Federal Register / Vol. 73, No. 76 / Friday, April 18, 2008 / Rules and Regulations 21023 

9701.706(k)(3)(iii), the Board must 

consider requests for additional 

discovery under the ‘‘necessity and 

good cause’’ standard. 

Suggestion 4: The language regarding 

the right to a hearing set out in 5 CFR 

1210.19(b) should be modified to make 

it clear that, absent summary judgment, 

a hearing must be held. 

MSPB’s Response to Suggestion 4: 

Read together, subparts (a) and (b) of 5 

CFR 1210.19 make it clear that, absent 

summary judgment, there is a right to a 

hearing but that the form of hearing to 

be held is within the administrative 

judge’s discretion. 

Suggestion 5: The summary judgment 

provision, at 5 CFR 1210.20, should be 

stricken in its entirety or, in the 

alternative, subsection (d), which 

provides that an administrative judge 

may initiate summary judgment sua 

sponte if he or she determines that 

material facts may not be in dispute, 

should be stricken. 

MSPB’s Response to Suggestion 5: In 

order to reconcile its regulations with 

DHS’s regulations, at 5 CFR 

9701.706(k)(5), MSPB’s regulations must 

require an administrative judge to 

render summary judgment on the law 

without a hearing when there are no 

material facts in dispute. That is the 

case whether summary judgment is 

initiated by a party or by the judge. 

Suggestion 6: The mitigation of 

penalty standard in 5 CFR 1210.21(b) 

should be stricken in its entirety. 

MSPB’s Response to Suggestion 6: In 

order to reconcile its regulations with 

DHS’s regulations, at 5 CFR 

9701.706(k)(6), MSPB’s regulations must 

contain DHS’s standard for mitigation of 

penalties. 

Suggestion 7: All references to 

mandatory removal offenses should be 

stricken from 5 CFR Part 1210. 

MSPB’s Response to Suggestion 7: The 

Board lacks authority to revoke the 

appeals process for mandatory removal 

offenses established by DHS. However, 

as explained above, the Board is 

adopting the suggestion of NTEU that 5 

CFR 1210.41(a) be clarified to reflect 

that a de novo standard of review 

applies to allegations of discrimination 

contained in mixed case appeals of MRP 

decisions. 

List of Subjects in 5 CFR Parts 1201, 

1210, and 1215 

Administrative practice and 

procedure, Civil rights, Government 

employees. 

■ For reasons set forth in the preamble, 

the interim rule published October 5, 

2007 (72 FR 56883) is adopted as final 

with the following changes: 

PART 1201—PRACTICES AND 

PROCEDURES 

■ 1. The authority citation for part 1201 

continues to read as follows: 

Authority: 5 U.S.C. 1204, 1305, and 7701, 

and 38 U.S.C. 4331, unless otherwise noted. 

■ 2. Section 1201.11 is amended by 

adding a new sentence at the end of the 

section to read as follows: 

§ 1201.11 Scope and policy. 

* * * It is the Board’s policy that 

these rules will be applied in a manner 

that ensures the fair and efficient 

processing of each case. 

PART 1210—DEPARTMENT OF 

HOMELAND SECURITY HUMAN 

RESOURCES MANAGEMENT SYSTEM 

■ 3. The authority citation for part 1210 

continues to read as follows: 

Authority: 5 U.S.C. 1204 and 7701. 

■ 4. Section 1210.10(a)(4) is revised to 

read as follows: 

§ 1210.10 Notice of appeal rights. 

(a) * * * 

(4) Notice of any right the employee 

has to file a grievance, including notice 

that the election of any applicable 

grievance procedure may result in a 

waiver of the employee’s right to file an 

appeal with the Board and as to whether 

there is any right to request Board 

review of a final decision on a grievance 

in accordance with § 1201.154(d); and 

* * * * * 

■ 5. Section 1210.14 is amended by 

revising paragraphs (a)(1)(ii) and 

(a)(2)(ii) to read as follows: 

§ 1210.14 Initial disclosures; scope of 

discovery. 

