Federal Register/Vol. 86, No. 11/Tuesday, January 19, 2021

5052 Federal Register / Vol. 86, No. 11 / Tuesday, January 19, 2021 / Proposed Rules

HULTN ME WP (Lat. 46°02′22.29″ N, long. 067°50′02.06″ W) Excluding the airspace within Canada.

* * * * * • Mail: Docket Management Facility, including the airline industry, all levels Issued in Washington, DC, on January 5, U.S. Department of Transportation, 1200 of government, and airports, by 2021. New Jersey Ave. SE, West Building, disseminating information to foster a George Gonzalez, Ground Floor, Room W12–140, national air transportation system Washington, DC 20590–0001. capable of meeting the present and Acting Manager, Rules and Regulations • Group. Hand Delivery: U.S. Department of future needs of U.S. commerce. In Transportation, 1200 New Jersey Ave. fulfillment of these responsibilities, [FR Doc. 2021–00655 Filed 1–15–21; 8:45 am] SE, West Building, Ground Floor, Room DOT collects data submitted under: BILLING CODE 4910–13–P W12–140, Washington, DC 20590–0001, • 14 CFR part 217: Reporting Traffic between 9:00 a.m. and 5:00 p.m. ET, Statistics by Foreign Air Carriers in Monday through Friday, except Federal Civilian Scheduled, Charter, and DEPARTMENT OF TRANSPORTATION holidays. Nonscheduled Services, whereby Office of the Secretary of Instructions: At the beginning of your foreign air carriers that are authorized Transportation comments, include the agency name, by DOT to provide scheduled passenger docket name, and docket number (DOT– services to or from the U.S. must file 14 CFR Parts 241 and 298 OST–2018–0132) or Regulation Form 41 Schedule T–100(f), Identifier Number (RIN) for this accumulated in accordance with the [Docket No. DOT–OST–2018–0132] rulemaking (2105–AE45). All comments data elements prescribed in § 217.5. received will be posted without change • 14 CFR part 241: Uniform System of RIN 2105–AE45 to http://www.regulations.gov, including Accounts and Reports for Large any personal information provided. Certificated Air Carriers, under which Updates to the Origin—Destination Physical access to the Docket is all large certificated air carriers must Survey of Airline Passengers available at the Hand Delivery address report their traffic movements by filing AGENCY: Office of the Secretary of noted above. Form 41 Schedule T–100, Financials Transportation (OST), U.S. Department Electronic Access and Filing: You can Information, and O&D fare information. • of Transportation (DOT). view this document by going to the 14 CFR part 298: Exemptions for Air Taxi and Commuter Air Carriers, ACTION: Notice of proposed rulemaking Federal eRulemaking Portal: http:// whereby air taxi operators and (NPRM). www.regulations.gov and search for docket DOT–OST–2018–0132. The commuter air carriers, which are SUMMARY: The Department is proposing website is available 24 hours each day, provided certain exemptions from some to update the method of collecting and 365 days each year. Electronic of the economic regulatory provisions of processing aviation traffic data in the submission and retrieval help and Subtitle VII of Title 49 of the United Origin-Destination Survey of Airline guidelines are available under the help States Code, are required to submit Passenger Traffic (O&D Survey), as well section of the website. An electronic simplified Financials and T–100 traffic. as to expand the number of reporting air copy of this document is available for In this rulemaking, the Department carriers, the sample size collected, and download from the Office of the Federal proposes to update its method of the scope of the data reported. These Register’s home page at: http:// collecting and processing O&D fare changes would align the current O&D www.archives.gov/federal-register and information under part 241 to: (1) Allow Survey with modern industry business the U.S. Government Publishing Office’s full automation of the reporting of the and accounting practices, enable cost web page at: https://www.gpo.gov/ O&D Survey by aligning it with current savings, reduce burden through fdsys/. airline passenger accounting practices; automation, and provide enhanced FOR FURTHER INFORMATION CONTACT: and (2) enhance the accuracy and utility for users of the data. In addition, Mark Raggio, Office of Aviation usefulness of DOT’s collection of DOT is proposing to change the timing Analysis, 1200 New Jersey Ave. SE, aviation traffic data. of the release of the Form 41, Schedule Room W86–470, Washington, DC B. Background on the O&D Survey T–100(f) ‘‘Foreign Air Carrier Traffic 20590–0001, 202–366–1271 (phone) or Currently, the O&D Survey, as Data by Nonstop Segment and On-flight [email protected] (email). outlined in 14 CFR part 241, Sec. 19– Market’’ from a 6-month delay to a 3- SUPPLEMENTARY INFORMATION: 7, collects airline tickets from select air month delay to match that of Form 41, carriers,1 ‘‘O&D Survey Reporting Schedule T–100 ‘‘Air Carrier Traffic and I. Background Carriers,’’ each quarter. The O&D Survey Capacity Data by Non-Stop Segment and A. Legal Authority Reporting Carriers combine the On-Flight Market.’’ Section 429(b)(1) of Title 49, U.S.C., information from tickets with the same DATES: Submit comments on or before requires the Department to collect and itinerary and price into a summary March 19, 2021, 11:59 p.m. Eastern disseminate information on the origin record reported every 3 months. Under Time. The Department will consider late and destination of airline passengers 49 U.S.C. 329(b)(1), the Department is comments to the extent practicable. including, at a minimum, information obligated to collect and disseminate this ADDRESSES: To ensure that you do not on: (1) The origin and destination of information. There are many private and duplicate your docket submissions, passengers in interstate air public stakeholders that depend on this please submit all comments by only one transportation, and (2) the number of data to make decisions on aviation of the following means: passengers traveling by air between any business and policy. For example, this • Federal eRulemaking Portal: Go to two points in interstate air data is used by the industry to plan air http://www.regulations.gov and follow transportation. In addition, 49 U.S.C. services, develop commercial aviation the online instructions for submitting 40101(a)(7) states that the Secretary comments. shall respond to the needs of the public, 1 49 U.S.C. 40102(a)(2).

