[Federal Register Volume 82, Number 239 (Thursday, December 14, 2017)]
[Proposed Rules]
[Pages 58777-58778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-26708]
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DEPARTMENT OF TRANSPORTATION
Office of the Secretary
14 CFR Part 241
[Docket No. RITA-2011-0001]
RIN 2105-AE31
Ancillary Airline Passenger Revenues
AGENCY: Office of the Secretary, Department of Transportation.
ACTION: Proposed rule; withdrawal.
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SUMMARY: The Department of Transportation (the Department) is
withdrawing a notice of proposed rulemaking (NPRM) published on July
15, 2011 that proposed to collect detailed revenue information
regarding airline imposed fees from those air carriers meeting the
definition of a large certificated air carrier. We are withdrawing this
rulemaking in light of the comments we received. The withdrawal of this
rulemaking corresponds with the Department's and Administration's
priorities and is consistent with the Executive Order 13771, Reducing
Regulation and Controlling Regulatory Costs, January 30, 2017.
DATES: Amendatory instructions 3 through 6 of the proposed rule
published July 15, 2011 (76 FR 41726), are withdrawn as of December 14,
2017.
ADDRESSES: Electronic Access: You can view and download related
documents and public comments by going to the website http://www.regulations.gov. Enter the docket number DOT-RITA-2011-0001 in the
search field.
FOR FURTHER INFORMATION CONTACT: Zeenat Iqbal and Blane A. Workie,
Office of Aviation Enforcement and Proceedings, 1200 New Jersey SE,
Room W96-414, Washington, DC 20590, (202) 366-9893,
[email protected] (email).
SUPPLEMENTARY INFORMATION:
Background
On July 7, 2011, the Office of the Secretary issued a notice of
proposed rulemaking (NPRM) proposing to collect detailed information
about ancillary fees paid by airline consumers to determine the total
amount of fees carriers collect through the a la carte pricing approach
for optional services related to air transportation. The Department
also proposed to alter its matrix for collecting and publishing data on
mishandled baggage and to collect information regarding damage, delay
or loss of wheelchairs and scooters transported in the aircraft cargo
compartment. The final rule relating to reporting of data for
mishandled baggage and wheelchairs (2104-AE41) was issued on November
2, 2016 (81 FR 76300). We are withdrawing the other topic covered in
the proposed rule, the reporting of airline fee revenue.
The NPRM
In the NPRM, the Department proposed to create two stand-alone
reporting forms, designated P-9 and P-9.1, to capture ancillary
revenues. Specifically, air carriers with annual reporting revenue of
$20 million or more would be required to submit the P-9 form quarterly
and air carriers with annual reporting revenue below $20 million would
be required to submit the form P-9.1 on a semiannual basis. The
information required by the two proposed schedules was identical; they
differed only in the required reporting frequency. The NPRM also
proposed to define ancillary revenues as those charges paid by airline
passengers that are not included in the standard ticket fare. The
Department solicited comments on which items should be specifically
identified as ancillary revenues, and proposed to collect data on 19
separate charges for optional services. The categories included: (1)
Booking fees, (2) priority check-in and security screening, (3)
baggage, (4) in-flight medical equipment, (5) in-flight entertainment/
internet access, (6) sleep sets, (7) in-flight food/non-alcoholic
drinks, (8) alcoholic drinks, (9) pets, (10) seating assignments, (11)
reservation cancellation and change fees; (12) charges for lost ticket;
(13) unaccompanied minor/passenger assistance fee; (14) frequent flyer
points/points acceleration; (15) commissions on travel packages; (16)
travel insurance; (17) duty-free and retail sales; (18) one-time access
to lounges and (19) other.
Comments Received
In response to the 2011 NPRM, the Department received approximately
280 comments from airlines, airports, trade associations, unions,
consumer groups and private citizens who use this data. There was wide
support among consumers and consumer rights groups for the proposed
rule's reporting requirements. Consumers and consumer rights groups, as
well as ACI-NA and Southwest Airlines, commented that the reporting
requirement would bring the benefits of both increased transparency and
improved data corroboration regarding the impact of ancillary fees on
the Airport and Airway Trust Fund.
On the other hand, most airlines and industry organizations
commented that the proposed rule will not benefit the public because
the Department has not demonstrated a need for this information. They
asserted that the rule will not increase the transparency of pricing
for airline revenues. Airlines also commented that if the justification
for this rule is to tax ancillary revenues, the Department must state
that justification. In addition, several airlines and industry groups
suggested that the Department underestimated the proposed rule's
economic burden on industry.
With regard to the proposed 19 categories, industry groups,
consumer groups and airlines commented that the Department failed to
justify the proposed categories and suggested various changes to the
list of 19 charges for which air carriers would have to report revenues
under the proposed rule. Carriers also expressed concern that the
proposed reporting requirements would require carriers to reveal
proprietary information to their competitors. Some carriers suggested
that there is no correlation between a carrier's disclosure of itemized
aggregate revenue data and consumer concerns regarding fare
transparency. Southwest Airlines, which supported the Department's
stated goal of making ticket pricing more transparent for
[[Page 58778]]
consumers, also urged the Department to reduce the number of categories
by half.
Reason for Withdrawal
The purpose of this rulemaking was to make airline pricing more
transparent to consumers and airline analysts. Although we believe
there would be benefits of collecting and publishing the proposed
aviation data, the Department also takes seriously industry concerns
about the potential burden of this rule. The Department is withdrawing
this rulemaking proposal. The withdrawal of this rulemaking corresponds
with the Department's and Administration's priorities and is consistent
with the Executive Order 13771, Reducing Regulation and Controlling
Regulatory Costs, January 30, 2017.
Issued in Washington, DC, on December 5, 2017.
Elaine L. Chao,
Secretary of Transportation.
[FR Doc. 2017-26708 Filed 12-13-17; 8:45 am]
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