Federal Register/Vol. 81, No. 213/Thursday, November 3, 2016
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76800 Federal Register / Vol. 81, No. 213 / Thursday, November 3, 2016 / Rules and Regulations DEPARTMENT OF TRANSPORTATION basic ancillary services to consumers at carriers that account for at least 0.5 all points of sale. The remaining topics percent of the domestic scheduled Office of the Secretary discussed in the 2014 notice of passenger revenue to file reports for the proposed rulemaking (e.g., customer on-time performance and mishandled 14 CFR Parts 234, 244, 250, 255, 256, service commitments by large ticket baggage for their flights and to post the 257, 259, and 399 agents, prohibition on post-purchase on-time performance of their flights on [Docket No. DOT–OST–2014–0056] price increases for ancillary services) their Web sites if they have Web sites will be addressed in another final rule marketing air transportation to the RIN 2105–AE11 that the Department plans to issue at a public. This is an expansion of the later date. reporting carrier pool from its previous Enhancing Airline Passenger DATES: This final rule is effective threshold of at least one percent of the Protections III December 5, 2016. domestic scheduled passenger revenue. AGENCY: Office of the Secretary (OST), FOR FURTHER INFORMATION CONTACT: Similarly, an amendment to 14 CFR part Department of Transportation (DOT). Clereece Kroha or Blane A. Workie, 250 will expand the reporting carrier ACTION: Final rule. Office of the Assistant General Counsel pool for reporting oversales data. for Aviation Enforcement and In addition, this rule amends parts SUMMARY: The Department of Proceedings, U.S. Department of 234 and 250 to require all reporting Transportation is issuing a third Transportation, 1200 New Jersey Ave. carriers that market code-share flights ‘‘Enhancing Airline Passenger SE., Washington, DC 20590, 202–366– operated by another carrier to file Protections’’ final rule to enhance 9342 (phone), 202–366–7152 (fax), separate reports for on-time protections for air travelers and to [email protected] (email) and performance, mishandled baggage, and improve the air travel environment as [email protected]. oversales data for those code-share follows: Expanding the pool of reporting SUPPLEMENTARY INFORMATION: flights. carriers for service quality data; With respect to disclosing code-share requiring reporting carriers to include Executive Summary arrangements, this rule amends 14 CFR service quality data for their domestic (1) Purpose of the Regulatory Action part 257 to codify a statutory scheduled flights operated by their This final rule enhances the requirement that code-share code-share partners; enhancing the performance quality information arrangements in online itinerary search Department’s code-share disclosure collected by the Department and made results must be disclosed on the first regulation to codify the statutory available to the public by expanding the display following the search and in a requirement that carriers and ticket reporting carrier pool and requiring format that is easily accessible to agents must disclose any code-share performance data for code-share flights consumers. arrangements on their Web sites on the marketed by reporting carriers. These Finally, this rule adds 14 CFR part first display presented in response to a actions will ensure that smaller U.S. 256 that prohibits undisclosed bias by search of a requested itinerary for each carriers’ performance records are carriers and ticket agents when itinerary involving a code-share included in the monthly Air Travel displaying fare, schedule or availability operation; and prohibiting undisclosed Consumer Reports and that code-share information online that includes biasing based on carrier identity by flights’ performance data will be multiple carriers. carriers and ticket agents in any reflected in their marketing carriers’ electronic displays of the fare, schedule records and rankings. This rule will also (3) Costs and Benefits or availability information of multiple enhance information disclosure to air carriers. The amendments to the travel consumers by codifying the The Regulatory Impact Analysis reporting requirements in this rule will statutory requirement regarding estimates the total discounted costs, ensure that the Department obtains and disclosing code-share arrangements in which could be monetized over a 10- provides to the public expanded and online schedule displays, and year period. Cost could only be robustly enhanced service quality data from the prohibiting undisclosed bias when estimated for the reporting airlines. The provision to strengthen the displaying air travel itinerary search requirements, and may not include Department’s code-share disclosure rule results by carriers and ticket