A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

A

Accident Plans: 49 U.S.C. 41113 and 41313 require U.S. and foreign air carriers, respectively, to develop and submit to the Department and the National Transportation Safety Board a plan (“accident plan”) to address the needs of families of passengers and other victims involved in any aircraft accident involving an aircraft of the air carrier and resulting a major loss of life. The requirement applies to both passenger and all-cargo carriers. All-cargo carriers are included in this requirement to cover cargo attendants, non-revenue passengers, and persons on the ground that could be affected by an accident. All licensed U.S. and foreign carriers were required to file a plan with the Department once the statutes were passed. Any person seeking authority to become a U.S. or foreign air carrier must submit its plan before it can be issued economic authority from the Department. The plans for U.S. carriers or U.S. carrier applicant are filed in Docket OST-96-1969; the plans for foreign air carriers and foreign air carrier applicants are filed in Docket OST-98-3304.

Africa Transportation Program: A major goal of the Department’s Africa program has been to assist Africa’s emergence into the global marketplace. Office of International Transportation and Trade manages the Department’s program and has been engaged in several activities to meet the goal.

Airline Compensation Payments: Following the terrorist events of September 11, 2001, the Administration and the Congress passed the Air Transportation Safety and System Stabilization Act. Among other things, that Act established two programs to provide financial assistance to airlines. One of these, the Air Carrier Compensation Program, provided up to $5 billion to provide immediate financial relief to the airlines right after the September 11 to ensure that they could continue to provide service. Within three days after the Act was passed, the Department paid over $2.3 billion to the airlines. This action has been credited with saving the airline industry. A list of the U.S. carrier compensation payments paid to date is available on the Department’s web page at www.dot.gov/affairs/carrierpayments.htm.

Airline Distribution Practices: Airlines have significantly changed the way that they distribute their product to consumers, including a multiple carrier, joint-owned travel supplier website. For many years, passengers primarily obtained air tickets travel by going through travel agents or purchasing ticket directly from the individual airlines. Over the past several years, the sale of air transportation has evolved to include sales over the web, ticketless travel, and the proliferation of numerous distribution systems through which to purchase air services. The Office of Aviation Analysis has completed a comprehensive study, Efforts to Monitor Orbitz, that provides a comprehensive analysis of the consumer and competitive effects of the newer distribution systems.

Airline Financial Review: On a quarterly basis the Office of Aviation Analysis produces a report (Financial and Traffic Review) that provides detailed information on the financial condition of U.S. airlines. The information includes staff comments, charts, and tables.

Airline Strikes: If airlines go on strike, there is an immediate impact on consumers, and in the longer run, there can be a significant impact on the airline being struck and on industry competition. The Office of Aviation Analysis is responsible for advising the Secretary on the effect of airline strikes or the potential of airline strikes on these services, including the continued availability of service to consumers, the financial impact on the airline and identifying which markets will be the most affected by the strike action. The Department does not otherwise get involved directly in airline strike matters, but does monitor them to ensure that senior Department officials are aware of the issues involved and the impact on consumers and industry competition.

Airport Access: A key factor in promoting airline competition is reducing/eliminating unnecessary entry barriers-barriers that either present or make it more difficult or costly for air carriers to enter a market or expand operations once they begin serving an airport. Airport managers, as outlined in a recent DOT study (Airport Business Practices and their Impact on Airline Competition, October 1999), have a legal obligation to ensure that all air carriers have reasonable access to essential airport facilities. (e.g. gates, slots, apron space, counter facilities, etc.)

Airport Capacity (Efficient Use of Existing Capacity): Many airports do not have the facilities or ground space to accommodate all of the airlines that want to serve the airport or the number of flights that the airlines want to operate. In addition, the number of flights operated at some airports is very high, affecting the ability of the airlines to operate their flights on schedule. The Department has identified 31 U.S. airports as congested, "bench-marked" airports. Relieving airport congestion and flight delays is an important objective of the Department. For the 31 "bench-marked" airports, there are 117 commercial airports that can handle jet aircraft, 45 airports that cannot handle jets, and 16 surplus military airfields. This information is being used in policy discussions to determine whether these airports can provide relief to the congested "bench-marked" airports, whether different policies are needed to encourage more efficient use of capacity and whether current policies discourage use of these other airports and whether a regional airport approach might produce relief to congestion problems.

