[Federal Register Volume 60, Number 162 (Tuesday, August 22, 1995)]
[Rules and Regulations]
[Pages 43521-43531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20502]



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DEPARTMENT OF TRANSPORTATION
Office of the Secretary

14 CFR Parts 200, 201, 203, 204, 206, 215, 232, 271, 272, 291, 294, 
296, 297, 298, 300, 313, 324, 325, 372, 379, 398, and 399

[Docket No. OST-95-397]
RIN 2105-AC-27


Aviation Economic Rules

AGENCY: Department of Transportation, Office of the Secretary.

ACTION: Final rule.

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SUMMARY: The Department is amending various provisions regarding 
aviation economic rules in order to eliminate obsolete provisions and 
correct outdated organizational and statutory references.

EFFECTIVE DATE: The rule shall become effective on September 21, 1995.

FOR FURTHER INFORMATION CONTACT: Carol A. Woods, Air Carrier Fitness 
Division, X-56, Department of Transportation, 400 Seventh Street, S.W., 
Washington, DC 20590, (202) 366-9721.

SUPPLEMENTARY INFORMATION: In his Regulatory Reinvention Initiative 
Memorandum of March 4, 1995, President Clinton directed Federal 
agencies to conduct a page-by-page review of all of their regulations 
and to ``eliminate or revise those that are outdated or otherwise in 
need of reform.'' In response to that directive, the Department has 
undertaken a review of its aviation economic regulations as contained 
in 14 CFR Chapter II. This rule is one result of those efforts. 
Subsequent rulemakings will address other regulations.
    We had conducted a review of a number of our aviation economic 
regulations in 1992 and eliminated Parts 202, 231, 263, 288 and 292 and 
revised Parts 200, 201, 203, 204, 206, 232, 291, 294, 296, 297, 298, 
and 372 at that time (see 57 FR 38761, Aug. 27, 1992, and 57 FR 40097, 
Sept. 2, 1992). We reexamined the rules we revised in 1992 as part of 
our current regulatory review and found that they and a number of other 
regulations (including Parts 215, 271, 272, 300, 313, and 398) now 
require only minor changes to eliminate obsolete provisions and to 
correct outdated titles of Department organizations and officials, and 
definitions and other terminology necessitated by legislative changes, 
including the revision and recodification of the Federal Aviation Act 
within Subtitle VII of Title 49 of the United States Code 
(Transportation) by action of Pub. L. 103-272, enacted July 5, 1994.
    Part 398 is being amended in order to incorporate the service 
upgrades for ``basic'' essential air service contained in the Airport 
and Airway Safety and Capacity Expansion Act of 1987 (Pub. L. 100-223, 
December 30, 1987). In general, the upgrades consist of (a) service 
with 15-seat or larger aircraft, (b) service with pressurized aircraft 
in cases where such service is regularly operated at altitudes 
exceeding 8,000 feet, (c) service to a large or medium hub, (d) service 
with no more than one intermediate stop, (e) seating capacity based on 
an average load factor of 60 percent, and (f) a provision that flights 
be operated at reasonable times, taking into account the needs of 
passengers with connecting flights. The Department actually implemented 
the required upgrades during Fiscal Year 1992 when Congress 
appropriated the necessary program funds. We are now formalizing those 
requirements in the Department's regulations. Finally, Pub. L. 100-223 
also contained provisions for a higher level of service called 
``enhanced'' essential air service. Because ``enhanced'' service has 
not been funded or implemented, however, we are not incorporating its 
provisions within Part 398 at this time.
    In addition, Parts 324 and 379, and several sections in Parts 325 
and 399 are being eliminated due to obsolescence.
    Part 324 contains procedures for establishing final subsidy rates 
for air carriers providing temporary, compulsory service at small 
communities under 49 U.S.C. 41734 in cases where the rates would be 
applied retroactively--i.e., when the period of compulsory service has 
already begun or has concluded. Part 324 was established to compensate 
carriers for losses after the fact. Subsequent revision of the 
governing statute, however, permits the Department to establish such 
compensation prospectively under the existing provisions contained in 
14 CFR Part 271 at the beginning of the period of compulsory service. 
Because the Department now practices prospective ratemaking routinely, 
Part 324 is no longer necessary and is being eliminated.
    Part 325 contains general guidelines for the Department's 
establishment of communities' essential air service determinations 
under 49 U.S.C. 41733. We are eliminating Sec. 325.7 through 
Sec. 325.9, which establish a three-member panel and special procedures 
for handling appeals. That process has become increasingly unwieldy and 
unresponsive. Without the appeal process, communities can directly seek 
review of such Department actions under Sec. 302.37--Petitions for 
Reconsideration or Review by the DOT Decisionmaker. We expect that this 
change will considerably improve the Department's response time by 
streamlining the process and removing a bureaucratic layer between 
communities and the DOT decisionmaker.
    Part 379 was established by the CAB to ensure that no person, on 
the grounds of race, color or natural origin, would be excluded from 
participation in, be denied the benefits of, or be otherwise subjected 
to discrimination under any program or activity receiving federal 
financial assistance from the CAB. The Civil Aeronautics Board Sunset 
Act of 1984 (P.L. 98-443) transferred that agency's remaining authority 
to the Department as of January 1, 1985. The CAB regulations 
implementing Title VI of the Civil Rights Act of 1964 were virtually 
identical to those implemented by the Department under 49 CFR Part 21. 
Under the circumstances, the old CAB regulations are redundant, and 
Part 379 is being eliminated.
    We are also removing three sections of Part 399 (Secs. 399.20, .38, 
and .90) that are no longer needed. Section 399.20 is a policy 
statement issued by the CAB covering procedures for processing 
applications of long-haul general commodities motor carriers and 
railroads for authorization to act as air freight forwarders. U.S. 
companies proposing to operate as air freight forwarders are no longer 
required to file applications for such authority, in accordance with 
the blanket exemption granted by Sec. 296.10. Foreign companies 
proposing to act as air freight forwarders file applications that are 
processed in accordance with Part 297. Therefore, Sec. 399.20 may be 
removed. Section 399.38 concerns the establishment of temporary subsidy 
rates for air carriers serving small communities under 49 U.S.C. 41734 
in cases where subsidy 

[[Page 43522]]
payments are deemed necessary for the continuation of service until 
final rates are estabished at a later date. As a practical matter, the 
Department now routinely establishes all rates as final. Therefore, 
section 399.38 is no longer necessary. Section 399.90 states the CAB's 
policy on making public interest determinations concerning non-
transport activities of air carriers that received mail transport 
subsidy under former section 406 of the Federal Aviation Act. Carriers 
no longer receive subsidy for transporting mail; therefore, the 
Department no longer makes public interest determinations concerning 
their non-transport activities. Section 399.90 can thus be eliminated.
    We have also identified certain regulations that require 
substantive revision (including Parts 205, 207, 208, 212, 302, 323, 
380, and 385), which will be treated in separate rulemakings in the 
near future.

Executive Order 12866 (Regulatory Planning and Review)

    The Department has analyzed the economic and other effects of the 
proposed amendment and has determined that they are not ``significant'' 
within the meaning of Executive Order 12866. The amendment will not 
have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities. It will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency, and it 
will not materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof. Nor does it raise any novel legal or policy issues arising out 
of legal mandates, the President's priorities, or the principles set 
forth in Executive Order 12866. Therefore, a regulatory impact analysis 
is not required.

DOT Regulatory Policies and Procedures

    The amendments are not significant under the Department's 
Regulatory Policies and Procedures, dated February 26, 1979, because 
they do not involve important Departmental policies; rather, they are 
being made solely for the purposes of eliminating obsolete 
requirements, correcting out-of-date references, and enhancing the 
organization of the regulations used by the Department to administer 
its aviation economic regulatory functions. The Department has also 
determined that the economic effects of the amendment are so minimal 
that a full regulatory evaluation is not required.
Regulatory Flexibility Act

    In accordance with the Regulatory Flexibility Act, the Department 
has evaluated the effects of this action on small entities. For 
purposes of its aviation economic regulations, Departmental policy 
categorizes air carriers operating small aircraft (60 seats or less or 
18,000 pounds maximum payload or less) as small entities for purposes 
of the Regulatory Flexibility Act. Based upon this evaluation, the 
Department certifies that the amendment would not have a significant 
economic impact on a substantial number of small entities.