(a) * * * 

(1) * * * 

(ii) The name, work address and work 

telephone number, if known, of each 

individual likely to have discoverable 

information that the Department may 

use in support of its claims or defenses, 

identifying the subjects of such 

information. 

(2) * * * 

(ii) The name, address and telephone 

number, if known, of each individual 

likely to have discoverable information 

that the appellant may use in support of 

his or her claims or defenses, 

identifying the subjects of the 

information. Each party must make its 

initial disclosure based on the 

information then reasonably available to 

the party. Each party has an ongoing 

obligation to supplement and update its 

initial disclosure as relevant documents 

and information are discovered or 

become available. A party is not 

excused from making its disclosures 

because it has not fully completed the 

investigation of its case, because it 

challenges the sufficiency of the other 

party’s disclosures or because the other 

party has not made its disclosures. 

■ 6. Section 1210.21 is amended by 

adding a new sentence to the end of 

paragraph (a) to read as follows: 

§ 1210.21 Initial decision by the 

adjudicating official. 

(a) General. * * * For purposes of 

this subsection only, a document that is 

filed with a Board office by personal 

delivery is considered filed on the date 

on which the Board office receives it. 

* * * * * 

■ 7. Section 1210.41is amended by 

adding a sentence to paragraph (a)(3) to 

read as follows: 

§ 1210.41 Decision of the Board. 

(a) * * * 

(3) * * * The Board will apply a de 

novo standard of review to allegations of 

discrimination contained in mandatory 

removal appeal actions. 

* * * * * 

Dated: April 10, 2008. 

William D. Spencer, 

Clerk of the Board. 

[FR Doc. E8–8092 Filed 4–17–08; 8:45 am] 

BILLING CODE 7400–01–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 959 

[Docket No. AMS–FV–07–0151; FV08–959– 

1 FR] 

Onions Grown in South Texas; 

Increased Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule increases the 

assessment rate established for the 

South Texas Onion Committee 

(Committee) for the 2007–08 and 

subsequent fiscal periods from $0.02 to 

$0.03 per 50-pound equivalent of onions 

handled. The Committee locally 

administers the marketing order which 

regulates the handling of onions grown 

in South Texas. Assessments upon 

onion handlers are used by the 

Committee to fund reasonable and 

necessary expenses of the program. The 

fiscal period begins August 1 and ends 

July 31. The assessment rate will remain 


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21024 Federal Register / Vol. 73, No. 76 / Friday, April 18, 2008 / Rules and Regulations 

in effect indefinitely unless modified, 

suspended, or terminated. 

DATES: Effective Date: April 21, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Belinda G. Garza, Regional Manager, 

Texas Marketing Field Office, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA; 

Telephone: (956) 682–2833, Fax: (956) 

682–5942, or E-mail: 

Belinda.Garza@usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720–

2491, Fax: (202) 720–8938, or E-mail: 

Jay.Guerber@usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Order No. 

959, as amended (7 CFR part 959), 

regulating the handling of onions grown 

in South Texas, hereinafter referred to 

as the ‘‘order.’’ The order is effective 

under the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674), hereinafter referred to 

as the ‘‘Act.’’

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, South Texas onion handlers 

are subject to assessments. Funds to 

administer the order are derived from 

such assessments. It is intended that the 

assessment rate as issued herein will be 

applicable to all assessable onions 

beginning on August 1, 2007, and 

continue until amended, suspended, or 

terminated. This rule will not preempt 

any State or local laws, regulations, or 

policies, unless they present an 

irreconcilable conflict with this rule. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. Such 

handler is afforded the opportunity for 

a hearing on the petition. After the 

hearing, USDA would rule on the 

petition. The Act provides that the 

district court of the United States in any 

district in which the handler is an 

inhabitant, or has his or her principal 

place of business, has jurisdiction to 

review USDA’s ruling on the petition, 

provided an action is filed not later than 

20 days after the date of the entry of the 

ruling. 