Alliances and Code Shares Between and Among Major U.S. Carriers: U.S. air carriers are required to submit cooperative service agreements that they have with each other, such as reciprocal code sharing, joint frequent flyer and lounge access, and joint marketing, to the Department for review before they implement those agreements. 49 USC 41720. The Department does not approve or disapprove the agreements. Rather, the Department reviews the agreements to ensure that they would not harm the public or are anti competitive. The Department can take action under its statutory authority to preserve competition under 49 USC 41712. The Department has recently reviewed two major alliances—one involving United Air Lines and US Airways, and the other involving Continental Airlines, Delta Air Lines, and Northwest Airlines—that presented significant competitive issues. For further information, contact the Office of Aviation Analysis and the Office of International Aviation.

Anti-Competitive Practices: 49 U.S.C. 40101 mandates that the Department prevent unfair, deceptive predatory, or anti-competitive practices in both domestic and international aviation. The domestic airline industry was deregulated in 1978, making it possible for all airlines to compete in all U.S. domestic markets. The Office of Aviation Analysis, in conjunction with the Department’s Office of the General Counsel, reviews complaints of unfair competitive practices involving domestic air services on a case-by-case basis. The Office of International Aviation handles complaints by U.S. carriers regarding discriminatory and unfair competitive practices in international air transportation. See Complaints by U.S. carriers against foreign governments and/or foreign carriers.

APEC: The Transportation Working Group (TPT) of APEC (Asia Pacific Economic Cooperation) has a number of ongoing projects including road harmonization and aviation as well as maritime liberalization in which Office of International Transportation and Trade plays a leading role for the Department. The next meeting of APEC heads of State is scheduled for October 2003. The next meeting of transport ministers is Spring, 2004.

APEC Multilateral Open Skies Agreement: On May 1, 2001, the United States and Brunei, Chile, New Zealand and Singapore, four of the United States' partners in the 21-member Asia-Pacific Economic Cooperation (APEC) forum, signed a multilateral Open Skies aviation agreement. The Multilateral Agreement represents the first successful effort to expand the Open-Skies approach on a multinational basis. In addition to the typical Open Skies provisions, the multilateral APEC agreement substantially liberalizes the traditional airline ownership requirement, thus enhancing foreign carriers' access to outside investment. Peru became a party to the agreement on May 17, 2002. We will continue to urge additional APEC countries, especially those with which we have bilateral Open Skies agreements (Korea, Malaysia, Peru, and Taiwan), to accede to the multilateral agreement. For further information, contact the Office of International Aviation.

Aviation Data Modernization: There have been several changes in the way that airlines conduct their operations since the Department's data reporting requirements were established after deregulation, including tremendous growth in code sharing both domestically and in international markets. The Department's reporting requirements are no longer in sync with the way the airlines operate, creating a substantial obstacle to effective analysis of the industry. The Office of Aviation Analysis has taken a leadership role in instituting a comprehensive rulemaking to harmonize the Department's aviation data systems with current regulatory and statutory needs; to improve the quality of the Department's aviation databases; and to provide improved submission of and access to the data.

B

Bankruptcies: The Office of Aviation Analysis monitors bankruptcy proceedings in conjunction with its responsibilities to monitor the continuing fitness of U.S. airlines and the overall health and structure of the airline industry. The Department of Transportation does not intervene in these proceedings.

Bilateral Aviation Agreements: The Office of International Aviation, together with counterparts at the U.S. Department of State, represents the United States in negotiating rights for U.S. airlines to serve foreign markets. The agreements reached between the United States and each foreign country outline services and doing business practices that will govern operations by airlines of each country. Such agreements normally include provisions regarding the cities that can be served by carriers of each country, the number of flights that they can operate for both passenger and cargo scheduled services, as well as charter services, and various doing business rules that will govern the services of each country’s carriers. The United States has bilateral aviation agreements with 97 countries. It is the policy of the United States that fully open airline markets will provide the most competitive and price-sensitive service for consumers. As a result, it is the Department’s policy in international negotiations to seek agreements that do not limit the number of carriers that may serve, the capacity that they offer, or the prices that they charge. The United States has signed such “open-skies” agreements with 59 countries. The Office of International Aviation maintains a list of all aviation agreements between the United States and its foreign trading partners. (List of the Open-Skies agreement).

