SUPPLEMENTARY INFORMATION:

Background and Legal Authority

On October 5, 2018, the FAA Reauthorization Act of 2018 (2018 FAA Act) was signed into law.^[1] Section 429 of the 2018 FAA Act provides that the Secretary of Transportation (the Secretary) shall require covered air carriers to submit a summarized one-page document that describes the rights of passengers in air transportation (Passenger Rights Summary).^[2] The Passenger Rights Summary must include “guidelines” for the following:

(1) Compensation (regarding rebooking options, refunds, meals, and lodging) for flight delays of various lengths. (2) Compensation (regarding rebooking options, refunds, meals, and lodging) for flight diversions. (3) Compensation (regarding rebooking options, refunds, meals, and lodging) for flight cancellations. (4) Compensation for mishandled baggage, including delayed, damaged, pilfered, or lost baggage. (5) Voluntary relinquishment of a ticketed seat due to overbooking or priority of other passengers. (6) Involuntary denial of boarding and forced removal for whatever reason, including for safety and security reasons.

Section 429 of the 2018 FAA Act also requires that each covered air carrier make its Passenger Rights Summary available in a prominent location on its website within 90 days of submitting the plan to the Department. Section 401 of the 2018 FAA Act defines the term “covered air carrier” for its purposes as an air carrier or foreign air carrier as those terms are defined by 49 U.S.C. 40102.^[3] To implement this statutory requirement, this final rule creates a new section at 14 CFR 259.9 requiring covered air carriers to submit the Passenger Rights Summary as dictated by 49 U.S.C. 41727.

In implementing this requirement, covered air carriers should consider creating a “one-page” summary with a concise, user-friendly document designed for quick consumer reference. A Passenger Rights Summary that fulfills this expectation is typically a single-page document—or a digital equivalent such as a one-page PDF— ( printed page 21956) presented in a clear and legible font. Covered air carriers should also consider making the summary available in a location that is highly visible and easily accessible to the public when complying with the requirement to post the summary in a “prominent location.”

Good Cause for Issuing Rule Without Prior Notice and Comment

Section 553 of the Administrative Procedure Act (5 U.S.C. 553) provides that when an agency, for good cause, finds that notice and public procedure are impractical, unnecessary, or contrary to the public interest, the agency may issue a final rule without providing notice and an opportunity for public comment (5 U.S.C. 553(b)(B)). The Department has determined that there is good cause to issue this final rule without notice and an opportunity for public comment because such notice and comment would be unnecessary.

This rule implements Section 429 of the 2018 FAA Act by incorporating the statutory language nearly verbatim. Because the Department has no discretion regarding the submission and posting of the summary, the categories of information required to be disclosed, or the entities covered, public comment would not alter the fundamental requirements of the rule.

To the extent the Department provides recommendations regarding the format of the one-page summary and prominent nature of its posting, these descriptions do not constitute new regulatory requirements. Rather, these statements are guidance to aid covered air carriers in complying with the plain meaning of the statutory text to provide a concise and accessible summary to the public. As this rule simply codifies a clear congressional directive into the Code of Federal Regulations, notice and comment are unnecessary.

I. Regulatory Notices

A. Executive Order 12866 (Regulatory Planning and Review) and the Department's Regulatory Procedures

The Office of Management and Budget (OMB) has not designated this rule a significant regulatory action under section 3(f) of Executive Order 12866. Accordingly, OMB has not reviewed it. In addition, this rule is not significant under the Department's Regulatory Policies and Procedures (49 CFR part 5 and DOT Order 2100.6B). This rule implements the statutory requirement that covered air carriers submit a Passenger Rights Summary to the Department and post it on their respective websites. The economic analysis of this final rule is discussed in this section.

The Department anticipates that the economic impact of this rule will be minimal, as the costs and benefits are dictated entirely by the statutory requirements set forth in Section 429 of the 2018 FAA Act. Because the Department is implementing the law exactly as written and providing only ministerial clarifications to facilitate compliance with the statutory text, the primary impact on covered air carriers is the administrative task of summarizing and distributing information. For those carriers that are required to submit customer service plans under 14 CFR 259.5, much of the information required for this one-page summary is already captured in the carriers' existing plans. Because those airlines are already required to maintain these policies, they do not need to develop new procedures or compensation structures to comply with this rule. The Department offers format examples for illustrative purposes only. Covered carriers retain discretion to determine the specific layout of the one-page summary and the method of prominent posting consistent with the statute. The Department expects that many carriers subject to this statutory requirement who are not required to submit customer service plans likely already have internal guidelines for compensation, overbooking, and denied boarding as part of their business operations.

