[Federal Register Volume 60, Number 97 (Friday, May 19, 1995)]
[Proposed Rules]
[Pages 26848-26851]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12372]



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DEPARTMENT OF TRANSPORTATION
Office of the Secretary

14 CFR Part 221

[Docket No. 50355; Notice No. 95-5]
RIN 2105-AC23


Electronic Filing of International Airline Passenger Rules 
Tariffs

AGENCY: Office of the Secretary, DOT.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Department of Transportation proposes to amend its 
regulations governing the filing of airline tariffs. Under the proposed 
rule, carriers would be authorized to electronically file the rules 
governing passenger fares and their conditions of service, subject to 
certain format requirements necessary to enable the Department to work 
with differing filing systems. The Department's regulations have 
permitted the electronic filing of passenger fares since 1989. The 
Department is proposing this action at the request of tariff publishing 
agents in order to extend the efficiencies of electronic data 
transmission and processing to the filing of rules tariffs. Filers 
could, however, continue to file fare rules on paper if they preferred.

DATES: Comments should be received no later than June 19, 1995.

ADDRESSES: Five (5) copies of any comments should be sent to the 
Documentary Services Division, C-55, U.S. Department of Transportation, 
400 7th Street, SW., Washington, DC 20590-0002, and should refer to 
this docket. To receive acknowledgment of comments, include a stamped, 
self-addressed postcard which the Docket Clerk will return stamped with 
time and date.

FOR FURTHER INFORMATION CONTACT: Mr. John H. Kiser, Pricing and 
Multilateral Affairs Division, Department of Transportation, at the 
address above. Telephone: (202) 366-2435.

SUPPLEMENTARY INFORMATION:

Background

    On January 19, 1989, the Department published a final rule that 
allows international passenger fares tariffs (fares and associated 
data) to be filed electronically, as an alternative to the filing of 
paper tariffs.<SUP>1 54 FR 2087, January 19, 1989. The rule, contained 
in subpart W of part 221, established a number of criteria that have to 
be met for carriers or their agents to make such filings, including a 
signed agreement or agreements providing for the maintenance and 
security of the on-line tariff database. Approval by the Department of 
an application containing various hardware and software service 
commitments, as well as the filer's proposed format, is also required.

    \1\Associated data include arbitraries, footnotes, routing 
numbers and fare class explanations. See 14 CFR 221.4 and 221.283.
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    The 1989 rule was issued in response to an emergency petition for 
rulemaking by the Airline Tariff Publishing Company (ATPCO), requesting 
an expedited amendment to part 221 to permit the electronic filing of 
international passenger fares on an experimental basis. The Notice of 
Proposed Rulemaking was issued on July 8, 1988, at 53 FR 25615. 
Although ATPCO and other commenters then urged that the rule be 
broadened to include all international tariffs, the Department 
determined to address the filing of passenger fare rules and cargo 
tariffs in subsequent proceedings, citing the need for expedition as 
well as the need for a period of operational experience to determine 
whether the filing criteria and procedures set forth in Subpart W 
adequately meet regulatory needs.
    ATPCO, a publishing agent owned by and representing a number of 
U.S. and foreign airlines, was initially the only entity that applied 
for authority to make electronic fare filings under the rule. It began 
test filings in July 1989, and in December 1989 it received final 
approval from the Department to commence official electronic filings. 
On November 28, 1990, ATPCO filed a petition for rulemaking in Docket 
47288, requesting the amendment of part 221 to permit the alternative 
electronic filing of all international tariffs. The petition included 
suggested regulatory changes to accommodate the filing of passenger and 
cargo rules, and cargo rates.
    In February 1992, the Department permitted ATPCO to begin filing 
electronic passenger rules on an unofficial test basis. The official 
rules, however, continue to be filed on paper.
    By a Notice of Proposed Rulemaking issued October 15, 1992, in 
Docket 48385, 57 FR 47303, the Department proposed extensive revisions 
to part 221 to permit the electronic filing of all international 
tariffs. Following a comment period and a public meeting, the proposal 
was withdrawn for further study of various technical issues, and the 
proceeding was terminated. 58 FR 12350, March 4, 1993.

