRATION: Office of the Secretary;

TITLE: T-100 International Data; NEED FOR INFORMATION: Passenger and

Capacity Information for Aviation Planning and Regulation; PROPOSED USE

OF INFORMATION: Electronic Dissemination to Transportation Planners and

Analysts; FREQUENCY: Monthly; BURDEN ESTIMATE: 2,016 annual hours;

AVERAGE BURDEN HOURS PER RESPONDENT: 12 annual hours; ESTIMATED NUMBER

OF RESPONDENTS: 184 Air Carriers; FOR FURTHER INFORMATION CONTACT:

Copies of the information collection request submitted to OMB may be

obtained from the IRM Strategies Division, M-32, Office of the

Secretary of Transportation, 400 Seventh Street, SW, Washington, DC

20590-0001, (202) 366-4735. Comments on the proposed information

collection request should be submitted to Office of Management and

Budget, Office of Information and Regulatory Affairs, Washington, D.C.,

20503, Attention: Desk Officer for the Department of Transportation. It

is requested that comments sent to OMB also be sent to the Office of

the Secretary Rulemaking Docket for this proposed action.

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 2105-AC34 contained in

the heading of this document can be used to cross reference this action

with the Unified Agenda.

List of Subjects in 14 CFR Parts 217 and 241

Air Carriers, Air Transportation, Foreign Air Carriers.

Proposed Rule

PART 217--[AMENDED]

Accordingly, the Department of Transportation proposes to amend

Chapter II of 14 CFR Part 217 Reporting Traffic Statistics by Foreign

Air Carriers in Civilian Scheduled, Charter, and Non-scheduled

Services, as follows:

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

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

2. Section 217.5 would be amended by adding paragraphs (b) (12) and

(13) to read as follows:

Sec. 217.5 Data collected (data elements).

* * * * *

(b) * * *

(12) Available capacity-payload (Code 270) The available capacity

is collected in kilograms. This figure shall reflect the available load

(see load, available in 14 CFR Part 241 Section 03) or total available

capacity for passengers, mail and freight applicable to the aircraft

with which each flight stage is performed.

(13) Available seats (Code 310) The number of seats available for

sale. This figure reflects the actual number of seats available,

excluding those blocked for safety or operational reasons. Report the

total available seats in item 310.

PART 241--[AMENDED]

Accordingly, the Department of Transportation proposes to amend

Chapter II of 14 CFR Part 241 Uniform System of Accounts and Reports

for Large Certificated Air Carriers, as follows:

1. The authority for Part 241 continues to read as follows:

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

2. Section 19-5(c) (7), (8) and (18) would be revised to read as

follows:

Section 19-5 Air transport traffic and capacity elements.

* * * * *

(c) * * *

(7) 110 Revenue passengers enplaned. The total number of revenue

passengers enplaned at the origin point of a flight, boarding the

flight for the first time; an unduplicated count of passengers in a

market. Under the T-100 system of reporting, these enplaned passengers

are the sum of the passengers in the individual on-flight markets.

Report only the total revenue passengers enplaned in item 110. For all

air carriers and all entities, item 110 revenue passengers enplaned is

reported on Form 41 Schedule T-100 in column C-1, as follows.

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

Col. All carrier groups and entities

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C-1 110 Revenue passengers enplaned.

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(8) 130 Revenue passengers transported. The total number of

revenue passengers transported over single flight stage, including

those already on board the aircraft from a previous flight stage.

Report only the total revenue passengers transported in item 130. For

all carriers and all entities, item 130 revenue passengers transported

is reported on Form 41 Schedule T-100 in column B-7, as follows.

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

Col. All carrier groups and entities

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

B-7 130 Revenue passengers transported.

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

* * * * *

(18) 310 Available seats. The number of seats available for sale.

This figure reflects the actual number of seats available, excluding

those blocked for safety or operational reasons. Report the total

available seats in item 310. For all air carriers and all entities,

item 310 available seats, total is reported on Form 41 Schedule T-100

in column B-4, as follows.

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

Col. All carrier groups and entities

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

B-4 310 Available seats, total.

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

* * * * *

3. Section 19-6 would be amended by revising paragraph (b)

introductory text to read:

[[Page 5967]]

Section 19-6 Public disclosure of traffic data.

(a) * * *

(b) Detailed international on-flight market and nonstop segment

data in schedule T-100 and Schedule T-100(f) reports shall be publicly

available immediately following the Department's determination that the

data base is complete, but no earlier than six months, with the

exception of any data for on-flight markets and nonstop segments

involving no U.S. points, which shall not be made publicly available

for three years. Industry and carrier summary data may be made public

before the end of six months provided there are three or more carriers

in the summary data disclosed. The Department may, at any time, publish

international summary statistics without carrier detail. Further, the

Department may release nonstop segment and on-flight market detail data

by carrier before the end of the confidentiality periods as follows:

* * * * *

4. In the appendix to section 241.25, Form 41, Schedule P-1.2,

Statement of Operations, would be revised to read as shown below.

Certain conventions have been used to highlight the proposed revision.

New language is shown inside bold-faced arrows, while language that

would be removed is set off with brackets.

BILLING CODE 4910-62-P

[[Page 5968]]

[GRAPHIC] [TIFF OMITTED] TP15FE96.000

Issued in Washington, DC on January 26, 1996.

Mark L. Gerchick,

Acting Assistant Secretary for Aviation and International Affairs.

[FR Doc. 96-3374 Filed 2-14-96; 8:45 am]

BILLING CODE 4910-62-C