81_FR_76512 81 FR 76300 - Reporting of Data for Mishandled Baggage and Wheelchairs and Scooters Transported in Aircraft Cargo Compartments

81 FR 76300 - Reporting of Data for Mishandled Baggage and Wheelchairs and Scooters Transported in Aircraft Cargo Compartments

DEPARTMENT OF TRANSPORTATION
Office of the Secretary

Federal Register Volume 81, Issue 212 (November 2, 2016)

Page Range76300-76306
FR Document2016-26181

The Department of Transportation (DOT or Department) is issuing a final rule that changes the mishandled-baggage data that air carriers are required to report, from the number of Mishandled Baggage Reports (MBR) and the number of domestic passenger enplanements to the number of mishandled bags and the number of enplaned bags. Fees for checked baggage may have changed customer behavior regarding the number of bags checked, potentially affecting mishandled-baggage rates. Finally, this rule fills a data gap by collecting separate statistics for mishandled wheelchairs and scooters used by passengers with disabilities and transported in aircraft cargo compartments. An additional topic covered in the proposed rule, the reporting of airline fee revenues, remains open and is not addressed in this rulemaking.

Federal Register, Volume 81 Issue 212 (Wednesday, November 2, 2016)
[Federal Register Volume 81, Number 212 (Wednesday, November 2, 2016)]
[Rules and Regulations]
[Pages 76300-76306]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-26181]


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Parts 234 and 241

[Docket No. DOT-RITA-2011-0001]
RIN 2105-AE41 (formerly 2139-AA13)


Reporting of Data for Mishandled Baggage and Wheelchairs and 
Scooters Transported in Aircraft Cargo Compartments

AGENCY: Office of the Secretary (OST), Department of Transportation 
(DOT).

ACTION: Final rule.

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SUMMARY: The Department of Transportation (DOT or Department) is 
issuing a final rule that changes the mishandled-baggage data that air 
carriers are required to report, from the number of Mishandled Baggage 
Reports (MBR) and the number of domestic passenger enplanements to the 
number of mishandled bags and the number of enplaned bags. Fees for 
checked baggage may have changed customer behavior regarding the number 
of bags checked, potentially affecting mishandled-baggage rates. 
Finally, this rule fills a data gap by collecting separate statistics 
for mishandled wheelchairs and scooters used by passengers with 
disabilities and transported in aircraft cargo compartments. An 
additional topic covered in the proposed rule, the reporting of airline 
fee revenues, remains open and is not addressed in this rulemaking.

DATES: This rule is effective December 2, 2016.

FOR FURTHER INFORMATION CONTACT: Zeenat Iqbal, Office of the Assistant 
General Counsel for Aviation Enforcement and Proceedings, U.S. 
Department of Transportation, 1200 New Jersey Ave. SE., Washington, DC 
20590, 202-366-9293 (phone), 202-366-5944 (fax), [email protected]. 
You may also contact Blane A. Workie, Assistant General Counsel for 
Aviation Enforcement and Proceedings, Department of Transportation, 
1200 New Jersey Ave. SE., Washington, DC 20590, 202-366-9342 (phone), 
202-366-7152 (fax), [email protected]. TTY users may reach these 
individuals via the Federal Relay Service toll-free at 800-877-8339. 
You may obtain copies of this notice in an accessible format by 
contacting the above named individuals.

SUPPLEMENTARY INFORMATION: 

Background

    On July 15, 2011, the Department published a notice of proposed 
rulemaking (NPRM) in the Federal Register, 76 FR 41726, which addressed 
the following areas: (1) Reporting of ancillary fee revenue; (2) data 
for computation of mishandled-baggage rates; and (3) data for 
mishandled wheelchairs and scooters used by passengers with 
disabilities that are transported in the cargo compartment. With regard 
to the reporting of ancillary fee revenue, the Department proposed 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. For many 
years the Department has required the larger U.S. air carriers to 
report the number of Mishandled Baggage Reports (MBRs) filed by 
passengers and the total number of passenger enplaned. The Department 
then divides the number of MBRs (the numerator) by the total number of 
passengers enplaned (the denominator) and multiplies the result by 
1,000 in order to arrive at a rate of MBRs per 1,000 passengers which 
it publishes in its monthly Air Travel Consumer Report. For example, if 
an airline reports 800 MBRs and 600,000 passengers enplaned, that 
carrier will have a published rate of 1.3 MBRs per 1,000 passenger 
enplanements. In the NPRM, rather than compute the number of Mishandled 
Baggage Reports per unit of domestic enplanements the Department 
proposed using the number of mishandled bags per unit of total bags 
checked. As noted in the NPRM,

[[Page 76301]]

passenger behavior was altered regarding the unit of bags checked when 
many air carriers began charging passengers for each bag that they 
check. We believe that airline passengers would have better information 
to compare airline services if the matrix for mishandled baggage were 
changed to the number of the actual mishandled bags per unit of checked 
bags rather than the number of Mishandled Baggage Reports filed by 
passengers per unit of domestic scheduled-service passenger 
enplanements. As explained below in greater detail, although the NPRM 
proposed to require carriers to report the total number of ``checked 
bags,'' in this final rule we are clarifying this term to mean the 
total number of ``checked bags enplaned.'' Consequently, a one-way 
connecting passenger would have his or her checked bag counted each 
time the bag was enplaned--i.e., at the origin point and at the 
connecting point. This is consistent with the manner in which the 
existing rule requires the total number of passengers enplaned to be 
reported. Finally, the Department proposed to collect information 
regarding damage, delay or loss of wheelchairs and scooters transported 
in the aircraft cargo compartment.
    The Department received 278 comments in response to the NPRM, 
including several representing the views of multiple entities. Of 
these, eight comments were from members of the airline industry, 
representing the views of Allegiant Air, American Airlines, Delta Air 
Lines, Southwest Airlines, Spirit Airlines, United Air Lines, US 
Airways, and Virgin America. Six comments were from industry 
associations, representing the views of Airports Council International, 
North America (ACI-NA), the Air Transport Association of America (ATA) 
[now known as Airlines For America (A4A)], the American Aviation 
Institute (AAI), the American Society of Travel Agents (ASTA), the 
Association of Retail Travel Agents (ARTA), and the Regional Airline 
Association (RAA). The Department received two comments from 
FlyersRights.org and 260 comments from individuals, including 219 from 
members of FlyersRights.org. Other consumer and disability 
associations, including Consumer Action, the Consumer Federation of 
America, Consumers Union, the Consumer Travel Alliance, the National 
Consumers League, the Open Doors Foundation, and the Paralyzed Veterans 
of America submitted comments.
    On April 27, 2012, the Department published a notice of public 
meeting in the Federal Register, 77 FR 25105, listing a series of 
questions that the Department intended to pose to the public in order 
to receive input on the costs and benefits associated with the 
proposals outlined in the July 15, 2011, NPRM. This public meeting was 
held at the Department's headquarters on May 17, 2012. Attendees 
provided the Department with oral comments, a transcript of which is 
available in the public docket. Subsequent to the public meeting, 
American Airlines, Delta Air Lines, and US Airways submitted additional 
written comments.
    In general, consumers, consumer associations, disability 
associations, and airports support the rule as proposed while many 
airlines and airline associations oppose it. The section-by-section 
analysis will describe each provision of the final rule.
    On January 17, 2014, President Obama signed into law the 
Consolidated Appropriations Act, 2014 (Pub. L. 113-76), which included 
language transferring the powers and duties, functions, authorities and 
personnel of the Department's Research and Innovative Technology 
Administration (RITA) to the Office of the Assistant Secretary for 
Research and Technology (OST-R) in the Department's Office of the 
Secretary. Thus, the Office of the Assistant Secretary for Research and 
Technology is now an office within the Office of the Secretary. Based 
on the Act, this rulemaking received a new regulation identifier 
number.

Comments and Responses

1. Reporting of Ancillary Fee Revenue

    The Department bifurcated its rulemaking on the reporting of 
ancillary fee revenue into two separate rules: this rule to address the 
reporting of data used in the computation of mishandled baggage and 
wheelchair/scooter rates (2104-AE41), and another rule to address the 
reporting of ancillary fee revenue (2105-AE31). These rulemakings were 
split as they address unrelated matters and their separation will make 
it easier for stakeholders to locate information about a particular 
topic embodied in each separate rule. The Department's rulemaking on 
the reporting of ancillary fee revenue, including an analysis of the 
public comments received in response to the 2011 NPRM and 2012 public 
meeting, remains open.

2. Mishandled Baggage

    The NPRM: In the NPRM, the Department proposed changing the 
methodology for reporting mishandled baggage on a domestic system 
basis, excluding charter flights. The rule's proposed text would 
require reporting the number of mishandled bags rather than the number 
of Mishandled Baggage Reports filed by passengers, and the total number 
of domestic checked bags enplaned rather than the number of domestic 
passenger enplanements. As noted above, the Department stated in the 
NPRM that it believes that the current matrix for comparing airline 
mishandled baggage performance is outdated and the proposed changes 
would give airline passengers better information to compare airline 
services. Passenger behavior was altered regarding the number of bags 
checked when many air carriers began charging passengers for each bag 
that they check. Although the Department did not specifically solicit 
comments on alternative methodologies for reporting mishandled baggage, 
comments received from air carriers and their associations led the 
Department to consider alternatives discussed below.
    Comments: Consumers and consumer groups, as well as ACI-NA and one 
carrier, Southwest Airlines, stated that the proposed methodology would 
render more accurate and useful results. The current methodology, these 
comments asserted, compares unrelated numbers since fewer passengers 
currently check bags than when the methodology was devised. Consumer 
groups commented that the Department should capture data regarding the 
number of mishandled bags that were checked at the gate, in addition to 
the number of mishandled bags that were checked at check-in counters 
and self-service bag drop locations.
    On the other hand, A4A (excluding JetBlue and Southwest Airlines), 
RAA, and the carriers that submitted comments, with the exception of 
Southwest Airlines, contend that the Department's long-standing 
methodology for calculating mishandled baggage is useful and valid. 
They commented that the proposed methodology would cost industry more 
than the current methodology. Increased costs would stem primarily from 
recording interlined baggage, gate-checked baggage, and ``valet'' bags. 
(Interlined baggage is checked baggage of a passenger whose itinerary 
does not involve a code-share but includes more than one airline. Gate-
checked baggage is baggage that the passenger brought to the gate but 
which was taken by the carrier at that location and checked into the 
baggage compartment of the aircraft. Valet bags, sometimes called 
planeside bags, are bags that a passenger drops at the end of the 
loading bridge or on the tarmac near the aircraft and which carrier 
personnel load into the baggage compartment of the aircraft, a process