Requests for Further Action

    Since the termination of the 1992 rulemaking, ATPCO has informally 
urged the Department to take whatever actions may be necessary to 
develop the capability for the acceptance and processing of all tariffs 
electronically.
    In addition, another entity has demonstrated interest in filing 
international tariffs electronically with the Department. The Societe 
Internationale de Telecommunications Aeronautiques (SITA), a tariff 
publishing service which developed an electronic tariff filing system 
for use in Europe and elsewhere, has demonstrated its ProFile system to 
the Department's staff and is making modifications to accommodate U.S. 
requirements and procedures. On June [[Page 26849]] 21, 1994, SITA 
submitted an application under Sec. 221.260 for the necessary 
Department approvals to permit it to begin electronic filing of 
international passenger tariffs, encompassing fares and rules to the 
extent authorized by the Department. The application included a signed 
agreement for the maintenance and security of the on-line tariff 
database, as well as certain other information and undertakings 
required by section 221. SITA is working with the staff to resolve any 
remaining areas of nonconformity. We expect SITA to begin filing 
passenger fares and rules on an unofficial test basis in the near 
future, and we will then act on its application to file official 
tariffs based on experience with the test filings.

Proposal

    The Department proposes to amend Sec. 221.251 of subpart W of its 
tariff filing regulations, 14 CFR part 221, to authorize the electronic 
filing by all airlines and tariff publishing agents of any or all rules 
relating to the provision of passenger services. Like the filing of 
passenger fares already authorized, this alternative to the traditional 
paper format and procedures set forth in part 221 is permissive in 
nature, and would be governed by the provisions of subpart W. If 
amended as proposed, subpart W would authorize the electronic filing of 
all tariff material relating to passenger services that airlines are 
required to file with the Department, although the existing 
requirements for final approval of a particular tariff filing system 
and its associated formats, set forth in subpart W, must be complied 
with before the Department will accept authorized electronic filings as 
official tariffs.
    The Department is also proposing to amend Sec. 221.283 of subpart W 
to add certain minimum tariff format requirements to provide a basic 
framework for the processing of tariff rules, which differ from fare 
filings in many technical respects. The existing format requirements 
set forth in Sec. 221.283(b)(8), developed largely for the processing 
of fares and associated data, would not be changed but would be 
described as specifically applicable to the filing of fares. The new 
format requirements for the filing of passenger fare rules would be set 
forth in a new Sec. 221.283(b)(9). Consequential amendments would be 
made to provisions regarding maintenance of historical data (paragraph 
(c) of Sec. 221.283, and Sec. 221.260(b)(7) ).

Basis for the Proposal

    Since the adoption of the present provisions of subpart W in 1989, 
and the beginning of test processing of unofficial electronic passenger 
fare rules in 1992, both ATPCO and SITA have developed and/or refined 
their software to provide comprehensive formats for the electronic 
filing of specific passenger fare rules as well as fares.<SUP>2 While 
neither system has been formally approved for official filing of 
electronic rules tariffs, we believe that sufficient progress has been 
made for us to remove the legal impediment in Sec. 221.251(a) to 
considering such approvals. Similarly, there may be other entities 
interested in testing competing filing systems, for whom the authority 
to offer a fuller range of filing services could be a marketing 
benefit.

    \2\A ``specific fare rule'' is one that applies exclusively to a 
particular fare type, for which specific fare levels are filed in 
each city-pair market where the fare applies.
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    The industry currently files about 42,000 official tariff rule 
pages per year, in nearly 9,000 submissions. Nearly all of these rule 
changes are filed for effect on less than bilateral/statutory notice 
with an accompanying Special Tariff Permission Application (STPA). The 
carriers are thus filing each rule provision on paper twice, once with 
the STPA and once as the formal tariff submission.
    Under the proposed amendments, a single electronic filing could 
replace two paper filings for most rules, significantly reducing the 
industry's submission, printing, and dissemination costs. Similarly, 
the Department's review, filing, and archival costs will be 
substantially reduced.
    The Department's staff has utilized its experience with existing 
paper and electronic filing systems to identify those specific tariff 
rule provisions that we currently believe are necessary for providing 
sufficient information and for the effective processing and use of 
electronic rules formats developed by any filing agent. The provisions 
would not necessarily have to be presented in the same order as listed 
in proposed Sec. 221.283(b)(9), but each rule would have to include at 
least all of the listed provisions.<SUP>3 Most individual format issues 
have been and will continue to be resolved through consultations 
between the Department and individual filing agents, as provided in 
Sec. 221.260(b)(1) of the current regulations. However, the Department 
recognizes the need to propose further amendments to part 221 to deal 
comprehensively with general format and procedural issues, as well as 
with the question of the appropriate filing fees to be charged in the 
future, as soon as adequate data and experience are available. In the 
interim, we believe that the limited action being proposed here is 
warranted because it will facilitate increased speed and efficiency in 
the tariff filing process with direct cost savings to the carriers, the 
traveling public, and the taxpayer; it will help provide carriers, for 
the first time, with a choice of electronic filing agents and services; 
and it will provide valuable experience that will facilitate the 
drafting of a more comprehensive rule.