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infrastructure, measure the economic association Airlines for America (A4A) A. Changes in Airline and Consumer impact of passenger flows, and create to determine the best way to improve Behavior Since 1978 business plans for start-up airlines. The the methodology, collection, and utility The way the airline industry markets O&D Survey is also a primary source of of the O&D Survey. DOT is proposing and delivers air transportation services information used to quantify and this rule to reform and simplify the O&D to the public changed significantly evaluate the effectiveness of Federal Survey, principally by reorienting the following the Airline Deregulation Act aviation policy and programs as well as reporting requirements so that air of 1978.2 The 1978 Act enabled airlines to develop and implement new policies carriers report primarily information for to set their own fares, flight frequencies, and infrastructure initiatives. tickets that they issue. When the current rules for collection and route structure. The current rules for the collection of ticket information of the O&D Survey were established in II. The Need To Modernize Current were specifically designed to measure the 1960s, the O&D Survey provided the Data Collection Requirements best reasonably obtainable measure of the relatively static air travel industry of passenger aviation activity. The The data collected in the O&D Survey the 1960s, when fares and flight mainframe technologies of the era provides DOT with the information to frequencies were set by the Federal Civil dictated many aspects of the O&D help foster an air transportation system Aeronautics Board and tended to be survey business process and the capable of meeting the present and from a single point to a single point. The elements selected for collection. A key future needs of commerce in the United current O&D Survey data collection rules do not reflect the increasingly driver of the process was that data States. However, the current O&D dynamic and complex business storage was expensive in that era which Survey methodology was designed practices that have emerged since resulted in a minimum of data elements based on accounting processes long being included. This meant more robust deregulation, including the abandoned by airlines, including development of hub-and-spoke systems, descriptive data, such as the time of manual accounting systems that often arrival and departure, were not included frequent flier programs, revenue had handwritten records. As a result, management systems, internet in the collection. Because mainframes the Survey’s data collection were centralized computing resources, distribution of tickets, and other methodology does not reflect today’s the O&D Survey process was designed industry-transforming innovations. For decentralized and integrated industry- to route paper tickets to a centralized example, under the post-deregulation facility for processing and loading into wide practices and technologies, and, in hub-and-spoke model developed by the systems. In the intervening years, some cases, it is not capable of legacy air carriers, it became changes in airline business models and accurately documenting consumer increasingly common to fly initially to accounting practices enabled by behavior. For example, in today’s a single, large ‘‘hub airport’’ where some technology improvements were not environment, it is far more efficient for passengers would change planes to reflected in DOT’s collection the carrier that issues the ticket to be complete their journey, while others methodology, leading to a misalignment responsible for reporting the ticket remained on the same plane during between the rules for reporting the because it is the issuing carrier that has intervening stop(s), known as a ‘‘direct’’ information and current accounting all the information about the ticket. passenger flight. In the case of the practices that generally requires human Current process requires the operating ‘‘direct’’ passenger, the carriers would intervention to reconcile differences and carrier that flies the first coupon of the use a single ticket that identifies the prevents O&D Survey Reporting Carriers ticket to report and this is often not the origin and ultimate destination, but not from fully automating the system of data issuing carrier. Because current the intermediate stop(s). Furthermore, collection. The primary design issue reporting does not contain information in combination with these changes, new that prevents current improvements is about the length of stay at each airline loyalty programs altered the regulatory requirement that the intermediate point in a ticket, the passenger ticket purchasing behavior; travelers in these programs were operating carrier that first touches the system must impute the intended increasingly incentivized to take longer, ticket is the carrier that has destination of round trip tickets. With responsibility to report the ticket, indirect routes, often through an the advent of large-scale connecting known as the ‘‘first reporting carrier airline’s large hub airport, that would services, this has made the rule.’’ In the 1960s, this rule was allow them to accumulate more mileage- selected because the most efficient determination of intended destination based loyalty points, exacerbating process was physically to detach the less accurate. Though the Survey reporting issues, such as identification ticket coupons as they were flown for remains a unique and foundational of the intended destination of travel, each flight and send all the coupons to pillar of industry economic analysis, its with the O&D Survey. The industry the centralized processing facility to be limitations create high levels of innovations forged after deregulation matched and combined with the uncertainty in certain situations, such as changed the fundamentals of airline relevant revenue information. Because identifying the true origin and competition, but the process used and the carrier that issued the ticket, which destination of some passengers; the the data DOT collects did not modernize had all the necessary information on month of travel; and the portion of the concomitant with these changes. hand, often did not first touch the ticket, total amount paid that is the revenue B. Reevaluation of O&D Survey Burden the carrier with the least amount of retained by the air carrier, as opposed to and Data Quality information was by rule responsible for taxes and fees remitted to other reporting the ticket. Modern and government entities. By aligning the Considering these developments, DOT decentralized E-ticket systems eliminate O&D Survey with current industry initiated a retrospective analysis of its the need for a physical coupon technology and integrated business aviation traffic reporting rules. The matching process and enables more process, this proposal would vastly Department recognizes that there are efficient reporting rules and access to simplify the reporting of appropriate concerns with the quality of the current more relevant data. data elements and increase the utility of O&D Survey, and that it is expensive DOT has worked with representatives the Survey to its users. of the aviation industry trade 2 Public Law 95–504.

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and burdensome to collect, validate, and economic impact of passenger flows, On February 17, 2005, DOT published use. Collaborative discussion with A4A and create business plans for start-up a notice of proposed rulemaking representatives revealed that there is a airlines. The data is also a primary (NPRM) 8 as part of DOT’s effort to substantial hidden cost of compliance in source of information used to measure revise the rules governing the nature, reporting aviation statistics due to the and evaluate the effectiveness of Federal scope, source, and means for collecting difficulty in identifying and aviation policy and programs, including and processing aviation traffic data as investigating problems that are often by: (1) Improving international air well as modernize the collection, only revealed during post-submission services by seeking market processing, and dissemination of this quality control processing. The carriers liberalization, (2) ensuring the benefits data. While there was considerable are also often in the position of having of a deregulated, competitive domestic support for these changes among to interpret how to stay in compliance airline industry, and (3) developing stakeholders, the comments from the with outdated rules that require them to policies to improve air service and airlines indicated that the burdens of deviate from their current accounting access to the national air transportation reporting the data would be practices. For these reasons, the system for small and rural communities. unacceptably high relative to the current Department believes that the O&D Furthermore, the Federal Aviation collection. The 2005 proposal to collect Survey no longer meets the guidance Administration (FAA) requires airports all relevant data on the ticket was overly outlined in OMB Circular A–130 3 or the to use accurate aviation data for broad and too costly to implement. The data collection standards of the qualifying, planning, allocating, and Department withdrew the proposal on Information Quality Act.4 In addition, monitoring of Airport Improvement June 1, 2011, stating that the proposed DOT identified instances in the Program (AIP) funds and to justify the approach did not adequately address reporting regulations that contribute to need for Passenger Facility Charges some issues, including measures that deficiencies in data quality. These (PFCs). The outdated and cumbersome could both enhance the utility, integrity, deficiencies are often not observable O&D Survey methodologies impose and accuracy of the data and reduce the until after the data from all the carrier excessive burdens on O&D Survey cost of reporting. The current proposal, submissions is combined during post- Reporting Carriers and diminish the by comparison, is more narrowly processing analysis. Moreover, data’s utility to its users due to quality, tailored to address specific well-known ambiguity in the current regulation may objectivity, and completeness issues, quality problems that have been lead O&D Survey Reporting Carriers to and therefore requires modernization. In identified by both producers and users interpret reporting instructions addition, ensuring universal of the data over a long period of time, differently, contributing to the participation across air carriers and maintains the same data structure of the degradation of the O&D Survey data collection of the best reasonably current reporting allowing for reuse of quality and increasing the air carrier’s obtainable measurements of economic as much of the existing infrastructure as reporting burden as they must review activity in the aviation sector requires possible, removes elements that are no the suspected data and resubmit once updating the O&D Survey longer required, adds new useful the problem is found. methodologies. elements, and improves reporting rules. Furthermore, DOT determined that the collection and dissemination of the C. Meeting Reporting and Data Quality B. Summary of Modifications Suggested O&D Survey remains justified under the Demands by the Industry regulatory philosophy stated in This proposed rule would modernize This proposed rule renews DOT’s Executive Order (E.O.) 12866, sec. 1(a) the O&D Survey to reflect current airline effort to revise its aviation statistical which is that ‘‘the Federal Government passenger behavior and revenue reporting process. In an October 5, 2015, should . . . promulgate regulations as accounting practices, which allow air letter to DOT, A4A recommended required . . .’’ It was also determined carriers to track the sale and the usage changes to the reporting regulation that that, given its role and statutory duties, of every ticket sold, including through would increase the utility and accuracy DOT is best positioned to collect partner carriers. In doing so, the of the data while simplifying reporting. uniform, accurate, and complete data on proposed rule would ensure that the Representatives of A4A notified DOT the Nation’s civil aeronautics sector as O&D Survey meets the requirements and that their members favored updating the well as ensure widespread objectives of the Information Quality rule governing the collection of the O&D dissemination of the collected data. Act,5 E.O. 12866, E.O. 13771, and OMB Survey under prescribed circumstances. Diverse public and private stakeholders, Implementation Guidance for Title V of A4A identified changes to reporting that including air carriers, investors, and the E-Government Act, Confidential would increase the utility of the data aircraft manufacturers, rely on this data Information Protection and Statistical and, at the same time, simplify to inform business decisions, Efficiency Act of 2002.6 reporting. These proposed changes were infrastructure improvements, and reflective of numerous interactions aviation regulations or public policies. III. Development of the Proposed Rule related to the data collection between For example, the airline industry A. Prior Related Rulemakings government and industry over many continues to use the O&D Survey to plan years. The series of ideas that stemmed air services, develop commercial The Department initiated a from this collaboration are listed below. aviation infrastructure, measure the retrospective analysis of its passenger traffic statistics on July 15, 1998, when Methodology Changes 3 Circular A–130 requires DOT to take affirmative DOT published an advance notice of (1) Change the responsibility of steps to ensure data quality objectivity and utility proposed rulemaking (ANPRM),7 reporting tickets from the First of Federal statistics before disseminating them and requesting comment on a variety of notes that public and private resources are allocated Reporting Carrier Rule to the Issuing issues related to aviation economic data inefficiently when uncertainty is introduced due to Carrier; 9 inexact or incorrect data. collection. 4 Public Law 106–554 Section 515 charges Federal agencies with a responsibility to produce 8 70 FR 8140. 5 the best reasonably obtainable scientific and Public Law 106–554, sec. 515. 9 The current regulation places the reporting economic information available to measure the 6 72 FR 33362 (June 15, 2007). responsibility on the first O&D Survey Reporting impact of their regulatory responsibilities. 7 63 FR 28128. Carrier in the sequence of travel for a ticket. The

