[Federal Register: October 28, 2004 (Volume 69, Number 208)]
[Proposed Rules]
[Page 62833-62844]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28oc04-19]
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DEPARTMENT OF TRANSPORTATION
Office of the Secretary
14 CFR Parts 201, 203, 205, 215, 298, 380, 385, and 389
[Docket No. OST-2004-19426]
RIN 2105-AD43
Elimination of Commuter Air Carrier Registrations
AGENCY: Office of the Secretary (OST), Department of Transportation
(DOT).
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Department proposes to amend the regulations governing air
taxi
[[Page 62834]]
operators and commuter air carriers to eliminate the requirement that
commuter air carriers file initial and amended registration forms. The
information provided on such forms is duplicative of information that
commuter air carriers are separately required to file under other
regulations. Accordingly, the proposed amendment will simplify the
process of applying for and maintaining commuter air carrier authority.
The Department also proposes to make conforming amendments to other
rules affected by the proposed amendment, as well as to make other
minor administrative, editorial, clarifying, and organizational changes
to rules applicable to air taxi operators and commuter air carriers.
DATES: Comments must received on or before December 13, 2004.
ADDRESSES: You may send comments identified by Docket No. OST-2004-
19426 using any of the following methods:
DOT Docket Web site: go to http://dms.dot.gov and follow
the instructions for sending you comments electronically.
Government-wide Rulemaking Web site: Go to http://www.regulations.gov
and follow the instructions for sending your
comments electronically.
Mail: Dockets Management Facility; U.S. Department of
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401,
Washington, DC 20590. Fax: 1-202-493-2251.
Hand Delivery: Room PL-401 on the plaza level of the
Nassif building, 400 Seventh Street, SW., Washington, DC, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT: Delores A. King, Air Carrier Fitness
Division, Department of Transportation, 400 Seventh Street, SW.,
Washington, DC 20590, (202) 366-9721.
SUPPLEMENTARY INFORMATION:
Comments Invited
The Department invites interested persons to participate in this
rulemaking by submitting written comments, data, or views. We also
invite comments relating to any economic, environmental, energy, or
federalism impacts that might result from adopting the proposals in
this document. The most helpful comments will reference a specific
portion of the proposal, explain the reason for any recommended change,
and include supporting data.
We will file in the docket all comments we receive, as well as a
report summarizing each substantive public contact with Department
personnel concerning this proposed rulemaking. The docket is available
for public inspection before and after the comment closing date. If you
wish to review the docket in person, go to the address in the ADDRESSES
section of the preamble between 9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays. You may also review the docket using
the Internet at the Web address in the ADDRESSES section.
Privacy Act: Using the search function of our docket Web site,
anyone can find and read the comments received into any of our dockets,
including the name of the individual sending the comment (or signing
the comment on behalf of an association, business, labor union, etc.)
You may review the Department's complete Privacy Act Statement in the
Federal Register published on April 11, 2000 (65 FR 19477-78) or you
may visit http://dms.dot.gov.
Before acting on this proposal, we will consider all comments we
receive on or before the closing date for comments. We will consider
comments filed late if it is possible to do so without incurring
expense or delay. We may change this proposal in light of the comments
we receive.
If you want the Department to acknowledge receipt of your comments
on this proposal, include with your comments a pre-addressed, stamped
postcard on which the docket number appears. We will stamp the date on
the postcard and mail it to you.
Background
Air carriers operating or proposing to operate small aircraft
(i.e., those designed to hold 60 seats or less or 18,000 pounds payload
or less) are exempt from the provisions of 49 U.S.C. 41101, which
requires U.S. air carriers to hold certificates of public convenience
and necessity in order to engage in interstate and/or foreign air
transportation operations. This exemption is conditioned upon the air
carrier meeting the registration, insurance and other requirements set
for in part 298 of the Department's Economic Regulations (14 CFR part
298). Air carriers operating under a part 298 exemption are generally
referred to as ``air taxi operators.''
A ``commuter air carrier,'' as defined in part 298, is an air taxi
operator that carriers passengers on at least five round trips per week
on at least one route between two or more points according to a
published flight schedule that specifies the times, days of the week,
and places between which those flights are performed.
To register as an air tax operator (whether or not commuter air
carrier operations are involved), an air carrier must submit a
registration form (OST Form 4507) that asks for basic information about
the company, including name, address, telephone and fax numbers, types
of operations being performed, Federal Aviation Administration (FAA)
office overseeing the carrier's operations, list of aircraft being used
in the operation, and whether the company is a U.S. citizen. Evidence
of current insurance coverage that meets the requirements of part 205
of the Department's regulations must accompany the registration. If the
information on the registration form subsequently changes, the carrier
is required to submit an amendment to the Department within 30 days
reflecting the change.
In addition, section 298.21(d) requires a commuter carrier to be
found ``fit, willing and able'' to conduct its scheduled passenger
operations in addition to meeting the registration and insurance
requirements of the rule. In making that fitness determination, the
Department requires companies proposing to operate as a commuter air
carrier to file an application and submit data to the Department in
accordance with 14 CFR parts 201 and 204. Once the Department
determines the company is fit to provide its proposed scheduled
passenger operations, the Department issues a Commuter Air Carrier
Authorization with accompanying terms, conditions, and limitations to
the air carrier.
Statement of Proposed Action
The fitness requirements and the process for obtaining authority
for commuter air carriers are nearly identical to those applicable to
companies seeking certificates of public convenience and necessity
under 49 U.S.C. 41101. In fact, many companies that propose to operate
small aircraft (under 60 seats of 18,000 pounds payload) and that would
otherwise qualify for commuter authority choose instead to seek a
certificate. At present, approximately 35 carriers hold commuter
authority from the Department; of the approximately 145 carriers that
currently hold certificates of public convenience and necessity,
approximately 60 operate small aircraft only. In addition, both
commuter air carriers and certificated air carriers must notify the
Department under 14 CFR 204.5 of any substantial changes in their
operations, ownership, or management. Unlike commuters, however,
certificated air carriers are not required to file registration forms
or amendments.
Since the fitness and licensing requirements for commuter air
carriers
[[Page 62835]]
are so closely aligned to those for certificated air carriers operating
similar aircraft, we propose to revise the regulations to eliminate the
requirement that commuter air carriers file initial and amended
registration forms as currently required by part 298, thus relieving
commuters from the often duplicative burden of filing registration
forms and amendment as well as initial and updated fitness information.
All of the information contained on OST Form 4507 is filed by
commuter applicants requesting a fitness determination under 14 CFR
204.5. Once found fit, commuters are required to notify the Department
of substantial changes in their operations, ownership, or management.
In addition to these substantial change notifications, the Department
periodically requests updated fitness information from commuter air
carriers. We believe that these requirements and procedures provide the
Department an adequate opportunity to obtain relevant information
regarding commuter air carriers. Under these circumstances, we believe
that the separate registrations and amendments required of commuters
under part 298 are no longer necessary and can be eliminated. These
changes will not, however, affect the requirement that other air taxi
operators must still file registrations and amendments with the
Department, nor will they relieve commuters of any other requirements
or provisions of part 298 applicable to their operations. This includes
submitting evidence of liability insurance coverage which, under the
proposal, would be filed with the Program Management Branch (AFS-260)
of the Federal Aviation Administration, just as air taxi registrations
and insurance and certificated air carrier insurance currently are.
Section-by-Section Analysis of Proposal
We propose to reorganize part 298 to reflect the changes discussed
above, to codify current Department policies or procedures, and to
improve the clarity of the party. This section-by-section analysis
explains the proposed amendments to each subpart of the rule.
Subpart A--General
In this subpart, we propose to reclassify commuter air carriers
from being a subset of air taxi operators to their own class of carrier
that operate small aircraft in scheduled passenger service, and to
amend sections 298.1, 298.2, and 298.3 accordingly. We also propose to
amend section 298.4 to include the address for obtaining a statement of
authority, and to eliminate section 298.5.