Executive Order 12612 (Federalism)

    These amendments have been analyzed in accordance with the 
principles and criteria contained in Executive Order 12612. The 
Department has determined that the amendments do not have sufficient 
federalism implications to warrant the preparation of a Federalism 
Assessment. The amendments will not have a substantial direct effect on 
the States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government.

National Environmental Policy Act

    The Department has also analyzed the amendments for the purpose of 
the National Environmental Policy Act. The amendments will not have any 
significant impact on the quality of the human environment.

Paperwork Reduction Act

    There are no reporting or recordkeeping requirements associated 
with the amendments.

Notice and Opportunity for Public Comment Unnecessary

    Under the Administrative Procedure Act (5 U.S.C. Sec. 553), the 
Department determines that notice and an opportunity for public comment 
are impracticable, unnecessary, and contrary to the public interest. 
The amendments made in this document are ministerial, removing obsolete 
and redundant material or making minor technical and terminology 
changes. These changes will have no substantive impact, and the 
Department would not anticipate receiving meaningful comments on them. 
Comment is therefore unnecessary, and it would be contrary to the 
public interest to delay unnecessarily this effort to eliminate or 
revise outdated rules.

List of Subjects

14 CFR Part 200

    Air transportation.

14 CFR Part 201

    Air carriers, Reporting and recordkeeping requirements.

14 CFR Part 203

    Air carriers, Air transportation, Foreign relations, Insurance, 
Reporting and recordkeeping requirements.

14 CFR Part 204

    Air carriers, Reporting and recordkeeping requirements.

14 CFR Part 206

    Air carriers, Emergency medical services, News media.

14 CFR Part 215

    Air carriers, Reporting and recordkeeping requirements, Trade names

14 CFR Part 232

    Administrative practice and procedure, Air carriers, Postal 
Service.

14 CFR Part 271

    Air carriers, Grant programs--transportation.

14 CFR Part 272

    Air carriers, Grant programs--transportation, Pacific Islands Trust 
Territory.

14 CFR Part 291

    Administrative practice and procedure, Air carriers, Reporting and 
recordkeeping requirements.

14 CFR Part 294

    Air taxis, Canada, Charter flights, Reporting and recordkeeping 
requirements.

14 CFR Parts 296 and 297

    Air carriers, Freight forwarders.

14 CFR Part 298

    Air taxis, Alaska, Canada, Insurance, Reporting and recordkeeping 
requirements.

14 CFR Part 300

    Administrative practice and procedure, Conflict of interests.

14 CFR Part 313

    Air carriers, Energy conservation.

14 CFR Part 324

    Administrative practice and procedure, Air carriers, Grant 

[[Page 43523]]
    programs--transportation, Reporting and recordkeeping requirements.

14 CFR Part 325

    Administrative practice and procedure, Air transportation, 
Intergovernmental relations, Reporting and recordkeeping requirements.

14 CFR Part 372

    Charter flights, Military air transportation, Reporting and 
recordkeeping requirements, Surety bonds.

14 CFR Part 379

    Administrative practice and procedure, Civil rights.

14 CFR Part 398

    Air transportation.

14 CFR Part 399

    Administrative practice and procedure, Air carriers, Air rates and 
fares, Air taxis, Consumer protection, Small businesses.

Final Rule

    For the reasons set out in the preamble, Title 14, Chapter II of 
the Code of Federal Regulations is amended as follows:

PART 200--[AMENDED]

    1. The authority citation for part 200 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417, 461.


Sec. 200.1  [Amended]

    2. In Sec. 200.1 introductory text and in paragraphs (d) and (e), 
remove the word ``Act'' and add, in its place, the word ``Statute''; 
add new paragraphs (f) and (g) to read as follows:


Sec. 200.1  Terms and definitions.

* * * * *
    (f) Statute when used in this chapter means Subtitle VII of Title 
49 of the United States Code (Transportation).
    (g) FAA means the Federal Aviation Administration, U.S. Department 
of Transportation.

PART 201--AIR CARRIER AUTHORITY UNDER SUBTITLE VII OF TITLE 49 OF 
THE UNITED STATES CODE--[AMENDED]

    3. The heading of part 201 is revised to read as set forth above.
    4. The authority citation for part 201 is revised to read as 
follows:

    Authority: 5 U.S.C. 1008; 49 U.S.C. Chapters 401, 411, 413, 415, 
417.


Sec. 201.1  [Amended]

    5. In Sec. 201.1(a), remove the words ``section 401 of the Federal 
Aviation Act and for domestic all-cargo air service certificates under 
section 418 of the Act, or amendments thereof,'' and add, in their 
place, the words ``section 41102 of the Statute and for interstate all-
cargo air transportation certificates under section 41103 of the 
Statute''.


Sec. 201.4  [Amended]

    6. In Sec. 201.4(c), remove the words ``and overseas''; remove the 
words ``section 401'' where they appear twice, and add, in their place, 
the words ``section 41102 of the Statute''; remove the words ``domestic 
all-cargo air transportation under section 418'' and add, in their 
place, the words ``interstate all-cargo air transportation under 
section 41103 of the Statute''.


Sec. 201.6  [Amended]

    7. In Sec. 201.6, remove the words ``section 401 or section 418 of 
the Act'' and add, in their place, the words ``section 41102 or section 
41103 of the Statute''.


Sec. 201.7  [Amended]

    8. In Sec. 201.7(a), remove the words ``title IV of the Act'' and 
add, in its place, the word ``Statute''; remove the words ``section 
401(g) of the Act'' and add, in their place, the words ``section 41110 
of the Statute''.
    9. In Sec. 201.7(d), remove the word ``service'' and add, in its 
place, the word ``transportation''; remove the word ``domestic'' and 
add, in its place, the word ``interstate''.
    10. In Sec. 201.7(e), remove the words ``Regulatory Analysis 
Division'' and add, in their place, the words ``Special Authorities 
Division''.

PART 203--[AMENDED]

    11. The authority citation for part 203 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417.


Sec. 203.3  [Amended]

    12. In Sec. 203.3, remove the words ``Regulatory Analysis 
Division'' and add, in their place, the words ``Special Authorities 
Division''.

PART 204--[AMENDED]

    13. The authority citation for part 204 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 411, 417.


Sec. 204.1  [Amended]

    14. In Sec. 204.1 remove the word ``point'' and add, in its place, 
the word ``place''.
    15. and 16. In Sec. 204.2, paragraphs (a), (f), and (i) are 
removed; paragraphs (e), (k), (l), (m), (n), and (o) are redesignated 
paragraphs (d), (i), (j), (k), (l), and (m), respectively; paragraphs 
(b), (c), (d), (g), (h), and (j) are redesignated paragraphs (a), (b), 
(c), (e), (f), and (g), respectively, and revised and paragraph (h) is 
added to read as follows:


Sec. 204.2  Definitions.

* * * * *
    (a) All-cargo air carrier or section 41103 carrier means an air 
carrier holding an all-cargo air transportation certificate issued 
under section 41103 of the Statute authorizing the transportation by 
aircraft in interstate air transportation of only property or only 
mail, or both.
    (b) Certificate authority means authority to provide air 
transportation granted by the Department of Transportation or Civil 
Aeronautics Board in the form of a certificate of public convenience 
and necessity under section 41102 of the Statute or an all-cargo air 
transportation certificate to perform all-cargo air transportation 
under section 41103 of the Statute. Certificated carriers are those 
that hold certificate authority.
    (c) Citizen of the United States means:
    (1) An individual who is a citizen of the United States;
    (2) A partnership each of whose partners is an individual who is a 
citizen of the United States; or
    (3) A corporation or association organized under the laws of the 
United States or a State, the District of Columbia, or a territory or 
possession of the United States, of which the president and at least 
two-thirds of the board of directors and other managing officers are 
citizens of the United States, and in which at least 75 percent of the 
voting interest is owned or controlled by persons that are citizens of 
the United States.
* * * * *
    (e) Eligible place means a place in the United States that--
    (1) Was an eligible point under section 419 of the Federal Aviation 
Act of 1958 as in effect before October 1, 1988;
    (2) Received scheduled air transportation at any time between 
January 1, 1990, and November 4, 1990; and
    (3) Is not listed in Department of Transportation Orders 89-9-37 
and 89-12-52 as a place ineligible for compensation under Subchapter II 
of Chapter 417 of the Statute.
    (f) Essential air service is that air transportation which the 
Department has found to be essential under 

[[Page 43524]]
Subchapter II of Chapter 417 of the Statute.
    (g) Fit means fit, willing, and able to perform the air 
transportation in question properly and to conform to the provisions of 
the Statute and the rules, regulations and requirements issued under 
the Statute.
    (h) Interstate air transportation means the transportation of 
passengers or property by aircraft as a common carrier for 
compensation, or the transportation of mail by aircraft--
    (1) Between a place in--
    (i) A State, territory, or possession of the United States and a 
place in the District of Columbia or another State, territory, or 
possession of the United States;
    (ii) Hawaii and another place in Hawaii through the airspace over a 
place outside Hawaii;
    (iii) The District of Columbia and another place in the District of 
Columbia; or
    (iv) A territory or possession of the United States and another 
place in the same territory or possession; and
    (2) When any part of the transportation is by aircraft.
* * * * *


Sec. 204.3  [Amended]

    17. In Sec. 204.3(o), remove the word ``Act'' both times it appears 
and add, in its place, the word ``Statute''.
    18. The heading of Sec. 204.4 is revised to read as follows:


Sec. 204.4  Carriers proposing to provide essential air service.