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(2) Classify all Certificated air carriers Data Items the Department Proposed No Issuing Carriers would know when a and commuter air carriers holding out Longer Be Collected coupon from one of their tickets is used scheduled passenger service as O&D (1) The fare class the passenger uses for transportation by any other air Survey Reporting Carriers by removing on each of the flights; carrier on the ticket, triggering a the exemptions from reporting given to (2) The cabin class the passenger uses Reporting Event. Moving the U.S.-based air carriers and commuter air on each of the flights; and responsibility to report to the Issuing carriers with a business model that (3) The date of ticket purchase. Carrier would simplify the reporting limits them to flying aircraft with fewer In November 2015, the Airline Tariff process by establishing one identifiable than 60 seats; Publishing Company (ATPCO), the air carrier that has all the information (3) Refrain from requiring foreign air leading distributor of airline fares and on a ticket and is responsible for carriers to report O&D Survey data, airline fare information for the industry reporting the ticket. These types of other than foreign air carriers granted notified DOT that it had the ability to tickets will account for the majority of anti-trust immunity under 49 U.S.C. report the proposed restructured O&D reported tickets. Tickets issued by an 41308 and 41309; instead, the Survey as envisioned by A4A and DOT O&D Survey Reporting Carrier would be responsibility to report tickets issued by and that ATPCO could offer that referred to as ‘‘Category One Tickets.’’ In addition to Category One tickets, a foreign air carrier (that does not capability as a third-party service to tickets may be issued by air carriers who submit data under 49 U.S.C. 41308 and airlines. would not fall under the new definition 41309) should remain with the O&D C. Goals and Objectives of This of O&D Survey Reporting Carriers; Survey Reporting Carrier that appears Regulatory Action however, those tickets may still present first in the travel sequence of the ticket; information that should be recorded. (4) Change the period of reporting The Department established the following objectives for this rulemaking: The proposed rule would continue to from quarterly to monthly; require each O&D Survey Reporting (1) Reduce the long-term reporting Carrier to report these encountered (5) Increase the sample size to 40% of burden on the O&D Survey Reporting tickets issued by Non-O&D Survey airline tickets so that the sample size is Carriers; (2) make the O&D Survey more Reporting Carriers. These tickets would statistically valid for measuring travel to relevant and useful to airlines, aviation be referred to as ‘‘Category Two small and rural communities; and policy makers, researchers, and Tickets.’’ Category Two Tickets would (6) Shorten time lag for the release of stakeholders; (3) obtain more accurate require a process for recognizing a T–100(f) data from the current 6 months ticket data from a broader group of air Reporting Event that is different than to 3 months, consistent with the release carriers and markets; (4) reduce the time that for Category One Tickets. The of T–100 Domestic data. Historically it takes to disseminate the O&D Survey proposed Category Two reporting this time lag has existed because of and the T–100(f); and (5) increase the process would be like the existing technological and business practice statistical correlation between the O&D process, but the expected volume of limitations. Survey and the T–100/T100(f) for data Category Two Tickets will be validation purposes. Taken together, New Data Items To Be Collected significantly less under this proposed this proposed rule would alleviate rule due to the expansion of the pool of (1) ‘‘Dwell Time,’’ an indication of the unnecessary regulatory burdens placed O&D Survey Reporting Carriers and the hours that the passenger spends at an on the American people and businesses. Category One reporting rule, which will airport between their arriving and IV. Proposed Changes to the Collection have primacy.10 departure flights; of Data The Department recognizes that it (2) ‘‘Via Airport,’’ an entry for airlines could eliminate Category Two Tickets, The Department proposes the to report hidden airports or ‘‘via’’ and therefore the associated burden of following modifications to its collection airports where a passenger lands, but reporting these tickets, by requiring all of scheduled passenger aviation data: does not necessarily deplane; foreign air carriers providing scheduled (3) ‘‘Total Tax,’’ a value of the total D. Altering the Reporting Framework service to the United States to submit O&D Survey data. The Department, taxes and government-imposed fees The general process for reporting O&D therefore, seeks comment on whether to collected for each ticket, to distinguish data is to collect the ticket information require all foreign air carriers providing this value from the Total Amount of the once there is an indication that the scheduled service to the United States fare collected; ticket has been flown, combine all the submit O&D Survey data. (4) ‘‘Travel Year and Month,’’ to ticket coupons to determine all the include a field detailing the year and points flown and the sequence of travel b. Increasing Sample Size to 40 Percent month the passenger travels for each on the ticket, and integrate the flown This proposed rule would increase segment of travel; information with revenue information the number of passenger tickets air related to the price the consumer paid (5) ‘‘Exchanged Ticket Indicator,’’ carriers are required to report, which for the ticket. alerting data users that a reported fare would create a statistically valid sample may not comport with the reported 1. Selection of Tickets to Report for meaningful analysis of smaller itinerary; and markets that is not available under the a. Making the Ticket the Basic Unit of current O&D Data collection. The (6) ‘‘Reporting Record Identifier,’’ Reporting facilitating easier record identification current sample size of 10 percent is only This proposed rule would give O&D by the O&D Survey Reporting Carrier sufficient for analyzing large markets Survey Reporting Carriers the when correcting tickets reported with and the national air transportation responsibility for reporting a ticket errors. when it is the Issuing Carrier for that 10 For evaluating Category 2 tickets, foreign air ticket, relieving air carriers of the carriers that have been granted Antitrust Immunity proposed regulation will place the reporting responsibility to report any ticket issued under 49 U.S.C. 41308 and 41309 will be responsibility on the carrier that issued the ticket. responsible for reporting Eligible Tickets they issue It is the carrier that issues the ticket that will have by another O&D Survey Reporting and U.S. air carriers will no longer have to report the most information about the ticket. Carrier. Under the proposed rule, these.