Section 298.1 Applicability
We propose to add a reference in section 298.1 to indicate that
part 298 applies to both air taxi operators and commuter air carriers.
Section 298.2 Definitions
We propose to amend the definitions of ``air taxi operator'' and
``commuter air carrier'' to reference revised sections 298.3(a) and (b)
(see Section 298.3 Classification, below). For purposes of clarity and
convenience, we proposed to add definitions of ``statute'' to refer to
subtitle VII of title 49 of the United States Code, ``eligible place''
with respect to operations by commuters as contained in 49 U.S.C.
41731(a)(1), and ``citizen of the United States'' as contained in 49
U.S.C. 40102(a)(15). We are also proposing to add the word
``originally'' before the word ``designed'' in the definition of
``large aircraft'' to codify our long-held interpretation of that
definition as we recently reiterated in Order 2002-9-4. Finally, we
propose to amend the definition of ``small aircraft'' so that it no
longer merely indicates that it is the ``opposite'' of ``large
aircraft,'' but instead sets out the specific seating and payload
limitations applicable to small aircraft. As discussed below in section
298.5, we are also deleting the definition of ``all-cargo air carrier
or section 41103 carrier'' as no longer necessary for purposes of this
part.
Section 298.3 Classification
The Department proposes to amend section 298.3 to reclassify
commuter air carriers as their own class of carrier that operate small
aircraft in scheduled passenger service and do not hold certificates,
but that do hold Commuter Air Carrier Authorizations (see revised
section 298.3(b)). We propose to delete the references in section
298.3(a) to the requirement that commuters must file registration
forms, and adopt a new ``Subpart E--Commuter Air Carrier
Authorizations,'' that describes the requirements for obtaining
commuter authority. As a result of these changes, we propose to
renumber old section 298.3(b) as section 298.3(c).
Section 298.4 Requests for Statement of Authority
We propose to add the mailing address of the Director, Office of
Aviation Analyses for ease in requesting a statement of authority.
Section 298.5 Dual Operations--Air Taxi or Commuter Air Carrier and
All-Cargo Service
We propose to eliminate section 298.5 which authorizes air taxi and
commuter operations by air carriers holding All-Cargo Air Service
Certificates issued under 49 U.S.C. 41103 (formerly section 418 of the
Federal Aviation Act). There currently are no certificated air carriers
that hold only all-cargo certificates issued under 49 U.S.C. 41103--all
such carriers also hold certificates issued under 49 U.S.C. 41102.
Moreover, no applications pursuant to 49 U.S.C. 41103 have been
received in a number of years--most carriers preferring to receive
certificates under 49 U.S.C. 41102 for scheduled all-cargo authority,
which also confer charter all-cargo rights. Small aircraft operations
by carriers holding certificates issued under 49 U.S.C. 41102 are
specifically authorized by 14 CFR 206.5 under the same terms and
conditions as air taxi and commuter operations; thus section 298.5 is
redundant and can be eliminated, along with the references to that
section in sections 298.3(a)(1) and (2) and current section 298.3(b)
(renumbered section 298.3(c)).
Subpart B--Exemptions
In this subpart, we proposed to re-designate current section 298.13
as section 298.12. All other sections in this subpart remain unchanged.
Subpart C--Registration for Exemption by Air Taxi Operators
This subpart is currently titled ``Registration and Reregistration
for Exemption.'' We propose to re-title this subpart as ``Registration
for Exemption by Air Taxi Operators'' to eliminate an obsolete
reference to ``re-registrations''. Also, as discussed below, we propose
to amend all sections in this subpart (sections 298.21 through 298.24)
to eliminate references to commuter air carriers and make other
clarifying or organizational changes.
Section 298.21 Filing for Registration by Air Taxi Operators
Currently, this section states that all air taxi operators,
regardless of whether or not they are operating as commuter air
carriers, must file a registration with the Department. We propose to
amend this section to remove the requirement for commuter air carriers
to file registrations.
We also propose to make administrative changes to this section.
Specifically, we propose to replace the reference to the Director,
Office of Aviation Analysis in 298.21(a) with a reference to the
Manager, Program
[[Page 62836]]
Management Branch (AFS-260) of the FAA--the office that processes air
taxi registrations--and amend sections 298.21(c) and (d) to clarify the
addresses where air taxi registrations should be filed. Further, we
propose to clarify the requirements for air taxi operators engaged in
foreign air transportation or participating in an interline agreement.
Specifically, we are proposing to delete section 298.21(c)(4) to
eliminate the requirement that air taxi operators engaged in foreign
air transportation or participating in an interline agreement must file
OST Form 4523--counterpart to Agreement 18900--and, instead, include a
new section 298.21(c)(1)(ix) that references language currently
contained on the registration form (OST Form 4507) certifying that the
air taxi operator complies with Agreement 18900 and certifying that the
information submitted on the registration form is complete and
accurate. Finally, we propose to move the current requirement of
section 298.21(d), which prohibits an air taxi from operating scheduled
passenger service unless it has first been found fit by the Department
as a commuter air carrier, to new section 298.32.
Section 298.22 Processing by the Department
In this section, we propose to replace the obsolete reference to
registration form ``298-A'' with the correct form number ``OST Form
4507.''
Section 298.23 Notification of the Department of Change in Operations
We propose to amend section 298.23(a) to clarify that amended air
taxi registrations are to be submitted whenever any of the information
contained on the most recently filed registration form changes. In
doing so, we will replace the specific listing of items with a more
general statement that applies to any of the information on the
registration. We have also added a provision stating that filing fees
are not required when submitting an amendment to a registration form.
Section 298.23(b) will be amended to reflect the current addresses
where amended air taxi registrations are to be submitted.
Section 298.24 Cancellation of the Registration
We propose to amend this section, which sets out circumstances
under which the Department may cancel registrations issued under part
298, to eliminate all references to commuter air carriers, since the
suspension or revocation of a commuter's authority will now be
addressed in new section 298.53. In addition, we propose to specify
additional circumstances beyond those currently contained in this
section under which an air taxi registration may be cancelled.
Specifically, these include (1) an air taxi operator's failure to
remain a U.S. citizen under 49 U.S.C. 40102(a)(15) (amended section
298.24(e)), and (2) other circumstances under which the Department
determines that it is in the public interest to cancel a company's
registration (new section 298.24(f)). These changes merely clarify that
an air taxi operator must remain a U.S. citizen to hold authority under
part 298 as is required under the statute, and that the Department has
the ability to cancel the exemption authority awarded to an air taxi if
the Department determines that it is in the public interest to do so.
Subpart D--Limitations and Conditions on Exemptions and Operations
In this subpart, we propose to add sections 298.32 and 298.33 and
amend sections 298.32, 298.35 and 298.36.
Section 298.31 Scope of Service and Equipment Authorized
As discussed in Section 298.2 above, we propose to add the word
``originally'' before the word ``designed'' to codify our long-held
interpretation that aircraft operated under this part must have been
originally designed to hold no more than 60 seats or 18,000 pounds
payload.
Section 298.32 Limitations on Operations to Eligible Places
As mentioned previously, we propose to move, without change, the
provisions of current section 298.21(d), which prohibits a commuter air
carrier from operating without first having its fitness determined, to
new section 298.32.
Section 298.33 Security Requirements
We propose to add this new section to clarify that, like
certificated air carriers, air taxi operators and commuter air carriers
must comply with security requirements established by the U.S.
Government for such carriers. This imposes no new obligations on air
taxis or commuters.
Section 298.35 Limitations on Carriage of Mail
We propose to amend this section to clarify that ``Postal Service''
as used in that section refers to the ``U.S. Postal Service.''
