Aviation Data Requirements Review and Modernization Program

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Parts 234, 241, 250, 298, and 374a

[Docket No. OST-98-4043; Notice No. 98-18]

RIN 2105-AC71

Aviation Data Requirements Review and Modernization Program

AGENCY: Office of the Secretary, DOT.

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: The Department on its own initiative is requesting public

comments from reporting carriers and aviation data users on the nature,

scope, source, and means for collecting, processing, and distributing

airline traffic, fare, and financial data. Specifically, the Department

is inviting comments on whether existing airline traffic, fare, and

financial data should be amended, supplemented, or replaced; whether

selected forms and reports should be retained, modified, or eliminated;

whether the Department should require all aviation data to be filed

electronically; and how the aviation data system should be reengineered

to enhance efficiency and to reduce costs for both the Department and

the airline industry.

It is the Department's preliminary position that its current

aviation data systems may not provide sufficiently reliable data in

some areas to ensure that the Department can fully meet its regulatory

and statutory responsibilities, and that its aviation data requirements

should be reviewed and modernized.

The Department may engage one or more contractors to assist it in

its aviation data requirements assessment and in the reengineering of

the Department's aviation data systems.

DATES: Comments must be submitted on or before September 14, 1998.

Reply comments must be submitted on or before October 13, 1998.

ADDRESSES: Comments are to be filed in Room PL-401, Docket OST-98-4043,

U.S. Department of Transportation, 400 7th Street, S.W., Washington,

D.C. 20590. Late filed comments will be considered to the extent

practical. To facilitate consideration of comments, each respondent

should file six copies of its comments.

FOR FURTHER INFORMATION CONTACT: Regis P. Milan, Office of Aviation

Analysis, (202) 366-2344, or David B. Richards, Office of International

Aviation, (202) 366-2432; 400 7th Street, S.W., Washington, D.C. 20590.

SUPPLEMENTARY INFORMATION:

Background

Public Law 98-443 requires the Department of Transportation, under

the authority of the Secretary of Transportation (49 U.S.C. 329(b)(1)),

to collect and disseminate information on civil aeronautics, other than

that collected and disseminated by the National Transportation Safety

Board. In meeting this responsibility, the Department collects traffic

and financial data submitted under 14 CFR Part 241 (Uniform System of

Accounts for Large Certificated Air Carriers) and traffic data

submitted under 14 CFR Part 298 (Exemptions for Air Taxi and Commuter

Air Carriers). The Department also collects certain traffic data from

foreign air carriers for flights to or from the U.S. under 14 CFR Part

217 and Section 25 of 14 CFR Part 241. The Department collects service

quality data from U.S. carriers submitted under 14 CFR Part 234

(Airline Service Quality Performance Reports), and under 14 CFR 250 it

collects information on passengers denied boarding. In addition, under

Part 374a, airlines are required to report information on any

extensions of credit for air transportation services provided to

federal political candidates.

The Department uses these data in a variety of ways, including

monitoring the fitness of individual carriers and the economic health

of the airline industry, assessing the competitiveness of aviation

markets, providing consumers with data to make decisions on air travel,

providing data for forecasting traffic and for airport funding and

traffic control purposes, and providing the basis for policy decisions

on aviation matters, including international aviation negotiations.

The Department maintains two large traffic data bases, one for

domestic and international passenger origin-destination movements,

including ticket price and itinerary, which are submitted by U.S.

carriers only (Section 19-7 of Part 241, the Passenger Origin-

Destination Survey), and another for aircraft flight data submitted by

U.S. and foreign air carriers (Section 25 of Part 241 and Part 217, the

T-100 and T-100(f) segment and on-flight market reports).

The Department collects Form 41 data, which consist of

comprehensive financial and traffic data reported by large and small

air carriers. Form 41 also includes fuel cost and consumption and

aircraft fleet inventory data.

The Department requires air taxi and commuter carriers to report

limited traffic and market data on Form 298C.

The Department also collects data on oversales/denied boardings,

air service quality performance, and extensions of credit by airlines

to federal political candidates.

The Department's aviation databases are used by a number of federal

departments and agencies, Congress, state and local authorities,

airlines, airports, manufacturers, industry associations, consultants,

academics, researchers, financial analysts, investors, and the general

public.