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system at a broad level. Studies indicate individual tickets as separate records, providers (i.e., code-share branded that a 40 percent sample is sufficient to rather than aggregating tickets with regional partners) would not have to allow proper evaluation of small identical characteristics into a single report tickets. If necessary, DOT would aviation markets, and so the Department reporting record. Currently, the number work with outside third-party vendors, is proposing to increase the number of of tickets in each grouping is tracked such as ATPCO, to make data collection passenger tickets are required to report and reported as a passenger count. This and reporting services available to all to 40 percent.11 The ability to measure process was initially instituted because O&D Survey Reporting Carriers. The small markets is important to air carriers the cost of data transmission and storage Department seeks comment on whether and to policy makers in order to monitor exceeded the cost of processing the any further accommodation is necessary the effectiveness of Federal dollars records into summarized records. for these smaller air carriers. spent in programs such as the Essential However, due to significant advances in 2. Foreign Air Carriers That Are Not Air Service (EAS) and the Small data transmission and storage O&D Survey Reporting Carriers Community Air Service Development technology, any such savings are now Program (SCASDP), that are designed to minimal. The process of grouping and Under the proposed rule, foreign air ensure that small and rural communities summarizing similar tickets into one carriers would not report passenger have access to the national air summary reporting record creates an O&D data under 14 CFR part 241, Sec. transportation system. The 40 percent additional, unnecessary step for the 19–8, which is consistent with current sample, in combination with expanding O&D Survey Reporting Carriers, and is reporting requirements. However, the universe of O&D Survey Reporting inconsistent with modern revenue foreign air carriers would still need to Carriers, would substantially improve accounting practices. Combining the report data as required by a grant of the ability to measure smaller markets tickets also increased the difficulty of antitrust immunity under 49 U.S.C. accurately. correcting the occasional, inevitable 41308 and 41309, which represent a mistakes that arise in reporting to the separate set of reporting regulations. c. Providing an Unbiased Sample O&D Survey because the individual O&D Survey Reporting Carriers will Selection records that cause the problem are not determine if a foreign air carrier that The proposed rule would designate identifiable in the summary record that reports under 49 U.S.C. 41308 and the final, right-most digit of the standard is provided. 41309 issued a ticket, and if so, the O&D ticket document number as the basis for Survey Reporting Carrier will not be the new, random sample size. Analyses E. Modification to O&D Survey responsible for reporting the ticket. by DOT suggest that the final digit of a Reporting Carriers ticket number does not pertain directly The proposed rule would simplify the 3. O&D Survey Reporting Carriers List to any particular type of passenger or identification of the air carriers The proposed rule would require that journey, and every digit (0–9) has an responsible for reporting a ticket, DOT post the O&D Survey Reporting equal probability of appearing. This correcting the current onerous and Carriers List one month in advance of its method ensures that the random burdensome process. It would also all monthly effective date to ensure that sampling of 40 percent of Eligible but eliminate the need for an air carrier O&D Survey Reporting Carriers are Tickets for the O&D Survey would be that may not have information on a aware of all updates and give the O&D truly unbiased and random, protecting ticket in its internal systems to obtain Survey Reporting Carriers time to the validity and integrity of the data. the information from other sources update their internal processes to Any O&D Survey Reporting Carrier outside its normal business process. comply with reporting requirements.13 that does not assign ticket numbers to For example, an update to the list 1. U.S. Air Carriers 12 as O&D Survey passenger journeys or does not assign posted January 31st would be effective Reporting Carriers ticket numbers such that the final, right- for reporting beginning in March. The most digit is not randomly assigned The proposed rule would require that O&D Survey Reporting Carriers List would be required to develop an all U.S. air carriers that hold either a would be updated as soon as alternative method of creating a valid 40 certificate of public convenience and administratively possible when an O&D percent sample. Those O&D Survey necessity for scheduled passenger air Survey Reporting Carrier becomes Reporting Carriers would need to transportation pursuant to 49 U.S.C. qualified or is disqualified as an O&D submit their alternative sample methods 41102 or that hold a Commuter Air Survey Reporting Carrier. to DOT for approval within 90 days of Carrier Authorization pursuant to 14 the date that the O&D Survey Reporting CFR part 298 and that hold out a F. Increasing the Frequency of Reporting Carrier recognizes that it must make use schedule and issue tickets for scheduled The proposed rule would require O&D of the alternative sample selection passenger air transportation be Survey Reporting Carriers to report data method to comply with the proposed considered O&D Survey Reporting monthly instead of the current quarterly reporting regulation for determining an Carriers for the O&D Survey. This reporting period. Information would Eligible Ticket. proposed rule would require all O&D have to be reported to the Department 2. Removing the Requirement for Survey Reporting Carrier to submit O&D no later than 45 days after the last day Summarization Survey data to capture travel in markets of a reporting month. This would make served by all types of air carriers. the data available to stakeholders on an Under the proposed rule, O&D Survey However, by making the reporting Reporting Carriers would report regulation compatible with industry 13 Domestic air carriers may change their business accounting structures, DOT expects this model from one of only providing contract lift, not 11 Statistical analyses by Michael Wittman reporting would add minimal additional holding out scheduled air service and not issuing (Michael D. Wittman, A Note on the Use of U.S. tickets, to selling their own services. When this DB1B Passenger Ticket Data for Estimating Airfares burden to affected air carriers. Carriers occurs, the carrier will need to be added to the O&D in Thin Airline Markets or Small Airports, would only report tickets that satisfy the Survey Reporting List. The same may happen in Massachusetts Institute of Technology), and Eric reporting criteria. In most cases, air reverse requiring a carrier to be removed from the Amel (Eric Amel, Report on the Results of Different list. This same process applies to foreign air carriers Sampling Rates on the Reliability of the US DOT carriers operating as contract lift immunized under 49 U.S.C. 41308 and 41309. They O&D Survey, Compass Lexecon, May 18, 2015) are may also be added or removed from the list available in the Docket. 12 49 U.S.C. 40102(a)(2). depending on their immunity status.

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expedited basis compared to the users to understand better how users that a ticket may warrant further existing quarterly reporting and enables passengers travel through various airline examination. The proposed rule would users to validate it against other data networks, and would provide the continue to require that tickets issued in disseminated monthly, such as the T– necessary information for relating T100/ exchange for unused coupons of a 100. T100(f) segment data directly to O&D previously issued ticket be reported. For Survey information. Exchanged Tickets, the user of the data G. Expanding Data Elements Collected Identifying the ‘‘via’’ airports, would be alerted that the value reported Through discussions with A4A, the currently hidden in an itinerary, as the Total Amount may include a form Department determined the expanded requires knowledge of the flight of payment from unused coupons of a data elements selected below are number, because each flight number has previously issued ticket. already collected and maintained by its own unique routing, as well as the industry and therefore are minimally date of the scheduled travel, because 5. Reporting a Frequent Flyer Program burdensome to collect. The Department schedules change within monthly Ticket may expand or change the regulatory boundaries and some flight number The Department seeks comment on language to include further definition of schedules change by day-of-week (e.g., whether O&D Survey Reporting Carriers the requirements for submission, subject differing weekday and weekend flight should report whether a ticket was to the comments received for the final itineraries). The Department is not purchased in part or in whole by rulemaking. proposing to require the reporting of redemption through a Frequent Flyer Program (FFP). The user of the data 1. Reporting Scheduled Year and Month flight number and flight date. Instead, would be alerted that the value reported of Travel DOT proposes that the O&D Survey Reporting Carriers report the ‘‘via’’ as the Total Amount may include a form The proposed rule would require the airport in a ‘‘Via Airport’’ field because of payment by redemption of FFP miles O&D Survey Reporting Carriers to report the O&D Survey Reporting Carrier or points. the scheduled year and month of knows the flight number and flight date 6. Reporting Total Amount and Tax departure of each flight coupon. while the Department does not. Providing this level of granularity Amount would increase the utility of the O&D 3. Reporting Dwell Time The rule proposes adding a data Survey by enabling users to, for The proposed rule would assist DOT element for the ‘‘Tax Amount’’ to example, better compare economic in creating a more accurate record of the understand the effect of government activity in the aviation sector against passenger’s intended destination (i.e., policy on aviation and allow data users other measures of economic activity in true O&D) by requiring O&D Survey the ability to separate taxes paid from the economy that are reported monthly, Reporting Carriers to report the number the total fare. The rule also proposes to or with other aviation traffic data of hours elapsed between the rename the currently reported element collected by DOT. Including month of passenger’s arrival at an airport on a ‘‘Total Dollar Value’’ to ‘‘Total travel also would make it easier to flight and the passenger’s departure Amount.’’ validate the submissions against other from the next airport in the tickets travel a. Total Amount data sources, such as the T100 and T– sequence. The standard measure of 100(f). Data in the O&D Survey currently continuity of a journey in the industry The proposed rule would keep the cannot properly support a direct is time between flights at an airport, or reporting element ‘‘Total Dollar Value’’ comparison to 3 months of T–100/T– ‘‘dwell time.’’ Reporting ‘‘dwell time’’ but change the name of the reporting 100(f) data because the current survey would enable users to make an accurate element to the industry standard term reporting includes data with travel dates determination of when a passenger has ‘‘Total Amount’’ and clarify the outside of the three months of the reached a destination versus when the instructions for populating the data quarterly O&D reporting window that passenger is simply waiting for a element. For all Eligible Tickets, the cannot be identified in the collected connecting flight to the intended O&D Survey Reporting Carrier would data; therefore, the data cannot be destination. For example, when a report the Total Amount paid for the accurately segmented on specific time passenger stays only an hour or two at ticket that was mandatory for the periods for comparison with the T–100 an airport, the airline assumes that this passenger to board the aircraft. The or T–100(f). airport is not an intended destination Department proposes that the Total but, instead, the passenger was only at Amount would include all mandatory 2. Reporting All Airports in the Itinerary carrier-imposed charges and Including Via Airports that airport to travel onward to an intended destination. government-imposed fees and taxes. The proposed rule would require As the O&D Survey Reporting Carrier Carrier-imposed charges, which are reporting of Eligible Tickets to include knows the flight dates and flight times variously described as fuel surcharges, all airports wherein the passenger is on an individual ticket, the Department ticketing, check-in, seat, or other fees or scheduled to travel, even when the proposes that the O&D Survey Reporting charges that are mandatory, that a passenger does not deplane. Whereas Carriers report in one hour increments passenger must pay to board the aircraft most tickets document travel that the number of hours elapsed between a would be included. In addition, the consists of flight coupons with one passenger’s arrival and the passenger’s amount of non-airline imposed taxes aircraft take-off and one aircraft landing, departure from an Airport, rounding up and fees for the ticket would be sometimes the passenger is on a flight to the nearest whole hour. This measure included. The Total Amount would not that lands at an airport but the of time would be reported as a new include charges for optional or ancillary passenger remains on board. This element, ‘‘Dwell Time.’’ services such as baggage fees, premium airport is not expressly identified in the seat fees, or ticket change fees. For ticket, and is generally referred to as a 4. Reporting an Exchanged Ticket example, if a consumer can choose a no- ‘‘via’’ airport. The current rules of the Indicator cost seat or seating category, but chooses O&D Survey do not allow for the The proposed rule adds a new to purchase a particular seat or seating reporting of ‘‘via’’ airports. Collecting element, the ‘‘Exchanged Ticket category, that fee should not be this information would enable data Indicator,’’ to notify O&D Survey data included. However, if a passenger has a