Section 298.36 Limitations on Use of Business Name
We propose to amend this section to clarify that a commuter may
only hold out to the public in the name in which its Commuter Air
Carrier Authorization is issued or in which another trade name is
registered in accordance with part 215 (see revised section 298.36(a)).
For clarity, we propose to revise paragraph (d) of this section to
indicate that the Department is not precluded from intervening or
taking enforcement action should there be evidence of a significant
potential for, or actual, public confusion as a result of the use of a
particular name.
Section 298.38 Financial Security Arrangements for Operating Public
Charters
This section was previously titled ``Security arrangements for
operating Public Charters.'' We propose to amend the title of this
section to clarify that this section refers to financial security
requirements to avoid any confusion with general security requirements.
In addition, we propose to replace an obsolete reference to 14 CFR
207.17 with the correct reference to 14 CFR 212.8.
Subpart E--Commuter Air Carrier Authorizations
We propose to add a new subpart E, ``Commuter Air Carrier
Authorizations.'' This subpart prescribes rules pertaining to commuter
air carrier authority.
Section 298.50 Applications
This proposed new section contains directions for filing an
application for a Commuter Air Carrier Authorization. In this section,
we are not proposing any new requirements; rather, we are setting out
provisions from other parts of the Department's regulations to clarify
in part 298 the actions required by applicants requesting a Commuter
Air Carrier Authorization (e.g., an original and two copies of the
application must be filed with the Department's Dockets section,
accompanied by the information required by 14 CFR 204 and the $670
filing fee). These requirements are found currently in sections 201.1
and 389.25.
Section 298.51 Processing by the Department
This proposed new section states that applications for commuter
authority will be processed in accordance with the procedural
provisions of sections 302.207-302.211 which are applicable to
certificated air carriers but have been followed by the Department in
processing applications for commuter air carrier authority. Thus, the
section imposes no new requirements on commuter applicants.
[[Page 62837]]
Section 298.52 Air Taxi Operations by Commuter Air Carriers
Proposed section 298.52(a) provides that, during such time as a
commuter holds an effective Commuter Air Carrier Authorization, it may
also conduct air taxi-type operations (e.g., scheduled and on-demand
cargo, on-demand passenger service, and scheduled passenger services
consisting of less than four weekly round trips in a market pursuant to
a published schedule) under part 298 without having to file a separate
air taxi registration. Proposed section 298.53(b) provides that, if the
carrier ceases its scheduled passenger commuter operations, resulting
in the suspension of its commuter authority, it can continue to conduct
other air taxi operations authorized by this part, provided that it
registers as an air taxi operator under section 298.21 within 10 days
of such cessation and complies with all other requirements applicable
to air taxi operators under part 298 (including, for example,
maintaining insurance coverage as required by part 205 and retaining
appropriate FAA authority).
Section 298.53 Suspension or Revocation of Authority
Proposed section 298.53 sets out circumstances under which the
Department may suspend or revoke a Commuter Air Carrier Authorization.
They also include the two additional requirements previously discussed
in connection with changes to section 298.24 (see the discussion above
on section 298.24).
Subparts F Through H
No amendments are being made to subpart F, ``Reporting
Requirements,'' subpart G, ``Public Disclosure of Data,'' and subpart
H, ``Violations.''
Amendments to Other Rules
To reflect the elimination of commuter registrations, we propose to
make conforming amendments to other rules. We are also taking this
opportunity to propose other minor administrative amendments to the
Department's regulations. Affected rules include the following:
We propose to amend section 201.1(b) to remove the reference to
commuter registrations by deleting the word ``registration'' in the
first sentence.
We propose to amend section 203.3 to remove outdated references to
the Department's ``Office of Aviation Analysis, Special Authorities
Division'' as the source for obtaining OST Forms 4507 and 4523,
replacing it with a reference to instructions in part 298 and 14 CFR
294 on where to obtain these forms.
We propose to amend sections 205.4(a), (b), and (c) and 205.7(a) to
remove the outdated references to the ``Office of Aviation Analysis''
as the recipient of, and source for, certificate of insurance forms
(OST Forms 6410 and 6411) and other notices of insurance changes. A
revised section 205.4(c) is added to reflect the correct addresses at
the Department where insurance certificates and endorsements are to be
filed.
We propose to amend section 215.3 to delete in the second sentence
obsolete references to 14 CFR 221.21(j) and 221.35(d).
We propose to amend section 215.4(a) to delete the references to
commuter registrations and amendments in the second sentence. The word
``commuter'' is added in the fourth sentence after the words
``underlying certificate''; the word ``or'' is eliminated before
``foreign air carrier''; and the word ``permit'' is eliminated and
replaced with a comma (``,'') after ``foreign air carrier''.
We propose to amend section 215.6 to delete the reference to
commuter registrations.
In section 380.2, we propose to amend the definition of ``direct
air carrier'' to add the word ``commuter'' after the word
``certificate'' and before the words ``or foreign air carrier'', to
delete the reference to ``commuter air carrier'' after ``air taxi
operator,'' and to add ``authorization'' after the word ``certificate''
and before the word ``permit'' to reflect that commuters receive a
Commuter Air Carrier Authorization.
We propose to amend section 385.12(e) to remove the reference to
commuter air carriers.
We propose to amend section 389.25(a), code 7, to read ``Commuter
Air Carrier Authorization * * * $670.''
Paperwork Reduction Act
OMB Information Collection Number: 2120-0633.
Title of Information Collection: Exemptions for Air Taxi and
Commuter Air Carrier Operations.
Affected Public: Commuter air carriers and applicants for commuter
air carrier authority.
Brief Abstract: Applicants for authority to operate as an air taxi
operator or commuter air carrier under 14 CFR part 298 are required to
submit a registration form (OST Form 4507) that asks for basic
information about the company (such as, name, address, telephone/fax
numbers, types of operations being performed, Federal Aviation
Administration (FAA) operating certificate, aircraft operated, and
whether the company is a U.S. citizen). Once registered with the
Department, the air taxi or commuter air carrier is required to submit
an amendment to the Department when information on the registration
changes. The proposed amendment here will eliminate this registration
requirement for commuter air carriers--since the information required
on the registration is duplicative of information provided to the
Department elsewhere--thus resulting in a reduction in the above-noted
paperwork collection.
Burden Hours: The amendment proposed here will result in a
diminution of the regulatory burden on affected parties. There are
approximately 35 currently-authorized commuter air carriers subject to
this reporting requirement, and new applicants for commuter authority
over the past three years have averaged approximately four per year.
The paperwork burden of this reporting requirement on commuter air
carriers varies depending on the extent to which the information on the
registration changes. A carrier does not need to submit further forms
if the information contained in a registration does not change. As a
result, the number of registration forms filed will vary. Based on our
recent experience in this area, we have estimated approximately two
amended registrations per currently-authorized commuter air carrier
plus one registration for each new commuter applicant. Thus, we
estimate the reduction in the paperwork burden for these carriers to
be, on an annual basis, approximately 74 responses (4 new and 70
amended OST Forms 4507s) and 37 burden hours (74 responses x .5 hours
per response).
Cost to the Respondents: We have previously estimated the average
cost of completing and submitting a new or amended OST Form 4507 to be
approximately $20.00. Thus, we estimate the cost savings to respondents
of the proposed elimination of commuter registrations to be
approximately $1,480 (74 responses x $20 per response).
International Compatibility
In keeping with U.S. obligations under the Convention on
International Civil Aviation, it is the Department's policy to comply
with International Civil Aviation Organization (ICAO) Standards and
Recommended Practices to the maximum extent practicable. The Department
has determined that there are no ICAO Standards and Recommended
Practices that
[[Page 62838]]
correspond to these proposed regulations.