Sec. 204.4  [Amended]

    19. In Sec. 204.4 introductory text, remove the word 
``transportation'' and add, in its place, the word ``service''.

PART 206--[AMENDED]

    20. The authority citation for part 206 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 415, 417, 419.


Sec. 206.1  [Amended]

    21. In Sec. 206.1, remove the words ``section 401(a) of the Act'' 
and add, in their place, the words ``section 41101 of the Statute''; 
remove the words ``section 403 of the Act'' and add, in their place, 
the words ``Chapter 415 of the Statute''.


Sec. 206.2  [Amended]

    22. In Sec. 206.2, remove the words ``the first sentence of section 
405(b) of the Act'' and add, in their place, the words ``section 
41902(b) of the Statute''.


Sec. 206.3  [Amended]

    23. In Sec. 206.3, remove the words ``sections 401(a) and 403 of 
the Act'' and add, in their place, the words ``section 41101 and 
Chapter 415 of the Statute''.


Sec. 206.4  [Amended]

    24. In Sec. 206.4, remove the words ``section 403 of the Act'' and 
add, in their place, the words ``Chapter 415 of the Statute''.


Sec. 206.5  [Amended]

    25. In Sec. 206.5(a) introductory text, remove the words ``section 
401 of the Act'' and add, in their place, the words ``section 41102 of 
the Statute''; remove the words ``requirements of the Act'' and add, in 
their place, the words ``requirements of the Statute''; remove the 
words ``section 407 of the Act'' and add, in their place, the words 
``section 41708 of the Statute''.
    26. In Sec. 206.5(b), remove the words ``section 403 or section 
404(b) of the Act'' and add, in their place, the words ``Chapter 415 or 
section 41310 of the Statute''.

PART 215--[AMENDED]

    27. The authority citation for part 215 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 411, 413, 417.

PART 232--[AMENDED]

    28. The authority citation for part 232 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 419.


Sec. 232.1  [Amended]

    29. In Sec. 232.1 (a) and (b) introductory text, remove the words 
``section 405(b) of the Act'' and add, in their place, the words 
``section 41902 of the Statute''.


Sec. 232.4  [Amended]

    30. In Sec. 232.4 (a) and (b) introductory text, remove the words 
``section 405(b) of the Act'' and add, in their place, the words 
``section 41902 of the Statute''.

PART 271--[AMENDED]

    31. The authority citation for part 271 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 417.


Secs. 271.3, 271.4, 271.5, 271.6, 271.7, 271.8  [Amended]

    32. In Secs. 271.3 introductory text, 271.4(a)(4)(ii), 271.4(b), 
271.5(a)(2), 271.7(a), 271.8(a) introductory text, and 271.8(a)(3), 
remove the word ``Board'' and add, in its place, the word 
``Department''.


Secs. 271.3, 271.4, 271.5, 271.6, 271.8  [Amended]

    33. In Secs. 271.3 introductory text, 271.3(c), 271.4(a) 
introductory text, 271.4(a)(4), 271.5(a) introductory text, 271.6, and 
271.8(c), remove the word ``transportation'' and add, in its place, the 
word ``service''.


Secs. 271.3, 271.4, 271.5, 271.6, 271.7, 271.8  [Amended]

    34. In Secs. 271.3 introductory text, 271.3(a), 271.3(b), 271.3(c), 
271.3(d), 271.4(a) introductory text, 271.4(a)(2)(i), 271.4(a)(4) 
introductory test where it appears twice, 271.4(a)(4)(ii), 271.5(a) 
introductory text, 271.5(a)(1), 271.5(a)(2), 271.6, 271.7(b)(1), 
271.8(a)(1), 271.8(a)(2), 271.8(a)(4), and 271.8(c), remove the word 
``point'' and add, in its place, the word ``place''.
    35. Section 271.1 is revised to read as follows:


Sec. 271.1  Purpose.

    This part establishes the guidelines required by 49 U.S.C. 41736 to 
be used by the Department in establishing the fair and reasonable 
amount of compensation needed to ensure the continuation of essential 
air service to an eligible place under 49 U.S.C. 41731 and 41734. These 
guidelines are intended to cover normal carrier selection cases and 
rate renewal cases, and not necessarily emergency carrier selection 
cases.
    36. Section 271.2 is revised to read as follows:


Sec. 271.2  Definitions.

    As used in this part:
    Eligible place means a place in the United States that--
    (1) Was an eligible point under section 419 of the Federal Aviation 
Act of 1958 as in effect before October 1, 1988;
    (2) Received scheduled air transportation at any time between 
January 1, 1990, and November 4, 1990; and
    (3) Is not listed in Department of Transportation Orders 89-9-37 
and 89-12-52 as a place ineligible for compensation under Subchapter II 
of Chapter 417 of the Statute.
    Essential air service is that air transportation which the 
Department has found to be essential under Subchapter II of Chapter 417 
of the Statute.


Sec. 271.4  [Amended]

    37. In Sec. 271.4(a)(1)(i), remove the word ``historic'' and add, 
in its place, the word ``historical''.
    38. Paragraph (a)(2)(ii) of Sec. 271.4 is revised to read as 
follows:


Sec. 271.4  Carrier costs.

    (a) * * *
    (2) * * *
    (ii) By comparing the carrier's systemwide indirect operating 
expenses 

[[Page 43525]]
to those submitted by the carrier for the eligible place; or
* * * * *
    39. Paragraph (c) of Sec. 271.4 is removed.


Sec. 271.6  [Amended]

    40. In Sec. 271.6, remove the words ``not more than''.
    41. In Sec. 271.7, the introductory text of paragraph (b) is 
revised to read as follows:


Sec. 271.7  Subsidy payout formula.

    (a) * * *
    (b) While a carrier's subsidy rate will not vary even if actual 
revenues or costs differ from projections, the actual amount of each 
payment may vary depending on the following factors:
* * * * *


Sec. 271.7  [Amended]

    42. In Sec. 271.7(b)(3), remove the words ``Sec. 271.4(c) or''.
    43. In Sec. 271.7, paragraph (c) is removed; paragraph (d) is 
redesignated paragraph (c).


Sec. 271.8  [Amended]

    44. In Sec. 271.8(a)(5), correct the word ``othe'' to read 
``other''.


Sec. 271.9  [Amended]

    45. In Sec. 271.9(a)(2), remove the words ``part 379 of this 
chapter'' and add, in their place, the words ``49 CFR part 21''.
    46. In Sec. 271.9(a)(3), after the number ``1973'' add the 
punctuation and words ``, 49 CFR part 27,''.
    47. In Sec. 271.9(c), remove the words ``Secs. 379.4 and 382.21'' 
and add, in their place, the words ``49 CFR parts 20, 21, 27 and 29, 
and Sec. 382.21''.

PART 272--ESSENTIAL AIR SERVICE TO THE FREELY ASSOCIATED STATES

    48. The heading of part 272 is revised to read as set forth above.

PART 272--[AMENDED]

    49. The authority citation for part 272 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 402, 416, 461, 1102; sec. 
221(a)(5) of the Compact of Free Association, and paragraph 5 of 
Article IX of the Federal Programs and Services Agreement in 
implementation of that Compact (Pub. L. 99-239; Pub. L. 99-658); 
Pub. L. 101-219.