Business Outreach Program: Office of International Transportation and Trade maintains an on-going dialogue with U.S. companies engaged in international transportation and trade activities to assist them in accessing project information, making necessary public and private contacts in international markets, and providing other support as necessary.

C

Canadian Air Taxi Operators: Most airlines from foreign countries that seek to serve the United States must obtain economic authority in the form of a foreign air carrier permit from the Department of Transportation. To obtain such authorization, the carrier must provide information about its officers and directors, ownership, finances, and compliance disposition. Canadian operators of small aircraft (fewer than 60 seats) that want to operate transborder services between the United States and Canada must register with the Department under Part 294 of the Department’s economic regulations, 14 CFR Part 294 and provide evidence of insurance coverage for their operations under Part 205 of the Department’s regulations, 14 CFR Part 205. The Department has simplified the economic licensing process for these carriers, similar to the process for U.S. air taxi operators, because of the limited scope of services by these carriers and the smaller size aircraft that they operate. However, Canadian charter air taxi operators (as do U.S. air taxi operators) must also obtain operating authority from the Federal Aviation Administration to comply with the U.S. Government’s safety regulations (14 CFR 129). To apply, Canadian Charter Air Taxi Operators must submit an application on OST Forms 4523 and 4505 with the Special Authorities Division of the Office of International Aviation. Those applications are listed in the Department’s Weekly List of Undocketed Applications. Interested parties have 28 days to file comments with the Department. The Department approves such registrations if the applicant complies with Part 294, has received its FAA Part 129 authorization and has demonstrated that it is properly owned and controlled by citizens of Canada. The Department generally acts on such applications within 60 days of the filing of the registration application. The Office of International Aviation maintains a list of all properly registered Canadian Charter Air Taxi Operators. For further information, contact the Office of International Aviation.

Code Shares (Authorization, Safety and Report): Code sharing is a marketing arrangement in which an airline places its designator code on a flight operated by another airline, and sells tickets for that flight. Airlines throughout the world continue to form code-share arrangements to strengthen or expand their market presence and competitive ability. U.S. and foreign air carriers that want to operate code-shared services, must first obtain authorization from the Department in the form of a Statement of Authorization under Part 212 of the Department’s economic regulations, 14 CFR Part 212. The Department approves the application if it determines that it is in the public interest. In assessing the public interest benefits, the Department considers whether the code-share operations are provided for in a bilateral agreement between the United States and the homeland government of the foreign air carrier(s) involved, the benefits to the public from expansion of services and fare options, and the the impact the code share would have on airline competition. Before any code-shared operations can be implemented, the U.S. carrier must conduct a safety audit of its foreign carrier code-share partner to ensure that the operations meet acceptable international standards and submit the results of that audit for review by the Federal Aviation Administration. The U.S. Air Carrier Licensing Division in the Office of International Aviation maintains a list of all code shares involving U.S. and foreign air carriers.

Competitive Impact of International Code Sharing and Alliances: U.S. carrier relationships with foreign airlines play a major role in the U.S. aviation industry's participation and competitive position in the "global" marketplace. A study by the Office of Aviation Analysis served as the economic basis for development of the Department's international aviation policy to encourage international alliances and spread deregulation's benefits to world markets. As a result, there has been considerable growth in U.S. carrier code-sharing arrangements with foreign airlines as well as growth in the more comprehensive U.S. carrier alliances (cooperative service and marketing agreements) with foreign airlines. The alliance agreements, which nearly always include a code-sharing component, are frequently accompanied by requests for relief from the antitrust laws, which otherwise might prevent the carriers from cooperating on certain aspects of their joint services, such as fares and capacity, as though they were a single airline. Major code-sharing and alliance arrangements require careful examination in terms of their impact on competition in both domestic and international markets. The Office of International Aviation processes U.S./foreign carrier code-share applications and maintains a list of code-share arrangements between U.S. and foreign carriers. The Office of Aviation Analysis is responsible for processing applications for anti-trust immunity and maintains a list of all immunized alliances. Two major studies by the Office of Aviation Analysis have been instrumental in developing the Department's ongoing policies regarding international alliances: Global Deregulation Takes Off (1999) and Transatlantic Deregulation-The Alliance Network Effect (2000).