Executive Order 12866 and DOT Regulatory Policies and Provisions
Executive Order 12866, Regulatory Planning and Review, directs the
Department to assess both the costs and the benefits of a regulatory
change. We are not allowed to propose or adopt a regulation unless we
make a reasoned determination that the benefits of the intended
regulation justify the costs. Our assessment of this rulemaking
indicates that its economic impact is minimal because the rule will not
impose any new costs on the affected commuter air carriers; in fact, it
relieves them of a filing requirement with the attendant costs and
burdens. The remaining changes are administrative and editorial in
nature and primarily reflect organizational and procedural changes
within the Department. This rulemaking is non-significant under DOT
policies and procedures and was not reviewed by the Office of
Management and Budget under Executive Order 12866.
Regulatory Flexibility Act Analysis
The Regulatory Flexibility Act of 1980 (RFA) directs the Department
to fit regulatory requirements to the scale of the business,
organizations, and governmental jurisdictions subject to the
regulation. We are required to determine whether a proposed or final
action will have a ``significant economic impact on a substantial
number of small entities'' as they are defined in the Act. If we find
that the action will have a significant impact, we must do a
``regulatory flexibility analysis.''
This proposed rule relieves commuter air carriers from filing
registration forms and amendments, and it reorganizes some of the
regulations applicable to commuter air carriers. Therefore, we certify
that this action will not have a significant economic impact on a
substantial number of small entities.
Trade Impact Assessments
The Trade Agreement Act of 1979 prohibits Federal agencies from
establishing any standards or engaging in related activities that
create unnecessary obstacles to the foreign commerce of the United
States. Legitimate domestic objectives, such as safety, are not
considered unnecessary obstacles. The statute also requires
consideration of international standards and, where appropriate, that
they be the basis for U.S. standards. The Department has assessed the
potential effect of this rulemaking and has determined that it will
have only a domestic impact and therefore no effect on any trade-
sensitive activity.
Unfunded Mandates Assessment
The Unfunded Mandates Reform Act of 1995 (the Act) is intended,
among other things, to curb the practice of imposing unfunded Federal
mandates on State, local, and tribal governments. Title II of the Act
requires each Federal agency to prepare a written statement assessing
the effects of any Federal mandate in a proposed or final agency rule
that may result in an expenditure of $100 million or more (adjusted
annually for inflation) in any one year by State, local, and tribal
governments, in the aggregate, or by the private sector; such a mandate
is deemed to be a ``significant regulatory action.''
This proposal does not contain such a mandate. The requirements of
Title II of the Act, therefore, do not apply.
Executive Order 13132, Federalism
The Department has analyzed this proposed rule under the principles
and criteria of Executive Order 13132, Federalism. We have determined
that this action would not have a substantial direct effect on the
States, on the relationship between the Federal Government and the
States, or on the distribution of power and responsibilities among the
various levels of government.
List of Subjects
14 CFR Part 201
Air carriers, Reporting and recordkeeping requirements.
14 CFR Part 203
Air carriers, Air transportation, Foreign relations, Insurances,
Reporting and recordkeeping requirements.
14 CFR Part 205
Air carriers, Freight, Insurance, Reporting and recordkeeping
requirements.
14 CFR Part 215
Air carriers, Reporting and recordkeeping requirements, Trade
Names.
14 CFR Part 298
Air taxis, Reporting and recordkeeping requirements.
14 CFR Part 380
Charter flights, Reporting and recordkeeping requirements, Surety
bonds.
14 CFR Part 385
Organization and functions (Government agencies).
14 CFR Part 389
Administrative practice and procedure, Reporting and recordkeeping
requirements.
The Proposed Amendment
For the reasons set forth in the preamble, the Department proposes
to amend title 14, chapter II of the Code of Federal Regulations as
follows:
PART 201--AIR CARRIER AUTHORITY UNDER SUBTITLE VII OF TITLE 49 OF
THE UNITED STATES CODE
1. The authority citation for Part 201 continues to read as
follows:
Authority: 5 U.S.C. 1008; 49 U.S.C. Chapters 401, 411, 413, 415,
417.
Sec. 201.1 [Amended]
2. In Sec. 201.1(b), remove the word ``registration'' in the first
sentence.
PART 203--WAIVER OF WARSAW CONVENTION LIABILITY LIMITS AND DEFENSES
3. The authority citation for Part 203 continues to read as
follows:
Authority: 49 U.S.C. chapters 401, 411, 413, 415, 417.
Sec. 203.3 [Amended]
4. In Sec. 203.3, in the second sentence remove the words ``with
the Department's Office of Aviation Analysis'' and add, in their place,
``in accordance with the provisions of those parts'', and remove the
last sentence.
PART 205--AIRCRAFT ACCIDENT LIABILITY INSURANCE
5. The authority citation for Part 205 continues to read as
follows:
Authority: 49 U.S.C. chapters 401, 411, 413, 417.
6. Amend Sec. 205.4 as follows:
A. Revise paragraph (a) to read as set forth below;
B. Amend paragraph (b) by removing the words ``Department's Office
of Aviation Analysis'' in the first sentence and adding, in their
place, ``Department at the addresses specified in paragraph (c) of this
section''; and
C. Revise paragraph (c) to read as set forth below.
The revisions read as follows:
Sec. 205.4 Filing of evidence of insurance.
(a) A U.S. or foreign air carrier shall file a certificate of
insurance or a complete plan for self-insurance with the Department.
Each carrier shall ensure that the evidence of aircraft accident
liability coverage filed with the Department is correct at all times.
The Department will normally notify the
[[Page 62839]]
carrier within 20 days of receipt if the certificate or plan does not
meet the requirements of this part. Certificates of Insurance shall be
filed on OST Form 6410 for U.S. air carriers, including commuter air
carriers and air taxi operators, and OST Form 6411 for foreign air
carriers, including Canadian air taxi operators. The Department may
return the certificate or self-insurance plan to the carrier if it
finds for good cause that such certificate or plan does not show
adequate evidence of insurance coverage under this part. Forms may be
obtained from and should be filed with the Department at the addresses
specified in paragraph (c) of this section. Forms may also be obtained
on the Internet at http://ostpxweb.dot.gov/aviation.
* * * * *
(c) Certicates of insurance and endorsements required in paragraphs
(a) and (b) of this section shall be submitted to the Department of
Transportation, Federal Aviation Administration, Program Management
Branch, AFS-260, 800 Independence Avenue, SW., Washington, DC 20591.
For those air carriers that have a mailing address in the State of
Alaska, the forms shall be submitted to the Department of
Transportation, Federal Aviation Administration, Alaskan Region
Headquarters, AAL-230, 222 West 7th Avenue, Box 14, Anchorage, Alaska
99513. For Canadian air taxis, the forms shall be submitted to the
Department of Transportation, Special Authorities Division, X-46, 400
7th Street SW., Washington, DC 20590.
Sec. 205.7 [Amended]
* * * * *
9. In Sec. 205.7(a), remove the words ``Department's Office of
Aviation Analysis (or, for Alaskan air taxi operators, to the
Department's Alaska Field Office)'' and add, in their place the words
``Department at the addresses specified in Sec. 205.4(c)''.
PART 215--USE AND CHANGE OF NAMES OF AIR CARRIERS, FOREIGN AIR
CARRIERS AND COMMUTER AIR CARRIERS
10. The authority citation for part 215 continues to read as
follows:
Authority: 40 U.S.C. chapters 401, 411, 413, 417.
Sec. 215.3 [Amended]
11. In Sec. 215.3, in the second sentence, remove the words
``Except as provided in Sec. Sec. 221,21(J) and 221.35(d) of this
chapter,''.
Sec. 215.4 [Amended]
12. In Sec. 215.4(a), in the second sentence, remove the words ``,
as well as any commuter air carrier registration or amendment filed
under part 298,'' and add the word ``commuter'' after ``certificate,''
in the fourth sentence.
Sec. 215.6 [Amended]
13. In Sec. 215.6, remove the words ``or in approving the commuter
registration,'' in the first sentence.
