82_FR_59016 82 FR 58777 - Ancillary Airline Passenger Revenues

82 FR 58777 - Ancillary Airline Passenger Revenues

DEPARTMENT OF TRANSPORTATION
Office of the Secretary

Federal Register Volume 82, Issue 239 (December 14, 2017)

Page Range58777-58778
FR Document2017-26708

The Department of Transportation (the Department) is withdrawing a notice of proposed rulemaking (NPRM) published on July 15, 2011 that proposed to collect detailed revenue information regarding airline imposed fees from those air carriers meeting the definition of a large certificated air carrier. We are withdrawing this rulemaking in light of the comments we received. The withdrawal of this rulemaking corresponds with the Department's and Administration's priorities and is consistent with the Executive Order 13771, Reducing Regulation and Controlling Regulatory Costs, January 30, 2017.

Federal Register, Volume 82 Issue 239 (Thursday, December 14, 2017)
[Federal Register Volume 82, Number 239 (Thursday, December 14, 2017)]
[Proposed Rules]
[Pages 58777-58778]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-26708]


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Part 241

[Docket No. RITA-2011-0001]
RIN 2105-AE31


Ancillary Airline Passenger Revenues

AGENCY: Office of the Secretary, Department of Transportation.

ACTION: Proposed rule; withdrawal.

-----------------------------------------------------------------------

SUMMARY: The Department of Transportation (the Department) is 
withdrawing a notice of proposed rulemaking (NPRM) published on July 
15, 2011 that proposed to collect detailed revenue information 
regarding airline imposed fees from those air carriers meeting the 
definition of a large certificated air carrier. We are withdrawing this 
rulemaking in light of the comments we received. The withdrawal of this 
rulemaking corresponds with the Department's and Administration's 
priorities and is consistent with the Executive Order 13771, Reducing 
Regulation and Controlling Regulatory Costs, January 30, 2017.

DATES: Amendatory instructions 3 through 6 of the proposed rule 
published July 15, 2011 (76 FR 41726), are withdrawn as of December 14, 
2017.

ADDRESSES: Electronic Access: You can view and download related 
documents and public comments by going to the website http://www.regulations.gov. Enter the docket number DOT-RITA-2011-0001 in the 
search field.

FOR FURTHER INFORMATION CONTACT: Zeenat Iqbal and Blane A. Workie, 
Office of Aviation Enforcement and Proceedings, 1200 New Jersey SE, 
Room W96-414, Washington, DC 20590, (202) 366-9893, 
[email protected] (email).

SUPPLEMENTARY INFORMATION: 

Background

    On July 7, 2011, the Office of the Secretary issued a notice of 
proposed rulemaking (NPRM) proposing to collect detailed information 
about ancillary fees paid by airline consumers to determine the total 
amount of fees carriers collect through the a la carte pricing approach 
for optional services related to air transportation. The Department 
also proposed to alter its matrix for collecting and publishing data on 
mishandled baggage and to collect information regarding damage, delay 
or loss of wheelchairs and scooters transported in the aircraft cargo 
compartment. The final rule relating to reporting of data for 
mishandled baggage and wheelchairs (2104-AE41) was issued on November 
2, 2016 (81 FR 76300). We are withdrawing the other topic covered in 
the proposed rule, the reporting of airline fee revenue.

The NPRM

    In the NPRM, the Department proposed to create two stand-alone 
reporting forms, designated P-9 and P-9.1, to capture ancillary 
revenues. Specifically, air carriers with annual reporting revenue of 
$20 million or more would be required to submit the P-9 form quarterly 
and air carriers with annual reporting revenue below $20 million would 
be required to submit the form P-9.1 on a semiannual basis. The 
information required by the two proposed schedules was identical; they 
differed only in the required reporting frequency. The NPRM also 
proposed to define ancillary revenues as those charges paid by airline 
passengers that are not included in the standard ticket fare. The 
Department solicited comments on which items should be specifically 
identified as ancillary revenues, and proposed to collect data on 19 
separate charges for optional services. The categories included: (1) 
Booking fees, (2) priority check-in and security screening, (3) 
baggage, (4) in-flight medical equipment, (5) in-flight entertainment/
internet access, (6) sleep sets, (7) in-flight food/non-alcoholic 
drinks, (8) alcoholic drinks, (9) pets, (10) seating assignments, (11) 
reservation cancellation and change fees; (12) charges for lost ticket; 
(13) unaccompanied minor/passenger assistance fee; (14) frequent flyer 
points/points acceleration; (15) commissions on travel packages; (16) 
travel insurance; (17) duty-free and retail sales; (18) one-time access 
to lounges and (19) other.