    \3\Under this proposal, we would consider each provision of an 
electronic tariff rule to be a ``record'' for purposes of assessing 
filing fees under 14 CFR 389.20(b) and 389.25(b).
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    Three format issues warrant additional discussion here. First, we 
note that our proposed format criteria do not yet provide for the 
filing of so-called ``general'' fare rules and ``unpublished fare'' 
rules. General fare rules typically include provisions applicable to 
all passengers, relating to general conditions of carriage such as 
liability, baggage, fare construction, and refunds. Unpublished fare 
rules typically establish discounts for certain classes of traffic not 
limited to specific markets, e.g., children and infants, agents, tour 
conductors, emigrants and cargo attendants. Electronic formats for 
filing general and unpublished fare rules are still under development.
    Second, we propose not to accept ``Intentionally Left Blank'' as a 
category entry in an electronic fare rule, nor would we accept the 
complete omission of a rule category to serve as a default to a general 
rule.<SUP>4 These practices, which have been a source of confusion in 
the paper filing environment, would become increasingly confusing in an 
environment where the fare rules are filed electronically but the 
general rules are still filed on paper. Where carriers wish to default 
to a general rule for a particular condition, we propose to require 
that electronic rules contain a specific entry for each category in the 
rule. The entry could be either a specific reference to the relevant 
general rule or specific conditions extracted from the general rule.

    \4\ Where a particular provision is intentionally left blank in 
a rule, no such provision applies to the fare covered by the rule. 
For example, where the ``group requirements'' section is left blank, 
it means there are no group requirements.
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    And third, in the test electronic rules we have received thus far, 
carriers have been including some extraneous material that is not 
properly part of a tariff and of which we take no regulatory notice, 
e.g., provisions concerning ticket and booking codes and annotations, 
wait listing procedures, and reservation record requirements. We 
recognize that carriers submit such material to their filing agents 
along with associated fare and rule changes for non-regulatory 
[[Page 26850]] purposes, such as notifying computer reservations 
systems of the carriers' technical procedures. However, this extraneous 
material will not be approved by the Department, and its inclusion in 
official electronic rules will only cause confusion. We, therefore, 
propose to preclude such material in official electronic tariff 
filings.
    The proposed amendment to Sec. 221.251, as drafted, does not 
encompass the filing of cargo rates and rules tariffs. By a Notice of 
Proposed Rulemaking issued October 24, 1994, in Docket 49827, the 
Department proposed a blanket exemption for all carriers from the 
statutory and regulatory duty to file international property (cargo) 
tariffs with the Department. If the proposed rule is adopted, carriers 
will soon cease filing cargo rate and rules tariffs in any format. To 
the extent that a filing requirement might be retained, electronic 
format issues can be addressed at a later date.
    The amendments proposed here would leave in place the procedural 
and technical requirements of subpart W, which each electronic filer 
must satisfy before official electronic rule filings may be accepted. 
In addition to those listed in Sec. 221.260, for example, are 
provisions such as those in Sec. 221.500 regarding the submission of 
machine-readable copies of records existing when electronic filing is 
implemented, and the cancellation of records from the paper tariff. As 
noted above, Sec. 221.260 includes the requirement that the Department 
approve the precise format used by each electronic filer before 
official filings can be made. This is normally done by letter once a 
period of successful test filings has been accomplished and the 
Department is satisfied that the filing system meets regulatory needs. 
However, subpart W also imposes continuing performance requirements, 
violations of which could lead to enforcement action or even withdrawal 
of electronic filing privileges.
    Finally, we would note that the success of electronic rules filing 
will depend on scrupulous adherence to the Department's regulatory 
requirements by both carriers and their filing agents. The Department's 
staff will be closely monitoring performance in this regard, and will 
work with parties to ensure the utility and integrity of the electronic 
tariff system.
    The Department is providing less than the usual 60 days for comment 
because the proposal is merely offering an alternative method of 
compliance.