PART 298--EXEMPTIONS FOR AIR TAXI AND COMMUTER AIR CARRIER
OPERATIONS
14. The authority citation for part 298 continues to read as
follows:
Authority: 49 U.S.C. 329 and Chapters 401, 411, 417.
15. Amend Part 298 by revising Subparts A through E to read as
follows:
PART 298--EXEMPTIONS FOR AIR TAXI AND COMMUTER AIR CARRIER
OPERATIONS
Subpart A--General
Sec.
298.1 Applicability of part.
298.2 Definitions.
298.3 Classification.
298.4 Requests for statement of authority.
Subpart B--Exemptions
298.11 Exemption authority.
298.12 Duration of exemption.
Subpart C--Registration for Exemption by Air Taxi Operators
298.21 Filing for registration by air taxi operators.
298.22 Processing by the Department.
298.23 Notifications to the Department of change in operations.
298.24 Cancellation of the registration.
Subpart D--Limitations and Conditions on Exemptions and Operations
298.30 Public disclosure of policy on consumer protection.
298.31 Scope of service and equipment authorized.
298.32 Limitation on operations to eligible places.
298.33 Security requirements.
298.34 [Reserved]
298.35 Limitations on carriage of mail.
298.36 Limitations on use of business name.
298.37 Prohibition of services not covered by insurance.
298.38 Financial security arrangements for operating Public
Charters.
Subpart E--Commuter Air Carrier Authorizations
298.50 Application.
298.51 Processing by the Department.
298.52 Air taxi operations by commuter air carriers.
298.53 Suspension or revocation of authority.
Subpart A--General
Sec. 298.1 Applicability of part.
This part establishes classifications of air carriers known as
``air taxi operators'' and ``commuter air carriers,'' provides certain
exemptions to them from some of the economic regulatory provisions of
subtitle VII of title 49 of the United States Code (Transportation),
specifies procedures by which such air carriers may obtain authority to
conduct operations, and establishes rules applicable to their
operations in interstate and/or foreign air transportation in all
States, Territories and possessions of the United States. This part
also establishes reporting requirements for commuter air carriers and
small certificated air carriers.
Sec. 298.2 Definitions.
As used in this part:
Air taxi operator means an air carrier as established by Sec.
298.3(a).
Air transportation means interstate air transportation, foreign air
transportation, or the transportation of mail aircraft as defined by
the Statute \1\
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\1\ Interstate air transportation is defined in section
40102(a)(25) as the transportation of passengers or property by
aircraft as a common carrier for compensation, or the transportation
of mail by aircraft (1) between a place in (i) a State, territory,
or possession of the United States and a place in the District of
Columbia or another State, territory, or possession of the United
States; (ii) Hawaii and another place in Hawaii through the airspace
over a place outside Hawaii; (iii) the District of Columbia and
another place in the District of Columbia; or (iv) a territory or
possession of the United States and another place in the same
territory or possession; and (2) when any part of the transportation
is by aircraft. Note: Operations wholly within the geographic limits
of a single State are not considered interstate air transportation
if in those operations the carrier transports no more than a de
minimus volume of passengers or property moving as part of a
continuous journey to or from a point outside the State.
Foreign air transportation is defined in section 40102(a)(23) of
the Statute as the transportation of passengers or property by
aircraft as a common carrier for compensation, or the transportation
of mail by aircraft, between a place in the United States and a
place outside of the United States and when any part of the
transportation is by aircraft.
Air transportation also is defined to include the transportation
of mail by aircraft. Section 5402 of the Postal Reorganization Act,
39 U.S.C. 5402, authorizes the carriage of mail by air taxi
operators and commuter air carriers in some circumstances under
contract with the U.S. Postal Service.
---------------------------------------------------------------------------
Aircraft-hours means the airborne hours of aircraft computed from
the moment an aircraft leaves the ground until it touches the ground at
the end of a flight stage.
Aircraft miles means the miles (computed in airport-to-airport
distances) for each flight stage actually completed, whether or not
performed in accordance with the scheduled pattern.
[[Page 62840]]
Certificated air carrier means an air carrier holding a certificate
issued under section 41102 of the Statute.
Citizen of the United States means:
(1) An individual who is a citizen of the United States;
(2) A partnership each of whose partners is an individual who is a
citizen of the States; or
(3) A corporation or association organized under the laws of the
United States or a state, the District of Columbia, or a territory or
possession of the United States, of which the president and at least
two-thirds of the board of directors and other managing officers are
citizens of the United States, which is under the actual control of
citizens of the United States, and in which at least 75 percent of the
voting interest is owned or controlled by persons that are citizens of
the United States.
Commuter air carrier means an air carrier as established by Sec.
298.3(b) that carriers passengers on at least five round trips per week
on at least one route between two or more points according to its
published flight schedules that specify the times, days of the week,
and places between which those flights are performed.
Departure means takeoff from an airport.
Eligible place means a place in the United States that--
(1)(i) Was an eligible point under section 419 of the Federal
Aviation Act of 1958 as in effect before October 1, 1988;
(ii) Received scheduled air transportation at any time after
January 1, 1990; and
(iii) Is not listed in Department of Transportation Orders 89-9-37
and 89-12-52 as a place ineligible for compensation under Subchapter II
of chapter 417 of the Statute; or
(2) Was determined, on or after October 1, 1988, and before the
date of the enactment of the Wendell H. Ford Aviation Investment and
Reform Act for the 21st Century, by the Department to be eligible to
receive subsidized small community air service under section 41736(a)
of the Statute.
Flight stage means the operation of an aircraft from takeoff to
landing.
Large aircraft means any aircraft originally designed to have a
maximum passenger capacity of more than 60 seats or a maximum payload
capacity of more than 18,000 pounds.
Maximum certificated takeoff weight means the maximum takeoff
weight authorized by the terms of the aircraft airworthiness
certificate.\2\
---------------------------------------------------------------------------
\2\ This weight may be found in the airplane operating record or
in the airplane flight manual, which is incorporated by regulation
into the airworthiness certificate.
---------------------------------------------------------------------------
Maximum passenger capacity means the maximum number of passenger
seats for which an aircraft is configured.
Maximum payload capacity means the maximum certificated take-off
weight of an aircraft, less the empty weight,\3\ less all justifiable
aircraft equipment, and less the operating load (consisting of minimum
fuel load, oil, flight crew, steward's supplies, etc.). For purposes of
this part, the allowance for the weight of the crew, oil, and fuel is
as follows:
---------------------------------------------------------------------------
\3\ Empty weight is defined in section 03 of part 241 as
follows: the weight of the airframe, engines, propellers, and fixed
equipment. Empty weight excludes the weight of the crew and payload,
but includes the weight of all fixed ballast, unusable fuel supply,
undrainable oil, total quantity of engine coolant, and total
quantity of hydraulic fluid.
---------------------------------------------------------------------------
(1) Crew--200 pounds per crew member required under FAA
regulations,
(2) Oil--350 pounds,
(3) Fuel--The minimum weight of fuel required under FAA regulations
for a flight between domestic points 200 miles apart,\4\
---------------------------------------------------------------------------
\4\ Assumes VFR weather conditions and flights not involving
extended overwater operations.
---------------------------------------------------------------------------
Provided, however, That in the case of aircraft for which a maximum
zero fuel weight is prescribed by the FAA,\5\ maximum payload capacity
means the maximum zero fuel weight, less the empty weight, less all
justifiable aircraft equipment, and less the operating load (consisting
of minimum flight crew, steward's supplies, etc., but not including
disposable fuel or oil).
---------------------------------------------------------------------------
\5\ The maximum zero fuel weight is the maximum permissible
weight of an airplane with no disposable fuel or oil. The zero fuel
weight figure may be found in the FAA's type certificate data
sheets, and/or in FAA-approved flight manuals.