Complaints by U.S. carriers against foreign governments and/or foreign airlines: 49 U.S.C. 41310 provides that the Department may take action in response to anti-competitive, discriminatory, predatory or unjustifiable activities by a foreign government or foreign carrier against a U.S. carrier. The Department may take such action upon a complaint by a U.S. carrier or on its own initiative. The Department has up to 180 days from the date that the complaint is filed to take action to resolve the issues raised, dismiss the complaint, or resolve it through diplomatic channels without taking any retaliatory action. There are, however, specific criteria that the Department must meet to take the full period available under the statute for acting on the complaint. Specifically, within 60 days, the Department must approve, deny, or dismiss the complaint. It can extend the action deadline for 30 days if it determines that the issues raised in the complaint can be resolved through discussions with the foreign country involved. It can continue to extend the action deadline for up to 90 additional days if it determines that negotiations with the foreign country have progressed to the point that a resolution is imminent. Procedurally, upon the filing of a complaint, the Department issues an order soliciting comments from interested parties. After receipt of those comments, the Department either extends the action deadline, or acts on the complaint. If the Department acts on the complaint, it may propose a sanction to redress the actions against the U.S. carrier(s), or defer action on what sanction would be appropriate while it continues its intergovernmental discussions with the foreign government. If the Department proposes a sanction, then all parties are afforded an opportunity to comment before the Department takes final action. Generally speaking, the intergovernmental process has been very successful in resolving complaints filed by U.S. carriers. Action on all complaints is coordinated with the Department of State, the Department of Commerce, and the U.S. Trade Representative. These complaints are processed by the U.S. Air Carrier Licensing Division in the Office of International Aviation.

A U.S. carrier may seek redress for anti competitive practices, or the Department on its own initiative may seek such redress under Part 213 of the Department’s regulations, 14 CFR Part 213, rather than under 49 U.S.C. 41310 or it may seek use of Part 213 in conjunction with such a complaint. Under Part 213, the Department may require a foreign air carrier to seek approval of its schedules for all or a portion of its services involving the United States if it finds that such action is in the public interest and that the government of the foreign air carrier has, over the objections of the United States, (1) taken an action that impairs, limits, or denies operating rights to a U.S. carrier; or (2) otherwise denied a U.S. carrier a fair and equal opportunity to compete. This is often referred to as Phase 1 of the Part 213 process. The foreign air carrier may continue to operate the filed schedules unless and until the Department issues an order notifying the carrier that all or a portion of the schedules are contrary to the public interest or applicable law. This is often referred to as Phase 2 of the 213 process. A Department order limiting the operations of a foreign carrier under Part 213 is subject to Presidential approval before it becomes effective. The requirement to file schedules is an indication that the Department is concerned about actions that have or would be taken against a U.S. carrier by the foreign carrier’s government. An order that would require discontinuation of services or that would prevent implementation of proposed services is a retaliatory action taken only after objections by the United States has objected to the foreign carrier's homeland government and initial intergovernmental consultations have not resolved the issues involved. In most cases the Department has not had to progress to Phase 2 of the Part 213 process.

Computer Reservation Systems (CRS) Rules: Computer Reservation Systems, also referred to as Global Distribution Systems (GDSs), provide information on air carrier schedules, seat availability, and fares and are used by travel agencies to make airline reservations as well as to book hotel rooms, car rental reservations, and the services of other travel industry suppliers. Airlines and other travel suppliers pay booking fees to CRSs when a reservation is made by an agent using one of these systems. Each system operating in the United States was originally developed and controlled by a U.S. airline.