For the most part, the data collected by the Department are based

upon regulatory requirements designed for an economic environment that

has evolved significantly since enactment of the Airline Deregulation

Act in 1978. Many changes in the airline industry have taken place

since these data reporting systems were established. Nearly all

domestic air carriers now operate hub-and-spoke systems, have extensive

code-sharing and other marketing agreements with other carriers, offer

frequent flyer programs, provide ticketless travel, and use integrated

computer reservation systems. This environment represents a marked

change from the linear, point-to-point systems in place 20 years ago,

when the domestic airline industry was deregulated. Internationally,

the last few years have seen the development of global, multi-national

carrier alliances and an increasing number of open-skies and

liberalized-entry agreements with other nations.

Along with these changes, the needs of the Department and other

aviation data users have evolved and expanded, while the collected data

and associated processing systems have changed slowly. However, the

Department has significantly reduced the reporting burden on the

industry by eliminating some Form 41 schedules and line items over the

last 20 years. Nonetheless, the Department intends to reexamine whether

all data items that we now collect remain relevant to today's economic

and regulatory environment.

Request for Comments

We are issuing this advance notice of proposed rulemaking to invite

comments on whether traffic, fare, and

[[Page 38129]]

financial data reporting systems should be retained, amended,

supplemented, or replaced; whether other selected forms and reports

which are less utilized by the Department and other government users

should be retained, compressed, or deleted; and finally, whether the

Department should require all data to be filed by electronic

communication means (e.g., Internet, direct-wire) or on magnetic media

(e.g., tape, disk, cassette).

The Department now collects data from over 400 U.S. and foreign

airlines for certain data collections. These data must be processed,

validated, and edited. We are seeking comments on alternative data and

collection methods to address deficiencies in the structure of these

data systems.

We request comments on whether there are alternate, more reliable

sources of these data, and whether changes to data items may make these

data more useful.

Note: We welcome comments on all aspects of our data systems.

However, for identification, reference, and administrative

convenience, we have specifically numbered particular requests for

comments by section, with an identification number placed after each

request. Please use these identifiers in your response.

A. The T-100 System--Report of Traffic, Capacity, and Statistics

This database provides airport pair traffic and capacity data by

non-stop segment by aircraft type and on-flight market. Schedule T-100

reports are filed by all large certificated air carriers, where large

certificated air carriers are defined as those that conduct operations

using ``large'' aircraft (aircraft with more than 60 seats or 18,000

pounds of payload capacity, 14 CFR Parts 217.3 and 241.25). However,

carriers conducting only domestic charter or all-cargo operations are

not required to file Schedule T-100, with the exception of intra-Alaska

cargo operations (Part 241, Section 19-1(a)). The T-100 system does not

require U.S. and foreign carriers who exclusively operate aircraft with

60 or fewer seats to report T-100 data. Foreign air carriers serving

the U.S. generally have the same reporting requirements as U.S.

carriers, except that they instead file Schedule T-100(f).

The Department last year reviewed its Schedule T-100 and T-100(f)

traffic data systems and determined that the data-confidentiality

restrictions for international service should be shortened to no

earlier than six months after the submission date for the data;

reporting of available seats and payload weight should be added to the

reporting requirements for foreign carriers, similar to that required

for U.S. carriers; and the requirement to report passenger data by

cabin configuration should be eliminated (62 FR 6715-6719, February 13,

1997).

We request that respondents provide specific comments on the

following matters:

[A-1] Is there a continuing need to collect T-100/T-100(f) data?

Explain the usefulness of these data in satisfying your requirements.

[A-2] Is there a way to modify or restructure T-100/T-100(f) data

to make them more functional?

[A3] Are there alternate sources of and/or more efficient modes

for delivery of these data to the Department?

[A-4] Should the Department require T-100/T-100(f) data from

carriers who exclusively operate aircraft with fewer than 60 seats?

[A-5] Should the Department require T-100 data from domestic all-

cargo carriers?

[A-6] If yes to A-4 and/or A-5, what criteria should be used in

setting the data reporting threshold (e.g., aircraft size, air carrier

operations, annual operating revenues, revenue passenger enplanements,

number of flights, some combination of these specified criteria, or

other unspecified criteria)?

[A-7] Are there alternate sources of comparable data available for

smaller carriers or domestic all-cargo carriers?