---------------------------------------------------------------------------
Mile means a statute mile, i.e., 5,280 feet.
Nonrevenue passenger means a person traveling free or under token
charges, except those expressly named in the definition of revenue
passenger; a person traveling at a fare or discount available only to
employees or authorized persons of air carriers or their agents or only
for travel on the business of the carriers; and an infant who does not
occupy a seat. (This definition is for 14 CFR part 298 traffic-
reporting purposes and may differ from the definitions used in other
parts by the Federal Aviation Administration and the transportation
Security Administration for the collection of passenger Facility
Charges and Security Fees.) The definition includes, but is not limited
to, the following examples of passengers when traveling free or
pursuant to token charges:
(1) Directors, officers, employees, and others authorized by the
air carrier operating the aircraft;
(2) Directors, officers, employees, and others authorized by the
air carrier or another carrier traveling pursuant to a pass interchange
agreement:
(3) Travel agents being transported for the purpose of
familiarizing themselves with the carrier's services;
(4) Witnesses and attorneys attending any legal investigation in
which such carrier is involved;
(5) Persons injured in aircraft accidents, and physicians, nurses,
and others attending such persons;
(6) Any persons transported with the object of providing relief in
cases of general epidemic, natural disaster, or other catastrophe;
(7) any law enforcement official, including any person who has the
duty of guarding government officials who are traveling on official
business or traveling to or from such duty;
(8) Guests of an air carrier on an inaugural flight or delivery
flights or newly-acquired or renovated aircraft;
(9) Security guards who have been assigned the duty to guard such
aircraft against unlawful seizure, sabotage, or other unlawful
interference;
(10) Safety inspectors of the National Transportation Safety Board
or the FAA in their official duties or traveling to or from such duty;
(11) Postal employees on duty in charge of the mails or traveling
to or from such duty;
(12) Technical representatives of companies that have been engaged
in the manufacture, development or testing of a particular type of
aircraft equipment, when the transportation is provided for the purpose
of in-flight observation and subject to applicable FAA regulations;
(13) persons engaged in promoting air transportation;
(14) Air marshals and other Transportation Security officials
acting in their official capacities and while traveling to and from
their official duties; and
(15) Other authorized persons, when such transportation is
undertaken for promotional purpose.
Passengers carried means passengers on board each flight stage.
Point when used in connection with any territory or possession of
the United States, or the States of Alaska and Hawaii, means any
airport or place where aircraft may be landed or taken off, including
the area within a 25-mile radius of such airport or place; when used in
connection with the continental United States, except Alaska, it shall
have the same meaning except be
[[Page 62841]]
limited to the area within a 3-mile radius of such airport or place:
Provided, That for the purposes of this part, West 30th Street Heliport
and Pan Am Building Heliport, both located in New York City, shall be
regarded as separate points.
Reporting carrier for Schedule T-100 purposes means the air carrier
in operational control of the light, i.e., the carrier that uses its
flight crews under its own FAA operating authority.
Revenue passenger means a passenger for whose transportation an air
carrier receives commercial remuneration. (This definition is for 14
CFR part 298 traffic-reporting purposes and may differ from the
definitions used in other parts by the Federal Aviation Administration
and the Transportation Security Administration for the collection of
Passenger Facility Charges and Security Fees.) This includes, but is
not limited to, the following examples:
(1) Passengers traveling under publicly available tickets including
promotional offers (for example two-for-one) or loyalty programs (for
example, redemption of frequent flyer points);
(2) Passengers traveling on vouchers or tickets issued as
compensation for denied boarding or in response to consumer complaints
or claims;
(3) Passengers traveling at corporate discounts;
(4) Passengers traveling on preferential fares (Government, seamen,
military, youth, student, etc.);
(5) Passengers traveling on barter tickets; and
(6) Infants traveling on confirmed-space tickets.
Revenue passenger-mile means one revenue passenger transported one
mile. Revenue passenger-miles are computed by multiplying the aircraft
miles flown on each flight stage by the number of revenue passengers
carried on that flight stage.
Revenue seat-miles available means the aircraft-miles flown on each
flight stage multiplied by the number of seats available for sale on
that flight stage.
Revenue ton-mile means one ton of revenue traffic transported one
mile. Revenue ton-miles are computed by multiplying the aircraft-miles
flown on each flight stage by the number of pounds of revenue traffic
carried on that flight stage and converted to ton-miles by dividing
total revenue pound-miles by 2,000 pounds.
Revenue ton-miles available means the aircraft-miles flown on each
flight stage multiplied by the number of pounds of aircraft capacity
available for use on that stage and converted to ton-miles by dividing
total pound-miles available by 2,000 pounds.
Scheduled service means transport service operated over routes
pursuant to published flight schedules or pursuant to mail contracts
with the U.S. Postal Service.
Small aircraft means any aircraft originally designed to have a
maximum passenger capacity of 60 seats or less or a maximum payload
capacity of 18,000 pounds or less.
Small certificated air carrier means an air carrier holding a
certificate issued under section 41102 of the Statute that provides
scheduled passenger air service within and between only the 50 States
of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, and the U.S. Virgin Islands with small aircraft as defined
in this section.
Statute means Subtitle VII of title 49 of the United States Code
(Transportation).
Ton means a short ton, i.e., 2,000 pounds.
Wet-Lease Agreement means an agreement under which one carrier
leases an aircraft with flight crew to another air carrier.
Sec. 298.3 Classification.
(a) There is hereby established a classification of air carriers,
designated as ``air taxi operators,'' which directly engage in the air
transportation of persons or property or mail or in any combination of
such transportation and which:
(1) Do not directly or indirectly utilize large aircraft in air
transportation;
(2) Do not hold a certificate of public convenience and necessity
and do not engage in scheduled passenger operations as specified in
paragraph (b) of this section;
(3) Have and maintain in effect liability insurance coverage in
compliance with the requirements set forth in part 205 of this chapter
and have and maintain a current certificate of insurance evidencing
such coverage on file with the Department;
(4) If operating in foreign air transportation or participating in
an interline agreement, subscribe to Agreement 18900 (OST Form 4523 or
OST Form 4507) and comply with all other requirements of part 203 of
this chapter; and
(5) Have registered with the Department in accordance with subpart
C of this part.
(b) There is hereby established a classification of air carriers,
designated as ``commuter air carriers,'' which directly engage in the
air transportation of persons, property or mail, and which:
(1) Do not directly or indirectly utilize large aircraft in air
transportation;
(2) Do not hold a certificate of public convenience and necessity;
(3) Carry passengers on at least five round trips per week on at
least one route between two or more points according to its published
flight schedules that specify the times, days of the week, and places
between which those flights are performed;
(4) Have and maintain in effect liability insurance coverage in
compliance with the requirements set forth in part 205 of this chapter
and have and maintain a current certificate of insurance evidencing
such coverage on file with the Department;
(5) Have and maintain in effect and on file with the Department a
signed counterpart of Agreement 18900 (OST Form 4523) and comply with
all other requirements of part 203 of this chapter; and
(6) Hold a Commuter Air Carrier Authorization issued in accordance
with subpart E of this part.
(c) A person who does not observe the conditions set forth in
paragraph (a) or (b) of this section shall not be an air taxi operator
or commuter air carrier within the meaning of this part with respect to
any operations conducted while such conditions are not being observed,
and during such periods is not entitled to any of the exemptions set
forth in this part.
Sec. 298.4 Requests for statement of authority.
In any instance where an air taxi operator or commuter air carrier
is required by a foreign government to produce evidence of its
authority to engage in foreign air transportation under the laws of the
United States, the Director, Office of Aviation Analysis (X-50), Office
of the Secretary, 400 7th Street, SW., Washington, DC 20590, will, upon
request, furnish the carrier with a written statement, outlining its
general operating privileges under this part for presentation to the
proper authorities of the foreign government.