[[Page 76302]]

that is frequently used by regional airlines.) In addition, individual 
carriers commented that the proposed methodology would mislead the 
public, and would benefit Southwest Airlines to the detriment of all 
other carriers, regardless of each carrier's ability to properly handle 
bags. One carrier, US Airways, disagreed with a conclusion in a report 
issued by the Government Accountability Office (GAO; report GAO-10-785, 
July 2010) that bag fees had altered consumer behavior by leading them 
to check fewer bags, thus resulting in fewer MBRs. A4A (excluding 
JetBlue and Southwest Airlines) and RAA recommended that should the 
Department deem a change is necessary, the denominator of the rate 
calculation should be the total number of domestic enplaned bags rather 
than origin-and-destination bags. For example, for a passenger with a 
checked bag who is traveling one-way from Denver to Boston with a 
connection (change of planes) in Chicago, a ``total enplaned bags'' 
system would count the bag twice, i.e. when it was enplaned on the 
Denver-Chicago flight and again when it was enplaned on the Chicago-
Boston flight. An ``origin-and-destination'' system would only count 
the bag once, as a bag moving from Denver to Boston regardless of the 
flight or flights that were used.) Southwest Airlines expressed concern 
with using total domestic enplaned bags as the denominator, claiming 
that to do so would benefit hub-and-spoke carriers at the expense of 
point-to-point carriers.
    American Airlines, Delta Air Lines, and US Airways commented that 
the Department severely underestimated the cost of complying with the 
proposed rule. They noted for gate-checked and ``valet'' bags, carriers 
would have to replace a manual bag tagging system with an automated 
one. Delta Air Lines stressed the importance of using an automated 
system because less than one hundredth of one percent often separates 
competitors in the Department's mishandled baggage rankings. That 
carrier estimated this would cost up to $10 million in new equipment 
and $900,000 in programming, while requiring 18 to 24 months to fully 
implement. US Airways estimated that automation would cost $1 million 
in new equipment and $1 million in programming. In addition, Delta Air 
Lines commented that the rule would cause operational delays and 
passenger inconvenience because of the time involved in printing and 
then scanning automated bag tags.
    On January 12, 2016, A4A filed supplemental comments. The 
organization objected to language in the Notice of Proposed Rulemaking 
on Transparency of Airline Ancillary Fees and Other Consumer Issues 
(``Consumer Rule 3'') \1\ that would amend the mishandled baggage 
reporting rule (14 CFR 234.6) to require reports ``for all domestic 
scheduled passenger flight segments that are held out with the 
reporting carrier's code . . . ,'' including flights operated for a 
carrier by its regional-carrier code-share partners. A4A stated that 
the data are not captured by flight segment today and that devising a 
system to do so would be costly and time-consuming. A4A also objected 
to language in that NPRM which the organization said could impede 
``valet'' or ``planeside'' baggage service widely offered by regional 
carriers and would have to be coordinated with the Transportation 
Security Administration (TSA).
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    \1\ 79 FR 29970, May 23, 2014, Docket DOT-OST-2014-0056.
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    Finally, the Department received comments questioning which airline 
must report baggage in interline situations or when multiple airlines 
place their codes on a single flight.
    DOT Response: The Department has decided to require that airlines 
report mishandled baggage in terms of the number of mishandled bags and 
the total number of domestic enplaned bags, excluding charter flights. 
A bag will be counted as ``enplaned'' on each flight of a passenger's 
journey. For example, if a passenger were traveling one-way from Denver 
to Boston with a connection in Chicago from one flight to another, the 
bag will be counted twice (once for each flight). Consistent with this 
approach, if that passenger were instead traveling on a direct flight 
from Denver to Boston with an intermediate stop in Chicago but no 
change of planes, the bag would be counted only once--when it was 
enplaned in Denver.
    Passenger behavior was reportedly altered when many air carriers 
began charging passengers for each checked bag. Specifically, the GAO 
report cited above stated that the introduction of baggage fees 
resulted in a decline of 40 to 50 percent in the number of checked bags 
with a corresponding 40 percent decline in the number of MBRs per 1,000 
passengers (GAO-10-785, July 2010, page 25). The ratio between checked 
bags and the number of passengers can vary greatly depending on the 
fees charged. Moreover, there is not a direct relationship between the 
number of MBRs and the number of mishandled (i.e., lost, stolen, 
delayed, damaged, and pilfered) bags because a single MBR could be 
submitted by a family--or even an individual--with multiple mishandled 
bags. In addition, the Department has decided to include in its revised 
mishandled baggage methodology all checked bags, including those 
checked at the gate and ``valet'' bags. As the GAO noted, as the amount 
of checked baggage has decreased, the amount of carry-on baggage has 
increased, resulting in airlines' having to check more bags at the 
gate. The Department believes that the new methodology in this rule 
will better inform passengers of their chances to retrieve their gate-
checked baggage in an acceptable and timely manner.
    The Department agrees with the suggestion from A4A (excluding 
JetBlue and Southwest Airlines) and RAA that the Department use the 
number of domestic bag enplanements rather than origin-and-destination 
bags in the denominator. We have revised the language of the relevant 
section accordingly. Using the enplaned-bag approach will avoid the 
costs that would be entailed for tracking a given bag from origin to 
destination for connecting passengers under an origin-and-destination 
approach. The use of ``enplaned bag'' language in the final rule also 
results in a carrier receiving ``credit'' for a properly-handled bag on 
each flight of a passenger's journey. This ensures that when bags 
travel on multi-carrier itineraries or when interline agreements allow 
carriers to check bags through to the passenger's final destination, 
even when that passenger possesses more than one ticket, the operating 
carrier on each flight will receive ``credit'' for a properly-handled 
bag. For example, if a passenger travels on a flight operated by 
airline A from Washington, DC to Los Angeles, and a flight operated by 
airline B from Los Angeles to Honolulu, for the ``denominator'' figure 
airline A would include the passenger's checked baggage in its 
reporting for the Washington--Los Angeles flight while airline B would 
include the passenger's checked baggage in its reporting for the Los 
Angeles--Honolulu flight. The same piece of luggage would be reported 
by both airlines (on different flights), thus giving both airlines the 
chance to receive ``credit'' for handling the bag. Whether or not 
airlines A and B operate one or both of those flights as part of a 
code-share or as part of an interline agreement would have no impact on 
their reporting requirements. In the comments received from A4A 
(excluding JetBlue and Southwest) and RAA, the associations noted that 
the ``enplanement'' approach would resolve much of the complexity 
stemming from

[[Page 76303]]

interlining, gate checking, and ``valet'' bag situations. Thus, the 
Department believes that adopting the suggested methodology of A4A 
(excluding JetBlue and Southwest) and RAA will result in lower 
compliance costs for air carriers.
    Using the total number of domestic bag enplanements rather than 
bags checked for origin-destination trips further reduces the rule's 
cost because air carriers already count pieces of checked baggage in 
order to comply with the Federal Aviation Administration's (FAA) 
existing weight-and-balance requirements. The FAA requires that 
carriers maintain, for at least three months, the number of 
``standard,'' ``heavy,'' and ``non-luggage'' bags carried in the cargo 
compartment. Delta Air Lines confirmed at the May 17, 2012, public 
meeting that, because of the FAA requirements, the carrier already 
possesses a tally of bags transported in the cargo compartment on each 
of its domestic scheduled flights.
    With respect to A4A's January 12, 2016, supplemental comments, the 
language in the ``Consumer Rule 3'' NPRM concerning reporting by flight 
segment referred to a separate proposal in that proceeding that would 
require carrier reports about on-time performance, oversales, and 
mishandled baggage to include data for flights operated by their 
domestic code-share partners. The phrase ``for all domestic scheduled 
passenger flight segments that are held out with the reporting 
carrier's code'' in that NPRM was simply intended to capture the code-
share operations, not to require reporting by flight segment. If this 
Consumer Rule 3 proposal is finalized, we will modify the phrase in 
question to make this clear. This final rule simply requires carriers 
to count the number of checked bags that are enplaned on each flight; 
it does not require carriers to conduct segment-by-segment tracking of 
the number of bags on board each segment of a direct flight, nor does 
it require origin-destination (``O&D'') tracking based on each 
passenger's itinerary.
    A4A also contended in its January 12, 2016, comments that in order 
to comply with the instant rule as proposed, the only realistic 
solution for most carriers is to begin tracking ``valet bags'' in the 
same way that all other checked bags are tracked today--with an 
automated bag tag (ABT) that is linked to the passenger's Passenger 
Name Record, rather than the existing paper valet tags. A4A further 
asserted that once a bag is tagged with an ABT, TSA requires it to be 
treated like all other checked baggage and prohibits the traveler from 
having access to it in the sterile area of the airport. A4A stated that 
this means that carriers could no longer return these bags to 
passengers on the jet bridge at the conclusion of the flight. However, 
the rule does not require the use of ABTs. In addition, TSA has advised 
the Department that TSA's interest is in ensuring that passengers do 
not have access in the secure area of an airport to a checked bag that 
has not passed through the passenger security screening checkpoint. 
Valet bags are screened at that checkpoint. TSA explained that 
attaching an ABT to a bag that the passenger has carried through the 
screening checkpoint, or referring to such a bag as a checked bag, 
would not trigger the prohibition on the passenger having access to 
that bag in the airport's secure area.
    The Department is not prescribing a particular mechanism through 
which air carriers must capture the data required by this rule. 
Carriers may adopt whichever method they find best suited to their 
business model. In terms of ``valet'' bags, for example, this rule does 
not require air carriers to provide passengers with individual bag 
claims that must be matched to bags on arrival; instead, air carriers 
need only ensure that the ``valet'' bag is properly counted in the data 
reported to the Department.
    Finally, the Department has made a ministerial change to its 
proposed rule. In its NPRM, the Department cited ``49 U.S.C. 329 and 
chapters 41101 and 41701'' as the authority for the mishandled baggage 
portion of the rule. The correct citation is: ``49 U.S.C. 329, 41101 
and 41701.''

3. Data for Wheelchairs and Scooters Transported in Aircraft Cargo 
Compartments

A. Reporting Mishandled Wheelchairs and Scooters Transported in the 
Cargo Compartment
    The NPRM: The Department proposed requiring carriers to report the 
number of mishandled wheelchairs and scooters and the total number of 
wheelchairs/scooters transported in the aircraft cargo compartment. The 
Department sought public comment to better understand the scope of this 
issue and whether the prospect of loss, damage or delay of such devices 
or the lack of data made consumers with disabilities reluctant to 
travel by air.
    Comments: In general, consumers voiced support for the proposal to 
require air carriers to break out data on the number of mishandled 
wheelchairs and scooters transported in the aircraft cargo compartment, 
maintaining that such reporting would reduce the number of incidents, 
while providing passengers with disabilities with a metric for making 
better-informed travel decisions. The Paralyzed Veterans of America and 
the Consumer Travel Alliance made similar supportive comments, noting 
that their members frequently request this currently-unavailable data, 
although the former group did request that the Department define 
``mishandled'' in its regulation. ACI-NA commented that the proposed 
rule will increase accessibility of airports in general because 
passengers will know more about the air travel experience.
    On the other hand, A4A (excluding Southwest Airlines) and RAA 
commented that the Department had no basis for concluding that 
passengers with disabilities are reluctant to travel by air due to 
wheelchair mishandling, and that the proposal lacked a public policy 
justification. Several air carriers asserted that the Air Carrier 
Access Act and its implementing regulation (14 CFR part 382) already 
provide carriers with an incentive to handle these devices properly. 
The associations, individual airlines, and ARTA commented that the 
proposed rule was unduly burdensome on industry. In particular, these 
comments noted that wheelchairs and scooters are manually tagged and 
checked, and thus air carriers would need to implement a new mechanism 
to capture the required data. In written comments, American Airlines 
and Delta Air Lines commented that there would be high costs involved 
in programming systems to differentiate wheelchairs and scooters 
transported in the cargo compartment from the larger universe of all 
checked baggage. At the May 17, 2012, public meeting, US Airways stated 
that costs would be high, while others, including Delta Air Lines and 
Southwest Airlines, indicated the opposite. As an alternative to the 
Department's proposal, several carriers proposed the establishment of a 
working group to devise a workable method of capturing the required 
data.
    The Open Doors Foundation did not support the proposed rule. This 
organization commented that collecting this data would lead to 
competition among carriers in an area that should not be competitive, 
would cause airlines to reduce training and policies to the bare 
minimum needed to obtain ``good'' numbers, and would divert Department 
resources from other projects intended to make air travel more 
accessible.
    Although A4A's comments opposing the Department's proposal 
represented the views of all of that association's members except 
Southwest Airlines, US Airways filed a supplemental comment