Comments Received

    In response to the 2011 NPRM, the Department received approximately 
280 comments from airlines, airports, trade associations, unions, 
consumer groups and private citizens who use this data. There was wide 
support among consumers and consumer rights groups for the proposed 
rule's reporting requirements. Consumers and consumer rights groups, as 
well as ACI-NA and Southwest Airlines, commented that the reporting 
requirement would bring the benefits of both increased transparency and 
improved data corroboration regarding the impact of ancillary fees on 
the Airport and Airway Trust Fund.
    On the other hand, most airlines and industry organizations 
commented that the proposed rule will not benefit the public because 
the Department has not demonstrated a need for this information. They 
asserted that the rule will not increase the transparency of pricing 
for airline revenues. Airlines also commented that if the justification 
for this rule is to tax ancillary revenues, the Department must state 
that justification. In addition, several airlines and industry groups 
suggested that the Department underestimated the proposed rule's 
economic burden on industry.
    With regard to the proposed 19 categories, industry groups, 
consumer groups and airlines commented that the Department failed to 
justify the proposed categories and suggested various changes to the 
list of 19 charges for which air carriers would have to report revenues 
under the proposed rule. Carriers also expressed concern that the 
proposed reporting requirements would require carriers to reveal 
proprietary information to their competitors. Some carriers suggested 
that there is no correlation between a carrier's disclosure of itemized 
aggregate revenue data and consumer concerns regarding fare 
transparency. Southwest Airlines, which supported the Department's 
stated goal of making ticket pricing more transparent for

[[Page 58778]]

consumers, also urged the Department to reduce the number of categories 
by half.

Reason for Withdrawal

    The purpose of this rulemaking was to make airline pricing more 
transparent to consumers and airline analysts. Although we believe 
there would be benefits of collecting and publishing the proposed 
aviation data, the Department also takes seriously industry concerns 
about the potential burden of this rule. The Department is withdrawing 
this rulemaking proposal. The withdrawal of this rulemaking corresponds 
with the Department's and Administration's priorities and is consistent 
with the Executive Order 13771, Reducing Regulation and Controlling 
Regulatory Costs, January 30, 2017.

    Issued in Washington, DC, on December 5, 2017.
Elaine L. Chao,
Secretary of Transportation.
[FR Doc. 2017-26708 Filed 12-13-17; 8:45 am]
 BILLING CODE P



                                                                      Federal Register / Vol. 82, No. 239 / Thursday, December 14, 2017 / Proposed Rules                                            58777