Subpart B--Exemptions
Sec. 298.11 Exemption authority.
Air taxi operators and commuter air carriers are hereby relieved
from the following provisions of the Statute only if and so long as
they comply with the provisions of this part and the conditions imposed
herein, and to the extent necessary to permit them to conduct air taxi
or commuter air carrier operations:
(a) Section 41101;
(b) Section 41504; except that the requirements of that section
shall apply to:
[[Page 62842]]
(1) Tariffs for through rates, fares, and charges filed jointly by
air taxi operators or commuter air carriers with air carriers or with
foreign air carriers subject to the tariff-filing requirements of
Chapter 415; and
(2) Tariffs required to be filed by air taxi operators or commuter
air carriers which embody the provisions of the counterpart to
Agreement 18900 as specified in part 203 of this chapter;
(c) Section 41702, except for the requirements that air taxi
operators and commuter air carriers shall:
(1) Provide safe service, equipment, and facilities in connection
with air transportation;
(2) Provide adequate service insofar as that requires them to
comply with parts 252 and 382 of this chapter;
(3) Observe and enforce just and reasonable joint rates, fares, and
charges, and just and reasonable classifications, rules, regulations
and practices as provided in tariffs filed jointly by air taxi
operators or commuter air carriers with certificated air carriers or
with foreign air carriers; and
(4) Establish just, reasonable, and equitable divisions of such
joint rates, fares, and charges as between air carriers participating
therein which shall not unduly prefer or prejudice any of such
participating air carriers;
(d) Section 41310, except that the requirements of that subsection
shall apply to through service provided pursuant to tariffs filed
jointly by air taxi operators or commuter air carriers with
certificated air carriers or with foreign air carriers and to
transportation of the handicapped to the extent that that is required
by part 382 of this chapter.
(e) Section 41902;
(f) Section 41708.
Sec. 298.12 Duration of exemption.
The exemption from any provision of the Statute provided by this
part shall continue in effect only until such time as the Department
shall find that enforcement of that provision would be in the public
interest, at which time the exemption shall terminate or be conditioned
with respect to the person, class of persons, or service (e.g.,
limited-entry foreign air transportation market) subject to the
finding.
Subpart C--Registration for Exemption by Air Taxi Operators
Sec. 298.21 Filing for registration by air taxi operators.
(a) Every air taxi operators who plans to commence operations under
this part shall register with the Department not later than 30 days
prior to the commencement of such operations, unless, upon a showing of
good cause satisfactory to the Manager, Program Management Branch (AFS-
260), Federal Aviation Administration, registration within a lesser
period of time is allowed.
(b) The registration of an air taxi operator shall remain in effect
until it is amended by the carrier or canceled by the Department.
(c) Registration by all air taxi operators shall be accomplished by
filing with the Department at the address specified in paragraph (d) of
this section the following:
(1) Air Taxi Registration (OST Form 4507), executed in
duplicate.\6\ This form shall be certified by a responsible official
and shall include the following information:
---------------------------------------------------------------------------
\6\ OST Form 4507 can be obtained from the Manager, Program
Management Branch, Federal Aviation Administration, AFS-260, or on
the World Wide Web at http://www.faa.gov/avr/afs/afs200/afs260/Part298.cfm
.
---------------------------------------------------------------------------
(i) The name of the carrier and its mailing address;
(ii) The carrier's principal place of business, if different from
its mailing address, and its telephone number and fax number;
(iii) The carrier's FAA certificate number, if any, and the address
and telephone number of the carrier's local FAA office;
(iv) The type of service the carrier will offer (scheduled
passenger,\7\ scheduled cargo, mail under a U.S. Postal Service
contract, on-demand passenger, on-demand cargo, or other service such
as air ambulance operations, firefighting or seasonal operations);
---------------------------------------------------------------------------
\7\ Companies proposing to provide scheduled passenger service
at the level established by this Part for commuter air carriers are
not permitted to conduct such operations under their air taxi
registration; such companies must first be found fit, willing and
able to operate and be issued a Commuter Air Carrier Authorization
by the Department.
---------------------------------------------------------------------------
(v) A list of the aircraft that the carrier proposes to operate,
or, in the case of an amendment to the registration, the aircraft that
it is currently operating in its air taxi operations, and the aircraft
type, FAA registration number and passenger capacity of each aircraft;
(vi) For initial registration, the proposed date of commencement of
air taxi operations;
(vii) For amendment, whether the carrier has carried passengers in
foreign air transportation during the previous 12 months;
(viii) Whether the carrier is a citizen of the United States; and
(ix) A certification that the registration is complete and accurate
and that, if the carrier is engaged in foreign air transportation, or
participating in an interline agreement, it subscribes to the terms of
Agreement 18900 (see OST Form 4523).
(2) A certificate of insurance (OST Form 6410) which is currently
effective (or in case of initial registration, is to become effective),
as defined in part 205 of this chapter;
(3) An 8 dollar ($8) registration filing fee in the form of a
check, draft, or postal money order payable to the Department of
Transportation.
(d) Registrations required in paragraph (c) of this section shall
be submitted to the Department of Transportation, Federal Aviation
Administration, Program Management Branch (AFS-260), 800 Independence
Avenue, SW., Washington, DC 20591. For those air taxi operators that
have a mailing address in the State of Alaska, the registrants shall be
filed with the Department of Transportation, Federal Aviation
Administration, Alaskan Region Headquarters (AAL-230), 222 West 7th
Avenue, Box 14, Anchorage, Alaska 99513.
Sec. 298.22 Processing by the Department.
After examination of the OST Form 4507 submitted by the carrier,
the Department will stamp the effective date of the registration on the
form and return the duplicate copy to the carrier to confirm that it
has registered with the Department as required by this part. The
effective date of the registration shall not be earlier than the
effective date of the insurance policy or policies named in the
certificate of insurance filed by the carrier under Sec. 298.21(c)(2).
Sec. 298.23 Notifications to the Department of change in operations.
(a) If any of the information contained on its registration
changes, an air taxi operator shall submit an amendment reflecting the
updated information. This amendment shall be filed no later than 30
days after the change occurs. There is no filing fee for submitting an
amendment.
(b) An amendment shall be made by resubmitting OST Form 4507 to the
Department of Transportation, Federal Aviation Administration, Program
Management Branch (AFS-260), 800 Independence Avenue, SW., Washington,
DC 20591. If the air taxi operator has a mailing address in the State
of Alaska, the form shall be mailed to the Department of
Transportation, Federal Aviation Administration, Alaskan Region
Headquarters, (AAL-230), 222 West 7th Avenue, Box 14, Anchorage, Alaska
99513.
[[Page 62843]]
Sec. 298.24 Cancellation of the registration.
The registration of an air taxi operator may be canceled by the
Department if any of the following occur:
(a) The operator ceases its operations;
(b) The operator's insurance coverage changes or lapses;
(c) The operator fails to file an amended registration when
required by Sec. 298.23;
(d) The operator's Air Carrier Certificate and/or Operations
Specifications is revoked by the Federal Aviation Administration;
(e) The operator fails to qualify as a citizen of the United
States;
(f) The Department determines that it is otherwise in the public
interest to do so.
Subpart D--Limitations and Conditions on Exemptions and Operations
Sec. 298.30 Public disclosure of policy on consumer protection.
(a) Every air taxi and commuter air carrier shall cause to be
displayed continuously in a conspicuous public place at each desk,
station and position in the United States that is in charge of a person
employed exclusively by it, or by it jointly with another person, or by
any agent employed by it to sell tickets to passengers, a sign located
so as to be clearly visible and readable to the traveling public,
containing a statement setting forth the air taxi and commuter air
carrier's policy on baggage liability and denied boarding compensation.