[[Page 76304]]

after the May 17, 2012, public meeting in which it indicated that it 
did not object to the Department's proposal to require carriers to 
report the number of mishandled wheelchairs and scooters transported in 
the aircraft cargo compartment. US Airways commented that it would need 
one year to update software to distinguish wheelchairs and scooters 
from other checked baggage and that it should have the option of 
stowing some assistive devices in the passenger cabin.
    DOT Response: The Department has decided to require carriers to 
report the number of mishandled wheelchairs and scooters and the number 
of wheelchairs/scooters accepted for transport in the aircraft cargo 
compartment. The Department's applicable definition of ``mishandled'' 
is found at 14 CFR 234.1, which defines ``mishandled'' as ``loss, 
delay, damage, or pilferage.'' When issuing its NPRM, the Department 
intended for the same definition to apply to mishandled wheelchairs and 
scooters. The Department agrees with the many comments received from 
the public and disability rights groups that this rule will make air 
travel more accessible as it will provide the traveling public with the 
data necessary to make informed travel decisions.
    The number of wheelchairs and scooters accepted for transport in 
the aircraft cargo compartment is to be included in the total number of 
checked bags enplaned. Similarly, the number of mishandled wheelchairs 
and scooters is to be included in the number of mishandled checked 
bags. We believe that the number of mishandled bags (and the rate of 
mishandled bags per 1,000 bags enplaned, which will be calculated by 
DOT and included in our Air Travel Consumer Report) should include all 
items of which the carrier took custody.
    In response to comments from industry that there is no basis to 
conclude that passengers with disabilities are reluctant to travel by 
air due to wheelchair and scooter mishandling, the Department believes 
that the public comments received from air travelers with disabilities 
and disability rights organizations are representative of a widespread 
reluctance. It is public policy that air travel should be accessible to 
all members of the public, and the Department believes that this rule 
advances that policy goal. The Department appreciates that the Air 
Carrier Access Act and 14 CFR part 382 have provided air carriers with 
an incentive to handle wheelchairs and scooters properly. The 
Department believes that this final rule will not only act as an 
additional incentive, but most importantly will provide passengers with 
disabilities with a metric that they may use to compare air carriers 
and to make informed travel decisions. The Department agrees with US 
Airways' comment that capturing data on the incidence of wheelchair and 
scooter mishandling is in line with a carrier's obligations and duties 
to passengers with disabilities.
    The Department appreciates the concerns raised by Open Doors. While 
we believe that air carriers do strive to provide good service to 
passengers with disabilities, we continue to think that consumers with 
disabilities have the right to know which airlines provide the best 
service and have a right to select their air carriers based on that 
knowledge. In addition, the Department's existing disability 
regulations already require airlines to provide training to their 
employees. The new rule provides further incentive to airlines to 
provide the training necessary to result in as little mishandling as 
possible to wheelchairs and scooters. Finally, this rulemaking does not 
divert the Department's attention from other objectives, e.g., issuing 
rules requiring accessible in-flight entertainment systems, but instead 
provides passengers with mobility impairments, who represent a large 
segment of the population of travelers with disabilities, with 
information they deserve and need to make informed travel decisions.
B. Extension of the Rule to Other Assistive Devices and/or Devices 
Transported in the Passenger Cabin
    The NPRM: The Department solicited comments on whether the rule 
should be extended to all wheelchairs and scooters, regardless of 
whether they are transported in the passenger cabin or in the cargo 
compartment, and whether the rule should apply to other mobility 
devices, e.g., walkers.
    Comments: Many consumers and disability rights organizations 
commented that the Department should extend the rule in this manner. 
These comments generally relied on the same rationale as for their 
support of the proposed reporting requirement for mishandled 
wheelchairs and scooters transported in the cargo compartment; namely, 
that the number of mishandled assistive devices will be reduced and 
consumers with disabilities will have data necessary to make better-
informed travel decisions. The Paralyzed Veterans of America further 
recommended that this rule be applied to foreign air carriers and a 
member of the public recommended that this rule be applied to other 
modes of transportation. Many air carriers commented that capturing 
data on mishandled wheelchairs and scooters transported in the 
passenger cabin would prove unworkable since no data is kept about 
items transported in the cabin. US Airways commented that it would not 
oppose an extension of the rule to other mobility devices so long as 
the Department explicitly listed which mobility devices were covered by 
the rule, and so long as the Department explicitly excluded mobility 
devices not used by passengers with disabilities.
    Members of the public made numerous recommendations intended to 
improve the air travel experience for passengers with disabilities. 
These recommendations included the creation of a uniform damage form, a 
requirement that air carriers maintain a list of repair shops located 
near each airport served, a blanket exemption from all ancillary fees 
for passengers with disabilities, a mandated retrofitting of aircraft 
so that all mobility devices may be transported in the passenger cabin, 
and a prohibition on the gate-checking of assistive devices.
    DOT Response: The Department believes that requiring the reporting 
of data on the mishandling of all assistive devices, particularly those 
transported in the passenger cabin, is impracticable. The Department 
understands that airlines do not have a mechanism for tracking items 
carried in the passenger cabin. Further, wheelchairs and scooters are 
generally checked as single items, while other assistive devices are 
generally stored inside baggage. Requiring the reporting of data on 
assistive devices stored inside checked baggage would require 
passengers and airlines to inventory such baggage. As a result, the 
Department will require that carriers report data only on scooters and 
wheelchairs.
    The Department appreciates the additional recommendations received 
from the general public, including the application of this rule to 
cover other modes or to foreign air carriers, but concludes that these 
recommendations fall outside the scope of the current rulemaking.

4. Compliance Date

    The NPRM: The Department did not propose a specific compliance 
date.
    Comments: None of the public comments received prior to the May 17, 
2012, public meeting related to the compliance date of this rule. 
During the public meeting and in subsequent public comments, most air 
carriers commented that they would need 12 to 24 months after the final 
rule is published in the Federal Register to

[[Page 76305]]

comply because of time necessary for re-programming existing systems, 
installing new equipment, and training employees. In addition, Delta 
Air Lines and US Airways commented that a compliance date of January 1 
would be preferable because it would provide the clearest demarcation 
between data sets.
    DOT Response: The Department has determined that air carriers must 
comply with the new reporting requirements for air transportation 
taking place on or after January 1, 2018. The Department agrees with 
Delta Air Lines and US Airways that a January 1 compliance date 
provides a clear demarcation between data sets, corresponding with a 
change in the type of data reported by air carriers. In particular, 
given that this rule significantly changes the mishandled baggage 
metric, choosing the first day of the year as the compliance date will 
make future year-over-year comparisons more meaningful. In addition, 
the selection of this compliance date provides air carriers with 
adequate time to update their internal systems and reporting processes.
    Based on this compliance date, data in this new format on 
mishandled baggage for the month of January 2018 will be due February 
15, 2018. Data on mishandled wheelchairs and scooters transported in 
aircraft cargo compartments for the month of January 2018 will also be 
due February 15, 2018.

Regulatory Analyses and Notices

A. Executive Order 12866 (Regulatory Planning and Review) and DOT 
Regulatory Policies and Procedures

    This action has been determined not to be significant under 
Executive Order 12866 and the Department of Transportation's Regulatory 
Policies and Procedures. It has not been reviewed by the Office of 
Management and Budget. These changes make the measure of the published 
mishandled baggage rate more informative for ticket purchasers trying 
to assess risk. The new metric of number of bags reported as mishandled 
reveals more than the old figure of the number of reports of mishandled 
bags, since a single passenger report can cover multiple bags or even 
multiple passengers (e.g., several members of a family). Also, the 
number of enplaned checked bags is more helpful than the number of 
passengers, particularly given that the ratio of checked bags to 
passengers will tend to vary among carriers depending on their baggage 
allowances and fees. With purchasers better informed on the comparative 
performance of different carriers, competition among airlines should 
sharpen and performance in baggage handling can be expected to improve. 
As for reporting of wheelchairs and scooters, making information 
available to the public on each carrier's performance on handling 
wheelchairs and scooters would enable passengers with disabilities to 
make better decisions about which carrier to fly. Comments submitted in 
this rulemaking from air travelers with disabilities and disability 
rights organizations suggest that fear of the airlines damaging or 
losing wheelchairs and scooters creates a reluctance to fly among those 
dependent on these devices. The expected present value of costs 
incurred by carriers to comply with the final rule over a 10 year 
period using a 7% discount rate is estimated at $2,064,588 and using a 
3% discount rate is estimated at $2,483,436. The final Regulatory 
Evaluation has concluded that the benefits of the final rule justify 
its costs. A copy of the final Regulatory Evaluation has been placed in 
the docket.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires an 
agency to review regulations to assess their impact on small entities 
unless the agency determines that a rule is not expected to have a 
significant economic impact on a substantial number of small entities. 
DOT defines small carriers based on the standard published in 14 CFR 
399.73 as carriers that provide air transportation exclusively with 
aircraft that seat no more than 60 passengers. No small U.S. air 
carriers are affected by these requirements, as they apply only to the 
``reporting carriers,'' i.e., U.S. carriers that account for at least 1 
percent of domestic scheduled passenger revenue. No small carriers as 
defined in 14 CFR 399.73 are included in this group. On the basis of 
this examination, I hereby certify that this rule will not have a 
significant economic impact on a substantial number of small entities.

C. Executive Order 13132 (Federalism)

    This final rule has been analyzed in accordance with the principles 
and criteria contained in Executive Order 13132 (``Federalism''). This 
final rule does not include any provision that: (1) Has substantial 
direct effects on the States, the relationship between the national 
government and the States, or the distribution of power and 
responsibility among the various levels of government; (2) imposes 
substantial direct compliance costs on State and local governments; or 
(3) preempts State law. States are already preempted from regulating in 
this area by the Airline Deregulation Act, 49 U.S.C. 41713. Therefore, 
the consultation and funding requirements of Executive Order 13132 do 
not apply.

D. Executive Order 13084

    This final rule has been analyzed in accordance with the principles 
and criteria contained in Executive Order 13084 (``Consultation and 
Coordination with Indian Tribal Governments''). Because this final rule 
does not significantly or uniquely affect the communities of the Indian 
Tribal governments or impose substantial direct compliance costs on 
them, the funding and consultation requirements of Executive Order 
13084 do not apply.