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choice of seats or seating categories, but as the Tax Amount, and would exclude to minimize the burden on O&D Survey there is a cost associated with all the all carrier-imposed fees. Reporting Carriers. Currently, O&D options and the consumer must pay a When reporting Category Two Survey Reporting Carriers must map fee regardless of which option is chosen, Tickets, the O&D Survey Reporting their fare types to a standard set of the fee is mandatory and that fee should Carrier may not have access to the government-defined definitions that do be included in the total cost of the accounting system of the Issuing Carrier. not always match well with their ticket. Regarding mandatory ticket However, since ticket information is business model-specific products, purchase fees, if the passenger must pay routinely shared between air carriers resulting in inconsistent fare basis codes a fee the amount of which depends on and foreign air carriers in the normal being assigned across carriers. Ceasing the outlet from which the ticket is course of business when transporting to report Fare Basis Codes would also purchased (e.g., one fee for online interline passengers, it can be expected decrease the burden on the O&D Survey purchases, a slightly higher (or lower) that the O&D Survey Reporting Carrier Reporting Carriers. Alternatively, the fee for telephone purchases, and a would report as accurately as possible O&D Survey could collect fare class or slightly lower (or higher) fee for the Tax Amount based on the a replacement data element instead, purchases at the ticket counter), information shared by the Issuing such as cabin class of ticket purchased. payment of one of those fees is Carrier. The Department believes that such a mandatory, and the fee paid by the An alternative approach would be to data element would prove useful to a passenger should be reported. However, require that the O&D Survey Reporting variety of industry stakeholders, and if there is an outlet for which there is Carrier report all taxes and non-carrier would also allow users of the data to no ticket fee (e.g., online purchases) and fees separately, instead of the current segment average fares. the only additional purchase fees are for proposal to aggregate the taxes and fees V. Proposed Changes to Dissemination tickets purchased via the airline’s into one lump sum. The Department of Data disfavored outlets, such as telephone or seeks comment regarding the utility to in-person sales, then the fee is not users and additional burden to O&D A. Changes to Dissemination of O&D mandatory and would not need to be Survey Reporting Carriers of reporting Survey Data individual tax and fee amounts instead included in the ‘‘Total Amount’’ By collecting data on a monthly basis, of reporting the aggregate amount of reported to the Department. instead of quarterly, this proposed rule taxes and fees. The Department seeks comment on would allow DOT the ability to whether an ‘‘optional’’ ticket purchase c. Currency and Fractions of a Dollar disseminate the O&D Survey statistics fee collected from most tickets sold by The rule proposes all amounts would more frequently. The Department, a carrier should be included in the Total be reported in United States Dollars however, must balance the value of Amount of the ticket. For example, if (USD), rounded to two decimal places. providing timely information to there is a disfavored outlet, such as in- The rule does not propose to impose a stakeholders with the need to protect person sales, for which there is no ticket uniform methodology for the conversion the business confidentiality of the air fee, but a ticket fee is collected from of foreign currency to USD. O&D Survey carriers. Currently, O&D Survey data is tickets sold from the outlet a majority of Reporting Carriers would, however, be typically released 90 days from the end passengers use (e.g., online purchases), expected to use a currency conversion of the reporting quarter. The Department should this fee be included in the Total methodology that is generally accepted proposes withholding the O&D Survey Amount of the ticket? If yes, what within the industry. monthly data for a minimum of 60 days should the threshold be—greater than from the end of the Reporting Year and 50 percent of tickets sold? 7. Record Identification Number Month. DOT seeks comment on the When reporting Category Two The rule proposes the creation of a appropriate amount of time to withhold Tickets, the O&D Survey Reporting unique Record Identification Number data from dissemination that would still Carrier may not have access to the (Record ID) generated by the O&D protect the competitive interests of the accounting system of the Issuing Carrier. Survey Reporting Carrier for each air carriers. However, because ticket information is Eligible Ticket submitted to the O&D Another data dissemination issue is routinely shared between air carriers Survey. This would allow the the restrictions placed on the release of and foreign air carriers when Department to communicate precisely to domestic carrier-submitted itineraries transporting shared passengers, it can be the O&D Survey Reporting Carrier any with foreign origin and destination expected that the O&D Survey Reporting records that may have missing or points in the O&D Survey to non-U.S. Carrier would report as accurately as incomplete data elements, or are citizens. Currently, because data possible the Total Amount based on the otherwise flagged for review. The covering the operations of foreign air information shared by the Issuing Department seeks comment on how to carriers that is similar to the information Carrier. standardize the format of the Record ID collected in the O&D Survey is not available, international itinerary data in b. Tax Amount by incorporating helpful elements, such as the month and year of travel, plate the Passenger Origin-Destination Survey The proposed rule would create a new code of the O&D Survey Reporting is not generally disclosed because of the reporting element, ‘‘Tax Amount.’’ Carrier, ticket number, or origin/ potential damaging competitive impact Along with informing tax policy, this destination, while at the same time on U.S. carriers and the adverse effect change would allow users of the data to preserving the number as a unique upon the public interest that would determine the actual passenger revenue record identifier. result from unilateral disclosure of data retained by an airline. For Category One related to foreign markets (14 CFR part Tickets, the O&D Survey Reporting 8. Removal of Fare Basis Code 241, Sec. 19–7(d)). The disclosure Carrier would report the aggregate of The Department seeks comment on policy identifies exceptions for fees and taxes imposed by external whether to cease reporting the Fare government interests and for air carriers entities (e.g., airport operating Basis Code as currently collected, the contributing data to the O&D Survey. authorities and government usefulness of such a data element, and The international travel data is available jurisdictions) and paid by the passenger how this data element could be revised to persons upon a showing that the