                                                  changes to procedures or tests identified as            DATES: Amendatory instructions 3                      security screening, (3) baggage, (4) in-
                                                  RC require approval of an AMOC.                         through 6 of the proposed rule                        flight medical equipment, (5) in-flight
                                                  (n) Related Information                                 published July 15, 2011 (76 FR 41726),                entertainment/internet access, (6) sleep
                                                     (1) Refer to Mandatory Continuing
                                                                                                          are withdrawn as of December 14, 2017.                sets, (7) in-flight food/non-alcoholic
                                                  Airworthiness Information (MCAI) EASA                   ADDRESSES: Electronic Access: You can                 drinks, (8) alcoholic drinks, (9) pets,
                                                  Airworthiness Directive 2017–0098, dated                view and download related documents                   (10) seating assignments, (11)
                                                  June 7, 2017, for related information. This             and public comments by going to the                   reservation cancellation and change
                                                  MCAI may be found in the AD docket on the               website http://www.regulations.gov.                   fees; (12) charges for lost ticket; (13)
                                                  internet at http://www.regulations.gov by               Enter the docket number DOT–RITA–                     unaccompanied minor/passenger
                                                  searching for and locating Docket No. FAA–              2011–0001 in the search field.                        assistance fee; (14) frequent flyer points/
                                                  2017–1100.                                                                                                    points acceleration; (15) commissions
                                                     (2) For more information about this AD,              FOR FURTHER INFORMATION CONTACT:
                                                                                                          Zeenat Iqbal and Blane A. Workie,                     on travel packages; (16) travel
                                                  contact Sanjay Ralhan, Aerospace Engineer,                                                                    insurance; (17) duty-free and retail
                                                  International Section, Transport Standards              Office of Aviation Enforcement and
                                                                                                                                                                sales; (18) one-time access to lounges
                                                  Branch, FAA, 1601 Lind Avenue SW,                       Proceedings, 1200 New Jersey SE, Room
                                                  Renton, WA 98057–3356; telephone 425–                                                                         and (19) other.
                                                                                                          W96–414, Washington, DC 20590, (202)
                                                  227–1405; fax 425–227–1149.                             366–9893, zeenat.iqbal@dot.gov (email).               Comments Received
                                                     (3) For service information identified in
                                                                                                          SUPPLEMENTARY INFORMATION:                               In response to the 2011 NPRM, the
                                                  this AD, contact Airbus, Airworthiness
                                                  Office—EIAS, 1 Rond Point Maurice                       Background                                            Department received approximately 280
                                                  Bellonte, 31707 Blagnac Cedex, France;                                                                        comments from airlines, airports, trade
                                                  telephone +33 5 61 93 36 96; fax +33 5 61                  On July 7, 2011, the Office of the                 associations, unions, consumer groups
                                                  93 44 51; email account.airworth-eas@                   Secretary issued a notice of proposed                 and private citizens who use this data.
                                                  airbus.com; Internet http://www.airbus.com.             rulemaking (NPRM) proposing to collect                There was wide support among
                                                  You may view this service information at the            detailed information about ancillary fees             consumers and consumer rights groups
                                                  FAA, Transport Standards Branch, 1601 Lind              paid by airline consumers to determine                for the proposed rule’s reporting
                                                  Avenue SW, Renton, WA. For information on               the total amount of fees carriers collect
                                                  the availability of this material at the FAA,
                                                                                                                                                                requirements. Consumers and consumer
                                                                                                          through the a la carte pricing approach               rights groups, as well as ACI–NA and
                                                  call 425–227–1221.
                                                                                                          for optional services related to air                  Southwest Airlines, commented that the
                                                    Issued in Renton, Washington, on                      transportation. The Department also                   reporting requirement would bring the
                                                  November 29, 2017.                                      proposed to alter its matrix for                      benefits of both increased transparency
                                                  Jeffrey E. Duven,                                       collecting and publishing data on                     and improved data corroboration
                                                  Director, System Oversight Division, Aircraft           mishandled baggage and to collect                     regarding the impact of ancillary fees on
                                                  Certification Service.                                  information regarding damage, delay or                the Airport and Airway Trust Fund.
                                                  [FR Doc. 2017–26362 Filed 12–13–17; 8:45 am]            loss of wheelchairs and scooters                         On the other hand, most airlines and
                                                  BILLING CODE 4910–13–P                                  transported in the aircraft cargo                     industry organizations commented that
                                                                                                          compartment. The final rule relating to               the proposed rule will not benefit the
                                                                                                          reporting of data for mishandled                      public because the Department has not
                                                  DEPARTMENT OF TRANSPORTATION                            baggage and wheelchairs (2104–AE41)                   demonstrated a need for this
                                                                                                          was issued on November 2, 2016 (81 FR                 information. They asserted that the rule
                                                  Office of the Secretary                                 76300). We are withdrawing the other                  will not increase the transparency of
                                                                                                          topic covered in the proposed rule, the               pricing for airline revenues. Airlines
                                                  14 CFR Part 241                                         reporting of airline fee revenue.                     also commented that if the justification
                                                  [Docket No. RITA–2011–0001]                                                                                   for this rule is to tax ancillary revenues,
                                                                                                          The NPRM
                                                                                                                                                                the Department must state that
                                                  RIN 2105–AE31                                              In the NPRM, the Department                        justification. In addition, several airlines
                                                                                                          proposed to create two stand-alone                    and industry groups suggested that the
                                                  Ancillary Airline Passenger Revenues
                                                                                                          reporting forms, designated P–9 and P–                Department underestimated the
                                                  AGENCY:  Office of the Secretary,                       9.1, to capture ancillary revenues.                   proposed rule’s economic burden on
                                                  Department of Transportation.                           Specifically, air carriers with annual                industry.
                                                  ACTION: Proposed rule; withdrawal.                      reporting revenue of $20 million or                      With regard to the proposed 19
                                                                                                          more would be required to submit the                  categories, industry groups, consumer
                                                  SUMMARY:   The Department of                            P–9 form quarterly and air carriers with              groups and airlines commented that the
                                                  Transportation (the Department) is                      annual reporting revenue below $20                    Department failed to justify the
                                                  withdrawing a notice of proposed                        million would be required to submit the               proposed categories and suggested
                                                  rulemaking (NPRM) published on July                     form P–9.1 on a semiannual basis. The                 various changes to the list of 19 charges
                                                  15, 2011 that proposed to collect                       information required by the two                       for which air carriers would have to
                                                  detailed revenue information regarding                  proposed schedules was identical; they                report revenues under the proposed
                                                  airline imposed fees from those air                     differed only in the required reporting               rule. Carriers also expressed concern
                                                  carriers meeting the definition of a large              frequency. The NPRM also proposed to                  that the proposed reporting
                                                  certificated air carrier. We are                        define ancillary revenues as those                    requirements would require carriers to
                                                  withdrawing this rulemaking in light of                 charges paid by airline passengers that               reveal proprietary information to their
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                                                  the comments we received. The                           are not included in the standard ticket               competitors. Some carriers suggested
                                                  withdrawal of this rulemaking                           fare. The Department solicited                        that there is no correlation between a
                                                  corresponds with the Department’s and                   comments on which items should be                     carrier’s disclosure of itemized aggregate
                                                  Administration’s priorities and is                      specifically identified as ancillary                  revenue data and consumer concerns
                                                  consistent with the Executive Order                     revenues, and proposed to collect data                regarding fare transparency. Southwest
                                                  13771, Reducing Regulation and                          on 19 separate charges for optional                   Airlines, which supported the
                                                  Controlling Regulatory Costs, January                   services. The categories included: (1)                Department’s stated goal of making
                                                  30, 2017.                                               Booking fees, (2) priority check-in and               ticket pricing more transparent for