E. Paperwork Reduction Act

    This rule adopts new and revised information collection 
requirements subject to the Paperwork Reduction Act (PRA). The 
Department will publish a separate notice in the Federal Register 
inviting the Office of Management and Budget (OMB), the general public, 
and other Federal agencies to comment on the new and revised 
information collection requirements contained in this document. As 
prescribed by the PRA, the requirements will not go into effect until 
OMB has approved them and the Department has published a notice 
announcing the effective date of the information collection 
requirements.

F. Unfunded Mandates Reform Act

    The Department has determined that the requirements of Title II of 
the Unfunded Mandates Reform Act of 1995 do not apply to this rule.

G. National Environmental Policy Act

    The Department has analyzed the environmental impacts of this 
proposed action pursuant to the National Environmental Policy Act of 
1969 (NEPA) (42 U.S.C. 4321 et seq.) and has determined that it is 
categorically excluded pursuant to DOT Order 5610.1C, Procedures for 
Considering Environmental Impacts (44 FR 56420, Oct. 1, 1979). 
Categorical exclusions are actions identified in an agency's NEPA 
implementing procedures that do not normally have a significant impact 
on the environment and therefore do not require either an environmental 
assessment (EA) or environmental impact statement (EIS). See 40 CFR 
1508.4. In analyzing the applicability of a categorical exclusion, the 
agency must also consider whether extraordinary circumstances are 
present that would warrant the preparation of an EA or EIS. Id. 
Paragraph 3.c.6.i of DOT Order 5610.1C categorically excludes 
``[a]ctions relating to consumer

[[Page 76306]]

protection, including regulations.'' The purpose of this rulemaking is 
to change the way in which air carriers report mishandled baggage to 
the Department and fill a data gap by collecting separate statistics 
for mishandled wheelchairs and scooters used by passengers with 
disabilities and transported in aircraft cargo compartments. The 
Department does not anticipate any environmental impacts, and there are 
no extraordinary circumstances present in connection with this 
rulemaking.

    Issued this 18th day of October, 2016, in Washington, DC.
 Anthony R. Foxx,
Secretary of Transportation.

List of Subjects in 14 CFR Part 234

    Air carriers, Mishandled baggage, On-time statistics, Reporting, 
Uniform system of accounts.

    Accordingly, the Department of Transportation amends 14 CFR chapter 
II as follows:

PART 234--[AMENDED]

0
1. The authority citation for part 234 is revised to read as follows:

    Authority:  49 U.S.C. 329, 41101, and 41701.

0
2. Section 234.2 is amended by adding the definition of ``Mishandled 
checked bag'' in alphabetical order, to read as follows:


Sec.  234.2  Definitions.

* * * * *
    Mishandled checked bag means a checked bag that is lost, delayed, 
damaged or pilfered, as reported to a carrier by or on behalf of a 
passenger.
* * * * *

0
3. Section 234.6 is revised to read as follows:


Sec.  234.6  Baggage-handling statistics.

    (a) For air transportation taking place before January 1, 2018, 
each reporting carrier shall report monthly to the Department on a 
domestic system basis, excluding charter flights, the total number of 
passengers enplaned system-wide and the total number of mishandled-
baggage reports filed with the carrier.
    (b) For air transportation taking place on or after January 1, 
2018, each reporting carrier shall report monthly to the Department on 
a domestic system basis, excluding charter flights:
    (1) The total number of checked bags enplaned, including gate 
checked baggage, ``valet bags,'' interlined bags, and wheelchairs and 
scooters enplaned in the aircraft cargo compartment;
    (2) The total number of wheelchairs and scooters that were enplaned 
in the aircraft cargo compartment;
    (3) The number of mishandled checked bags, including gate-checked 
baggage, ``valet bags,'' interlined bags and wheelchairs and scooters 
that were enplaned in the aircraft cargo compartment; and
    (4) The number of mishandled wheelchairs and scooters that were 
enplaned in the aircraft cargo compartment.
    (c) The information in paragraphs (a) and (b) of this section shall 
be submitted to the Department within 15 days after the end of the 
month to which the information applies and must be submitted with the 
transmittal accompanying the data for on-time performance in the form 
and manner set forth in accounting and reporting directives issued by 
the Director, Office of Airline Information.

[FR Doc. 2016-26181 Filed 11-1-16; 8:45 am]
 BILLING CODE 4910-9X-P



                                           76300            Federal Register / Vol. 81, No. 212 / Wednesday, November 2, 2016 / Rules and Regulations

                                           shareholders for a vote, as otherwise required             Advisory Council means the Advisory                 FOR FURTHER INFORMATION CONTACT:
                                           by Item 4 of the SEC’s form 10–K, 17 CFR                 Council each Bank is required to                      Zeenat Iqbal, Office of the Assistant
                                           249.310.                                                 establish pursuant to section 10(j)(11) of            General Counsel for Aviation
                                           *       *     *       *      *                           the Bank Act (12 U.S.C. 1430(j)(11)) and              Enforcement and Proceedings, U.S.
                                                                                                    part 1291 of this chapter.                            Department of Transportation, 1200
                                           PART 1274—FINANCIAL STATEMENT                                                                                  New Jersey Ave. SE., Washington, DC
                                           OF THE BANKS                                             *     *    *     *     *
                                                                                                                                                          20590, 202–366–9293 (phone), 202–
                                           ■ 49. The authority citation for part                    PART 1291—FEDERAL HOME LOAN                           366–5944 (fax), zeenat.iqbal@dot.gov.
                                           1274 continues to read as follows:                       BANKS’ AFFORDABLE HOUSING                             You may also contact Blane A. Workie,
                                             Authority: 12 U.S.C. 1426, 1431, 4511(b),
                                                                                                    PROGRAM                                               Assistant General Counsel for Aviation
                                           4513, 4526(a).                                                                                                 Enforcement and Proceedings,
                                                                                                    ■ 59. The authority citation for part
                                                                                                                                                          Department of Transportation, 1200
                                           § 1274.1    [Amended]                                    1291 continues to read as follows:
                                                                                                                                                          New Jersey Ave. SE., Washington, DC
                                           ■  50. Amend § 1274.1 by removing the                        Authority: 12 U.S.C. 1430(j).                     20590, 202–366–9342 (phone), 202–
                                           definitions for ‘‘Bank System’’ and                      § 1291.4    [Amended]
                                                                                                                                                          366–7152 (fax), blane.workie@dot.gov.
                                           ‘‘Financing Corporation or FICO’’.                                                                             TTY users may reach these individuals
                                                                                                    ■ 60. Amend § 1291.4(f) by removing
                                                                                                                                                          via the Federal Relay Service toll-free at
                                           PART 1278—VOLUNTARY MERGERS                              the reference to ‘‘the Act’’ and adding a
                                                                                                                                                          800–877–8339. You may obtain copies
                                           OF FEDERAL HOME LOAN BANKS                               reference to ‘‘the Bank Act’’ in its place.
                                                                                                                                                          of this notice in an accessible format by
                                                                                                      Dated: October 21, 2016.                            contacting the above named individuals.
                                           ■ 51. The authority citation for part
                                           1278 continues to read as follows:                       Melvin L. Watt,                                       SUPPLEMENTARY INFORMATION:
                                                                                                    Director, Federal Housing Finance Agency.
                                               Authority: 12 U.S.C. 1432(a), 1446, 4511.                                                                  Background
                                                                                                    [FR Doc. 2016–26022 Filed 11–1–16; 8:45 am]
                                           § 1278.1    [Amended]                                    BILLING CODE 8070–01–P                                   On July 15, 2011, the Department
                                           ■ 52. Amend § 1278.1 by removing the                                                                           published a notice of proposed
                                           definition for ‘‘GAAP’’.                                                                                       rulemaking (NPRM) in the Federal
                                                                                                    DEPARTMENT OF TRANSPORTATION                          Register, 76 FR 41726, which addressed
                                           Subchapter E—Housing Goals and                                                                                 the following areas: (1) Reporting of
                                           Mission                                                  Office of the Secretary                               ancillary fee revenue; (2) data for
                                           PART 1281—FEDERAL HOME LOAN                                                                                    computation of mishandled-baggage
                                                                                                    14 CFR Parts 234 and 241                              rates; and (3) data for mishandled
                                           BANK HOUSING GOALS
                                                                                                    [Docket No. DOT–RITA–2011–0001]                       wheelchairs and scooters used by
                                           ■ 53. The authority citation for part                                                                          passengers with disabilities that are
                                           1281 continues to read as follows:                       RIN 2105–AE41 (formerly 2139–AA13)                    transported in the cargo compartment.
                                               Authority: 12 U.S.C. 1430c.                                                                                With regard to the reporting of ancillary
                                                                                                    Reporting of Data for Mishandled                      fee revenue, the Department proposed to
                                           Subpart A—General                                        Baggage and Wheelchairs and                           collect detailed information about
                                                                                                    Scooters Transported in Aircraft Cargo                ancillary fees paid by airline consumers
                                           § 1281.1    [Amended]                                    Compartments                                          to determine the total amount of fees
                                           ■ 54. Amend § 1281.1 by removing the                     AGENCY:  Office of the Secretary (OST),               carriers collect through the a la carte
                                           definitions for ‘‘Bank System’’, ‘‘Data                  Department of Transportation (DOT).                   pricing approach for optional services
                                           Reporting Manual (DRM)’’, and                                                                                  related to air transportation. The
                                                                                                    ACTION: Final rule.
                                           ‘‘Member’’.                                                                                                    Department also proposed to alter its
                                                                                                    SUMMARY:   The Department of                          matrix for collecting and publishing
                                           PART 1282—ENTERPIRSE HOUSING                             Transportation (DOT or Department) is                 data on mishandled baggage. For many
                                           GOALS AND MISSION                                        issuing a final rule that changes the                 years the Department has required the
                                           ■ 55. The authority citation for part                    mishandled-baggage data that air                      larger U.S. air carriers to report the
                                           1282 continues to read as follows:                       carriers are required to report, from the             number of Mishandled Baggage Reports
                                             Authority: 12 U.S.C. 4501, 4502, 4511,
                                                                                                    number of Mishandled Baggage Reports                  (MBRs) filed by passengers and the total
                                           4513, 4526, 4561–4566.                                   (MBR) and the number of domestic                      number of passenger enplaned. The
                                                                                                    passenger enplanements to the number                  Department then divides the number of
                                           Subpart A—General                                        of mishandled bags and the number of                  MBRs (the numerator) by the total
                                                                                                    enplaned bags. Fees for checked baggage               number of passengers enplaned (the
                                           § 1282.1    [Amended]                                    may have changed customer behavior                    denominator) and multiplies the result
                                           ■ 56. Amend § 1282.1 by removing the                     regarding the number of bags checked,                 by 1,000 in order to arrive at a rate of
                                           definition for the term ‘‘HUD’’.                         potentially affecting mishandled-                     MBRs per 1,000 passengers which it
                                                                                                    baggage rates. Finally, this rule fills a             publishes in its monthly Air Travel
                                           PART 1290—COMMUNITY SUPPORT                              data gap by collecting separate statistics            Consumer Report. For example, if an
                                           REQUIREMENTS                                             for mishandled wheelchairs and                        airline reports 800 MBRs and 600,000
                                           ■ 57. The authority citation for part                    scooters used by passengers with                      passengers enplaned, that carrier will
                                           1290 continues to read as follows:                       disabilities and transported in aircraft              have a published rate of 1.3 MBRs per
                                               Authority: 12 U.S.C. 1430(g), 4511, 4513.
                                                                                                    cargo compartments. An additional                     1,000 passenger enplanements. In the
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                                           ■ 58. Amend § 1290.1 by revising the                     topic covered in the proposed rule, the               NPRM, rather than compute the number
                                           definition of ‘‘Advisory Council’’ to read               reporting of airline fee revenues,                    of Mishandled Baggage Reports per unit
                                           as follows:                                              remains open and is not addressed in                  of domestic enplanements the
                                                                                                    this rulemaking.                                      Department proposed using the number
                                           § 1290.1    Definitions.                                 DATES: This rule is effective December 2,             of mishandled bags per unit of total bags
                                           *       *     *       *      *                           2016.                                                 checked. As noted in the NPRM,