This rule increases the assessment 

rate established for the Committee for 

the 2007–08 and subsequent fiscal 

periods from $0.02 to $0.03 per 50- 

pound equivalent of onions handled. 

The South Texas onion marketing 

order provides authority for the 

Committee, with the approval of USDA, 

to formulate an annual budget of 

expenses and collect assessments from 

handlers to administer the program. The 

members of the Committee are 

producers and handlers of South Texas 

onions. They are familiar with the 

Committee’s needs and with the costs 

for goods and services in their local area 

and are thus in a position to formulate 

an appropriate budget and assessment 

rate. The assessment rate is formulated 

and discussed in a public meeting. 

Thus, all directly affected persons have 

an opportunity to participate and 

provide input. 

For the 2004–05 and subsequent fiscal 

periods, the Committee recommended, 

and USDA approved, an assessment rate 

that would continue in effect from fiscal 

period to fiscal period unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Committee or other 

information available to USDA. 

The Committee met on November 16, 

2007, and unanimously recommended 

2007–08 expenditures of $202,315 and 

an assessment rate of $0.03 per 50- 

pound equivalent of onions. In 

comparison, last year’s budgeted 

expenditures were $193,315. The 

assessment rate of $0.03 is $0.01 higher 

than the rate currently in effect. The 

Committee recommended the increased 

rate to continue to support the increased 

budget for research started last season, 

while reducing the amount of funds 

drawn from the Committee’s authorized 

reserve. Without the increase, the 

Committee’s reserve funds would drop 

to $114,728. The Committee believes a 

reserve that low is not adequate for its 

operations. 

The major expenditures 

recommended by the Committee for the 

2007–08 fiscal period include $64,315 

for personnel and office expenses, 

$45,000 for compliance, $25,000 for 

promotion, and $30,000 for research. 

Budgeted expenses for these items in 

2006–07 were $62,315, $43,000, 

$25,000, and $25,000, respectively. 

The assessment rate recommended by 

the Committee was derived by dividing 

anticipated expenses by expected 

shipments of South Texas onions. 

Onion shipments for the fiscal period 

are estimated at 5,775,000 fifty-pound 

equivalents, which should provide 

$173,250 in assessment income. Income 

derived from handler assessments, along 

with interest income and funds from the 

Committee’s authorized reserve, will be 

adequate to cover budgeted expenses. 

Funds in the reserve (currently 

$196,543) will be kept within the 

maximum permitted by the order 

(approximately two fiscal periods’

expenses, § 959.43). 

The assessment rate established in 

this rule will continue in effect 

indefinitely unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Committee or other 

available information. 

Although this assessment rate will be 

in effect for an indefinite period, the 

Committee will continue to meet prior 

to or during each fiscal period to 

recommend a budget of expenses and 

consider recommendations for 

modification of the assessment rate. The 

dates and times of Committee meetings 

are available from the Committee or 

USDA. Committee meetings are open to 

the public and interested persons may 

express their views at these meetings. 

USDA will evaluate Committee 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking will be 

undertaken as necessary. The 

Committee’s 2007–08 budget and those 

for subsequent fiscal periods will be 

reviewed and, as appropriate, approved 

by USDA. 

Final Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (5 U.S.C. 

601–612) (RFA), the Agricultural 

Marketing Service (AMS) has 

considered the economic impact of this 

rule on small entities. Accordingly, 

AMS has prepared this final regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

business subject to such actions in order 

that small businesses will not be unduly 

or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and the rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. 

There are approximately 118 

producers of onions in the production 

area and approximately 34 handlers 

subject to regulation under the 

marketing order. Small agricultural 

producers are defined by the Small 


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Federal Register / Vol. 73, No. 76 / Friday, April 18, 2008 / Rules and Regulations 21025 

Business Administration (SBA) (13 CFR 

121.201) as those having annual receipts 

less than $750,000, and small 

agricultural service firms are defined as 

those whose annual receipts are less 

than $6,500,000. 