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                                                  58778               Federal Register / Vol. 82, No. 239 / Thursday, December 14, 2017 / Proposed Rules

                                                  consumers, also urged the Department                    DATES:   December 14, 2017.                           we do not believe that Departmental
                                                  to reduce the number of categories by                   ADDRESSES:    You may send comments by                action is necessary to meet this objective
                                                  half.                                                   sending an email to Kimberly Graber                   at this time. The Department’s existing
                                                                                                          (kimberly.graber@dot.gov) or Blane A.                 regulations already provide consumers
                                                  Reason for Withdrawal
                                                                                                          Workie (blane.workie@dot.gov). Please                 some information regarding fees for
                                                    The purpose of this rulemaking was to                 include RIN 2105–AE56 in the subject                  ancillary services. The withdrawal
                                                  make airline pricing more transparent to                line of the message.                                  corresponds with the Department’s and
                                                  consumers and airline analysts.                         FOR FURTHER INFORMATION CONTACT:                      Administration’s priorities and is
                                                  Although we believe there would be                      Kimberly Graber or Blane A. Workie,                   consistent with the Executive Order
                                                  benefits of collecting and publishing the               Office of the Assistant General Counsel               13771, Reducing Regulation and
                                                  proposed aviation data, the Department                  for Aviation Enforcement and                          Controlling Regulatory Costs, January
                                                  also takes seriously industry concerns                  Proceedings, U.S. Department of                       30, 2017.
                                                  about the potential burden of this rule.                Transportation, 1200 New Jersey Ave.                    Issued on 5th day of December 2017 in
                                                  The Department is withdrawing this                      SE, Washington, DC 20590, 202–366–                    Washington, DC.
                                                  rulemaking proposal. The withdrawal of                  9342 (phone), kimberly.graber@dot.gov                 Elaine L. Chao,
                                                  this rulemaking corresponds with the                    or blane.workie@dot.gov (email).                      Secretary of Transportation.
                                                  Department’s and Administration’s                          Electronic Access: Docket: For access              [FR Doc. 2017–26707 Filed 12–13–17; 8:45 am]
                                                  priorities and is consistent with the                   to the docket to read background
                                                  Executive Order 13771, Reducing                                                                               BILLING CODE 4910–9X–P
                                                                                                          documents and comments received, go
                                                  Regulation and Controlling Regulatory                   to the street address listed above or visit
                                                  Costs, January 30, 2017.                                http://www.regulations.gov. Enter the
                                                                                                                                                                DEPARTMENT OF STATE
                                                    Issued in Washington, DC, on December 5,              docket number DOT–OST–2017–0007
                                                  2017.                                                   in the search field.                                  22 CFR Parts 50 and 51
                                                  Elaine L. Chao,                                         SUPPLEMENTARY INFORMATION: On
                                                  Secretary of Transportation.                            January 9, 2017, the Department issued                [Public Notice 9804]
                                                  [FR Doc. 2017–26708 Filed 12–13–17; 8:45 am]            an SNPRM that proposed to require air                 RIN 1400–AD54
                                                  BILLING CODE P                                          carriers, foreign air carriers, and ticket
                                                                                                          agents to clearly disclose to consumers               Passports
                                                                                                          at all points of sale customer-specific fee
                                                                                                                                                                AGENCY:    Department of State.
                                                  DEPARTMENT OF TRANSPORTATION                            information, or itinerary-specific
                                                                                                          information if a customer elects not to               ACTION:   Proposed rule.
                                                  Office of the Secretary                                 provide customer-specific information,                SUMMARY:    This proposed rule provides
                                                                                                          for a first checked bag, a second checked             various changes and updates to the
                                                  14 CFR Part 399                                         bag, and one carry-on bag wherever fare               Department of State passport rules. The
                                                  [Docket No. DOT–OST–2017–0007]                          and schedule information is provided to               proposed rule incorporates statutory
                                                                                                          consumers (see 82 FR 7536, Jan. 19,                   passport denial and revocation