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                                                            Federal Register / Vol. 81, No. 212 / Wednesday, November 2, 2016 / Rules and Regulations                                      76301

                                           passenger behavior was altered                           Department intended to pose to the                    the number of mishandled bags rather
                                           regarding the unit of bags checked when                  public in order to receive input on the               than the number of Mishandled Baggage
                                           many air carriers began charging                         costs and benefits associated with the                Reports filed by passengers, and the
                                           passengers for each bag that they check.                 proposals outlined in the July 15, 2011,              total number of domestic checked bags
                                           We believe that airline passengers                       NPRM. This public meeting was held at                 enplaned rather than the number of
                                           would have better information to                         the Department’s headquarters on May                  domestic passenger enplanements. As
                                           compare airline services if the matrix for               17, 2012. Attendees provided the                      noted above, the Department stated in
                                           mishandled baggage were changed to                       Department with oral comments, a                      the NPRM that it believes that the
                                           the number of the actual mishandled                      transcript of which is available in the               current matrix for comparing airline
                                           bags per unit of checked bags rather                     public docket. Subsequent to the public               mishandled baggage performance is
                                           than the number of Mishandled Baggage                    meeting, American Airlines, Delta Air                 outdated and the proposed changes
                                           Reports filed by passengers per unit of                  Lines, and US Airways submitted                       would give airline passengers better
                                           domestic scheduled-service passenger                     additional written comments.                          information to compare airline services.
                                           enplanements. As explained below in                         In general, consumers, consumer                    Passenger behavior was altered
                                           greater detail, although the NPRM                        associations, disability associations, and            regarding the number of bags checked
                                           proposed to require carriers to report the               airports support the rule as proposed                 when many air carriers began charging
                                           total number of ‘‘checked bags,’’ in this                while many airlines and airline                       passengers for each bag that they check.
                                           final rule we are clarifying this term to                associations oppose it. The section-by-               Although the Department did not
                                           mean the total number of ‘‘checked bags                  section analysis will describe each                   specifically solicit comments on
                                           enplaned.’’ Consequently, a one-way                      provision of the final rule.                          alternative methodologies for reporting
                                           connecting passenger would have his or                      On January 17, 2014, President                     mishandled baggage, comments
                                           her checked bag counted each time the                    Obama signed into law the Consolidated                received from air carriers and their
                                           bag was enplaned—i.e., at the origin                     Appropriations Act, 2014 (Pub. L. 113–                associations led the Department to
                                           point and at the connecting point. This                  76), which included language                          consider alternatives discussed below.
                                           is consistent with the manner in which                   transferring the powers and duties,                      Comments: Consumers and consumer
                                           the existing rule requires the total                     functions, authorities and personnel of               groups, as well as ACI–NA and one
                                           number of passengers enplaned to be                      the Department’s Research and                         carrier, Southwest Airlines, stated that
                                           reported. Finally, the Department                        Innovative Technology Administration                  the proposed methodology would
                                           proposed to collect information                          (RITA) to the Office of the Assistant                 render more accurate and useful results.
                                           regarding damage, delay or loss of                       Secretary for Research and Technology                 The current methodology, these
                                           wheelchairs and scooters transported in                  (OST–R) in the Department’s Office of                 comments asserted, compares unrelated
                                           the aircraft cargo compartment.                          the Secretary. Thus, the Office of the                numbers since fewer passengers
                                              The Department received 278                           Assistant Secretary for Research and                  currently check bags than when the
                                           comments in response to the NPRM,                        Technology is now an office within the                methodology was devised. Consumer
                                           including several representing the views                 Office of the Secretary. Based on the                 groups commented that the Department
                                           of multiple entities. Of these, eight                    Act, this rulemaking received a new                   should capture data regarding the
                                           comments were from members of the                        regulation identifier number.                         number of mishandled bags that were
                                           airline industry, representing the views                                                                       checked at the gate, in addition to the
                                           of Allegiant Air, American Airlines,                     Comments and Responses                                number of mishandled bags that were
                                           Delta Air Lines, Southwest Airlines,                     1. Reporting of Ancillary Fee Revenue                 checked at check-in counters and self-
                                           Spirit Airlines, United Air Lines, US                                                                          service bag drop locations.
                                           Airways, and Virgin America. Six                           The Department bifurcated its                          On the other hand, A4A (excluding
                                           comments were from industry                              rulemaking on the reporting of ancillary              JetBlue and Southwest Airlines), RAA,
                                           associations, representing the views of                  fee revenue into two separate rules: this             and the carriers that submitted
                                           Airports Council International, North                    rule to address the reporting of data                 comments, with the exception of
                                           America (ACI–NA), the Air Transport                      used in the computation of mishandled                 Southwest Airlines, contend that the
                                           Association of America (ATA) [now                        baggage and wheelchair/scooter rates                  Department’s long-standing
                                           known as Airlines For America (A4A)],                    (2104–AE41), and another rule to                      methodology for calculating mishandled
                                           the American Aviation Institute (AAI),                   address the reporting of ancillary fee                baggage is useful and valid. They
                                           the American Society of Travel Agents                    revenue (2105–AE31). These                            commented that the proposed
                                           (ASTA), the Association of Retail Travel                 rulemakings were split as they address                methodology would cost industry more
                                           Agents (ARTA), and the Regional                          unrelated matters and their separation                than the current methodology. Increased
                                           Airline Association (RAA). The                           will make it easier for stakeholders to               costs would stem primarily from
                                           Department received two comments                         locate information about a particular                 recording interlined baggage, gate-
                                           from FlyersRights.org and 260                            topic embodied in each separate rule.                 checked baggage, and ‘‘valet’’ bags.
                                           comments from individuals, including                     The Department’s rulemaking on the                    (Interlined baggage is checked baggage
                                           219 from members of FlyersRights.org.                    reporting of ancillary fee revenue,                   of a passenger whose itinerary does not
                                           Other consumer and disability                            including an analysis of the public                   involve a code-share but includes more
                                           associations, including Consumer                         comments received in response to the                  than one airline. Gate-checked baggage
                                           Action, the Consumer Federation of                       2011 NPRM and 2012 public meeting,                    is baggage that the passenger brought to
                                           America, Consumers Union, the                            remains open.                                         the gate but which was taken by the
                                           Consumer Travel Alliance, the National                                                                         carrier at that location and checked into
                                                                                                    2. Mishandled Baggage                                 the baggage compartment of the aircraft.
                                           Consumers League, the Open Doors
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                                           Foundation, and the Paralyzed Veterans                     The NPRM: In the NPRM, the                          Valet bags, sometimes called planeside
                                           of America submitted comments.                           Department proposed changing the                      bags, are bags that a passenger drops at
                                              On April 27, 2012, the Department                     methodology for reporting mishandled                  the end of the loading bridge or on the
                                           published a notice of public meeting in                  baggage on a domestic system basis,                   tarmac near the aircraft and which
                                           the Federal Register, 77 FR 25105,                       excluding charter flights. The rule’s                 carrier personnel load into the baggage
                                           listing a series of questions that the                   proposed text would require reporting                 compartment of the aircraft, a process


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                                           76302            Federal Register / Vol. 81, No. 212 / Wednesday, November 2, 2016 / Rules and Regulations