Most of the handlers are vertically 

integrated corporations involved in 

producing, shipping, and marketing 

onions. For the 2006–07 marketing year, 

the industry’s 34 handlers shipped 

onions produced on 12,460 acres with 

the average and median volume handled 

being 179,457 and 171,537 fifty-pound 

equivalents, respectively. In terms of 

production value, total revenues for the 

34 handlers were estimated to be $86.7 

million, with average and median 

revenues being $2.55 million and $2.35 

million, respectively. 

The South Texas onion industry is 

characterized by producers and 

handlers whose farming operations 

generally involve more than one 

commodity, and whose income from 

farming operations is not exclusively 

dependent on the production of onions. 

Alternative crops provide an 

opportunity to utilize many of the same 

facilities and equipment not in use 

when the onion production season is 

complete. For this reason, typical onion 

producers and handlers either produce 

multiple crops or alternate crops within 

a single year. 

Based on the SBA’s definition of 

small entities, the Committee estimates 

that 32 of the 34 (94 percent) handlers 

regulated by the order would be 

considered small entities if only their 

spring onion revenues are considered. 

However, revenues from other 

productive enterprises would likely 

push a large number of these handlers 

above the $6,500,000 annual receipt 

threshold. All of the 118 producers may 

be classified as small entities based on 

the SBA definition if only their revenue 

from spring onions is considered. When 

revenues from all sources are 

considered, a majority of the producers 

would not be considered small entities 

because receipts would exceed 

$750,000. 

This rule increases the assessment 

rate established for the Committee and 

collected from handlers for the 2007–08 

and subsequent fiscal periods from 

$0.02 to $0.03 per 50-pound equivalent. 

The Committee unanimously 

recommended 2007–08 expenditures of 

$202,315 and an assessment rate of 

$0.03 per 50-pound equivalent. The 

assessment rate of $0.03 is $0.01 higher 

than the current rate. The quantity of 

assessable onions for the 2007–08 fiscal 

period is estimated at 5,775,000 fiftypound equivalents. Thus, the $0.03 rate 

should provide $173,250 in assessment 

income. Income derived from handler 

assessments, along with interest income 

and funds from the Committee’s 

authorized reserve, will be more than 

adequate to cover budgeted expenses. 

The major expenditures 

recommended by the Committee for the 

2007–08 fiscal period include $64,315 

for personnel and office expenses, 

$45,000 for compliance, $25,000 for 

promotion, and $30,000 for research. 

Budgeted expenses for these items in 

2006–07 were $62,315, $43,000, 

$25,000, and $25,000, respectively. 

The Committee recommended the 

increased rate to continue funding a 

research project begun last year without 

having to draw a large amount from 

reserves. Without the increase, the 

Committee’s reserve funds would drop 

to $114,728. The Committee believes a 

reserve that low is not adequate for its 

operations. 

The Committee reviewed and 

unanimously recommended 2007–08 

expenditures of $202,315, which 

included increases in the management 

fee, compliance, and research. 

Numerous alternative expenditure 

levels were discussed based upon the 

relative value of the research project to 

the onion industry. The assessment rate 

of $0.03 per 50-pound equivalent of 

assessable onions was then determined 

by dividing the total recommended 

budget by the quantity of assessable 

onions, estimated at 5,775,000 fiftypound equivalents for the 2007–08 

fiscal period. The assessment rate 

should generate $173,250 in income. 

Considering income from interest and 

assessments, total income will be 

approximately $24,065 below the 

anticipated expenses, which the 

Committee determined to be acceptable. 

A review of historical information and 

preliminary information pertaining to 

the upcoming fiscal period indicates 

that the grower price for the 2007–08 

fiscal period could range between 

$10.00 and $28.00 per 50-pound 

equivalent of onions. Therefore, the 

estimated assessment revenue for the 

2007–08 fiscal period as a percentage of 

total grower revenue could range 

between .11 and .30 percent. 