[A-8] Should the Department amend T-100 and T-100(f) to require

that international data include summary citizenship data (e.g., U.S. or

non-U.S.)?

B. The Origin and Destination Survey of Airline Passenger Traffic

The O&D Survey (Survey) provides U.S. air carrier traffic using a

ten percent sample of ticketed passengers. These data are reported for

the scheduled operations only of large U.S. carriers, except where

certain foreign carriers provide data similar to those required of U.S.

carriers as a condition for approval of, and antitrust immunity for,

carrier alliances (See e.g., Order 96-11-1, November 1, 1996). U.S.

carriers who exclusively operate aircraft with 60 or fewer seats do not

report Survey data for their operations and such data are included in

the Survey only if incidentally reported as part of an itinerary

reported by a large carrier.

The Survey was originally designed in the early 1960s, with fare

data (from the ticket) added in 1979. As with other regulatory

reporting requirements, time and technology have rendered this data

collection methodology virtually obsolete. Nearly all carriers now rely

on computer reservation systems for reservation/ticketing procedures,

and a significant and growing percentage of passengers are traveling

using ``ticketless or electronic'' procedures. Carrier use of the

physical ticket for revenue accounting and control purposes is rapidly

declining.

The processing of the current Survey data is costly both for the

reporting carriers and the Department. Moreover, the Department's

quarterly release of the domestic Survey data has been unacceptably

delayed because of significant carrier submission errors and omissions.

While imposing economic sanctions for filing such poor quality data may

improve their accuracy and timeliness, the fundamental problem is that

this O&D Survey data system is hampered by outmoded and inefficient

transmission, collection, and processing procedures that rely

extensively on paper tickets.

[B-1] Is there a continuing need to collect O&D data? Explain the

usefulness of these data in satisfying your requirements.

[B-2] Is there a way to modify or restructure O&D data to make

them more functional?

[B-3] Are there alternate sources of and/or more efficient modes

for delivery of these data to the Department?

[B-4] Should the Department require O&D data from carriers who

exclusively operate aircraft with fewer than 60 seats?

[B-5] If yes to B-4, what criteria should be used in setting the

data reporting threshold (e.g., aircraft size, air carrier operations,

annual operating revenues, revenue passenger enplanements, number of

flights, some combination of these specified criteria, or other

unspecified criteria)?

[B-6] Should O&D data be collected for U.S. domestic services and

international services of U.S. air carriers only, as is the procedure

under the current Survey, or should foreign air carrier international

O&D data, involving a U.S. point in the flight itinerary, be required

and processed in the Survey?

[B-7] If it is determined that foreign air carrier international

O&D data should be required and processed in the Survey, should those

carriers be required to submit information on the full flight

itineraries or only on those flight segments to/from the U.S., or some

combination thereof?

[B-8] Should there be confidentiality restrictions imposed for

access to international data included in the Survey, and if so, what

should be the degree and duration of such access restrictions?

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[B-9] What should be the time-frame for submission to the

Department--weekly, monthly, or quarterly?

Other Automated Sources of O&D Data

The Department wishes to consider whether there are alternatives to

the current ticket-based O&D System, especially ones that could be

based on existing internal automated data systems maintained by

airlines and/or computer reservation systems (CRSs). As an example,

there is a CRS-based data file called the Transaction Control Number

(TCN) files. In the process of ticketing airline passengers, airlines

and related computer reservation systems electronically record the

majority of transactions in the standard TCN formats for various

accounting, reconciliation, and seat inventory control purposes. Under

a current industry data interchange program, many airlines and CRSs

routinely exchange the TCN data through the Airline Tariff Publishing

Company (ATPCO) electronically on a daily basis. The Department

believes that these TCN data could provide an alternative, less

expensive source of traffic and fare data.

We request that respondents provide specific comments on the

following matters:

[B-10] List and describe alternative data sources, such as TCN,

that could provide the types of comprehensive passenger O&D itinerary

and fare data we are seeking, and the potential advantages and

disadvantages of each source.

[B-11] If the Department decides to use TCN or alternative data as

the basis of a new O&D Survey, should carriers continue to submit data

independently to the Department, or should such data be submitted via a

common exchange (such as a CRS or common exchange point like ATPCO)?