Secs. 272.1-272.10, 272.12  [Amended]

    50. In Secs. 272.1 where it occurs the second time, 272.2 where it 
occurs twice, 272.3 section title, 272.3(a), 272.4, 272.5 section 
title, 272.5(a), 272.5(b), 272.6 section title, 272.6(a) introductory 
text, 272.6(b) where it occurs the first time, 272.6(c), 272.7(a)(1), 
272.7(a)(2) where it occurs twice, 272.8(a) where it occurs three 
times, 272.8(c), 272.8(d), 272.9 section title, 272.9(a) where it 
occurs twice, 272.9(b) where it occurs twice, 272.9(c), 272.9(d), 
272.9(e), 272.9(f) introductory text, 272.9(f)(1), 272.9(f)(2) where it 
occurs twice, 272.9(g), 272.9(h) introductory text, 272.9(h)(2), 
272.9(h)(3), 272.9(h)(5)(i) where it occurs twice, 272.10(a) 
introductory text, 272.10(a)(1), 272.10(b), 272.10(c), and 272.12 first 
paragraph, remove the word ``transportation'' or ``Transportation'' and 
add, in its place, the word ``service''.


Secs. 272.1-272.3, 272.5-272.9  [Amended]

    51. In Secs. 272.1, 272.2 where it occurs twice, 272.3 section 
title, 272.3(a), 272.3(b) where it occurs twice, and 272.5(a), remove 
the word ``points'' and add, in its place, the word ``places''; in 
Secs. 272.6(a) introductory text, 272.7(a) introductory text where it 
occurs twice, 272.7(a)(1), 272.7(a)(2), 272.8(a) where it occurs five 
times, 272.8(c) where it occurs twice, 272.8(d), 272.9(a) where it 
occurs twice, 272.9(b) where it occurs twice, 272.9(c), remove the word 
``point'' and add, in its place, the word ``place''.


Secs. 272.2, 272.6  [Amended]

    52. In Secs. 272.2 and 272.6(b), remove the initial capitalization 
from the words ``Essential Air''.
    53. The title of Sec. 272.4 is revised to read as follows:


Sec. 272.4  Applicability of procedures and policies under 49 U.S.C. 
41731-42.


Sec. 272.4  [Amended]

    54. In Sec. 272.4, remove the words ``section 419 of the Federal 
Aviation Act'' and add, in their place, the words ``49 U.S.C. 41731-
42.''.


Sec. 272.5  [Amended]

    55. In Sec. 272.5, paragraph (a) is removed; the paragraph 
designation ``(b)'' in paragraph (b) is removed; in formerly designated 
paragraph (b), remove the words ``section 419(f)'' and add, in their 
place, the words ``49 U.S.C. 41737''; remove the words ``Sec. 325.7 
(except Secs. 325.7(a)(2) and 325.7(b)(9));''.


Sec. 272.8  [Amended]

    56. In Sec. 272.8(b), remove the number ``324'' and add, in its 
place, the number ``271''.

PART 291--CARGO OPERATIONS IN INTERSTATE AIR TRANSPORTATION

    57. The heading of part 291 is revised to read as set forth above.
    58. The authority citation for part 291 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 411, 415, 417.

    59. Section 291.1 is revised to read as follows:


Sec. 291.1  Applicability.

    This part applies to cargo operations in interstate air 
transportation by air carriers certificated under section 41102 or 
41103 of the Statute. It also applies to applicants for an all-cargo 
air transportation certificate under section 41103 of the Statute.
    60. Section 291.2 is revised to read as follows:


Sec. 291.2  Definitions.

    All-cargo air transportation means the transportation by aircraft 
in interstate air transportation of only property or only mail, or 
both.
    Interstate air transportation means the transportation of 
passengers or property by aircraft as a common carrier for 
compensation, or the transportation of mail by aircraft--
    (1) Between a place in--
    (i) A State, territory, or possession of the United States and a 
place in the District of Columbia or another State, territory, or 
possession of the United States;
    (ii) Hawaii and another place in Hawaii through the airspace over a 
place outside Hawaii;
    (iii) The District of Columbia and another place in the District of 
Columbia; or
    (iv) A territory or possession of the United States and another 
place in the same territory or possession; and
    (2) When any part of the transportation is by aircraft.
    Section 41102 carrier means an air carrier certificated under 
section 41102 of the Statute to transport persons, property and mail or 
property and mail only.
    Section 41103 carrier means an air carrier holding a certificate 
issued under section 41103 of the Statute to provide all-cargo air 
transportation.
    61. The title of Subpart B is revised to read as follows:

Subpart B--All-Cargo Air Transportation Certificates

    62. The title of Subpart C is revised to read as follows:

Subpart C--General Rules for All-Cargo Air Transportation

    63. Section 291.20 is revised to read as follows:

[[Page 43526]]



Sec. 291.20  Applicability.

    The rules in this subpart apply to cargo operations in interstate 
air transportation performed by air carriers certificated under 
sections 41102 or 41103 of the Statute. Section 41103 carriers that 
operate passenger-only or combination aircraft under section 41102, 
part 298 of this chapter, or other Department authority, must comply 
with the rules in this subpart in connection with cargo operations in 
interstate air transportation, whether provided on all-cargo or 
combination aircraft, operated pursuant to this authority or otherwise. 
In case a carrier may operate a particular flight under either a 
section 41102 certificate or a section 41103 certificate, the flight is 
presumed to be operated under the carrier's section 41103 authority.


Sec. 291.22  [Amended]

    64. In Sec. 291.22, remove the words ``all-cargo air service in 
domestic cargo transportation'' and add, in their place, the words 
``all-cargo air transportation''.


Sec. 291.23  [Amended]

    65. In Sec. 291.23(a), remove the words ``domestic cargo'' and add, 
in their place, the words ``interstate air''; remove the word ``Board'' 
and add, in its place, the word ``Department''.
    66. In Sec. 291.23(b), remove the words ``domestic cargo'' and add, 
in their place, the words ``interstate air''.


Sec. 291.24  [Amended]

    67. In Sec. 291.24, remove the words ``domestic cargo'' where they 
appear twice, and add, in place of the first occurrence, the words 
``cargo operations in interstate air'', and add, in place of the second 
occurrence, the words ``interstate air''.
    68. The title of Subpart D is revised to read as follows:

Subpart D--Exemptions for Cargo Operations in Interstate Air 
Transportation


Sec. 291.30  [Amended]

    69. In Sec. 291.30, remove the words ``domestic cargo'' and add, in 
their place, the words ``cargo operations in interstate air''.
    70. Section 291.31 is revised to read as follows:


Sec. 291.31  Exemptions from the Statute.

    (a) Each section 41102 or 41103 air carrier providing cargo 
operations in interstate air transportation is, with respect to such 
transportation, exempted from the following portions of the Statute 
only if and so long as it complies with the provisions of this part and 
the conditions imposed herein, and to the extent necessary to permit it 
to conduct cargo operations in interstate air transportation:
    (1) Sections 41310, 41705,
    (2) Chapter 415, and
    (3) Chapter 419 for all-cargo operations under section 41103.
    (b) Each air carrier providing cargo operations in interstate air 
transportation under section 41103 of the Statute is exempted from the 
provisions of section 41106(a) of the Statute to the extent necessary 
to permit it to compete for and operate cargo charters in interstate 
air transportation for the Department of Defense under contracts of 
more than 30 days' duration.
    (c) The Department of Defense is exempted from section 41106(a) of 
the Statute to the extent necessary to permit it to negotiate and enter 
into contracts of more than 30 days' duration with any section 41103 
carrier for operation of cargo charters in interstate air 
transportation.


