Filing of Airline Codesharing Agreements and Statements of Authorization for Codesharing

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Part 212

Filing of Airline Codesharing Agreements and Statements of

Authorization for Codesharing

AGENCY: Office of the Secretary, Department of Transportation.

ACTION: Final rule.

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SUMMARY: The Department is changing the location specified in 14 CFR

Part 212 for the filing of applications for statements of authorization

to operate codeshare services between U.S. and foreign air carriers,

and between foreign air carriers, including the accompanying codeshare

agreements between U.S. and foreign air carriers. These applications

will now be filed with DOT Dockets, 400 7th Street, SW., Washington, DC

20590-0002, instead of with the Office of International Aviation.

DATES: This regulation is effective on February 22, 1999.

FOR FURTHER INFORMATION CONTACT: Terri Bingham or George Wellington,

Office of the Secretary, Office of International Aviation, X-40,

Department of Transportation, 400 7th Street, SW., Washington, DC

20590. Telephone: (202) 366-2390 or 366-2391.

SUPPLEMENTARY INFORMATION: The Department's regulations require that

airlines file applications for statements of authorization to engage in

defined ``long-term'' wet leases between U.S. and foreign air carriers,

and between foreign air carriers. The rules (14 CFR 212.10) establish

the detailed filing requirements for these applications. The Department

has previously determined that codeshare services constitute a form of

``wet lease'' applications, and that, therefore, codeshare applications

should be considered under the same procedural and decisional rules

applicable to wet-lease operations. The Department also requires that

underlying codeshare agreements and other agreements, if any, accompany

the application. These applications are now filed with the Director,

Office of International Aviation. This office maintains its own

``docket'' for these applications, which is available to the public for

review in that Office.

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those that are outdated or otherwise in need of reform.''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 contained in 14 CFR Chapter II to

determine whether changes should be made to promote economic growth,

create jobs, or eliminate unnecessary costs or other burdens on the

economy. Among the regulations reviewed are those governing the filing

of these applications.

When the rule about the filing location for wet leases was

initially adopted, few codeshare applications were filed with the

Department, and those that were filed resulted in generally limited

public comments and few significant public interest issues. With the

growing popularity of codeshare operations, the volume of applications

has markedly increased, as has the number of comments received and the

scope of the public interest issues presented. Indeed, with many of

these applications, significant public interest issues are now likely

to be faced by the Department, such as those relating to exclusivity

arrangements between the applicant codeshare partners. These issues in

turn have lengthened the review process involved, and resulted in more

extensive public comment and interest. This change thereby has

heightened the need for filing procedures that maximize transparency

and public awareness. Public access to these codeshare filings in the

Office of International Aviation is more difficult than if the filings

had been made part of a public docket in DOT Dockets. Filings in DOT

Dockets are also now easily available to public and staff on the

internet and are saved in unalterable form electronically. We believe

that the public interest would thus be better served if these filings

were made to DOT Dockets and made part of a public docket. No other

changes to the requirements for these filings are being made. Since

this rule only involves a change of filing location, public comment on

this rule would be impracticable, unnecessary, and contrary to the

public interest.

Analysis of Regulatory Impacts

This rule is not a ``significant regulatory action'' within the

meaning of Executive Order 12866. It is also not significant within the

definition in

[[Page 3213]]

DOT's Regulatory Policies and Procedures, 49 FR 11034 (1979), because

it does not involve any change in important Departmental policies.

Because the economic impact should be minimal, further regulatory

evaluation is not necessary.

Moreover, I certify that this rule will not have a significant

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

only changes the filing location.

This rule does not significantly affect the environment, and

therefore an environmental impact statement is not required under the

National Environmental Policy Act of 1969. It has also been reviewed

under Executive Order 12612, Federalism, and it has been determined

that it does not have sufficient implications for federalism to warrant

preparation of a Federalism Assessment. This rule does not impose any

unfunded mandates as defined by the Unfunded Mandates Reform Act of

1995. Finally, this rule does not contain any collection of information

requirements requiring review under the Paperwork Reduction Act of

1995.

This rule is not subject to congressional review provisions of 5

U.S.C. 801(a)(1) because it is limited to a change in agency procedure

and practice and does not substantially affect the rights or

obligations of non-agency parties. This rule only addresses the

location for filing applications for statements of authorization to

operate codeshare services.

List of Subjects for 14 CFR Part 212

Air Carriers, Charter flights, Reporting and recordkeeping

requirements, Surety bonds.

Accordingly, for the reasons set forth above, 14 CFR Part 212 is

amended as follows:

PART 212--CHARTER RULES FOR U.S. AND FOREIGN DIRECT AIR CARRIERS

1. The authority citation for part 212 continues to read as

follows:

Authority: 49 U.S.C. 40101, 40102, 40109, 40113, 41101, 41103,

41504, 41702, 41708, 41712, 46101.

2. Paragraph (a) of section 212.10 is amended by revising the third

sentence, and paragraph (f)(1) of section 212.10 is amended by adding a

new sentence after the first sentence to read as follows:

Sec. 212.10 Application for statement of authorization.

(a) * * * Except for an application for a long-term wet lease

involving a codeshare agreement, an original and two copies of an

application shall be submitted to the Department of Transportation,

Office of International Aviation, U.S. Air Carrier Licensing Division,

X-44 (for an application by a certificated air carrier), or Foreign Air

Carrier Licensing Division, X-45 (for an application by a foreign air

carrier), 400 7th Street, SW., Washington, DC 20590; an original and

two copies of an application for a long-term wet lease involving a

codeshare agreement shall be submitted to DOT Dockets, PL-401, 400 7th

Street, SW., Washington, DC 20590, or by electronic submission to DOT

Dockets according to procedures at the DOT Dockets website. * * *

* * * * *

(f)(1) * * * Such information with respect to codeshare

applications and responsive pleadings will be available for public

inspection at DOT Dockets or at the DOT Dockets website. * * *

* * * * *

Issued in Washington, D.C. on January 12, 1999.

Charles A. Hunnicutt,

Assistant Secretary for Aviation and International Affairs.

[FR Doc. 99-1276 Filed 1-20-99; 8:45 am]

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