[B-12] Under a new system, should the replacement O&D data be

submitted for ticketed or booked passengers only, or should such data

be held until reconciliation, e.g. until the reservation is actually

used (as evidenced by a coupon lifted at the time of flight) or is

canceled?

[B-13] What are carriers' best cost estimates for the submission

of domestic and international TCN data to the Department via CRS or

ATPCO?

[B-14] What are carriers' best cost estimates for the submission

of data from other potential sources?

[B-15] What are the best cost estimates of carriers who do not use

CRS services or ATPCO for reconciliation or control purposes to file

independent submissions of this type of data to the Department directly

or via an intermediary?

C. Form 41, Uniform System of Accounts and Reports of Financial and

Operating Statistics for Large Certificated Air Carriers

This database provides U.S. air carrier financial data, predicated

on a uniform system of accounts, and selected traffic statistics,

generally termed the Form 41 schedules. A list of such schedules is

shown in 14 CFR Part 241, Section 22. These schedules include the

balance sheet, profit and loss statement, various operating expense

schedules, and summary traffic and capacity schedules.

We request that respondents provide specific comments on the

following matters:

[C-1] Is there a continuing need to collect Form 41 data? Explain

the usefulness of these data in satisfying your requirements.

[C-2] Is there a way to modify restructure Form 41 data to make

them more functional?

[C-3] Are there alternate sources of and/or more efficient modes

for delivery of these data to the Department?

D. Commuter, Part 298, Exemptions for Air Taxi and Commuter Air Carrier

Operations

This rule provides air taxi and commuter air carriers certain

exemptions from traffic and financial data reporting required of large

certificated air carriers. However, less detailed reporting schedules

(Form 298-C) are required, including, for example, the full reporting

of on-line origin-destination passengers instead of the Department's

standard O&D Survey, expense reporting by general category, rather than

by detailed sub-account, and simplified quarterly reporting of traffic

rather than the monthly T-100 schedule.

We request that respondents provide specific comments on the

following matters:

[D-1] Is there a continuing need to collect Form 298-C data?

Explain the usefulness of these data in satisfying your requirements.

[D-2] Is there a way to modify or restructure Form 298-C data to

make them more functional?

[D-3] Are there alternate sources of and/or more efficient modes

for delivery of these data to the Department?

[D-4] Should the Department retain, modify, or eliminate the 60-

seat exemption under Part 298?

[D-5] Air taxi and commuter carriers are asked to indicate their

use of computer reservation systems, with specific attention to the

possible use of TCN data derived from CRS records to replace the

Survey.

E. Part 234, Airline Service Quality Performance Reports

These data are collected from air carriers accounting for at least

one percent of domestic scheduled passenger revenues. This monthly

report includes flight delays, on-time flight performance, enplaned

passengers, and the number of mishandled-baggage reports filed with air

carriers.

We request that respondents provide specific comments on the

following matters:

[E-1] Is there a continuing need to collect Part 234 data? Explain

the usefulness of these data in satisfying your requirements.

[E-2] Is there a way to modify Part 234 data to make them more

functional?

[E-3] Are there alternate sources of and/or more efficient modes

for delivery of these data to the Department?

F. Part 250, Oversales, requires that U.S. and foreign air carriers

report various data on the number of passengers that are denied

boarding, and the total number of boardings, each quarter. Our

reporting requirements were last reviewed in 1995.

We request that respondents provide specific comments on the

following matters:

[F-1] Is there a continuing need to collect Part 250 data? Explain

the usefulness of these data in satisfying your requirements.

[F-2] Is there a way to modify Part 250 data to make them more

functional?

[F-3] Are there alternate sources of and/or more efficient modes

for delivery of these data to the Department?

G. Part 374a, Extension of Credit by Airlines to Federal Political

Candidates, requires air carriers to make monthly reports with respect

to credit for transportation furnished to political candidates, or

persons acting on behalf of candidates, during the period from six

months before nomination or election, until the date of election.

Continuing reports are to be made until a filing indicates that no debt

is owed the carrier.

We request that respondents provide specific comments on the

following matters:

[G-1] Is there a continuing need to collect Part 374a reports?

Explain the usefulness of these data in satisfying your requirements.

[G-2] Is there a way to modify or restructure Part 374a reports to

make them more functional?