The scope of work for carriers is limited to pulling that existing data into a concise, one-page format and submitting it to the Department as required by Section 429 of the 2018 FAA Act. Following this submission, carriers must ensure the document is posted in a prominent location on their websites within 90 days. This submission and publication process is a direct result of the statutory mandate and provides the Department with an opportunity to verify that the summaries align with the requirements for transparency regarding passenger rights. Ultimately, this rule creates little to no additional burden beyond reformatting and uploading existing policy information.

B. Executive Order 14192 (Unleashing Prosperity Through Deregulation)

This rule is not an Executive Order 14192 regulatory action because this rule is not significant under Executive Order 12866.

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 impose any requirement that: (1) has substantial direct effects on the States, the relationship between the national government and the States, or the distribution of power and responsibilities 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 13175

This rule has been analyzed in accordance with the principles and criteria contained in Executive Order 13175 (Consultation and Coordination with Indian Tribal Governments). Because the requirements of this final rule do 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 13175 do not apply.

E. Regulatory Flexibility Act

The Regulatory Flexibility Act of 1980 (RFA) (5 U.S.C. 601, et seq.) requires Federal agencies to review and assess the impact on small entities of any regulation required by 5 U.S.C. 553 or any other law to be published as a proposed rule for public comment prior to issuance of a final rule. Because no notice of proposed rulemaking is required for this rule under the Administrative Procedure Act (5 U.S.C. 553) or any other law, the analytical provisions of the RFA do not apply.

F. Paperwork Reduction Act

This final rule contains “collections of information” as defined by the Paperwork Reduction Act (44 U.S.C. 3501, et seq.) (PRA). Specifically, it establishes two new information collection requirements: (1) the submission of a Passenger Rights Summary to the Department; and (2) the subsequent posting of that summary on carriers' websites. The Department has not yet obtained an OMB Control Number for these information collection requirements.

Under the PRA, no person is required to respond to a collection of information unless it displays a valid OMB control number. Consequently, carriers are not required to submit their Passenger Rights Summary until the Department publishes a separate notice announcing ( printed page 21957) OMB approval and providing specific submission instructions. For clarity, the 90-day statutory clock for website publication described in 14 CFR 259.9(c) and 49 U.S.C. 41727 begins only after a carrier has submitted its summary to the Department. The Department will not begin accepting these submissions until the PRA process is finalized. The Department will provide clear instructions to carriers on the submission method and the 90-day publication window in a subsequent notice.

G. Unfunded Mandates Reform Act

The Unfunded Mandates Reform Act of 1995 (UMRA) at 2 U.S.C. 1532 requires that agencies prepare an assessment of anticipated costs and benefits before issuing any rule that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more (adjusted annually for inflation) in any one year. As described elsewhere in the preamble, this final rule would have no such effect on State, local, and tribal governments or on the private sector. Therefore, the Department has determined that no assessment is required pursuant to UMRA.

H. National Environmental Policy Act

The Department has analyzed the environmental impacts of this final rule pursuant to the National Environmental Policy Act of 1969 ^[4] and has determined that it is categorically excluded pursuant to DOT Order 5610.1D, Procedures for Considering Environmental Impacts, because this rule falls under the categorical exclusion for “[a]ctions relating to consumer protection, including regulations.” ^[5] The Department does not anticipate any environmental impacts, and there are no extraordinary circumstances present in connection with this rulemaking.

For the reasons stated in the preamble, the U.S. Department of Transportation amends 14 CFR part 259 as follows:

1. The authority citation for part 259 is revised to read as follows:

Authority: 49 U.S.C. 40101(a)(4), 40101(a)(9), 40113(a), 41702, 41708, 41712, 41727, 42301, and 42305.

2. Add § 259.9 to read as follows:

91 FR 21955