Competitive abuses by CRSs led to the creation of rules governing the systems’ operations in 1984. After reexamining whether the original rules were necessary and effective, DOT readopted them with some changes in 1992. At that time, one or more airlines controlled each of the systems. In 1997, DOT began a new reexamination of the need for rules and their effectiveness. After reviewing the comments submitted in response to an advanced notice of proposed rulemaking and a supplemental advanced notice of proposed rulemaking, DOT issued a notice of proposed rulemaking on November 15, 2002, that proposed to readopt many but not all of the existing rules.

On December 31, 2003, the Department issued a Final Rule amending its regulations governing the systems. Most of the rules were terminated as of January 31, 2004. The Department readopted the rules prohibiting display bias and adopted rules that prohibit systems from imposing certain types of contract clauses on participating airlines that would unreasonably restrict their ability to choose how to distribute their services. These rules will be effective during a six-month transition period, ending July 31, 2004. The Department found that changes in airline distribution, particularly the growing importance of the Internet, and the divestiture of all CRS ownership interests by U.S. airlines had made the rules unnecessary.

Consumer Air Fare Report: See Domestic Air Fares.

D

Demand Management at Airports: Prior to September 11, flight delays at many of the Nation's busiest airports reached unprecedented levels. Many airports, however, have little or no ability to build new runways or terminals. To better utilize scarce airport capacity, some parties advocate the use of demand-management policies (e.g., peak/off-peak landing and take-off fees). Other parties contend that such policies would have serious adverse consequences, such as reducing air service to smaller communities. The reduction in the number of scheduled hourly operations at LaGuardia Airport and the allocation of slot exemptions through a lottery represent temporary "solutions" to a complicated problem.

The Department has not yet developed a formal position on the merits of demand- management policies or whether to support changes to existing Federal statutes and regulations to encourage airports to adopt this approach to allocating airport capacity. The issue will be raised in the context of congressional hearings on flight delays, airport congestion, small community service, airline competition, and the merits of demand-management options that will be considered in the context of any long-term solution to congestion at U.S. airports.

Domestic Air Fares: A key aspect of deregulation of the airline industry in 1978 was the discontinuation of the government’s regulation of the prices that airlines charge customers. While the government no longer regulates the fares that are charged, the Department does provide considerable information to the public with respect to airline fares. The Department through the Office of Aviation Analysis issues the Consumer Air Fare Report on a quarterly basis, which provides information about average prices being paid by consumers in the top 1,000 domestic city-pair markets in the continental United States. These markets account for over 70% of all domestic air travel. A section of the report provides real life examples of concerns and or information pertaining to U.S. airline service to various U.S. cities.

Domestic Aviation Competition Briefs: Learn more about low-fare entry and competition in the domestic airline industry with our short analytical briefs and re-issued Special Features from the Domestic Consumer Air Fare Report.

E

Economic Authority: See U.S. Air Carrier Economic Authority

Empowering Consumers: Ensuring consumers public access to information about the airline industry is a high Department priority. Access to such information assists consumers and civic leaders in better understanding the role of air transportation in local economic growth and how to address their air service issues. The Office of Aviation and International Affairs through the Office of Aviation Analysis and the Office of International Aviation regularly makes available to the public numerous reports and studies about airline services, fares, and competition, most of which are electronically available to facilitate greater dissemination of the information.

Ensuring Fair Competition Among Airlines: An ongoing responsibility of the Department is to deal with complaints of unfair competitive practices. The domestic airline industry was deregulated in 1978, making it possible for all airlines to compete in all U.S. domestic markets. The Department of Transportation has a statutory responsibility to ensure that such competition is conducted fairly. The Office reviews complaints of unfair competitive practices on a case-by-case basis. (Also see Anti-Competitive Practices)

Essential Air Service: The Airline Deregulation Act, passed in 1978, gave airlines almost total freedom to determine which markets to serve domestically and what fares to charge for that service. The Essential Air Service (EAS) program was put into place to guarantee that small communities that were served by certificated air carriers before deregulation maintain a minimal level of scheduled air service. The Department currently subsidizes commuter airlines to serve approximately 100 rural communities across the country as well as 35 in Alaska that otherwise would not receive any scheduled air service. For further information contact the Office of Aviation Analysis.