[G-3] Are there alternate sources of and/or superior submission

techniques for these reports?

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H. Electronic Filing of Data

The Department currently accepts data submissions either in paper

form or on magnetic disk or tape. Most large carriers submit the bulk

of their data on magnetic media, with large data submissions, such as

the Passenger Origin-Destination Survey and T-100 market reports nearly

universally submitted on tape or cassette. Electronic submission of

data can be processed more quickly, and at lower cost, than similar

data submitted in paper form.

The Department now accepts the official filing of international

fare and fare rules tariffs electronically (See 14 CFR Part 221 and 61

FR 18070-18075, April 24, 1996). Given the Department's limited

resources, it would be impossible to process the volume of tariff data

received if these data were filed in a wholly paper environment.

Similarly, the Department is increasingly burdened by the filing of

required financial and traffic data in paper form.

We request that respondents provide specific comments on the

following matters:

[H-1] All air carriers who supply aviation data to the Department

are requested to comment on their ability to file data electronically

or on magnetic media, i.e., via tape or disk, or over the Internet.

[H-2] If certain large database material now accepted by the

Department in electronic form (e.g., the T-100/T-100(f), Origin-

Destination Survey, and 298-C reports) are submitted on paper, relevant

carrier respondents are requested to indicate why magnetic media are

not employed for their submissions.

Contact Persons

We recognize that formal comments submitted to the Department on

rulemaking matters are usually submitted by corporate counsel. However,

we are seeking comments regarding complex technical issues in

anticipation of a formal rulemaking, in areas which are generally

outside the area of expertise of legal counsel. It would aid in our

evaluation of any technical comments to be able to contact persons with

direct knowledge of technical issues being commented upon. Respondents

are urged to supply the names, telephone numbers, and addresses of

knowledgeable individuals who can be contacted for a more detailed

discussion of any technical matters that the respondent counsel cannot

answer directly. There may be multiple contact persons for any

particular item, or in total. These contact persons should be listed on

the last page of any submitted filing, along with their area(s) of

expertise.

Regulatory Process Matters

Executive Orders 12612 and 12866

The Department has determined that the proposed notice of proposed

rulemaking is not a significant regulatory action under Executive Order

12866. However, the proposed rule may be significant under the

Department's Regulatory Policies and Procedures (44 CFR 11304), because

of substantial industry interest and because it may result in a

reduction in paperwork and filing burden for U.S. carriers. The

Department has also analyzed the proposal in accordance with the

principles and criteria contained in Executive Order 12612

(``Federalism''), and has determined that the rule does not have

sufficient federalism implications to warrant the preparation of a

Federalism Assessment. This rule would not impose unfunded mandates as

defined by the Unfunded Mandates Reform Act of 1995.

Regulatory Flexibility Act

The Regulatory Flexibility Act of 1980, 5 U.S.C. 601 et seq., was

enacted by Congress to ensure that small entities are not unnecessarily

and disproportionately burdened by government regulations. The Act

requires agencies to review proposed regulations that may have a

significant economic impact on a substantial number of small entities.

For purposes of this notice, small entities include air taxis, commuter

air carriers, and smaller U.S. and foreign airlines.

Although we do not believe the existing rule imposes a significant

economic impact on a substantial number of small entities, it does

affect many small entities. For that reason, we specifically seek

public comment on what steps we can take to lessen or eliminate any

burdens it imposes on small entities.

Paperwork Reduction Act

Our current rules contain significant collection-of-information

requirements. Changes we may propose will be subject to the Paperwork

Reduction Act, Public Law No. 96-411, 44 U.S.C. Chapter 35. The revised

rules are expected to result in a net paperwork reduction for the

industry.

Regulation Identifier Number

A regulation identifier number (RIN) is assigned to each regulatory

action listed in the Unified Agenda of Federal Regulations. The

Regulatory Information Service Center publishes the Unified Agenda in

April and October of each year. The RIN number contained in the heading

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

Unified Agenda.

Patrick V. Murphy,

Deputy Assistant Secretary for Aviation International Affairs.

Robert A. Knisely,

Acting Director, Bureau of Transportation Statistics.

[FR Doc. 98-18855 Filed 7-14-98; 8:45 am]

BILLING CODE 4910-62-P