Regulatory Analyses and Notices

Executive Order 12866 and DOT Regulatory Policies and Procedures

    The Office of Management and Budget (OMB) has determined that this 
proposal is not a significant regulatory action under Executive Order 
12866 and, therefore, not subject to OMB review. The Department has 
determined that the proposal is not significant under the Department's 
Regulatory Policies and Procedures (44 FR 11034, Feb. 26, 1979). The 
proposal would, if adopted, reduce the paperwork burden for all U.S. 
and foreign air carriers now filing their passenger rules tariffs on 
paper. The Department expects the economic impact of the proposal, 
however, to be modest. The proposal would not result in any required 
additional costs to carriers or the public. It would simply provide an 
alternative method of meeting the statutory tariff-filing requirements. 
The potential estimated savings are discussed below.

Executive Order 12612
    This proposal has been analyzed in accordance with the principles 
and criteria contained in Executive Order 12612 (``Federalism''), and 
the Department has determined the rule does not have sufficient 
federalism implications to warrant the preparation of a Federalism 
Assessment.

Regulatory Flexibility Act

    I certify that this rule, if adopted, will not have a significant 
economic impact on a substantial number of small entities. The tariff 
filing requirements apply to scheduled service air carriers. The vast 
majority of the air carriers filing international (``foreign'') 
passenger rules tariffs are large operators with revenues in excess of 
several million dollars each year. Small air carriers operating 
aircraft with 60 seats or less and 18,000 pounds payload or less that 
offer on-demand air- taxi service are not required to file such 
tariffs.

Paperwork Reduction Act

    With respect to the Paperwork Reduction Act, this proposal would 
replace two paper filings for most rules with a single electronic 
filing. Thus, while this proposal will significantly reduce the 
paperwork burden on industry and government, it does not eliminate 
information collection requirements that require the approval of the 
Office of Management and Budget pursuant to the Act.
    If the proposed amendments to existing regulations are implemented, 
the Department estimates that filing of passenger tariff rule pages in 
paper format would be reduced by about ninety percent, with the 
remaining ten percent continuing to be filed in paper form. A total of 
about 42,000 passenger tariff rule pages and about 6,400 Passenger 
Special Tariff Permission Applications (STPA's) were filed in 1994. At 
a filing fee of $2 a rule page and $12 a passenger STPA, we estimate 
the carriers could save as much as $145,000 annually in filing fees 
paid to the Department. In addition, ATPCO charges the carriers $35.00 
for each filed tariff page and up to $30.00 for each STPA. On this 
basis, we estimate that implementation of the proposal could save 
carriers an additional $1,500,000 in associated fees paid to ATPCO, 
producing potential total savings to the carriers in excess of 
$1,600,000 per year.
    While not estimated, we expect that costs of governmental review, 
filing and archiving of paper tariff rule filings will be similarly 
reduced.
    The reporting and recordkeeping requirement associated with this 
rule are being submitted to OMB for approval in accordance with 44 
U.S.C. chapter 35 under OMB NO. 2105-AC23; Administration: Department 
of Transportation; TITLE: Electronic Filing of Passenger Service Rules 
Tariffs; NEED FOR INFORMATION: Authorizes the electronic filing of 
rules governing the provision of passenger services; PROPOSED USE OF 
INFORMATION: Authorization is based on the request of tariff publishing 
agents to extend the efficiencies of electronic data transmission and 
processing to the filing of rules tariffs; FREQUENCY: An initial 
passenger tariff rule filing is required of each respondent; changes 
are voluntary, whenever an air carrier elects; BURDEN ESTIMATE: 5.34 
hours for an STPA or a passenger rule page; RESPONDENTS: 45; FORM(S) 
48,400 pages or applications per annum; AVERAGE BURDEN HOURS PER 
RESPONDENT: 5530 hours.
    For further information on paperwork reduction contact: The 
Information Requirements Division, M-34, Office of the Secretary of 
Transportation, 400 Seventh Street, SW., Washington, DC. 20590, (202) 
366-4735 or DOT Desk Officer, Office of Management and Budget, New 
Executive Office Building, Room 3228, Washington, D.C. 20503.

Regulation Identifier Number

    A regulation identifier number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
April and October of each year. The RIN number contained in the 
[[Page 26851]] heading of this document can be used to cross reference 
this action with the Unified Agenda.

List of Subjects in 14 CFR Part 221

    Agents, Air carriers, Foreign air carriers, Tariffs.

    This rule is being issued under authority delegated in 49 CFR 
1.56(j)(2)(ii). For the reasons set forth in the preamble, 14 CFR Part 
221 would be amended to read as follows:

PARTS 221--TARIFFS

Subpart W--Electronically Filed Tariffs

    1. The authority citation for part 221 would continue to read as 
follows:

    Authority: 49 USC 40101, 40109, 40113, 46101, 46102, Chapter 
411, Chapter 413, Chapter 415, and Subchapter I of Chapter 417, 
unless otherwise noted.