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release of the data will serve specifically A. Elements for Each Submitted Report Marketing Codeshare, the Operating identified needs of U.S. users which are • O&D Survey Reporting Carrier Carrier would be different than the consistent with U.S. interests (14 CFR Identifier: The two-character Marketing Carrier. • Scheduled Flight Year:* Departure part 241, Sec. 19–7(d)). International Air Transport Association year in which the flight is scheduled to The Department is not contemplating (IATA) identifier of the air carrier that a change to its policy regarding the depart the subject Airport. reports the ticket. • release of international travel data; • Scheduled Flight Month:* Reporting Year: Year in which a Departure Month in which the flight is however, DOT proposes adding the coupon in a ticket is used for air descriptor ‘‘citizens and non-citizens’’ scheduled to depart the subject Airport. transportation for the first time. • Dwell Time:* A value that describes to the other persons offered an • Reporting Month:* Month in which opportunity to receive the data based on the time reported in one hour a coupon in a ticket is used for air increments between the time a specifically identified needs and transportation for the first time. consistency with U.S. interests. The passenger arrived at the subject airport Department seeks comment on the B. Elements for Each Submitted Ticket and departed from the subject airport. When an itinerary shows that the advisability of this clarification of • Record Identification Number:* A passenger arrives at an airport that is language, and whether to grant non- unique number assigned by the O&D different from the departure airport (i.e., citizens access to the O&D Survey data Survey Reporting Carrier to each there is a surface segment in the under these circumstances. Finally, Eligible Ticket submitted to the O&D itinerary), the Dwell Time would still DOT seeks comment on whether to Survey, allowing DOT to precisely report the elapsed time between arrival replace the phrase ‘‘specifically communicate to the O&D Survey and departure by air. identified need’’ with a defined list of Reporting Carrier any records that may • Via Airport(s):* Any points of permissible, specifically identified have missing or incomplete data scheduled stopover or connection at needs that would be codified in the elements, or are otherwise flagged for airports as part of a ‘‘direct’’ or regulation, and, if so, what that defined review. ‘‘through’’ flight. list should include. • Issuing Carrier:* The two character All itineraries that contain a foreign IATA/DOT identifier of the air carrier or VII. Implementation and Compliance point and involve a U.S. O&D Survey foreign air carrier that issued the ticket. Date Reporting Carrier in the itinerary, • Total Amount: The gross total of The Department proposes that the regardless of whether a domestic or funds collected on a ticket by the compliance date for these improvements foreign air carrier reports it, would Issuing Carrier for the transportation of to the O&D Survey would be no earlier continue to be made available under the a passenger, inclusive of taxes and fees than one year from the publication of disclosure policy discussed above. imposed by non-carrier entities or air the final rule. The Department envisions the submission of 12 months of data B. Changes to Dissemination of T–100/ carriers, and exclusive of ancillary fees under Sec. 19–8 for testing and T–100(f) not required to board the plane charged by the air carrier. validation as sufficient to resolve any The Department is considering • Tax Amount:* The portion of the problems that may arise in the shortening the time that it withholds Total Amount that is imposed by and submission and processing of data. DOT public release of the T–100(f). Such a remitted to a non-air carrier entity, such seeks comment on what a reasonable change would not only expedite public as a government. This value may also compliance date would be based on the access to O&D Survey data, but it would include airport-imposed taxes or fees scope of the proposal in this NPRM. also make the T–100(f) release more assessed by privately operated airports. Carriers would continue to report consistent with T–100 domestic data by • Exchanged Ticket Indicator:* A under Sec. 19–7 until such a time that having each released on the same record indicator when at least one form it is determined by DOT that testing and schedule. This would simplify the of payment for the ticket is one or more validation of data submitted under Sec. process of using DOT’s aviation data Coupons of a previously issued ticket. 19–8 is complete and suitable to replace products by making it easier to data collected under Sec. 19–7 as the harmonize domestic and international C. Elements for Each Airport in the statistics of record. The Department planning tasks. Considering the Ticket Sequence of Travel seeks comment on this reporting increased utility of the data in the O&D • Airport: The IATA/DOT airport requirement. Survey, DOT is requesting comment on code of the station in the ticket’s VIII. Regulatory Analysis and Notices shortening the time that T–100(f) is sequence of travel that represents the withheld from the current 6 months to point of embarkation for the flight A. E.O. 12866 (Regulatory Planning and 3 months. segment indicated by Operating Carrier, Review), E.O. 13563 (Improving Marketing Carrier, Scheduled Flight Regulation and Regulatory Review), E.O. VI. Complete List of Elements To Report Year, Scheduled Flight Month. The 13771 (Reducing Regulation and Below is the proposed list of all elements Dwell Time, and Via Airport Controlling Regulatory Costs), and DOT elements that would be reported in the would apply to this Airport. Regulatory Policies and Procedures (49 O&D Survey. Elements marked with an • Operating Carrier: The IATA/DOT CFR Part 5) asterisk (*) indicate new or significantly designator code for the air carrier or This rulemaking is not considered a changed elements. Elements for each foreign air carrier whose aircraft are significant regulatory action under submitted report would be submitted used to operate from the subject airport. section 3(f) of E.O. 12866,14 as only once with each report; elements for • Marketing Carrier: The IATA/DOT supplemented by E.O. 13563,15 which each submitted ticket would be designator code for the air carrier or define a significant regulatory action as submitted once for each ticket; and foreign air carrier which marketed the one that is likely to result in a rule that elements submitted for each airport in seat on the aircraft that is scheduled to may have an annual effect on the the ticket sequence of travel would be depart that appears on the flight submitted once for each airport in the segment for the subject airport. In the 14 58 FR 51735; September 30, 1993. sequence of travel. case of a Franchise (contract lift) or 15 76 FR 3821; January 21, 2011.

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economy of $100 million or more or users must spend applying specialized expenses for training and technical adversely affect, in a material way, the analytical skills to manipulate and maintenance. This option would not economy, a sector of the economy, adjust the data to account for current only simplify the information productivity, competition, jobs, the deficiencies in the Origin and technology operations, but also amortize environment, public health or safety, or Destination Survey. the cost of creating and maintaining the State, local, or tribal governments or Cost reductions to data producers software. Therefore, upfront costs communities. The impact on the include costs for accounting and resulting from this proposed action are economy would be less than $100 auditing clerks, computer systems expected to include the expenses related million; it would create no conflicts analysts, and computer programming to developing, installing, and with actions taken by other agencies; it analysts that are part of the ongoing maintaining an automated reporting would not alter budgetary impacts of production of data by the air carriers. system. These upfront costs have been entitlements, grants, fees, or loans; nor Labor rates were taken based on Bureau accounted for as ongoing payments to a would it raise any unusual legal or of Labor Statistic’s Standard third-party provider. policy issues. Occupational Classification (SOC) and Cost reductions to the government This proposed regulatory action hours were estimated based on industry include systems investment costs and would modify an existing regulation input for current operations. Average ongoing production costs. Labor rates and is expected to result in cost savings cost per airline based on the labor rates were taken based on Bureau of Labor and estimated hours was then to producers and users of the data as Statistic’s Standard Occupational calculated, and this was multiplied by well as to the Federal government. The Classification (SOC) and hours were the expected number of carriers that proposed action is also expected to based on estimates provided by the will report over a 10-year timeframe. result in benefits to users of the data, Bureau of Transportation Statistics The ‘‘as is’’ costs were then compared including the O&D Survey Reporting (BTS), the agency responsible for the to the ‘‘to be’’ costs that would be Carriers themselves. current processing. The ‘‘as is’’ achieved under the proposed rule. The comparison assumed the use of existing 1. Cost Savings ‘‘to be’’ costs include the transition costs infrastructure while the ‘‘to be’’ from the current system to the new The net costs of the proposed rule assumed a 2-year development and were determined by comparing the costs system as well as an ongoing cost estimate for the processing of the data implementation window as well as of the existing system to the projected ongoing production costs. costs with the proposed modification. by a third-party fee-for-service provider. The Department’s analysis identified ATPCO, the leading distributor of Cost reductions to the public/users three primary categories of potential airline fares and airline fare estimated for the ‘‘as is’’ total hours cost reductions: information, notified DOT that it can users of the data spend on computer • Cost reductions to data producers: create software to assemble the O&D systems analysts to further prepare the The reduction in the costs of producing Survey report for any air carrier that data and the number of hours an analyst information for government reporting, exchanges ticket information using their may take to perform final data quality due to technological simplification of services. ATPCO is a non-profit industry procedures that must be done to ensure data processing and submission. consortium that provides tariff services clean data for final analysis outputs. • Cost reductions to the government: and other ticket-related services to air The comparison ‘‘to be’’ calculation The reduction in costs to edit, carriers and foreign air carriers ‘‘at- includes an estimated investment cost manipulate, and validate the O&D data cost.’’ ATPCO’s shared software would for creating processes for the new data for release. relieve air carriers from the cost of prior to its release to public/users. • Cost reductions to the public/users maintaining separate systems, each of All costs were estimated over 10 years of the data: The reduction in time that which carries attendant secondary and discounted at a 7 percent rate.

