DEPARTMENT OF TRANSPORTATION

RESEARCH AND INNOVATIVE TECHNOLGY ADMINISTRATION

BUREAU OF TRANSPORTATION STATISTICS

ACCOUNTING AND REPORTING DIRECTIVE

No. [28]{.underline}9

Issue Date: [02-20-09]{.underline} Effective Immediately Schedules P-1.1
and P-1.2

# Reporting Ancillary Revenues on Form 41

The purpose of this Accounting and Reporting Directive is to assist
carriers with reporting their ancillary revenues in a like manner.
Recently, some carriers have unbundled their passenger fares by going to
a type of [a la carte]{.underline} pricing plan. For example, some
carriers now charge a fee for all checked baggage, some carriers charge
extra for window or aisle seats, and most carriers now charge for food
and drink.

All revenues derived from charges for passenger baggage are reported in
account 3906.2 Property-Excess Passenger Baggage on Schedule P-1.2. Any
passenger baggage which is not transported free-of-charge is considered
excess passenger baggage. For carriers submitting Schedule P-1.1, report
the baggage fees on Line 2, Scheduled Service -- Other or on Line 3,
Nonscheduled Service depending on the type of service operated.

All charges for seating assignments are considered a part of the ticket
price and are reported in either Account 3901, Transport
Revenues-Passenger or account 3907.1 -Transport Revenues - Charter
Passengers. For carriers submitting Schedule P-1.1, report the seating
assignment fees on Line 1, Scheduled Service -- Passenger or on Line 3,
Nonscheduled Service depending on the type of service operated.

Rebooking and ticket cancellation fees are reported in account 3919.1,
Reservation Cancellation Fees. For carriers submitting Schedule P-1.1,
report the rebooking or cancellation fees on line 1 Scheduled Service --
Passenger or on Line 3, Nonscheduled Service depending on the type of
service operated.

Revenues generated from code-share operations that are operated by your
code-share partner are reported in Account 4898, Transport-Related
Revenues. For Schedule P-1.1 filers, report these revenues on Line 5,
Transport Related Revenue -- Other.

Revenues generated from code-share passenger operations where you are
the operating carrier are reported in Account 3901, Transport
Revenues-Passenger or Account 3907.1 Transport Revenues -- Charter
Passenger depending on the type of service sold to the passenger.
Schedule P-1.1 filers report these revenues on either Line 1, Scheduled
Service -- Passenger or on Line 3, Nonscheduled Service depending on the
type of service operated.

On-board sales of food, drink, pillows, blankets, entertainment, or any
other ancillary items are reported in Account 4898, Transport-Related
Revenues. For Schedule P-1.1 filers, these revenues are reported on Line
5, Transport Related Revenue -- Other.

Revenues for transporting pets in the belly of the aircraft are reported
in account 3919.2, Miscellaneous Operating Revenue. However, if a
passenger pays for a seat for the pet, the revenues are then reported
either in account 3901, Operating Revenues - Passenger or 3907.1,
Operating Revenues - Charter Passenger. Schedule P-1.1 filers report
revenues from transporting a pet in a passenger seat on Line 1,
Scheduled Service -- Passenger. When the pet is transported in the belly
of the aircraft, the revenues are reported either on Line 2 Transport
Revenue -- Other or Line 3, Transport Revenue -- Nonscheduled Service.

Revenues generated from gift-shop sales, restaurant sales, fuel sales,
rental revenues, maintenance conducted for other carriers, etc. are
reported in Account 4898, Transport-Related Revenues.

Passenger Facility Charges (PFCs) and other taxes are not regarded as
revenue to the collecting carriers. They are funds held in trust by
collecting carriers who serve as an agent for the beneficial interest of
the public agencies imposing the fees. All such collections held by the
carriers are property in which the carriers hold only a possessory
interest and not an equitable interest. These items are not reported on
either Schedules P-1.1 or P-1.2. PFCs are classified as a Collection as
Agent --Other and reported on the Balance Sheet in Account 2190, Other
Current Liabilities. The small fees paid to the air carriers for
collecting the PFCs are recorded as revenue and reported on Scheduled
P-1.2 in Account 3919.2, Miscellaneous Operating Revenues. P-1.1 filers
report these revenues on Line 2, Transport Revenues -- Other.

See Table below for quick reference to reporting various revenue items.
You should e-mail <jeff.gorham@dot.gov> for questions regarding this
directive. This action is taken under 14 CFR Section 385.19(b).

Anne Suissa

Director

Office of Airline Information

Table for Reporting Operating Revenues

**[Schedule P-1.2]{.underline}**

**[Type of Revenue]{.underline} [Account Number]{.underline}**

Baggage Fees Acct. 3906.2

Seating Assignment Fees -- Scheduled Service Acct. 3901

Seating Assignment Fees -- Nonscheduled Service Acct. 3907.1

Rebooking Fees Acct. 3919.1

Cancellation Fees Acct. 3919.1

Code-Share Revenues (by the non-operator) Acct. 4898

Code Share Revenues --scheduled service by the operator Acct. 3901

On-board sales of food, drink, blankets, pillows

> & entertainment Acct. 4898

Transport of pets (carried in aircraft belly) Acct. 3919.2

Transport of pets (seat in scheduled service) Acct. 3901

Transport of pets (seat in non-scheduled service) Acct. 3907.1

Gift shop sales Acct. 4898

Restaurant sales Acct. 4898

Fuel sales Acct. 4898

Rental Revenues Acct. 4898

Maintenance conducted for other carriers Acct. 4898

Passenger Facility Charges (Collection Compensation) Acct. 3919.2

Passenger Facility Charges Not reported\*

**[Schedule P-1.1]{.underline}**

**[Type of Revenue]{.underline} [Line Number]{.underline}**

Baggage Fees Line 2 or 3

Seating Assignment Fees -- Scheduled Service Line 1

Seating Assignment Fees -- Nonscheduled Service Line 3

Rebooking Fees Line 1 or 3

Cancellation Fees Line 1 or 3

Code-Share Revenues (by the non-operator) Line 5

Code Share Revenues --scheduled service by the operator Line 1

On-board sales of food, drink, blankets, pillows

> & entertainment Line 5

Transport of pets (carried in aircraft belly) Line 2

Transport of pets (seat in scheduled service) Line 1

Transport of pets (seat in non-scheduled service) Line 3

Gift shop sales Line 5

Restaurant sales Line 5

Fuel sales Line 5

Rental Revenues Line 5

Maintenance conducted for other carriers Line 5

Passenger Facility Charges (Collection Compensation) Line 3

Passenger Facility Charges Not Reported\*

\* Passenger facility Charges that are collected as agent for public
agencies are classified as (Collection as Agent -- Other) are reported
on the Balance Sheet in Other Current Liabilities.