This action increases the assessment 

obligation imposed on handlers. While 

assessments impose some additional 

costs on handlers, the costs are minimal 

and uniform on all handlers. Some of 

the additional costs may be passed on 

to producers. However, these costs are 

offset by the benefits derived by the 

operation of the marketing order. In 

addition, the Committee’s meeting was 

widely publicized throughout the South 

Texas onion industry and all interested 

persons were invited to attend the 

meeting and participate in Committee 

deliberations on all issues. Like all 

Committee meetings, the November 16, 

2007, meeting was a public meeting and 

all entities, both large and small, were 

able to express views on this issue. 

This rule imposes no additional 

reporting or recordkeeping requirements 

on either small or large South Texas 

onion handlers. As with all Federal 

marketing order programs, reports and 

forms are periodically reviewed to 

reduce information requirements and 

duplication by industry and public 

sector agencies. 

AMS is committed to complying with 

the E-Government Act, to promote the 

use of the Internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

A proposed rule concerning this 

action was published in the Federal 

Register on February 29, 2008 (73 FR 

11060). Committee staff mailed copies 

of the proposed rule to all South Texas 

onion handlers and producers. In 

addition, the proposal was made 

available through the Internet by USDA 

and the Office of the Federal Register. A 

15-day comment period ending March 

17, 2008, was provided for interested 

persons to respond to the proposal. Two 

comments were received. One 

supported the proposed increase and 

one opposed the proposal. 

The commenter in support of the 

assessment rate increase stated that the 

proposed increase is very modest in 

light of constantly increasing costs. The 

commenter noted that planted South 

Texas onion acreage remains volatile, 

but has shown an overall decline, which 

further impacts on the Committee’s 

revenues. 

The commenter opposing the increase 

did not state the reason why he was not 

in favor of the increase, only that it 

should remain the same. However, we 

believe that the assessment increase, as 

recommended by the Committee, is 

reasonable and necessary. 

Accordingly, no changes will be made 

to the rule as proposed. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/ 

fv/moab.html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

After consideration of all relevant 

material presented, including the 


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21026 Federal Register / Vol. 73, No. 76 / Friday, April 18, 2008 / Rules and Regulations 

information and recommendation 

submitted by the Committee and other 

available information, it is hereby found 

that this rule, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act. 

Pursuant to 5 U.S.C. 553, it also found 

and determined that good cause exists 

for not postponing the effective date of 

this rule until 30 days after publication 

in the Federal Register because the 

2007–08 fiscal period began on August 

1, 2007, and the marketing order 

requires that the rate of assessment for 

each fiscal period apply to all onions 

handled during such fiscal period. In 

addition, the Committee needs to have 

sufficient funds to pay its expenses 

which are incurred on a continuous 

basis. Further, handlers are aware of this 

action which was unanimously 

recommended at a public meeting and 

is similar to other assessment rate 

actions issued in past fiscal periods. 

Also, a 15-day comment period was 

provided for in the proposed rule. 

List of Subjects in 7 CFR Part 959 

Marketing agreements, Onions, 

Reporting and recordkeeping 

requirements. 

■ For the reasons set forth in the 

preamble, 7 CFR part 959 is amended as 

follows: 

PART 959—ONIONS GROWN IN 

SOUTH TEXAS 

■ 1. The authority citation for 7 CFR 

part 959 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 959.237 is revised to read 

as follows: 

§ 959.237 Assessment rate. 

On and after August 1, 2007, an 

assessment rate of $0.03 per 50-pound 

equivalent is established for South 

Texas onions. 

Dated: April 15, 2008. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 08–1149 Filed 4–15–08; 12:13 pm] 

BILLING CODE 3410–02–P 

DEPARTMENT OF TRANSPORTATION 

Office of the Secretary 

14 CFR Part 250 

[Docket No. DOT–OST–01–9325] 

RIN No. 2105–AD63 

Oversales and Denied Boarding 

Compensation 

AGENCY: Office of the Secretary (OST), 

Department of Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: The Department of 

Transportation (DOT or Department) is 

amending its rules relating to oversales 

and denied boarding compensation to 

increase the limits on the compensation 

paid to ‘‘bumped’’ passengers, to cover 

flights by certain U.S. and foreign air 

carriers operated with aircraft seating 30 

through 60 passengers, which are 

currently exempt from the rule, and to 

make other changes. These changes are 

intended to maintain consumer 

protection commensurate with 

developments in the aviation industry. 