SUMMARY OF COST SAVINGS

Costs Costs under the under the Stakeholder current proposed Cost savings regulation regulation

Regulated Entities (Data Producers) ...... $8,355,747 $7,458,801 $896,946 Government ...... 18,127,583 10,912,800 7,214,783 Public (Data Users) ...... 2,452,586 196,613 2,255,973

Total Cost Savings (10 years @7% Discount Rate) ...... 10,367,702

Annualized Cost Savings ...... 1,476,128

This analysis finds that the proposed the design of the O&D Survey researchers, and investors, who often modification would result in annualized sufficiently, allowing for third-party cite the O&D Survey as one of the most cost savings of approximately $1.5 providers to create fee-for-service critical datasets used to formulate short- million at a 7 percent discount rate. software that would produce the Survey and long-term business plans and reporting records for all air carriers. forecast industry trends. Improving the 2. Implementation and Transition Costs quality of the O&D Survey data would 3. Benefits to Users of the Data To comply with the proposed revised also yield several other unquantified O&D Survey, a certain investment is Users of the data include both air benefits to users of the data, including: likely necessary by data producers. The carriers and industry-related entities, • Reporting the Dwell Time between proposed modification would simplify such as airports, manufacturers, flights would help reduce the

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difficulties and potential errors facilitate validation of O&D Survey data collected would remove uncertainty in associated with determining when a submissions. determining the actual passenger passenger has reached a destination • Reporting a larger sample size to revenue retained by the airlines. capture small and rural markets with (‘‘Trip Break’’) and when the passenger • Reporting the month and year of the statistically significant equivalence is simply waiting for a connecting flight travel would enable determinations of of larger markets would reduce the need to the intended destination. market trends that are not discernable • to make much less accurate manual Reporting all the cities in the statistical adjustments as well as inside the quarterly data reports and itinerary would better align O&D Survey increase the accuracy of data available would allow direct cross-validation to data with the T–100, removing much of for the analysis of small markets. other datasets such as the T–100. the uncertainty in market validation • Differentiating the amount of tax 4. Cost-Benefit Analysis Summary analysis. This would allow the T–100 to collected from the amount of total fare

Major provisions of this 10-Year costs regulatory action Benefit (discounted at 7%)

Change sample size to 40% ..... Would enable more effective oversight of Congressional pro- The estimated total reduction in cost over 10 grams designed to help small communities and provide years discounted at 7% for all the major more accurate market information for a wide variety of re- provisions would provide a reduction of search and industry uses. $10,367,702 from the cost of continuing the current methodology.* Report each ticket as a single Would simplify reporting and improves quality assurance. record. Designate all certificated air Would simplify the reporting procedures to enable full auto- carriers and commuter air mation of reporting, which enhances efficiency and accu- carriers holding out sched- racy; and eliminate loopholes in collection secure integrity uled passenger service as of the sample of tickets. O&D Survey Reporting Car- riers and require them to re- port the tickets that they sell. Move to monthly reporting ...... Would create more useful and timely economic information; and align the reporting process with the corresponding in- dustry accounting process. Report the month/year of travel Would create more useful, timely economic information; and align reporting process with the corresponding industry ac- counting process. Report all airports in the Would provide clarity and completeness in passenger move- itinerary. ments. Report Dwell Time as the num- Would allow accurate determination of the passenger’s in- ber of hours between each tended destination based on industry standard practice. arrival and next departure in the itinerary. Report an Exchanged Ticket In- Would alert data users that the fare on a specific ticket may dicator. require further investigation. Elimination of Fare Basis Code Would remove sensitive business information that is burden- reporting. some to report. Report taxes paid on the ticket Would inform tax policy and allow data users to separate taxes paid from the total fare. Report a Record Identification Would enable communication between a O&D Survey Re- Number. porting Carrier and DOT regarding data quality. * The industry requests to align the regulation with current accounting practices, which means that the system is to be restructured, so all new provisions can be included in a one-time programming cost.

This proposed rule is expected to be B. The Unfunded Mandates Reform Act result in expenditures by State, local, or an E.O. 13771 deregulatory action.16 As of 1995. tribal governments. is described above in the discussion of C. Regulatory Flexibility Act the benefit-cost analysis that was The Unfunded Mandates Reform Act 17 conducted for the proposed rule, this of 1995 requires Federal agencies to The Regulatory Flexibility Act 18 action is expected to result in prepare a written assessment of the requires an agency to assess the impacts annualized cost savings (to producers costs, benefits, and other effects of of proposed and final rules on small and users of the data and the Federal proposed or final rules that include a entities unless the agency determines Government) of approximately $1.5 Federal mandate likely to result in that a rule is not expected to have a million per year, while also yielding expenditures by State, local, or tribal significant economic impact on a additional unquantified benefits to users governments, in the aggregate, or by the substantial number of small entities. of the data through improved data private sector, of more than $100 The Department has evaluated the quality and utility. million annually. The proposed changes effects of this action on small entities we are considering making to the and anticipates that the action will not aviation data collections would not have a significant economic impact on a substantial number of small entities.

16 82 FR 9339; Feb. 3, 2017. 17 2 U.S.C. 1531–1538. 18 5 U.S.C. 601 et seq.

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The small entities which will begin imposed on the public and obtain Frequency: Monthly. reporting the data collected under this approval from the Office of Management Annual Burden Estimate: The proposed rule routinely collect this data and Budget (OMB) for each collection of Department is soliciting comments to— as a normal course of business, as a information it conducts, sponsors, or necessity to common industry requires through regulations. (1) Evaluate whether the proposed accounting practices. The Department This action contains the following information requirement is necessary for hereby certifies that this action would proposed amendments to the existing the proper performance of the functions not have a significant economic impact information collection requirements of the agency, including whether the on a substantial number of small previously approved under OMB information will have practical utility; entities. Control Number 2105–AE45. As (2) Evaluate the accuracy of the required by the PRA, DOT has agency’s estimate of the burden; D. E.O. 13132 (Federalism) submitted these proposed information (3) Enhance the quality, utility, and 19 E.O. 13132 requires agencies to collection amendments to OMB for its clarity of the information to be ensure meaningful and timely input by review. collected; and State and local officials in the Summary: Origin-Destination Survey development of regulatory policies that of Airline Passenger Traffic (O&D (4) Minimize the burden of collecting may have a substantial, direct effect on Survey), which collects information on information on those who are to the States, on the relationship between the origin and destination of passengers respond, including by using appropriate the National Government and the States, including, at a minimum, information automated, electronic, mechanical, or or on the distribution of power and on: (1) The origin and destination of other technological collection responsibilities among the various passengers in interstate air techniques or other forms of information levels of government. The Department transportation, and (2) the number of technology. has analyzed this action in accordance passengers traveling by air between any Individuals and organizations may with the principles and criteria two points in interstate air send comments on the information contained in E.O. 13132. This rule does transportation. Modifications to the collection requirement by March 19, not include any provision that existing requirements would include 2021, 11:59 p.m. Eastern Time, and substantially directly affect the States, making the air carrier that issues the should direct them to the address listed the relationship between the National ticket primarily the carrier responsible in the ADDRESSES section at the Government and the States, or the for submitting the ticket, reporting each beginning of this preamble. Comments distribution of power and ticket as a single record, expanding the should also be submitted to the Office responsibilities among the various O&D Survey Reporting Carrier of Management and Budget, Office of levels of government. It imposes no threshold, changing the period of Information and Regulatory Affairs, direct compliance costs on State and reporting to monthly, increasing the Attention: Desk Officer for OST, New local governments nor does it preempt sample size to 40 percent, reducing the Executive Building, Room 10202, 725 State law. States are already preempted lag time for release of T–100(f), adding 17th Street NW, Washington, DC 20053. from regulating in this area by the dwell time, adding a Via Airport data G. National Environmental Policy Act Airline Deregulation Act.20 Therefore, element, adding a Total Tax element, adding Travel Year and Travel Month as the consultation and funding The Department has analyzed the recorded elements, adding an Exchange requirements of E.O. 13132 do not environmental impacts of this proposed Ticket Indicator, adding a Reporting apply. action pursuant to the National Record Identifier, and removing the Environmental Policy Act of 1969 E. E.O. 13175 (Consultation and requirement to record the Fare Basis Coordination With Indian Tribal Code. (NEPA) (42 U.S.C. 4321, et seq.) and has Governments) Use: The Department is obligated by preliminarily determined that it is categorically excluded pursuant to DOT The proposed changes to the O&D statute to collect and disseminate this information. There are many private and Order 5610.1C, Procedures for Survey would not have tribal Considering Environmental Impacts (44 implications, impose substantial direct public stakeholders that depend on this data to make decisions on aviation FR 56420, Oct. 1, 1979). Categorical compliance costs on Indian tribal exclusions are actions identified in an governments, or preempt tribal law. business and policy. For example, this data is used by the industry to plan air agency’s NEPA implementing Therefore, this NPRM is exempt from procedures that do not normally have a the consultation requirements of E.O. services, develop commercial aviation infrastructure, measure the economic significant impact on the environment 13175, ‘‘Consultation and Coordination and therefore do not require either an 21 impact of passenger flows, and create with Indian Tribal Governments.’’ If environmental assessment (EA) or tribal implications are identified during business plans for start-up airlines. The O&D Survey is also a primary source of environmental impact statement (EIS). the comment period, the Department The purpose of this rulemaking is to will undertake appropriate information used to quantify and evaluate the effectiveness of Federal update the method of collecting and consultations with the affected Indian processing aviation traffic data as well tribal officials. aviation policy and programs as well as develop and implement new policies as expanding the number of reporting F. Paperwork Reduction Act and infrastructure initiatives. air carriers, the sample size collected, Respondents (including number of): and the scope of the data reported in the The Paperwork Reduction Act of 1995 O&D Survey. The Department does not (PRA) 22 requires that the Department All certificated air carriers and commuter air carriers holding out anticipate any environmental impacts, consider the impact of paperwork and and there are no extraordinary other information collection burdens scheduled passenger service. The Department currently estimates circumstances present in connection with this rulemaking. 19 64 FR 43255; August 10, 1999. approximately 27 air carriers will 20 49 U.S.C. 41713. qualify to submit data to the O&D H. Regulation Identifier Number 21 65 FR 67249; November 9, 2000. Survey as envisioned by this 22 44 U.S.C. 3501, et seq. rulemaking. 2105–AE45.