                                           that is frequently used by regional                      Notice of Proposed Rulemaking on                      multiple mishandled bags. In addition,
                                           airlines.) In addition, individual carriers              Transparency of Airline Ancillary Fees                the Department has decided to include
                                           commented that the proposed                              and Other Consumer Issues (‘‘Consumer                 in its revised mishandled baggage
                                           methodology would mislead the public,                    Rule 3’’) 1 that would amend the                      methodology all checked bags,
                                           and would benefit Southwest Airlines to                  mishandled baggage reporting rule (14                 including those checked at the gate and
                                           the detriment of all other carriers,                     CFR 234.6) to require reports ‘‘for all               ‘‘valet’’ bags. As the GAO noted, as the
                                           regardless of each carrier’s ability to                  domestic scheduled passenger flight                   amount of checked baggage has
                                           properly handle bags. One carrier, US                    segments that are held out with the                   decreased, the amount of carry-on
                                           Airways, disagreed with a conclusion in                  reporting carrier’s code . . . ,’’                    baggage has increased, resulting in
                                           a report issued by the Government                        including flights operated for a carrier              airlines’ having to check more bags at
                                           Accountability Office (GAO; report                       by its regional-carrier code-share                    the gate. The Department believes that
                                           GAO–10–785, July 2010) that bag fees                     partners. A4A stated that the data are                the new methodology in this rule will
                                           had altered consumer behavior by                         not captured by flight segment today                  better inform passengers of their
                                           leading them to check fewer bags, thus                   and that devising a system to do so                   chances to retrieve their gate-checked
                                           resulting in fewer MBRs. A4A                             would be costly and time-consuming.                   baggage in an acceptable and timely
                                           (excluding JetBlue and Southwest                         A4A also objected to language in that                 manner.
                                           Airlines) and RAA recommended that                       NPRM which the organization said                         The Department agrees with the
                                           should the Department deem a change                      could impede ‘‘valet’’ or ‘‘planeside’’               suggestion from A4A (excluding JetBlue
                                           is necessary, the denominator of the rate                baggage service widely offered by                     and Southwest Airlines) and RAA that
                                           calculation should be the total number                   regional carriers and would have to be                the Department use the number of
                                           of domestic enplaned bags rather than                    coordinated with the Transportation                   domestic bag enplanements rather than
                                           origin-and-destination bags. For                         Security Administration (TSA).                        origin-and-destination bags in the
                                           example, for a passenger with a checked                     Finally, the Department received
                                                                                                                                                          denominator. We have revised the
                                           bag who is traveling one-way from                        comments questioning which airline
                                                                                                                                                          language of the relevant section
                                           Denver to Boston with a connection                       must report baggage in interline
                                                                                                                                                          accordingly. Using the enplaned-bag
                                           (change of planes) in Chicago, a ‘‘total                 situations or when multiple airlines
                                                                                                                                                          approach will avoid the costs that
                                           enplaned bags’’ system would count the                   place their codes on a single flight.
                                                                                                       DOT Response: The Department has                   would be entailed for tracking a given
                                           bag twice, i.e. when it was enplaned on
                                                                                                    decided to require that airlines report               bag from origin to destination for
                                           the Denver-Chicago flight and again
                                                                                                    mishandled baggage in terms of the                    connecting passengers under an origin-
                                           when it was enplaned on the Chicago-
                                                                                                    number of mishandled bags and the                     and-destination approach. The use of
                                           Boston flight. An ‘‘origin-and-
                                                                                                    total number of domestic enplaned bags,               ‘‘enplaned bag’’ language in the final
                                           destination’’ system would only count
                                                                                                    excluding charter flights. A bag will be              rule also results in a carrier receiving
                                           the bag once, as a bag moving from
                                                                                                    counted as ‘‘enplaned’’ on each flight of             ‘‘credit’’ for a properly-handled bag on
                                           Denver to Boston regardless of the flight
                                                                                                    a passenger’s journey. For example, if a              each flight of a passenger’s journey. This
                                           or flights that were used.) Southwest
                                                                                                    passenger were traveling one-way from                 ensures that when bags travel on multi-
                                           Airlines expressed concern with using
                                           total domestic enplaned bags as the                      Denver to Boston with a connection in                 carrier itineraries or when interline
                                           denominator, claiming that to do so                      Chicago from one flight to another, the               agreements allow carriers to check bags
                                           would benefit hub-and-spoke carriers at                  bag will be counted twice (once for each              through to the passenger’s final
                                           the expense of point-to-point carriers.                  flight). Consistent with this approach, if            destination, even when that passenger
                                              American Airlines, Delta Air Lines,                   that passenger were instead traveling on              possesses more than one ticket, the
                                           and US Airways commented that the                        a direct flight from Denver to Boston                 operating carrier on each flight will
                                           Department severely underestimated the                   with an intermediate stop in Chicago                  receive ‘‘credit’’ for a properly-handled
                                           cost of complying with the proposed                      but no change of planes, the bag would                bag. For example, if a passenger travels
                                           rule. They noted for gate-checked and                    be counted only once—when it was                      on a flight operated by airline A from
                                           ‘‘valet’’ bags, carriers would have to                   enplaned in Denver.                                   Washington, DC to Los Angeles, and a
                                           replace a manual bag tagging system                         Passenger behavior was reportedly                  flight operated by airline B from Los
                                           with an automated one. Delta Air Lines                   altered when many air carriers began                  Angeles to Honolulu, for the
                                           stressed the importance of using an                      charging passengers for each checked                  ‘‘denominator’’ figure airline A would
                                           automated system because less than one                   bag. Specifically, the GAO report cited               include the passenger’s checked baggage
                                           hundredth of one percent often                           above stated that the introduction of                 in its reporting for the Washington—Los
                                           separates competitors in the                             baggage fees resulted in a decline of 40              Angeles flight while airline B would
                                           Department’s mishandled baggage                          to 50 percent in the number of checked                include the passenger’s checked baggage
                                           rankings. That carrier estimated this                    bags with a corresponding 40 percent                  in its reporting for the Los Angeles—
                                           would cost up to $10 million in new                      decline in the number of MBRs per                     Honolulu flight. The same piece of
                                           equipment and $900,000 in                                1,000 passengers (GAO–10–785, July                    luggage would be reported by both
                                           programming, while requiring 18 to 24                    2010, page 25). The ratio between                     airlines (on different flights), thus giving
                                           months to fully implement. US Airways                    checked bags and the number of                        both airlines the chance to receive
                                           estimated that automation would cost                     passengers can vary greatly depending                 ‘‘credit’’ for handling the bag. Whether
                                           $1 million in new equipment and $1                       on the fees charged. Moreover, there is               or not airlines A and B operate one or
                                           million in programming. In addition,                     not a direct relationship between the                 both of those flights as part of a code-
                                           Delta Air Lines commented that the rule                  number of MBRs and the number of                      share or as part of an interline
                                           would cause operational delays and                       mishandled (i.e., lost, stolen, delayed,              agreement would have no impact on
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                                           passenger inconvenience because of the                   damaged, and pilfered) bags because a                 their reporting requirements. In the
                                           time involved in printing and then                       single MBR could be submitted by a                    comments received from A4A
                                           scanning automated bag tags.                             family—or even an individual—with                     (excluding JetBlue and Southwest) and
                                              On January 12, 2016, A4A filed                                                                              RAA, the associations noted that the
                                           supplemental comments. The                                 1 79 FR 29970, May 23, 2014, Docket DOT–OST–        ‘‘enplanement’’ approach would resolve
                                           organization objected to language in the                 2014–0056.                                            much of the complexity stemming from


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                                                            Federal Register / Vol. 81, No. 212 / Wednesday, November 2, 2016 / Rules and Regulations                                       76303

                                           interlining, gate checking, and ‘‘valet’’                access to it in the sterile area of the               number of incidents, while providing
                                           bag situations. Thus, the Department                     airport. A4A stated that this means that              passengers with disabilities with a
                                           believes that adopting the suggested                     carriers could no longer return these                 metric for making better-informed travel
                                           methodology of A4A (excluding JetBlue                    bags to passengers on the jet bridge at               decisions. The Paralyzed Veterans of
                                           and Southwest) and RAA will result in                    the conclusion of the flight. However,                America and the Consumer Travel
                                           lower compliance costs for air carriers.                 the rule does not require the use of                  Alliance made similar supportive
                                              Using the total number of domestic                    ABTs. In addition, TSA has advised the                comments, noting that their members
                                           bag enplanements rather than bags                        Department that TSA’s interest is in                  frequently request this currently-
                                           checked for origin-destination trips                     ensuring that passengers do not have                  unavailable data, although the former
                                           further reduces the rule’s cost because                  access in the secure area of an airport to            group did request that the Department
                                           air carriers already count pieces of                     a checked bag that has not passed                     define ‘‘mishandled’’ in its regulation.
                                           checked baggage in order to comply                       through the passenger security                        ACI–NA commented that the proposed
                                           with the Federal Aviation                                screening checkpoint. Valet bags are                  rule will increase accessibility of
                                           Administration’s (FAA) existing weight-                  screened at that checkpoint. TSA                      airports in general because passengers
                                           and-balance requirements. The FAA                        explained that attaching an ABT to a bag              will know more about the air travel
                                           requires that carriers maintain, for at                  that the passenger has carried through                experience.
                                           least three months, the number of                        the screening checkpoint, or referring to                On the other hand, A4A (excluding
                                           ‘‘standard,’’ ‘‘heavy,’’ and ‘‘non-                      such a bag as a checked bag, would not                Southwest Airlines) and RAA
                                           luggage’’ bags carried in the cargo                      trigger the prohibition on the passenger              commented that the Department had no
                                           compartment. Delta Air Lines confirmed                   having access to that bag in the airport’s            basis for concluding that passengers
                                           at the May 17, 2012, public meeting                      secure area.                                          with disabilities are reluctant to travel
                                           that, because of the FAA requirements,                      The Department is not prescribing a                by air due to wheelchair mishandling,
                                           the carrier already possesses a tally of                 particular mechanism through which air                and that the proposal lacked a public
                                           bags transported in the cargo                            carriers must capture the data required               policy justification. Several air carriers
                                           compartment on each of its domestic                      by this rule. Carriers may adopt                      asserted that the Air Carrier Access Act
                                           scheduled flights.                                       whichever method they find best suited                and its implementing regulation (14
                                              With respect to A4A’s January 12,                     to their business model. In terms of                  CFR part 382) already provide carriers
                                           2016, supplemental comments, the                         ‘‘valet’’ bags, for example, this rule does           with an incentive to handle these
                                           language in the ‘‘Consumer Rule 3’’                      not require air carriers to provide                   devices properly. The associations,
                                           NPRM concerning reporting by flight                      passengers with individual bag claims                 individual airlines, and ARTA
                                           segment referred to a separate proposal                  that must be matched to bags on arrival;              commented that the proposed rule was
                                           in that proceeding that would require                    instead, air carriers need only ensure                unduly burdensome on industry. In
                                           carrier reports about on-time                            that the ‘‘valet’’ bag is properly counted            particular, these comments noted that
                                           performance, oversales, and mishandled                   in the data reported to the Department.               wheelchairs and scooters are manually
                                           baggage to include data for flights                         Finally, the Department has made a                 tagged and checked, and thus air
                                           operated by their domestic code-share                    ministerial change to its proposed rule.              carriers would need to implement a new
                                           partners. The phrase ‘‘for all domestic                  In its NPRM, the Department cited ‘‘49                mechanism to capture the required data.
                                           scheduled passenger flight segments                      U.S.C. 329 and chapters 41101 and                     In written comments, American Airlines
                                           that are held out with the reporting                     41701’’ as the authority for the                      and Delta Air Lines commented that
                                           carrier’s code’’ in that NPRM was                        mishandled baggage portion of the rule.               there would be high costs involved in
                                           simply intended to capture the code-                     The correct citation is: ‘‘49 U.S.C. 329,             programming systems to differentiate
                                           share operations, not to require                         41101 and 41701.’’                                    wheelchairs and scooters transported in
                                           reporting by flight segment. If this                                                                           the cargo compartment from the larger
                                           Consumer Rule 3 proposal is finalized,                   3. Data for Wheelchairs and Scooters                  universe of all checked baggage. At the
                                           we will modify the phrase in question                    Transported in Aircraft Cargo                         May 17, 2012, public meeting, US
                                           to make this clear. This final rule simply               Compartments                                          Airways stated that costs would be high,
                                           requires carriers to count the number of                                                                       while others, including Delta Air Lines
                                                                                                    A. Reporting Mishandled Wheelchairs
                                           checked bags that are enplaned on each                                                                         and Southwest Airlines, indicated the
                                                                                                    and Scooters Transported in the Cargo
                                           flight; it does not require carriers to                                                                        opposite. As an alternative to the
                                                                                                    Compartment
                                           conduct segment-by-segment tracking of                                                                         Department’s proposal, several carriers
                                           the number of bags on board each                            The NPRM: The Department proposed                  proposed the establishment of a working
                                           segment of a direct flight, nor does it                  requiring carriers to report the number               group to devise a workable method of
                                           require origin-destination (‘‘O&D’’)                     of mishandled wheelchairs and scooters                capturing the required data.
                                           tracking based on each passenger’s                       and the total number of wheelchairs/                     The Open Doors Foundation did not
                                           itinerary.                                               scooters transported in the aircraft cargo            support the proposed rule. This
                                              A4A also contended in its January 12,                 compartment. The Department sought                    organization commented that collecting
                                           2016, comments that in order to comply                   public comment to better understand                   this data would lead to competition
                                           with the instant rule as proposed, the                   the scope of this issue and whether the               among carriers in an area that should
                                           only realistic solution for most carriers                prospect of loss, damage or delay of                  not be competitive, would cause airlines
                                           is to begin tracking ‘‘valet bags’’ in the               such devices or the lack of data made                 to reduce training and policies to the
                                           same way that all other checked bags are                 consumers with disabilities reluctant to              bare minimum needed to obtain ‘‘good’’
                                           tracked today—with an automated bag                      travel by air.                                        numbers, and would divert Department
                                           tag (ABT) that is linked to the                             Comments: In general, consumers                    resources from other projects intended
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                                           passenger’s Passenger Name Record,                       voiced support for the proposal to                    to make air travel more accessible.
                                           rather than the existing paper valet tags.               require air carriers to break out data on                Although A4A’s comments opposing
                                           A4A further asserted that once a bag is                  the number of mishandled wheelchairs                  the Department’s proposal represented
                                           tagged with an ABT, TSA requires it to                   and scooters transported in the aircraft              the views of all of that association’s
                                           be treated like all other checked baggage                cargo compartment, maintaining that                   members except Southwest Airlines, US
                                           and prohibits the traveler from having                   such reporting would reduce the                       Airways filed a supplemental comment