agents. some other potential costs which the will also enhance air travel consumer These actions are taken under the Department expects to have minimal protection. Additionally, this final rule statutory authorities for the Department impact. The costs of the reporting corrects certain drafting errors and to collect and collate transportation requirements are estimated to total makes minor changes to the information that will contribute to the $7.74 million over ten years, which Department’s second Enhancing Airline improvement of the transportation amounts to an annualized cost of $0.96 Passenger Protections rule to better system of the United States (49 U.S.C. million, when discounted using a seven reflect the Department’s intent. Other 329 and sections 41708 and 41709), and percent rate. Given these estimates, the topics covered by the proposed rule that to prohibit unfair and deceptive rule is not expected to be economically are not addressed by this final rule will practices and unfair methods of significant. The benefits could not be be addressed in two separate competition in the provision of air quantified and monetized with rulemakings. Specifically, the transportation (49 U.S.C. 41712). reasonable accuracy for the rule. Department will be issuing a Benefits were evaluated qualitatively for Supplemental Notice of Proposed (2) Summary of Major Provisions all provisions. A summary of this rule’s Rulemaking (SNPRM) to seek additional In this final rule, the Department benefits and costs is presented in the information on the disclosure of fees for amends 14 CFR part 234 to require U.S. following table. VerDate Sep<11>2014 19:05 Nov 02, 2016 Jkt 241001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\03NOR3.SGM 03NOR3 mstockstill on DSK3G9T082PROD with RULES3 Federal Register / Vol. 81, No. 213 / Thursday, November 3, 2016 / Rules and Regulations 76801 SUMMARY OF RULE’S BENEFITS AND COSTS Ten year costs Major provision Benefits (Discounted 7%) Additional Reporting Carriers Improved ability of consumers, especially in rural com- Costs to carriers to report the information estimated at for Service Quality Data. munities, to examine the past performance of flights. $7.74 million (10-year cost discounted at 7 percent).* Potential improved Department enforcement due to Costs for some carriers to train employees and costs more complete picture of industry performance. to consumers to use the information are not esti- mated. Data Reporting for Domestic Improved ability of consumers, especially in rural com- See above. Code-Share Partner Oper- munities, to examine the past performance of flights. ations. Potential for improved Department enforcement due to more complete picture of industry performance. Transparency in Display of Helps ensure that all consumers purchasing via tele- Up-front programming costs to redesign mobile Code-Share Operations as phone, mobile websites, and applications are aware websites and applications to incorporate the code- Required by 49 U.S.C. of code-share arrangements at beginning of booking share disclosure information for those carriers which 41712(c). process; some consumers may avoid time for addi- had not interpreted statue as applying to mobile tional flight searches. websites and mobile applications; potential costs for telephone reservations. Prohibition of Undisclosed Decrease in potential distortion in market of consumer Based on assumptions with uncertainties, programing Bias. unknowingly choosing non-optional flights because of costs to add statement(s) for some carriers and trav- display order. el agents are estimated to range from $947,000 to $2.8 million (undiscounted). * Costs were estimated for these two provisions together as their impacts are inter-related. Background undisclosed carrier display bias by large Notice of Proposed Rulemaking On May 23, 2014, the U.S. ticket agents; (9) Prohibiting post (SNPRM) addressing disclosure of Department of Transportation (DOT) purchase price increases for certain certain ancillary service fee information issued a notice of proposed rulemaking ancillary services. to consumers in all channels of sales (NPRM), 79 FR 29970, to improve the In response to this NPRM, the (GDS issue). See RIN 2105–AE56. We air travel environment of consumers Department received over 750 believe the SNPRM is necessary in light based on its statutory authority to comments from the following: U.S. air of the complexity of the issues and prohibit unfair or deceptive practices in carriers and U.S. air carrier associations; additional considerations identified by air transportation, 49 U.S.C. 41712. This foreign air carriers and foreign air comments submitted on the NPRM. The NPRM addressed several carrier associations; consumer rights NPRM also proposed revisions to recommendations to the Department advocacy