Secs. 291.32, 291.33, 291.34  [Removed]

    71. Sections 291.32, 291.33 and 291.34 are removed.


Sec. 291.41  [Amended]

    72. In Sec. 291.41(a), remove the words ``domestic cargo'' and add, 
in their place, the words ``cargo operations in interstate air''; 
remove the words ``section 401'' and add, in their place, the words 
``section 41102''.
    73. In Sec. 291.41(b), remove the words ``domestic cargo'' and add, 
in their place, the words ``cargo operations in interstate air''; 
remove the words ``section 418'' and add, in their place, the words 
``section 41103''.
    74. Section 291.41(c), remove the word ``domestic cargo'' where it 
appears twice, and add, in their place, the words ``cargo operations in 
interstate air''; remove the words ``section 418'' and add, in their 
place, the words ``section 41103''.
    75. The title of Sec. 291.42 is revised to read as follows:


Sec. 291.42  Section 41103 financial and statistical reporting.
    76. In Sec. 291.42(a)(1), remove the words ``section 418'' where 
they appear twice, and add, in their place, the words ``section 
41103''.
    77. In Sec. 291.42(b) introductory text, remove the words ``section 
418'' and add, in their place, the words ``section 41103''.
    78. Section 291.50 is revised to read as follows:


Sec. 291.50  Enforcement.

    In case of any violation of any of the provisions of the Statute, 
or this part, or any other rule, regulation, or order issued under the 
Statute, the violator may be subject to a proceeding pursuant to 
section 46101 of the Statute before the Department, or sections 46106 
through 46108 of the Statute before a U.S. District Court, as the case 
may be, to compel compliance therewith; or to civil penalties pursuant 
to the provisions of section 46301 of the Statute.

PART 294--[AMENDED]

    79. The authority citation for part 294 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 417.


Sec. 294.1  [Amended]

    80. In Sec. 294.1, remove the words ``Federal Aviation Act'' and 
add, in their place, the words ``Subtitle VII of Title 49 of the United 
States Code (Transportation)''; remove the words ``provisions of the 
Act'' and add, in their place, the words ``provisions of the Statute''.


Sec. 294.2  [Amended]

    81. In Sec. 294.2, remove paragraph (a); paragraphs (b) through (j) 
are redesignated paragraphs (a) through (i).


Sec. 294.10  [Amended]

    82. In Sec. 294.10 introductory text, remove the word ``Act'' and 
add, in its place, the word ``Statute''.
    83. In Sec. 294.10(a), remove the words ``Section 402'' and add, in 
their place, the words ``section 41302''.
    84. In Sec. 294.10(b), remove the words ``Section 404(a)(2)'' and 
add, in their place, the words ``section 41501''.
    85. In Sec. 294.10(c), remove the words ``Section 404(b)'' and add, 
in their place, the words ``section 41310''.


Secs. 294.20, 294.21, 294.22, 294.40  [Amended]

    86. In Secs. 294.20 introductory text, 294.20(b), 294.21(b), 
294.21(e)(1), 294.22 introductory text, and 294.40, remove the words 
``Regulatory Analysis Division'' and add, in their place, the words 
``Special Authorities Division''.


Sec. 294.30  [Amended]

    87. In Sec. 294.30(c), remove the words ``section 402 of the Act''; 
and add, in their place, the words ``section 41302 of the Statute''; 
remove the words ``section 416 of the Act'' and add, in their place, 
the words ``section 41701 of the Statute''; remove the words ``section 
402'' and add, in their place, the words ``section 41302''.


Sec. 294.50  [Amended]

    88. In Sec. 294.50(b), remove the words ``section 402'' and add, in 
their place, the words ``section 41302''. 

[[Page 43527]]



Sec. 294.70  [Amended]

    89. In Sec. 294.70, remove the word ``Act'' the first two times it 
occurs and add, in its place, the word ``Statute''; remove the words 
``sections 1002 and 1007 of the Act before the Department or'' and add, 
in their place, the words ``section 46101 of the Statute before the 
Department, or sections 46106 through 46108 of the Statute before''; 
remove the words ``section 901(a) of the Act'' and add, in their place, 
the words ``section 46301 of the Statute''; remove the words ``section 
902(a) of the Act'' and add, in their place, the words ``section 46316 
of the Statute''.

PART 296--[AMENDED]

    90. The authority citation for part 296 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 417.


Sec. 296.1  [Amended]

    91. In Sec. 296.1, remove the words ``Federal Aviation Act'' and 
add, in their place, the words ``Subtitle VII of Title 49 of the United 
States Code (Transportation)''.
    92. The title of Sec. 296.10 is revised to read as follows:


Sec. 296.10  Exemption from the Statute.


Sec. 296.10  [Amended]

    93. In Sec. 296.10(a) introductory text, remove the words ``Title 
IV of the Act'' and add, in their place, the words ``the Statute''.
    94. In Sec. 296.10(a)(1), remove the words ``Subsection 403(b)(2)'' 
and add, in their place, the words ``Section 41510(b)''; remove the 
words ``section 403(b)(2)'' and add, in their place, the words 
``section 41510(b)''.
    95. In Sec. 296.10(a)(2), remove the words ``Section 404(a)'' and 
add, in their place, the words ``Section 41702''.
    96. In Sec. 296.10(a)(3), remove the words ``Subsection 404(b)'' 
and add, in their place, the words ``Section 41310''.
    97. In Sec. 296.10(a)(4), remove the words ``Section 407(a)'' and 
``407(e)'' and add, in their place, the words ``Section 41708'' and 
``41709'', respectively.
    98. In Sec. 296.10(a)(5), remove the words ``Section 411'' and add, 
in their place, the words ``Section 41712''.
    99. In Sec. 296.10(a)(6), remove the words ``Section 413'' and add, 
in their place, the words ``Section 40102(b)''.
    100. In Sec. 296.10(a)(7), remove the words ``Section 415'' and 
add, in their place, the words ``Section 41711''.
    101. In Sec. 296.10(d), remove the words ``section 403 of the Act'' 
and add, in their place, the words ``Chapter 415 of the Statute''.


Sec. 296.20  [Amended]

    102. In Sec. 296.20, remove the word ``Act'' the first two times it 
occurs and add, in its place, the word ``Statute''; remove the words 
``sections 1002 and 1007 of the Act before the Department or'' and add, 
in their place, the words ``section 46101 of the Statute before the 
Department, or sections 46106 through 46108 of the Statute before''; 
remove the words ``section 901(a) of the Act'' and add, in their place, 
the words ``section 46301 of the Statute''.

PART 297--[AMENDED]

    103. The authority citation for part 297 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 417.


Sec. 297.1  [Amended]

    104. In Sec. 297.1, remove the words ``the Act'' and add, in its 
place, the words ``Subtitle VII of Title 49 of the United States Code 
(Transportation)''; remove the punctuation and word ``, overseas,''.


Sec. 297.2  [Amended]

    105. In Sec. 297.2, remove the words ``and overseas''.
    106. The title of Sec. 297.10 is revised to read as follows:


Sec. 297.10  Exemption from the Statute.


Sec. 297.10  [Amended]

    108. In Sec. 297.10(a) introductory text, remove the words ``the 
Act'' and add, in their place, the words ``the Statute''.
    109. In Sec. 297.10(a)(1), remove the words ``Section 402'' and 
add, in their place, the words ``Section 41302''.
    110. In Sec. 297.10(a)(2), remove the words ``Section 403(a) and 
403(b)(1)'' and add, in their place, the words ``Sections 41504 and 
41510(a)''.
    111. In Sec. 297.10(a)(3), remove the words ``Section 403(b)(2)'' 
and add, in their place, the words ``Section 41510(b)''.
    112. In Sec. 297.10(a)(4), remove the words ``Subsection 
404(a)(2)'' and add, in their place, the words ``Section 41501''.
    113. In Sec. 297.10(a)(5), remove the words ``or overseas'' where 
they appear twice; remove the word ``Act'' and add, in its place, the 
word ``Statute''.
    114. In Sec. 297.10(a)(6), remove the words ``Subsection 404(b)'' 
and add, in their place, the words ``Section 41310''.
    115. In Sec. 297.10(b), remove the words ``section 403 of the Act'' 
and add, in their place, the words ``Chapter 415 of the Statute''.


Sec. 297.12  [Amended]

    116. In Sec. 297.12(a), remove the words ``section 401, 402, 416, 
or 418 of the Act'' and add, in their place, the words ``section 41102, 
41103, 41302, or 41701 of the Statute''.
    117. In Secs. 297.12(b) and 297.12(c), remove the words ``and 
overseas''.


Secs. 297.20, 297.21, 297.24  [Amended]

    118. In Secs. 297.20(b) (two occurrences), 297.21, and 297.24(a), 
remove the words ``Regulatory Analysis Division'', and add, in their 
place, the words ``Special Authorities Division''.