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List of Subjects Operating Carrier, Marketing Carrier, PART 298—EXEMPTIONS FOR AIR Scheduled Flight Year, Scheduled TAXI AND COMMUTER AIR CARRIER 14 CFR Part 241 Flight Month, Dwell Time and Via OPERATIONS Air carriers, Reporting and Airport(s). recordkeeping requirements, Uniform ■ 4. The authority citation for part 298 (c) Any Ticket that is submitted that system of accounts. continues to read as follows: involves a O&D Survey Reporting 14 CFR Part 298 Authority: 49 U.S.C. 329 and chapters 401, Carrier providing service in whole or in 411, and 417. part under this part or 49 U.S.C. 41308 Air taxis, Reporting and ■ 5. In § 298.60, revise paragraph (a) to recordkeeping requirements. or 41309 and any data covering the operations of foreign air carriers that are read as follows: Issued in Washington, DC. similar to the information collected in Elaine L. Chao, § 298.60 General reporting instructions. the Passenger Origin-Destination Survey Secretary of Transportation. (a) Each commuter air carrier and are generally not available to the each small certificated air carrier shall Proposed Rule Department, the U.S. carriers, or U.S. file the applicable schedules of Form Accordingly, the Department interests. Therefore, because of the 298–C, ‘‘Report of Financial and proposes to amend 14 CFR parts 241 damaging competitive impact on U.S. Operating Statistics for Small Aircraft and 298 as follows: carriers and the adverse effect upon the Operators’’, Schedule T–100, ‘‘U.S. Air public interest that would result from Carrier Traffic and Capacity Data by PART 241—UNIFORM SYSTEM OF unilateral disclosure of the U.S. survey Nonstop Segment and On-Flight ACCOUNTS AND REPORTS FOR data, the Department will not disclose Market’’, and the ‘‘Passenger Origin— LARGE CERTIFICATED AIR CARRIERS the international data in the Passenger Destination Survey’’ prescribed in part Origin-Destination Survey except: 241, Sec. 19–8, of this subchapter. ■ 1. The authority citation for part 241 * * * * * continues to read as follows: (1) To an air carrier directly participating in and contributing input [FR Doc. 2020–29229 Filed 1–15–21; 8:45 am] Authority: 49 U.S.C. 329, 41101, 41708, data to the Survey or to a legal or BILLING CODE 4910–9X–P and 41709. consulting firm designated by an air Sec. 19–7 [Removed] carrier to use on its behalf O&D data in ■ 2. Remove Sec. 19–7. connection with a specific assignment SECURITIES AND EXCHANGE ■ 3. Add Sec. 19–8 to read as follows: by such carrier; COMMISSION (2) To parties to any proceeding Sec. 19–8 Passenger Origin—Destination 17 CFR Parts 230, 232, 239, and 249 Survey applicability. before the Department to the extent that such data are relevant and material to [Release Nos. 33–10911; 34–90773; File No. (a) All U.S. certificated and commuter S7–24–20] air carriers conducting scheduled the issues in the proceeding upon a passenger services (except helicopter determination to this effect by the RIN 3235–AM78 carriers) shall participate in a Passenger Administrative Law Judge or by the Origin-Destination (O&D) Survey Department’s decision-maker. Any data Rule 144 Holding Period and Form 144 covering domestic and international air to which access is granted pursuant to Filings this section may be introduced into carrier operations, as prescribed by the AGENCY: Securities and Exchange Department’s Bureau of Transportation evidence subject to the normal rules of Commission. admissibility of evidence. Statistics (BTS), Office of Airline ACTION: Proposed rule. Information (OAI). (3) To agencies and other components (b) A statistically valid sample of of the U.S. Government. SUMMARY: The Securities and Exchange flight coupons shall be selected for Commission (‘‘Commission’’) is (4) To other persons upon a showing reporting purposes. The sample shall proposing to amend Rule 144 to revise that the release of the data will serve consist of a selection of all Tickets the holding period determination for involving a Reporting Carrier that meet specifically identified needs of U.S. securities acquired upon the conversion the reporting criteria as defined in the users which are consistent with U.S. or exchange of certain market-adjustable Instructions, or further defined in interests. securities of issuers that do not have Directives, except those participating (5) To foreign governments and securities listed on a national securities O&D carriers with nonstandard ticketing foreign users as provided in formal exchange. Under the proposed procedures, or other special operating reciprocal arrangements between the amendments, the holding period for characteristics, may propose alternative foreign and U.S. Governments for the those securities would not begin until procedures. Such departures from exchange of comparable O&D data. the securities are acquired upon the standard O&D Survey practices shall not (6) Or as otherwise determined by the conversion or exchange of the market- be authorized unless approved in Department as consistent with its adjustable security. The Commission is writing by the Director, Office of Airline regulatory functions and also proposing to mandate electronic Information under the procedures in filing of Form 144 with respect to responsibilities. Sec. 1–2. The data to be recorded and securities issued by issuers subject to reported, as stipulated in the (d) Each O&D Survey Reporting Exchange Act reporting requirements, to Instructions and Directives, shall Carrier shall maintain its prescribed amend the filing deadline for Form 144 include at a minimum the following reportable records in a manner and at to coincide with the filing deadline for data elements: Reporting Carrier, such locations as will permit ready Form 4, and to streamline the filing Reporting Month, Reporting Year, accessibility for examination by process in cases where both Form 4 and Record Identification Number, Issuing representatives of DOT. The record Form 144 are required to report the Carrier, Total Amount, Tax Amount, retention requirements are prescribed in same transaction. Finally, the Exchanged Ticket Indicator, Airport, part 249 of this chapter. Commission is proposing to eliminate

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