    2. Section 221.251 Applicability of the subpart is amended by 
revising Paragraph (a) to read as follows:
Sec. 221.251  Applicability of subpart.

    (a) Any carrier, consistent with the provisions of this subpart, 
and this part 221 generally, may file its international passenger fares 
tariffs and international passenger rules tariffs electronically in 
machine-readable form as an alternative to the filing of printed paper 
tariffs as provided for elsewhere in this part 221. This subpart 
applies to all carriers and tariff publishing agents and may be used by 
either if the carrier or agent complies with the provisions of this 
subpart W. Any carrier or agent that files electronically under this 
subpart must transmit to the Department the remainder of the tariff in 
a form consistent with this part 221, subparts A-V on the same day that 
the electronic tariff would be deemed received under Sec. 221.270(b).
* * * * *
    3. Paragraph (b)(7) of Sec. 221.260, Requirements for filing, is 
revised to read as follows:


Sec. 221.260  Requirements for filing.

* * * * *
    (b) * * *
    (7) The filer shall maintain all fares and rules with the 
Department and all Departmental approvals, disapprovals and other 
actions, as well as all Departmental notations concerning such 
approvals, disapprovals or other actions, in the on-line tariff 
database for a period of two (2) years after the fare or rule becomes 
inactive. After this period of time, the carrier or agent shall provide 
the Department, free of charge, with a copy of the inactive data on a 
machine-readable tape or other mutually acceptable electronic medium.
* * * * *
    4. Paragraph (b)(8) of Sec. 221.283, The filing of tariffs and 
amendments to tariffs, is amended by revising the introductory text, 
and by adding a new paragraph (b)(9) to read as follows:


Sec. 221.283  The filing of tariffs and amendments to tariffs.

* * * * *
    (b)* * *
    (8) Fares tariff, or proposed changes to the fares tariffs, 
including:
* * * * *
    (9) Rules tariff, or proposed changes to the rules tariffs, 
including:
    (i) Title: General description of fare rule type(s) and geographic 
area(s) under the rule;
    (ii) Application: Specific description of fare class(es), 
geographic area(s), type of transportation (one way, round- trip, 
etc.);
    (iii) Period of Validity: Specific description of permissible 
travel dates and any restrictions on when travel is not permitted;
    (iv) Reservations/ticketing: Specific description of reservation 
and ticketing provisions, including any advance reservation/ ticketing 
requirements, provisions for payment (including prepaid tickets), and 
charges for any changes;
    (v) Capacity Control: Specific description of any limitation on the 
number of passengers, available seats, or tickets;
    (vi) Combinations: Specific description of permitted/restricted 
fare combinations;
    (vii) Length of Stay: Specific description of minimum/maximum 
number of days before the passenger may/must begin return travel;
    (viii) Stopovers: Specific description of permissible conditions, 
restrictions, or charges on stopovers;
    (ix) Routing: Specific description of routing provisions, including 
transfer provisions, whether on-line or inter-line;
    (x) Discounts: Specific description of any limitations, special 
conditions, and discounts on status fares, e.g. children or infants, 
senior citizens, tour conductors, or travel agents, and any other 
discounts;
    (xi) Cancellation and Refunds: Specific description of any special 
conditions, charges, or credits due for cancellation or changes to 
reservations, or for request for refund of purchased tickets;
    (xii) Group Requirements: Specific description of group size, 
travel conditions, group eligibility, and documentation;
    (xiii) Tour Requirements: Specific description of tour 
requirements, including minimum price, and any stay or accommodation 
provisions;
    (xiv) Sales Restrictions: Specific description of any restrictions 
on the sale of tickets;
    (xv) Rerouting: Specific description of rerouting provisions, 
whether on-line or inter-line, including any applicable charges; and
    (xvi) Miscellaneous provisions: Any other applicable conditions.
    5. Paragraph (c) of Sec. 221.283 is amended by redesignating 
existing paragraphs (c) (8) through (15) as paragraphs (c) (9) through 
(16), respectively, and by adding a new paragraph (c) (8) to read as 
follows:


Sec. 221.283  The filing of tariffs and amendments to tariffs.

* * * * *
    (c) * * *
    (8) Rule text;
* * * * *
    Issued in Washington DC, on May 15, 1995.
Patrick V. Murphy
Acting Assistant Secretary for Aviation and International Affairs.
[FR Doc. 95-12372 Filed 5-18-95; 8:45 am]
BILLING CODE 4910-62-P