Sec. 297.22  [Amended]

    119. In Sec. 297.22(e), remove the words ``section 402 of the Act'' 
and add, in their place, the words ``section 41302 of the Statute''.


Sec. 297.50  [Amended]

    120. In Sec. 297.50, remove the word ``Act'' the first two times it 
occurs and add, in its place, the word ``Statute''; remove the words 
``sections 1002 and 1007 of the Act before the Department or'' and add, 
in their place, the words ``section 46101 of the Statute before the 
Department, or sections 46106 through 46108 of the Statute before''; 
remove the words ``section 901(a) of the Act'' and add, in their place, 
the words ``section 46301 of the Statute''; remove the words ``section 
902(a) of the Act'' and add, in their place, the words ``section 46316 
of the Statute''.

PART 298--EXEMPTIONS FOR AIR TAXI AND COMMUTER AIR CARRIER 
OPERATIONS

    121. The heading of part 298 is revised to read as set forth above.
    122. The authority citation for part 298 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 411, 417.


Sec. 298.1  [Amended]

    123. In Sec. 298.1, remove the words ``Title IV of the Federal 
Aviation Act'' and add, in their place, the words ``Subtitle VII of 
Title 49 of the United States Code (Transportation)''; before the words 
``air transportation'' add the words ``interstate and/or foreign''; 
remove footnote 1.
    124. In Sec. 298.2, paragraph (a) is removed; paragraphs (b) 
through (x) are redesignated paragraphs (a) through (w); newly 
designated paragraphs (b), (d-1), and (d-2), are revised to read as 
follows:


Sec. 298.2  Definitions.

* * * * *
    (b) Air Transportation means interstate air transportation, foreign 
air transportation, or the transportation of 

[[Page 43528]]
mail by aircraft as defined by the Statute.\1\

    \1\ ``Interstate air transportation'' is defined in section 
40102(a)(25) as the transportation of passengers or property by 
aircraft as a common carrier for compensation, or the transportation 
of mail by aircraft (1) between a place in (i) a State, territory, 
or possession of the United States and a place in the District of 
Columbia or another State, territory, or possession of the United 
States; (ii) Hawaii and another place in Hawaii through the airspace 
over a place outside Hawaii; (iii) the District of Columbia and 
another place in the District of Columbia; or (iv) a territory or 
possession of the United States and another place in the same 
territory or possession; and (2) when any part of the transportation 
is by aircraft. NOTE: Operations wholly within the geographic limits 
of a single State are not considered ``interstate air 
transportation'' if in those operations the carrier transports no 
more than a de minimus volume of passengers or property moving as 
part of a continuous journey to or from a point outside the State.
    ``Foreign air transportation'' is defined in section 
40102(a)(23) of the Statute as the transportation of passengers or 
property by aircraft as a common carrier for compensation, or the 
transportation of mail by aircraft, between a place in the United 
States and a place outside the United States when any part of the 
transportation is by aircraft.
    Air transportation also is defined to include ``the 
transportation of mail by aircraft.'' Section 5402 of the Postal 
Reorganization Act, 39 U.S.C. 5402, authorizes the carriage of mail 
by air taxi operators in some circumstances under contract with the 
Postal Service.
---------------------------------------------------------------------------

* * * * *
    (d-1) All-cargo air carrier or section 41103 carrier means an air 
carrier holding an all-cargo air transportation certificate issued 
under section 41103 of the Statute authorizing the transportation by 
aircraft in interstate air transportation of only property or only 
mail, or both.
    (d-2) Certificated carrier means an air carrier holding a 
certificate issued under section 41102 of the Statute.
* * * * *


Sec. 298.2  [Amended]

    125. In newly designated Sec. 298.2(w), remove the words ``section 
401 of the Act'' and add, in their place, the words ``section 41102 of 
the Statute''.


Secs. 298.11, 298.13  [Amended]

    126. In Secs. 298.11 introductory text and 298.13, remove the words 
``Title IV of the Act'' and add, in their place, the words ``the 
Statute''.
    127. In Sec. 298.11(a), remove the words ``Section 401(a)'' and 
add, in their place, the words ``Section 41101''.
    128. In Sec. 298.11(b)(1), remove the words ``Section 403'' and 
add, in their place, the words ``Section 41504''; remove the words 
``section 403 of the Act'' and add, in their place, the words ``Chapter 
415''.
    129. In Sec. 298.11(c) introductory text, remove the words 
``Section 404(a)'' and add, in their place, the words ``Section 
41702''.
    130. In Sec. 298.11(d), remove the words ``Section 404(b)'' and 
add, in their place, the words ``section 41310''.
    131. In Sec. 298.11(e), remove the words ``Section 405(b)'' and 
add, in their place, the words ``Section 41902''.
    132. In Sec. 298.11(f), remove the words ``Sections 407(b), (c), 
and (d)'' and add, in their place, the words ``Section 41708''.


Sec. 298.21  [Amended]

    133. In Sec. 298.21, paragraph (c)(1) footnote 6 and paragraph 
(c)(4), remove the words ``Regulatory Analysis Division'' and add, in 
their place, the words ``Special Authorities Division''.
    134. In Sec. 298.21(d), after the words ``scheduled passenger 
service'' add the words ``as a commuter air carrier''; remove the word 
``point'' and add, in its place, the word ``place''.


Sec. 298.36  [Amended]

    135. In Sec. 298.36(a), remove the words ``section 604 of the Act'' 
and add, in their place, the words ``section 44702 of the Statute''.


Sec. 298.62  [Amended]

    136. In Sec. 298.62(c)(1), remove the words ``section 419 of the 
Federal Aviation Act'' and add, in their place, the words ``section 
41732 of the Statute''.


Sec. 298.80  [Amended]

    137. In Sec. 298.80, remove the word ``Act'' the first two times it 
occurs, and add, in its place, the word ``Statute''; remove the words 
``sections 1002 and 1007 of the Act before the Department or'' and add, 
in their place, the words ``section 46101 of the Statute before the 
Department, or sections 46106 through 46108 of the Statute before''; 
remove the words ``section 901(a) of the Act'' and add, in their place, 
the words ``section 46301 of the Statute''; remove the words ``section 
902(a) of the Act'' and add, in their place, the words ``section 46316 
of the Statute''.

PART 300--[AMENDED]

    138. The authority citation for part 300 is revised to read as 
follows:

    Authority: 18 U.S.C. 20(b)(c); 49 U.S.C. Subtitle I and Chapters 
401, 411, 413, 415, 417, 419, 449, 461, 463.


Sec. 300.0  [Amended]

    139. In Sec. 300.0, remove the words ``resulting from the transfer 
of authority under Section 1601(b)(1) of the Federal Aviation Act of 
1958, as amended by the Civil Aeronautics Board Sunset Act of 1984'' 
and add, in their place, the words ``involving aviation economic and 
enforcement proceedings''.


Sec. 300.1  [Amended]

    140. At the beginning of Sec. 300.1, remove the words ``Under the 
transfer of authority under section 1601(b)(1) of the Federal Aviation 
Act of 1958, certain of DOT's functions'' and add, in their place, the 
words ``Certain of DOT's functions involving aviation economic and 
enforcement proceedings''.


Secs. 300.2, 300.3  [Amended]

    141. In Secs. 300.2(c)(8) and 300.3(a)(5), remove the words 
``section 419 of the Federal Aviation Act, 49 U.S.C. 1389'' and add, in 
their place, the words ``49 U.S.C. 41731-42.''.


Sec. 300.4  [Amended]

    142. In Sec. 300.4(c), remove the words ``sections 401 or 402 of 
the Act'' and add, in their place, the words ``49 U.S.C. 41102 and 
41302''.


Sec. 300.10  [Amended]

    143. In Sec. 300.10, remove the words ``or the Civil Aeronautics 
Board'' where they appear in the title and in the text of the section.


Sec. 300.10a  [Amended]

    144. At the beginning of Sec. 300.10a, remove the words ``Due to 
the transfer of authority under 1601(b)(1) of the Federal Aviation Act 
of 1958, the'' and add, in their place, the word ``The''.


Sec. 300.14  [Amended]

    145. In Sec. 300.14, remove the words ``Civil Aeronautics Board 
members and employees and'' in the title of the section; remove the 
words ``the Board or'', and ``Board member or Board employee or'' in 
the text of the section.
    146. Section 300.20(d) is revised to read as follows:


Sec. 300.20  Violations.