                                                  RIN 2105–AE56                                           2017). The SNPRM further proposed to                  requirements for certain convicted sex
                                                                                                          require airlines to provide useable,                  offenders. It notes that, notwithstanding
                                                  Transparency of Airline Ancillary
                                                                                                          current, and accurate (but not                        the legal bases for denial or revocation
                                                  Service Fees
                                                                                                          transactable) baggage fee information to              of a passport, the Department may issue
                                                  AGENCY: Office of the Secretary (OST),                  all ticket agents that receive and                    a passport for direct return to the United
                                                  U.S. Department of Transportation                       distribute the airline’s fare and schedule            States. It sets out the Department’s
                                                  (DOT).                                                  information, including Global                         procedures for denying and cancelling
                                                  ACTION: Notice of withdrawal of                         Distribution Systems and metasearch                   Consular Reports of Birth Abroad.
                                                  proposed rulemaking.                                    entities. If an airline or ticket agent has           Finally, the proposed rule provides
                                                                                                          a website that markets to U.S.                        additional information relating to the
                                                  SUMMARY:     The Department is                          consumers, the SNPRM proposed to                      conduct of review hearings.
                                                  withdrawing the supplemental notice of                  require the baggage fee information to be
                                                  proposed rulemaking (SNPRM) on                                                                                DATES: The Department will accept
                                                                                                          disclosed at the first point in a search
                                                  Transparency of Airline Ancillary                       process where a fare is listed in                     comments on the proposed regulation
                                                  Service Fees issued on January 9, 2017.                 connection with a specific flight                     up to February 12, 2018.
                                                  The SNPRM proposed to require air                       itinerary, adjacent to the fare. The                  ADDRESSES: Submit comments by any of
                                                  carriers, foreign air carriers, and ticket              SNPRM also proposed to permit airlines                the following methods:
                                                  agents to clearly disclose to consumers                 and ticket agents to allow customers to                 • Internet: At www.regulations.gov,
                                                  at all points of sale customer-specific fee             opt-out of receiving the baggage fee                  search for this notice by searching for
                                                  information, or itinerary-specific                      information when using their websites.                Docket No. DOS–2016–0080 or RIN
                                                  information if a customer elects not to                    On March 2, 2017, the Department                   1400–AD54.
                                                  provide customer-specific information,                  suspended the comment period, which                     • By mail: Director, Office of Legal
                                                  for a first checked bag, a second checked               had been scheduled to close on March                  Affairs and Law Enforcement Liaison,
                                                  bag, and one carry-on bag wherever fare                 20, 2017. The suspension of the                       Passport Services, U.S. Department of
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                                                  and schedule information is provided to                 comment period was to allow the                       State, 44132 Mercure Circle, P.O. Box
                                                  consumers. The withdrawal of this                       President’s appointees the opportunity                1227, Sterling, VA 20166–1227
                                                  rulemaking corresponds with the                         to review and consider this action. After               • By email: Submit comments to:
                                                  Department’s and Administration’s                       a careful review, the Department has                  PassportRules@state.gov.
                                                  priorities and is consistent with                       determined to withdraw the SNPRM.                     FOR FURTHER INFORMATION CONTACT:
                                                  Executive Order 13771, Reducing                         The Department is committed to                        Anita Mody, Office of Legal Affairs,
                                                  Regulation and Controlling Regulatory                   protecting consumers from hidden fees                 Passport Services, (202) 485–6500.
                                                  Costs, January 30, 2017.                                and to ensuring transparency. However,                Hearing- or speech-impaired persons


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Document Created: 2018-10-25 10:51:28
Document Modified: 2018-10-25 10:51:28
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule; withdrawal.
DatesAmendatory instructions 3 through 6 of the proposed rule published July 15, 2011 (76 FR 41726), are withdrawn as of December 14, 2017.
ContactZeenat Iqbal and Blane A. Workie, Office of Aviation Enforcement and Proceedings, 1200 New Jersey SE, Room W96-414, Washington, DC 20590, (202) 366-9893, [email protected] (email).
FR Citation82 FR 58777 
RIN Number2105-AE31

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