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                                           76304            Federal Register / Vol. 81, No. 212 / Wednesday, November 2, 2016 / Rules and Regulations

                                           after the May 17, 2012, public meeting                   act as an additional incentive, but most              to other modes of transportation. Many
                                           in which it indicated that it did not                    importantly will provide passengers                   air carriers commented that capturing
                                           object to the Department’s proposal to                   with disabilities with a metric that they             data on mishandled wheelchairs and
                                           require carriers to report the number of                 may use to compare air carriers and to                scooters transported in the passenger
                                           mishandled wheelchairs and scooters                      make informed travel decisions. The                   cabin would prove unworkable since no
                                           transported in the aircraft cargo                        Department agrees with US Airways’                    data is kept about items transported in
                                           compartment. US Airways commented                        comment that capturing data on the                    the cabin. US Airways commented that
                                           that it would need one year to update                    incidence of wheelchair and scooter                   it would not oppose an extension of the
                                           software to distinguish wheelchairs and                  mishandling is in line with a carrier’s               rule to other mobility devices so long as
                                           scooters from other checked baggage                      obligations and duties to passengers                  the Department explicitly listed which
                                           and that it should have the option of                    with disabilities.                                    mobility devices were covered by the
                                           stowing some assistive devices in the                       The Department appreciates the                     rule, and so long as the Department
                                           passenger cabin.                                         concerns raised by Open Doors. While                  explicitly excluded mobility devices not
                                              DOT Response: The Department has                      we believe that air carriers do strive to             used by passengers with disabilities.
                                           decided to require carriers to report the                provide good service to passengers with                  Members of the public made
                                           number of mishandled wheelchairs and                     disabilities, we continue to think that               numerous recommendations intended to
                                           scooters and the number of wheelchairs/                  consumers with disabilities have the                  improve the air travel experience for
                                           scooters accepted for transport in the                   right to know which airlines provide the              passengers with disabilities. These
                                           aircraft cargo compartment. The                          best service and have a right to select               recommendations included the creation
                                           Department’s applicable definition of                    their air carriers based on that                      of a uniform damage form, a
                                           ‘‘mishandled’’ is found at 14 CFR 234.1,                 knowledge. In addition, the                           requirement that air carriers maintain a
                                           which defines ‘‘mishandled’’ as ‘‘loss,                  Department’s existing disability                      list of repair shops located near each
                                           delay, damage, or pilferage.’’ When                      regulations already require airlines to               airport served, a blanket exemption
                                           issuing its NPRM, the Department                         provide training to their employees. The              from all ancillary fees for passengers
                                           intended for the same definition to                      new rule provides further incentive to                with disabilities, a mandated retrofitting
                                           apply to mishandled wheelchairs and                      airlines to provide the training                      of aircraft so that all mobility devices
                                           scooters. The Department agrees with                     necessary to result in as little                      may be transported in the passenger
                                           the many comments received from the                      mishandling as possible to wheelchairs                cabin, and a prohibition on the gate-
                                           public and disability rights groups that                 and scooters. Finally, this rulemaking                checking of assistive devices.
                                           this rule will make air travel more                      does not divert the Department’s                         DOT Response: The Department
                                           accessible as it will provide the                        attention from other objectives, e.g.,                believes that requiring the reporting of
                                           traveling public with the data necessary                 issuing rules requiring accessible in-                data on the mishandling of all assistive
                                           to make informed travel decisions.                       flight entertainment systems, but                     devices, particularly those transported
                                              The number of wheelchairs and                         instead provides passengers with                      in the passenger cabin, is impracticable.
                                           scooters accepted for transport in the                   mobility impairments, who represent a                 The Department understands that
                                           aircraft cargo compartment is to be                      large segment of the population of                    airlines do not have a mechanism for
                                           included in the total number of checked                  travelers with disabilities, with                     tracking items carried in the passenger
                                           bags enplaned. Similarly, the number of                  information they deserve and need to                  cabin. Further, wheelchairs and scooters
                                           mishandled wheelchairs and scooters is                   make informed travel decisions.                       are generally checked as single items,
                                           to be included in the number of                                                                                while other assistive devices are
                                           mishandled checked bags. We believe                      B. Extension of the Rule to Other
                                                                                                                                                          generally stored inside baggage.
                                           that the number of mishandled bags                       Assistive Devices and/or Devices
                                                                                                                                                          Requiring the reporting of data on
                                           (and the rate of mishandled bags per                     Transported in the Passenger Cabin
                                                                                                                                                          assistive devices stored inside checked
                                           1,000 bags enplaned, which will be                          The NPRM: The Department solicited                 baggage would require passengers and
                                           calculated by DOT and included in our                    comments on whether the rule should                   airlines to inventory such baggage. As a
                                           Air Travel Consumer Report) should                       be extended to all wheelchairs and                    result, the Department will require that
                                           include all items of which the carrier                   scooters, regardless of whether they are              carriers report data only on scooters and
                                           took custody.                                            transported in the passenger cabin or in              wheelchairs.
                                              In response to comments from                          the cargo compartment, and whether the                   The Department appreciates the
                                           industry that there is no basis to                       rule should apply to other mobility                   additional recommendations received
                                           conclude that passengers with                            devices, e.g., walkers.                               from the general public, including the
                                           disabilities are reluctant to travel by air                 Comments: Many consumers and                       application of this rule to cover other
                                           due to wheelchair and scooter                            disability rights organizations                       modes or to foreign air carriers, but
                                           mishandling, the Department believes                     commented that the Department should                  concludes that these recommendations
                                           that the public comments received from                   extend the rule in this manner. These                 fall outside the scope of the current
                                           air travelers with disabilities and                      comments generally relied on the same                 rulemaking.
                                           disability rights organizations are                      rationale as for their support of the
                                           representative of a widespread                           proposed reporting requirement for                    4. Compliance Date
                                           reluctance. It is public policy that air                 mishandled wheelchairs and scooters                      The NPRM: The Department did not
                                           travel should be accessible to all                       transported in the cargo compartment;                 propose a specific compliance date.
                                           members of the public, and the                           namely, that the number of mishandled                    Comments: None of the public
                                           Department believes that this rule                       assistive devices will be reduced and                 comments received prior to the May 17,
                                           advances that policy goal. The                           consumers with disabilities will have                 2012, public meeting related to the
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                                           Department appreciates that the Air                      data necessary to make better-informed                compliance date of this rule. During the
                                           Carrier Access Act and 14 CFR part 382                   travel decisions. The Paralyzed Veterans              public meeting and in subsequent
                                           have provided air carriers with an                       of America further recommended that                   public comments, most air carriers
                                           incentive to handle wheelchairs and                      this rule be applied to foreign air                   commented that they would need 12 to
                                           scooters properly. The Department                        carriers and a member of the public                   24 months after the final rule is
                                           believes that this final rule will not only              recommended that this rule be applied                 published in the Federal Register to


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                                                            Federal Register / Vol. 81, No. 212 / Wednesday, November 2, 2016 / Rules and Regulations                                      76305

                                           comply because of time necessary for re-                 sharpen and performance in baggage                    Deregulation Act, 49 U.S.C. 41713.
                                           programming existing systems,                            handling can be expected to improve.                  Therefore, the consultation and funding
                                           installing new equipment, and training                   As for reporting of wheelchairs and                   requirements of Executive Order 13132
                                           employees. In addition, Delta Air Lines                  scooters, making information available                do not apply.
                                           and US Airways commented that a                          to the public on each carrier’s
                                                                                                                                                          D. Executive Order 13084
                                           compliance date of January 1 would be                    performance on handling wheelchairs
                                           preferable because it would provide the                  and scooters would enable passengers                    This final rule has been analyzed in
                                           clearest demarcation between data sets.                  with disabilities to make better                      accordance with the principles and
                                              DOT Response: The Department has                      decisions about which carrier to fly.                 criteria contained in Executive Order
                                           determined that air carriers must                        Comments submitted in this rulemaking                 13084 (‘‘Consultation and Coordination
                                           comply with the new reporting                            from air travelers with disabilities and              with Indian Tribal Governments’’).
                                           requirements for air transportation                      disability rights organizations suggest               Because this final rule does not
                                           taking place on or after January 1, 2018.                that fear of the airlines damaging or                 significantly or uniquely affect the
                                           The Department agrees with Delta Air                     losing wheelchairs and scooters creates               communities of the Indian Tribal
                                           Lines and US Airways that a January 1                    a reluctance to fly among those                       governments or impose substantial
                                           compliance date provides a clear                         dependent on these devices. The                       direct compliance costs on them, the
                                           demarcation between data sets,                           expected present value of costs incurred              funding and consultation requirements
                                           corresponding with a change in the type                  by carriers to comply with the final rule             of Executive Order 13084 do not apply.
                                           of data reported by air carriers. In                     over a 10 year period using a 7%
                                                                                                                                                          E. Paperwork Reduction Act
                                           particular, given that this rule                         discount rate is estimated at $2,064,588
                                           significantly changes the mishandled                     and using a 3% discount rate is                          This rule adopts new and revised
                                           baggage metric, choosing the first day of                estimated at $2,483,436. The final                    information collection requirements
                                           the year as the compliance date will                     Regulatory Evaluation has concluded                   subject to the Paperwork Reduction Act
                                           make future year-over-year comparisons                   that the benefits of the final rule justify           (PRA). The Department will publish a
                                           more meaningful. In addition, the                        its costs. A copy of the final Regulatory             separate notice in the Federal Register
                                           selection of this compliance date                        Evaluation has been placed in the                     inviting the Office of Management and
                                           provides air carriers with adequate time                 docket.                                               Budget (OMB), the general public, and
                                           to update their internal systems and                                                                           other Federal agencies to comment on
                                                                                                    B. Regulatory Flexibility Act                         the new and revised information
                                           reporting processes.
                                              Based on this compliance date, data                      The Regulatory Flexibility Act (5                  collection requirements contained in
                                           in this new format on mishandled                         U.S.C. 601 et seq.) requires an agency to             this document. As prescribed by the
                                           baggage for the month of January 2018                    review regulations to assess their impact             PRA, the requirements will not go into
                                           will be due February 15, 2018. Data on                   on small entities unless the agency                   effect until OMB has approved them
                                           mishandled wheelchairs and scooters                      determines that a rule is not expected to             and the Department has published a
                                           transported in aircraft cargo                            have a significant economic impact on                 notice announcing the effective date of
                                           compartments for the month of January                    a substantial number of small entities.               the information collection requirements.
                                           2018 will also be due February 15, 2018.                 DOT defines small carriers based on the
                                                                                                    standard published in 14 CFR 399.73 as                F. Unfunded Mandates Reform Act
                                           Regulatory Analyses and Notices                          carriers that provide air transportation                The Department has determined that
                                                                                                    exclusively with aircraft that seat no                the requirements of Title II of the
                                           A. Executive Order 12866 (Regulatory
                                                                                                    more than 60 passengers. No small U.S.                Unfunded Mandates Reform Act of 1995
                                           Planning and Review) and DOT
                                                                                                    air carriers are affected by these                    do not apply to this rule.
                                           Regulatory Policies and Procedures
                                                                                                    requirements, as they apply only to the
                                              This action has been determined not                                                                         G. National Environmental Policy Act
                                                                                                    ‘‘reporting carriers,’’ i.e., U.S. carriers
                                           to be significant under Executive Order                  that account for at least 1 percent of                   The Department has analyzed the
                                           12866 and the Department of                              domestic scheduled passenger revenue.                 environmental impacts of this proposed
                                           Transportation’s Regulatory Policies and                 No small carriers as defined in 14 CFR                action pursuant to the National
                                           Procedures. It has not been reviewed by                  399.73 are included in this group. On                 Environmental Policy Act of 1969
                                           the Office of Management and Budget.                     the basis of this examination, I hereby               (NEPA) (42 U.S.C. 4321 et seq.) and has
                                           These changes make the measure of the                    certify that this rule will not have a                determined that it is categorically
                                           published mishandled baggage rate                        significant economic impact on a                      excluded pursuant to DOT Order
                                           more informative for ticket purchasers                   substantial number of small entities.                 5610.1C, Procedures for Considering
                                           trying to assess risk. The new metric of                                                                       Environmental Impacts (44 FR 56420,
                                           number of bags reported as mishandled                    C. Executive Order 13132 (Federalism)                 Oct. 1, 1979). Categorical exclusions are
                                           reveals more than the old figure of the                    This final rule has been analyzed in                actions identified in an agency’s NEPA
                                           number of reports of mishandled bags,                    accordance with the principles and                    implementing procedures that do not
                                           since a single passenger report can cover                criteria contained in Executive Order                 normally have a significant impact on
                                           multiple bags or even multiple                           13132 (‘‘Federalism’’). This final rule               the environment and therefore do not
                                           passengers (e.g., several members of a                   does not include any provision that: (1)              require either an environmental
                                           family). Also, the number of enplaned                    Has substantial direct effects on the                 assessment (EA) or environmental
                                           checked bags is more helpful than the                    States, the relationship between the                  impact statement (EIS). See 40 CFR
                                           number of passengers, particularly given                 national government and the States, or                1508.4. In analyzing the applicability of
                                           that the ratio of checked bags to                        the distribution of power and                         a categorical exclusion, the agency must
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                                           passengers will tend to vary among                       responsibility among the various levels               also consider whether extraordinary
                                           carriers depending on their baggage                      of government; (2) imposes substantial                circumstances are present that would
                                           allowances and fees. With purchasers                     direct compliance costs on State and                  warrant the preparation of an EA or EIS.
                                           better informed on the comparative                       local governments; or (3) preempts State              Id. Paragraph 3.c.6.i of DOT Order
                                           performance of different carriers,                       law. States are already preempted from                5610.1C categorically excludes
                                           competition among airlines should                        regulating in this area by the Airline                ‘‘[a]ctions relating to consumer


