[Federal Register: June 26, 2003 (Volume 68, Number 123)]
[Notices]
[Page 38108]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26jn03-126]
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DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
[Docket No. FAA-2003-15481]
Request for Public Comment on the Impact of Airlines Emerging
From Bankruptcy on Hub Airports, Airport Systems and U.S. Capital Bond
Markets
AGENCY: Federal Aviation Administration, United States Department of
Transportation.
ACTION: Request for public comment.
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SUMMARY: The Department of Transportation is gathering information to
examine the impact that airlines emerging from bankruptcy could have on
hub airports, as well as the ramifications on airport systems and U.S.
capital bond markets. We intend to meet with airport personnel and
visit various airports to conduct studies and review available
information that has been completed on recent airport finance
developments. Specifically, we are trying to determine: (1) How
airport's operations have been affected by air carriers going bankrupt
and emerging from bankruptcy; (2) the financial impact that carriers'
bankruptcies have had on airports; (3) the impact that carriers
emerging from bankruptcy have had on markets for airport debt; and (4)
actions that the federal government or airports themselves could take
to ameliorate any significant financial disruption from airline
bankruptcy.
DATES: Comments should be received by July 28, 2003. Comments received
after that will be considered to the extent possible.
ADDRESSES: Comments should be sent to: Docket Management System, U.S.
Department of Transportation, Room Plaza 401, 400 7th Street, SW.,
Washington DC, 20590-0001. You must identify the docket number (insert
here) at the beginning of your comments and send two copies of your
comments. If you wish to receive confirmation that FAA received your
comments, include a self-addressed stamped postcard.
You may also file comments through the Internet at http://dms.dot.gov.
You may review the public docket containing comments in
the Docket Office between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays. The Docket Office is located in Room Plaza 401
of the NASSIF Building at the U.S. Department of Transportation at the
address listed above.
FOR FURTHER INFORMATION CONTACT: Please contact Joseph Hebert,
Financial Analysis and Passenger Facility Charge Branch, APP-510,
Federal Aviation Administration, 800 Independence Avenue SW.,
Washington, DC 20591; telephone (202) 267-3845; facsimile (202) 267-
5302.
SUPPLEMENTARY INFORMATION: Congress, in H.R. Rep. 108-76 (April 12,
2003), directed the Secretary of Transportation to ``examine the impact
that airlines emerging from bankruptcy could have on hub airports, as
well as the ramifications on airport systems and U.S. capital bond
markets.'' In response, Department of Transportation is assembling
information to examine the impact that airlines emerging from
bankruptcy have on hub airports as well as the effect this has on
airport systems and U.S. capital bond markets. This information is
being accumulated to understand the effects carriers' bankruptcy have
had on airport operations and financial health as a whole. The goal is
to observe these effects and determine whether government intervention
is warranted. Further, the information gathered will be used to
identify financial and operating strategies that could be valuable to
the airport industry in responding to an airline bankruptcy and in
aiding in the recovery of a carrier emerging from bankruptcy.
We welcome comments from all interested parties, including state
and local officials, airport operators, air carriers, academics,
financial experts and the flying passengers. Our goal is to have a
final report by September 2003.
We are interested in acquiring information that would help us
answer the following questions: (1) Is an airport's health tied to a
particular carrier? (2) What actions have airports taken to aid
airlines emerging from bankruptcy? (3) Has any airport canceled or
deferred any capital development projects based on the financial
condition of a particular carrier? (4) What carriers that have filed
for bankruptcy have defaulted on lease payments or rejected leases and
contracts? (5) What financial impact did the airport experience from
those carriers filing for bankruptcy or emerging from bankruptcy? (6)
What would be the financial impact to the airport if the bankruptcy
carriers defaulted on lease and contract agreements, rejected these
agreements, or reduced or ceased service? (7) Has any airport changed
any of its policies regarding leases and operating permits due to a
carrier bankruptcy? (8) Have the bankrupt carriers caused an airport to
incur higher debt and service costs? (9) Have the carriers' recent
financial problems caused any airports to defer or cancel Airport
Improvement Program or Passenger Facility Charge funded development
programs? (10) Do the benefits that carriers obtain from bankruptcy
help or hurt airports? (11) What actions, if any, could the federal
government take now to help airports adjust to their current financial
environment?
Issued in Washington, DC
Catherine M. Lang,
Director, Office of Airport Planning and Programming.
[FR Doc. 03-16227 Filed 6-25-03; 8:45 am]
BILLING CODE 4910-13-M