(b) An air taxi or commuter air carrier shall provide a written
notice on or with a passenger's ticket concerning baggage liability as
provided in Sec. 254.5 of this chapter. These ticket notices are
required only for passengers whose ticket includes a flight segment
that uses large aircraft (more than 60 seats).
(c) If the substantive terms of the counter sign and ticket notice
required by this section differ, the terms contained in the required
ticket notice govern.
Sec. 298.31 Scope of service and equipment authorized.
Nothing in this part shall be considered as authorizing the
operation of large aircraft in air transportation, and the exemption
provided by this part to air taxi operators and commuter air carriers
that register with the Department extends only to the direct operation
in air transportation in accordance with the limitations and conditions
of this part of aircraft originally designed to have a maximum
passenger capacity of 60 seats or less or a maximum payload capacity of
18,000 pounds or less.
Sec. 298.32 Limitation on operations to eligible places.
No person shall provide scheduled passenger service as a commuter
air carrier at an eligible place unless it has been found by the
Department to be fit, willing, and able to conduct such service and
issued a Commuter Air Carrier Authorization as provided in subpart E of
this part.
Sec. 298.33 Security requirements.
In conducting operations under this part, an air taxi operator or a
commuter air carrier is required to adhere to all security requirements
established by the Department of Transportation and the Department of
Homeland Security applicable to such operations.
Sec. 298.34 [Reserved]
Sec. 298.35 Limitations on carriage of mail.
An air taxi operator or commuter air carrier is not authorized to
carry mail except pursuant to contract with the U.S. Postal Service
entered into pursuant to section 5402 of the Postal Reorganization Act
(39 U.S.C. 5402).
Sec. 298.36 Limitations on use of business name.
(a) An air taxi operator or commuter air carrier in holding out to
the public and in performing its services in air transportation shall
do so only in the name or names in which its air carrier certificate is
issued pursuant to section 44702 of the Statute by the Federal Aviation
Administration, and in which it is registered with the Department under
this part, or in which its Commuter Air Carrier Authorization is issued
or other trade name is registered.
(b) Slogans shall not be considered names for the purposes of this
section, and their use is not restricted hereby.
(c) Commuter air carriers are subject to the provisions of part 215
of this chapter with regard to the use and change of air carrier names.
(d) Neither the provisions of this section nor the grant of a
permission hereunder shall preclude Department intervention or
enforcement action should there be evidence of a significant potential
for, or of actual, public confusion.
Sec. 298.37 Prohibition of services not covered by insurance.
An air taxi operator or commuter air carrier shall not operate in
air transportation or provide or offer to provide air transportation
unless there is in effect liability insurance which covers such
transportation and which is evidenced by a current certificate of
insurance on file with the Department as required by part 205 of this
chapter.
Sec. 298.38 Financial security arrangements for operating Public
Charters.
When an air taxi operator or commuter air carrier performs a Public
Charter under part 380 of this chapter, either:
(a) The air taxi operator or commuter air carrier shall meet the
bonding or escrow requirements applicable to certificated air carriers
as set forth in Sec. 212.8 of this chapter; or
(b) The air taxi operator or commuter air carrier shall ensure that
it does not receive any payments for the charter until after the
charter has been completed. In this case, its contracts with the
charter operator and the charter operator's depository bank, if any,
shall state that the charter operator or bank, as applicable, shall
retain control of and responsibility for all participant funds intended
for payment for air transportation until the charter has been
completed, notwithstanding any provision of part 380 of this chapter.
Subpart E--Commuter Air Carrier Authorizations
Sec. 298.50 Application.
(a) Any person desiring to provide air transportation as a commuter
air carrier must first obtain a Commuter Air Carrier Authorization.
This shall be accomplished by filing with the Department--
(1) An application in accordance with the requirements of parts 201
and 302 of this chapter;
(2) Data in accordance with part 204 of this chapter to support a
determination by the Department that the person is ``fit, willing, and
able'' to operate the proposed commuter service; and
(3) A $670 filing fee in the form of a check, draft, or postal
money order payable to the Department of Transportation.
(b) An executed original and two true copies of an application for
a Commuter Air Carrier Authorization shall be filed with Department of
Transportation Dockets, 400 7th Street, SW., PL-401, Washington, DC
20590.
Sec. 298.51 Processing by the Department.
In processing applications filed in accordance with Sec. 298.50,
the Department will generally follow the procedures set forth in
Sec. Sec. 302.07 through 302.211 of this chapter.
Sec. 298.52 Air taxi operations by commuter air carriers.
(a) A commuter air carrier that holds an effective Commuter Air
Carrier Authorization and otherwise meets the requirements of this part
is also authorized to conduct air taxi
[[Page 62844]]
operations (e.g., scheduled cargo, mail under a U.S. Postal Service
contract, on-demand passenger, on-demand cargo, or other service such
as air ambulance operations, firefighting or seasonal operations)
without having to meet the registration requirements of subpart C of
this part, except as provided in paragraph (b) of this section.
(b) Should a commuter air carrier cease conducting all scheduled
passenger operations and its Commuter Air Carrier Authorization is
suspended pursuant to Sec. Sec. 298.53 and/or 204.7 of this chapter,
it may continue to conduct air taxi operations provided that the
carrier maintains in effect liability insurance coverage as required
for such operations by part 205 of this chapter and, within 10 days of
the cessation of scheduled passenger operations, registers as an air
taxi operator in accordance with subpart C of this part; and provided
further that the carrier continues to hold authority from the Federal
Aviation Administration to conduct such air taxi operations.
Sec. 298.53 Suspension or revocation of authority.
A Commuter Air Carrier Authorization may be suspended or revoked if
any of the following occur:
(a) The operator fails to maintain insurance coverage as required
by part 205 of this chapter for commuter operations;
(b) The scheduled passenger authority under the operator's Air
Carrier Certificate is suspended or revoked by the Federal Aviation
Administration;
(c) The operator does not commence operations for which it has been
found fit, or the operator ceases those operations as provided in Sec.
204.7 of this chapter;
(d) The Department finds that the carrier is not fit, willing, and
able to conduct scheduled service or fails to qualify as a citizen of
the United States; or
(e) The Department determines that it is otherwise in the public
interest to do so.
PART 380--PUBLIC CHARTERS
16. The authority citation for part 380 continues to read as
follows:
Authority: 49 U.S.C. 40101, 40102, 40109, 40113, 41101, 41103,
41301, 41504, 41702, 41708, 41712, 46101.
Sec. 380.2 [Amended]
17. In Sec. 380.2 in the definition of Direct air carrier add the
word ``, commuter'' after ``certificated''; remove the words ``or
commuter air carrier'' after ``air taxi operator'' the first time that
term is used; and add ``authorization,'' between ``certificate'' and
``permit''.
PART 385--STAFF ASSIGNMENTS AND REVIEW OF ACTION UNDER ASSIGNMENTS
18. The authority citation for part 385 continues to read as
follows:
Authority: 49 U.S.C. subtitle I, chapters 401, 411, 413, 415,
417.
Sec. 385.12 [Amended]
19. In Sec. 385.12(e), remove the words ``and commuter air
carriers''.
PART 389--FEES AND CHARGES FOR SPECIAL SERVICES
20. The authority citation for part 389 continues to read as
follows:
Authority: Sec. 204, 1002, Pub. L. 85-726, as amended, 72 Stat.
743, 797; 49 U.S.C. 1324, 1502. Act of August 31, 1951, ch. 376, 65
Stat. 268; 31 U.S.C. 483a.
Sec. 389.25 [Amended]
21. In Sec. 389.25(a), in the table, under the entry Code 7,
remove the words ``Scheduled Passenger Commuter Registration'' and add,
in their place, ``Commuter Air Carrier Authorization''.
Karan K. Bhatia,
Assistant Secretary for Aviation and International Affairs.
[FR Doc. 04-23859 Filed 10-27-04; 8:45 am]
BILLING CODE 4910-62-M