This action is taken on the Department’s 

initiative and in response to a petition 

from the Air Transport Association. 

DATES: This rule is effective May 19, 

2008. 

FOR FURTHER INFORMATION CONTACT: Tim 

Kelly, Aviation Consumer Protection 

Division, Office of the General Counsel, 

Department of Transportation, 1200 

New Jersey Ave., SE., Washington, DC 

20590, 202–366–5952 (voice), 202–366–

5944 (fax), tim.kelly@dot.gov (e-mail). 

SUPPLEMENTARY INFORMATION: 

Background 

Part 250 establishes minimum 

standards for the treatment of airline 

passengers holding confirmed 

reservations on certain U.S. and foreign 

carriers who are involuntarily denied 

boarding (‘‘bumped’’) from flights that 

are oversold. In most cases, bumped 

passengers are entitled to compensation. 

Part 250 sets the minimum amount of 

compensation that is required to be 

provided to passengers who are bumped 

involuntarily. Until now the rule has 

not applied to flights operated with 

aircraft with a design capacity of 60 or 

fewer passenger seats. 

In adopting the original rule in the 

1960s, the Civil Aeronautics Board 

(CAB), the Department’s predecessor in 

aviation economic regulation, 

recognized the inherent unfairness in 

carriers selling more ‘‘confirmed’’

reservations for a flight than they have 

seats. Therefore, the CAB sought to 

reduce the number of passengers 

involuntarily denied boarding to the 

smallest practicable number without 

prohibiting deliberate overbooking or 

interfering unnecessarily with the 

carriers’ reservations practices. Air 

travelers receive some benefit from 

controlled overbooking because it 

allows flexibility in making and 

canceling reservations as well as buying 

and refunding tickets. Overbooking 

makes possible a system of confirmed 

reservations that can almost always be 

honored. It allows airlines to fill more 

seats, reducing the pressure for higher 

fares, and makes it easier for people to 

obtain reservations on the flights of their 

choice. On the other hand, overbooking 

is the major cause of oversales, and the 

people who are inconvenienced are not 

those who do not show up for their 

flights, but passengers who have 

conformed to all carrier rules. The 

current rule allocates the risk of being 

denied boarding among travelers by 

requiring airlines to solicit volunteers 

and use a boarding priority procedure 

that is not unjustly discriminatory. 

In 1981, the CAB amended the 

oversales rule to exclude from the rule 

all operations using aircraft with 60 or 

fewer passenger seats. (ER–1237, 46 FR 

42442, August 21, 1981.) At the time of 

that proceeding, the impact of the rule 

on carriers operating small aircraft was 

found to be significant. If a passenger 

was denied boarding on a typical smallaircraft short-haul flight and 

subsequently missed a connection to a 

long-haul flight, the short-haul carrier 

usually had to compensate the 

passenger in an amount equal to twice 

the value of the passenger’s remaining 

ticket coupons to his or her destination, 

subject to a maximum limitation. For 

example, if the short-haul fare was $50 

and the connecting long-haul fare was 

$500, the first carrier often had to pay 

the passenger denied boarding 

compensation in an amount far greater 

than $50, depending on whether 

alternate transportation could be 

arranged to arrive within a short time, 

despite the minimal fare that the first 

carrier received for its flight. The 

problem was exacerbated by the fact 

that most commuter airline flights at the 

time were on small turboprop and 

piston engine aircraft which were 

affected by weight limitations in high 

temperature/humidity conditions to a 

greater extent than jets and, therefore, 

might require bumping even when the 

carrier did not book beyond the seating 

capacity of the aircraft. 

Part 250 has tended to reduce 

passenger inconvenience and financial 

loss occasioned by overbooking without 

imposing heavy burdens on the airlines 

or significant costs on the traveling 


cprice-sewell on PROD1PC71 with RULES