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                                           76306            Federal Register / Vol. 81, No. 212 / Wednesday, November 2, 2016 / Rules and Regulations

                                           protection, including regulations.’’ The                   (2) The total number of wheelchairs                 strong tribal governments; ensuring that
                                           purpose of this rulemaking is to change                  and scooters that were enplaned in the                the Indian tribe is the primary
                                           the way in which air carriers report                     aircraft cargo compartment;                           beneficiary of the gaming operation; and
                                           mishandled baggage to the Department                       (3) The number of mishandled                        declaring that the establishment of
                                           and fill a data gap by collecting separate               checked bags, including gate-checked                  independent federal regulatory
                                           statistics for mishandled wheelchairs                    baggage, ‘‘valet bags,’’ interlined bags              authority for gaming on Indian lands,
                                           and scooters used by passengers with                     and wheelchairs and scooters that were                the establishment of federal standards
                                           disabilities and transported in aircraft                 enplaned in the aircraft cargo                        for gaming on Indian lands, and the
                                           cargo compartments. The Department                       compartment; and                                      establishment of a National Indian
                                           does not anticipate any environmental                      (4) The number of mishandled                        Gaming Commission are necessary to
                                           impacts, and there are no extraordinary                  wheelchairs and scooters that were                    meet congressional concerns regarding
                                           circumstances present in connection                      enplaned in the aircraft cargo                        gaming and to protect such gaming as a
                                           with this rulemaking.                                    compartment.                                          means of generating tribal revenue. 25
                                                                                                      (c) The information in paragraphs (a)               U.S.C. 2702.
                                             Issued this 18th day of October, 2016, in
                                           Washington, DC.                                          and (b) of this section shall be submitted
                                                                                                    to the Department within 15 days after                II. Corrections
                                           Anthony R. Foxx,
                                                                                                    the end of the month to which the                     25 CFR Part 517—Freedom of
                                           Secretary of Transportation.
                                                                                                    information applies and must be                       Information Act Procedures
                                           List of Subjects in 14 CFR Part 234                      submitted with the transmittal
                                                                                                                                                            This document revises 25 CFR 517.2
                                                                                                    accompanying the data for on-time
                                              Air carriers, Mishandled baggage, On-                                                                       to reflect the correct physical address.
                                                                                                    performance in the form and manner set
                                           time statistics, Reporting, Uniform                                                                            This document also amends 25 CFR
                                                                                                    forth in accounting and reporting
                                           system of accounts.                                                                                            517.4(a) and 517.8(b)(2) to reflect the
                                                                                                    directives issued by the Director, Office
                                              Accordingly, the Department of                                                                              correct mailing address.
                                                                                                    of Airline Information.
                                           Transportation amends 14 CFR chapter                     [FR Doc. 2016–26181 Filed 11–1–16; 8:45 am]           25 CFR Part 584—Appeals Before a
                                           II as follows:                                                                                                 Presiding Official
                                                                                                    BILLING CODE 4910–9X–P

                                           PART 234—[AMENDED]                                                                                               This document revises the heading of
                                                                                                                                                          25 CFR part 584.
                                           ■  1. The authority citation for part 234                DEPARTMENT OF THE INTERIOR
                                                                                                                                                          25 CFR Part 585—Appeals to the
                                           is revised to read as follows:                                                                                 Commission
                                                                                                    National Indian Gaming Commission
                                             Authority: 49 U.S.C. 329, 41101, and
                                                                                                                                                            This document revises the heading of
                                           41701.
                                                                                                    25 CFR Parts 517, 584, and 585                        25 CFR part 585.
                                           ■ 2. Section 234.2 is amended by adding
                                           the definition of ‘‘Mishandled checked                   RIN 3141–AA21, 3141–AA57                              III. Certain Findings
                                           bag’’ in alphabetical order, to read as                                                                          Under the Administrative Procedure
                                                                                                    Various National Indian Gaming
                                           follows:                                                                                                       Act, a notice of proposed rulemaking is
                                                                                                    Commission Regulations
                                                                                                                                                          not required when an agency, for good
                                           § 234.2   Definitions.
                                                                                                    AGENCY:  National Indian Gaming                       cause, finds that notice and public
                                           *     *     *     *     *                                Commission.                                           comments are impractical, unnecessary,
                                             Mishandled checked bag means a                         ACTION: Correcting amendments.                        or contrary to the public interest.
                                           checked bag that is lost, delayed,                                                                             Because the revisions here are technical
                                           damaged or pilfered, as reported to a                    SUMMARY:  The National Indian Gaming                  in nature and intended solely to update
                                           carrier by or on behalf of a passenger.                  Commission (NIGC) amends various                      the NIGC’s current mailing address the
                                           *     *     *     *     *                                regulations previously issued. The NIGC               NIGC is publishing a technical
                                                                                                    moved its headquarters and needs to                   amendment.
                                           ■ 3. Section 234.6 is revised to read as
                                                                                                    update the address. The agency also
                                           follows:                                                                                                       IV. Regulatory Matters
                                                                                                    revises two headings by shortening
                                           § 234.6   Baggage-handling statistics.                   them.                                                 Executive Order 13175
                                             (a) For air transportation taking place                DATES: Effective November 17, 2016.                      The National Indian Gaming
                                           before January 1, 2018, each reporting                   FOR FURTHER INFORMATION CONTACT:                      Commission is committed to fulfilling
                                           carrier shall report monthly to the                      Mary Modrich-Alvarado, Staff Attorney,                its tribal consultation obligations—
                                           Department on a domestic system basis,                   (202) 632–7003.                                       whether directed by statute or
                                           excluding charter flights, the total                     SUPPLEMENTARY INFORMATION:                            administrative action such as Executive
                                           number of passengers enplaned system-                                                                          Order 13175 (Consultation and
                                           wide and the total number of                             I. Background
                                                                                                                                                          Coordination with Indian Tribal
                                           mishandled-baggage reports filed with                      The Indian Gaming Regulatory Act                    Governments)—by adhering to the
                                           the carrier.                                             (IGRA or the Act), Public Law 100–497,                consultation framework described in its
                                             (b) For air transportation taking place                25 U.S.C. 2701 et seq., was signed into               Consultation Policy published on July
                                           on or after January 1, 2018, each                        law October 17, 1988. The Act                         15, 2013. Due to the ministerial nature
                                           reporting carrier shall report monthly to                established the NIGC and set out a                    of the action being taken here,
                                           the Department on a domestic system                      comprehensive framework for the                       consultation is not required under the
ehiers on DSK5VPTVN1PROD with RULES




                                           basis, excluding charter flights:                        regulation of gaming on Indian lands.                 NIGC’s Consultation Policy.
                                             (1) The total number of checked bags                   The purposes of the Act include:
                                           enplaned, including gate checked                         Providing a statutory basis for the                   Regulatory Flexibility Act
                                           baggage, ‘‘valet bags,’’ interlined bags,                operation of gaming by Indian tribes as                 This rule will not have a significant
                                           and wheelchairs and scooters enplaned                    a means of promoting tribal economic                  economic effect on a substantial number
                                           in the aircraft cargo compartment;                       development, self-sufficiency, and                    of small entities as defined by the


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Document Created: 2016-11-02 01:40:54
Document Modified: 2016-11-02 01:40:54
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis rule is effective December 2, 2016.
ContactZeenat Iqbal, Office of the Assistant General Counsel for Aviation Enforcement and Proceedings, U.S. Department of Transportation, 1200 New Jersey Ave. SE., Washington, DC 20590, 202-366-9293 (phone), 202-366-5944 (fax), [email protected] You may also contact Blane A. Workie, Assistant General Counsel for Aviation Enforcement and Proceedings, Department of Transportation, 1200 New Jersey Ave. SE., Washington, DC 20590, 202-366-9342 (phone), 202-366-7152 (fax), [email protected] TTY users may reach these individuals via the Federal Relay Service toll-free at 800-877-8339. You may obtain copies of this notice in an accessible format by contacting the above named individuals.
FR Citation81 FR 76300 
RIN Number2105-AE41 and 2139-AA13
CFR Citation14 CFR 234
14 CFR 241
CFR AssociatedAir Carriers; Mishandled Baggage; On-Time Statistics; Reporting and Uniform System of Accounts

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