* * * * *
    (d) In the case of any violation of the provisions of this part, 
the violator may be subject to civil penalties under the provisions of 
49 U.S.C. 46301. The violator may also be subject to a proceeding 
brought under 49 U.S.C. 46101 before the Department, or sections 46106 
through 46108 of the Statute before a U.S. District Court, as the case 
may be, to compel compliance with civil penalties which have been 
imposed.

PART 313--[AMENDED]

    147. The authority citation for part 313 is revised to read as 
follows:

    Authority: 42 U.S.C. 6362(b), 49 U.S.C. Chapter 401.


Secs. 313.1, 313.2, 313.7  [Amended]

    148. In Secs. 313.1(c), 313.2(d) and 313.7(b), remove the word 
``EPCA'' and 

[[Page 43529]]
add, in its place, the words ``42 U.S.C. 6362''.


Sec. 313.1  [Amended]

    149. In Sec. 313.1(a), remove the words ``The Energy Policy and 
Conservation Act (42 U.S.C. 6201 et seq., hereinafter ``EPCA'')'' and 
add, in their place, the words ``Chapter 77 (Energy Conservation) of 
Title 42 (The Public Health and Welfare);'' remove the words ``section 
382 of EPCA'' and ``Section 382(b) of EPCA'' and add, in their place, 
the words ``42 U.S.C. 6362'' and ``42 U.S.C. 6362(b)'', respectively.
    150. In Sec. 313.1(b), remove the words ``Section 204(a) of the 
Federal Aviation Act of 1958, as amended (hereinafter ``Act'')'' and 
add, in their place, the words ``Section 40113 of Subtitle VII of Title 
49 of the United States Code (Transportation) (``the Statute'')''; 
remove the word ``Act'' at the end of the paragraph, and add, in its 
place, the word ``Statute''.


Sec. 313.2  [Amended]

    151. In Sec. 313.2(a), remove the word ``EPCA'' and add, in its 
place, the words ``Chapter 77 of Title 42''; remove the words ``section 
102 of the Federal Aviation Act (49 U.S.C. 1302)'' and add, in their 
place, the words ``section 40101 of the Statute''; remove the word 
``Act'' in the last sentence and add, in its place, the word 
``Statute''.
    152. In Sec. 313.2(d), remove the word ``Act'' and add, in its 
place, the word ``Statute''.
    153. In Sec. 313.3, paragraphs (a) and (d) are removed; paragraphs 
(b), (c), (e), and (f) are redesignated paragraphs (a), (b), (c), and 
(d); new paragraph (e) is added to read as follows:


Sec. 313.3  Definitions.

* * * * *
    (e) Statute means Subtitle VII of Title 49 of the United States 
Code (Transportation).
    154. Paragraph (b)(1) of Sec. 313.4 is revised to read as follows:


Sec. 313.4  Major regulatory actions.

* * * * *
    (b) * * *
    (1) Tariff suspension orders under section 41509 of the Statute, 
emergency exemptions or temporary exemptions not exceeding 24 months 
under section 40109 of the Statute and other proceedings in which 
timely action is of the essence;
* * * * *
    155. In Sec. 313.4(c)(1), remove the word ``Act'' and add, in its 
place, the word ``Statute''.


Sec. 313.7  [Amended]

    156. In Sec. 313.7(a), remove the words ``detailed environmental 
negative declaration'' and add, in their place, the words ``finding of 
no significant impact''; remove the words ``Procedural Regulations'' 
and add, in their place, the word ``procedures''; remove the words 
``procedures of DOT's NEPA regulations'' and add, in their place, the 
words ``DOT's NEPA procedures''.

PART 324--[REMOVED]

    157. Part 324 is removed.

PART 325--[AMENDED]

    158. The authority citation for part 325 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 417.


Secs. 325.7, 325.8, 325.9  [Removed]

    159. Sections 325.7, 325.8, and 325.9 are removed.

PART 372--[AMENDED]

    160. The authority citation for part 372 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 411, 413, 417.


Sec. 372.1  [Amended]

    161. In Sec. 372.1, remove the words ``section 401 of the Act'' and 
add, in their place, the words ``section 41102 of Title 49 of the 
United States Code (``the Statute'')''.


Sec. 372.2  [Amended]

    162. In Sec. 372.2 definition of Overseas military personnel 
charter operator, remove the words ``section 101(13) of the Federal 
Aviation Act (49 U.S.C. 1301(13))'' and add, in their place, the words 
``section 40102(a)(15) of the Statute''.
    163. In Sec. 372.2, add a definition at the end of the section to 
read as follows:


Sec. 372.2  Definitions.

* * * * *
    Statute when used in this chapter means Subtitle VII of Title 49 of 
the United States Code (Transportation).


Sec. 372.4  [Amended]

    164. In Sec. 372.4, remove the word ``Act'' the first two times it 
occurs, and add, in its place, the word ``Statute''; remove the words 
``sections 1002 and 1007 of the Act before the Department or'' and add, 
in their place, the words ``section 46101 of the Statute before the 
Department, or sections 46106 through 46108 of the Statute before''; 
remove the words ``section 901(a) of the Act'' and add, in their place, 
the words ``section 46301 of the Statute''; remove the words ``section 
902(a) of the Act'' and add, in their place, the words ``section 46316 
of the Statute''.


Sec. 372.10  [Amended]

    165. In Sec. 372.10, remove the words ``section 401 of the Act'' 
and add, in their place, the words ``section 41102 of the Statute''.


Sec. 372.30  [Amended]

    166. In Sec. 372.30(a), remove the words ``Regulatory Analysis 
Division'' and add, in their place, the words ``Special Authorities 
Division''.

Appendix A to Part 372  [Amended]

    167. In the ninth paragraph of Appendix A, which begins with the 
words ``This bond is effective on . . .'', remove the opening quotation 
marks and the words ``Regulatory Analysis Division (P-57)'' and add, in 
their place, the words ``Special Authorities Division (X-57)'' with no 
quotation marks.

PART 379--[REMOVED]

    168. Part 379 is removed.
    169. and 170. Part 398 is revised to read as follows:

PART 398--GUIDELINES FOR INDIVIDUAL DETERMINATIONS OF BASIC 
ESSENTIAL AIR SERVICE

Sec.
398.1  Purpose.
398.2  Number and designation of hubs.
398.3  Specific airports.
398.4  Equipment.
398.5  Frequency of flights.
398.6  Seat guarantees.
398.7  Timing of flights.
398.8  Number of intermediate stops.
398.9  Load factor standards.
398.10  Overflights.
398.11  Funding reductions.

    Authority: 49 U.S.C. Chapters 401, 417; Airport and Airway 
Safety and Capacity Expansion Act of 1987 (Pub. L. 100-223, Dec. 30, 
1987).


Sec. 398.1  Purpose.

    The purpose of this part is to establish general guidelines for the 
determination of basic essential air service for each eligible place 
under 49 U.S.C. 41731 and 41732. Procedures for the determination of 
the essential air service level for a place are contained in part 325 
of this chapter.


Sec. 398.2  Number and designation of hubs.

    (a) What is a hub? The Department considers hubs as belonging to 
any one of three classifications:
    (1) A large hub is a place accounting for at least 1.00 percent of 
the total enplanements in the United States;
    (2) A medium hub is a place accounting for at least 0.25 percent 
but less than 1.00 percent of the total enplanements in the United 
States; and 

[[Page 43530]]

    (3) A small hub is a place accounting for at least 0.05 percent but 
less than 0.25 percent of the total enplanements in the United States.
    (b) How many hubs? (1) As a general matter, the Department will 
require service to one large or medium hub.
    (2) In Alaska or when the nearest large or medium hub is more than 
400 miles from the eligible place, the Department may instead require 
service to a small hub or nonhub.
    (3) In some cases, the Department may require service to two hubs, 
of which at least one will be a large or medium hub. The Department 
will require service to two hubs if an eligible place has close 
commercial, geographic, and political ties to both hubs and if there is 
sufficient traffic from the eligible place to support two round trips a 
day to both hubs. If traffic is not sufficient, the Department may 
require one round trip a day to both hubs if the community requests 
such service.
    (4) In no event will essential air service consist of service to 
more than two hubs.
    (c) Which hub? (1) In designating hubs, the Department will weigh 
all of the following factors:
    (i) The extent to which candidate hubs provide access to the 
national air transportation system;
    (ii) The commercial, geographic, and political ties of candidate 
hubs to the eligible place;
    (iii) The traffic levels to candidate hubs, as shown by traffic 
studies and origin and designation data;
    (iv) The distance of candidate hubs from the eligible place; and
    (v) The size of candidate hubs. Large size will be a positive 
factor, but principally as substantiating the access and community-ties 
factors.
    (2) For Alaska, rather than requiring service to a hub, the 
Department may instead require that service from an eligible place be 
provided to a nearby focal point for traffic which, in turn, has 
service to a hub.


Sec. 398.3  Specific airports.

    (a) At an eligible place, essential air service may be specified as 
service to a particular airport. In the case of hyphenated places, 
essential air service will be specified as service to more than one 
airport only if clearly necessary and if the multi-airport service is 
economically feasible and justified on the basis of traffic levels at 
those airports.
    (b) At a hub, essential air service is not usually specified as 
service to a particular airport.


Sec. 398.4  Equipment.

    (a) Except in Alaska, service will be provided by aircraft offering 
at least 15 passenger seats, unless:
    (1) Average daily enplanements at the place did not exceed 11 
passengers for any fiscal year from 1976 through 1986;
    (2) The requirement would necessitate the payment of compensation 
in a fiscal year for service at the place when compensation would 
otherwise not be necessary; or
    (3) The affected community agrees in writing to the use of smaller 
aircraft to provide service at the place.
    (b) The aircraft must have at least two engines and use two pilots, 
unless scheduled air transportation has not been provided to the place 
in aircraft with at least two engines and using two pilots for at least 
60 consecutive operating days at any time since October 31, 1978.
    (c) The aircraft must be pressurized when the service regularly 
involves flights above 8,000 feet in altitude.
    (d) All aircraft must meet the applicable safety standards of the 
Federal Aviation Administration.
    (e) The aircraft must be conveniently accessible to passengers by 
stairs rather than over the wing.


Sec. 398.5  Frequency of flights.

    (a) Except in Alaska, at least two round trips each weekday and two 
round trips each weekend.
    (b) In Alaska, a level of service at least equal to that provided 
in 1976, or two round trips each week, whichever is greater, except 
that the Department and the appropriate State authority of Alaska may 
agree to a different level of service after consulting with the 
affected community.
    (c) An essential air service level may be set at more than that 
stated in paragraphs (a) and (b) of this section if:
    (1) Historical traffic data and studies of traffic-generating 
potential for the place indicate that more frequent service is needed 
to accommodate passengers and accompanying baggage with the aircraft 
used at that place;
    (2) More flights are needed because the capacity available to the 
eligible place is being shared with traffic destined for an 
intermediate stop or for a place beyond the eligible place;
    (3) More flights are needed to accommodate passengers because 
smaller aircraft are being used at the place;
    (4) More flights are needed in order to ensure adequate connecting 
opportunities as provided for by Sec. 398.7; or
    (5) For Alaska, the appropriate state agency agrees that more 
frequent service is needed to accommodate cargo traffic with the 
aircraft used at the eligible place.
    (d) For eligible places where traffic levels vary substantially 
with the season, a two-tier level of essential air service may be 
established with required flight frequencies changing accordingly.


Sec. 398.6  Seat guarantees.

    (a) The number of seats guaranteed at the eligible place will be 
sufficient to accommodate the estimated passenger traffic at an average 
load factor of 60 percent, except that an average load factor of 50 
percent will be used when service is provided with aircraft having 
fewer than 15 passenger seats.
    (b) Only under unusual circumstances will an eligible place's 
essential air service level be set at a number of flights that will 
accommodate more than 40 passengers a day in each direction (a total of 
80 inbound and outbound passengers). Generally, 40 passengers can be 
accommodated by guaranteeing 67 seats a day in each direction (a total 
of 134 inbound and outbound seats).
    (c) The Department may guarantee an eligible place more than 67 
seats a day if:
    (1) The number of stops between or beyond the eligible place and 
the hub results in available aircraft capacity being shared with 
passengers at those other places;
    (2) The distance between the eligible place and the designated hub 
requires the use of large aircraft;
    (3) The eligible place has suffered an abrupt and significant 
reduction in its service that warrants a temporary increase in the 
maximum guaranteed capacity; or
    (4) Other unusual circumstances warrant guaranteeing the eligible 
place more than 67 seats a day.


Sec. 398.7  Timing of flights.

    To qualify as essential air service, flights must depart at 
reasonable times, considering the needs of passengers with connecting 
flights at the hub. It is the policy of the Department to consider the 
reasonableness of the time in view of the purpose for which the local 
passengers are traveling. If travel is primarily to connect with other 
flights at the hub, local flight times should be designed to link with 
those flights. If travel is primarily local (i.e., to and from the 
hub), there should be at least one morning flight in each direction and 
one late-afternoon or evening flight in each direction.


Sec. 398.8  Number of intermediate stops.

    (a) Except in Alaska, no more than one intermediate stop is 
permitted in 

[[Page 43531]]
providing essential air service between the eligible place and its hub, 
unless otherwise agreed to with the community. In cases where an 
eligible place receives service to two hubs, however, more than one 
intermediate stop is permitted between that place and its secondary 
hub.
    (b) In Alaska, more than one intermediate stop is permitted if 
required by low traffic levels at the eligible place or by the long 
distance between the eligible place and its hub.
    (c) The Department may specify nonstop service when necessary to 
make the service viable.
    (d) Where an eligible place normally is an intermediate stop that 
shares available capacity with another place, it is the policy of the 
Department either to require additional capacity (more flights or 
larger aircraft) between the eligible place and its hub or to specify 
some turnaround operations on that route segment.


Sec. 398.9  Load factor standards.

    The load factor standards used in this part may be raised for 
individual eligible places under either of the following circumstances:
    (a) The place is served by the carrier as part of a linear route; 
or
    (b) It would be in the interest of the community, the carrier, or 
the general public to raise the load factor standard for that place.


Sec. 398.10  Overflights.

    The Department considers it a violation of 49 U.S.C. 41732 and the 
air service guarantees provided under this part for an air carrier 
providing essential air service to an eligible place to overfly that 
place, except under one or more of the following circumstances:
    (a) The carrier is not compensated for serving that place and 
another carrier is providing by its flights the service required by the 
Department's essential air service determination for that place;
    (b) Circumstances beyond the carrier's control prevent it from 
landing at the eligible place;
    (c) The flight involved is not in a market where the Department has 
determined air service to be essential; or
    (d) The eligible place is a place in Alaska for which the 
Department's essential air service determination permits the 
overflight.


Sec. 398.11  Funding reductions.

    (a) If, in any fiscal year, appropriations for payments to air 
carriers remain at or below the amounts estimated as necessary to 
maintain subsidy-supported essential air service at the places 
receiving such service, and Congress provides no statutory direction to 
the contrary, appropriations shall not be available for essential air 
service to otherwise eligible places within the 48 contiguous States 
and Puerto Rico that have a rate of subsidy per passenger in excess of 
$200.00, or are located:
    (1) Less than 70 highway miles from the nearest large or medium hub 
airport;
    (2) Less than 55 miles from the nearest small hub airport; or
    (3) Less than 45 highway miles from the nearest nonhub airport that 
has enplaned, on certificated or commuter carriers, 100 or more 
passengers per day in the most recent year for which the Department has 
obtained complete data.
    (b) The rate of subsidy per passenger shall be calculated by 
dividing the annual subsidy in effect as of July 1 of the prior fiscal 
year by the total origin-and-destination traffic during the most recent 
year for which the Department has obtained complete data.

PART 399--[AMENDED]

    171. The authority citation for part 399 is revised to read as 
follows:

    Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417, 419, 461.


Sec. 399.20, 399.38, 399.90  [Removed]

    172. Sections 399.20, 399.21, 399.38, and 399.90 are removed.


Sec. 399.21  [Amended]

    173. In Sec. 399.21, remove the words ``section 401 of the Act'' 
and add, in their place, the words ``section 41102 of Title 49 of the 
United States Code''.

    Issued in Washington DC, on August 14, 1995.
Mark L. Gerchick,
Acting Assistant Secretary for Aviation and International Affairs.
[FR Doc. 95-20502 Filed 8-21-95; 8:45 am]
BILLING CODE 4910-62-P