European Commission (EU): The U.S. has been exploring potential forums for expanding aviation opportunities beyond those available through the traditional system of bilateral agreements. Although EU Commission does not have full negotiating authority from the member states, we are continuing to hold informal, staff-level exploratory discussions with their transportation officials in anticipation of eventual Commission "competence" in international air transportation.

F

Fitness: See U.S. Air Carrier Economic Authority

Foreign Air Carrier Intermodal Authority: Any foreign air carrier that wants to provide or control the surface portion of international cargo services beyond a 35-mile zone of the airport or city limits must have additional authority from the Department of Transportation under Part 222 (14 CFR Part 222) of the Department’s economic regulations. Once authorized, the foreign air carrier can either truck the cargo itself, provided that it has whatever regulating authority it needs from U.S. trucking authorities, or it can contract for the service from a properly authorized surface provider. The intermodal authority enables the airline to advertise through service to other U.S. cities as if it were flying there. The foreign air carrier does not need any additional authorization to provide pickup and delivery services within the 35-mile zone of the airport/city limits. If there is an intergovernmental agreement providing for the intermodal services, the authorization is generally routine, although a filing with the Department is still necessary. If there is no intergovernmental agreement, then a foreign carrier seeking to provide intermodal services must seek an exemption from Part 222 under 49 U.S.C. 40109. The Licensing Divisions in the Office of International Aviation have a complete list of those foreign air carriers that have been awarded intermodal authority. For further information contact the Office of International Aviation.

Foreign Air Freight Forwarders: Any person not a citizen of the United States that undertakes the indirect (not operating aircraft) transportation of property either within the United States or outbound from the United States must first register with the U.S. Department of Transportation. Part 297 of the Department’s economic regulations sets forth the registration requirements and the operating rules for these services. Foreign air freight forwarders do not operate aircraft, but legally serve as the principal (rather than an agent) with respect to the responsibility for arranging the transportation of property from the point of receipt to the point of destination and use for the whole or any part of the journey, the services of direct air carriers (airlines). Applicant foreign freight forwarders must apply by filing OST Form 4506 with the Office of International Aviation. These applications are published in a weekly list of undocketed applications filed. Comments with respect to any application must be filed with the Department (Special Authorities Division, Office of International Aviation) within 28 days of the date the application is filed. The Department will approve a registration if it determines that the foreign air freight forwarder is owned and controlled by citizens of the foreign country involved, that the foreign government provides reciprocity to U.S. citizen air freight forwarders for similar services, and the application otherwise complies with the regulations. The Department may reject an application if it fails to comply with the regulations, the government of the foreign freight forwarder does not provide reciprocal authorizations for U.S. freight forwarders, or such rejection is otherwise in the public interest. The Department may also impose conditions on the operations conducted by the foreign air freight forwarder. The Special Authorities Division maintains a list of all properly registered foreign air freight forwarders.

Foreign Air Carriers: Facilitation of Air Services in Support of Hurricane Katrina Relief Efforts

Foreign Carrier Licensing: Any airline of a foreign country that wants to provide service to/from the United States must obtain two authorizations from the Department of Transportation—“economic” authority from the Office of the Secretary of Transportation and “safety” authority from the Federal Aviation Administration. 49 USC 41301. The economic authority may be in the form of a foreign air carrier permit or an exemption. 49 USC 41302 and 40109. Permit authority is longer in duration. Authority by exemption may be awarded for a maximum of two years at any one time. To receive authority from the Department, the foreign air carrier must file an application that provides information about the ownership and the management personnel of the airline, its financial condition, its operating plan, and the ability of the company and its personnel to comply with laws and regulations. In addition the airline must provide evidence of its operating authority from its homeland government and, in most cases, designation by its government to operate the proposed services. The Foreign Air Carrier Licensing Division in the Office of International Aviation processes these applications and maintains a list of licensed foreign air carriers. Foreign carriers must also comply with the Accident Plan and Passenger Manifest requirements of the Statute. Due to the scope and size aircraft operated by charter air taxi operators of Canada, the Department has provided simplified licensing requirements for those carriers. 14 CFR Part 294. (Also see Canadian Air Taxi).

Some foreign companies want to operate aircraft to the United States on just an occasional basis and do not offer their services to the general public. Such companies are permitted to operate to/from and in some cases within the United States on a limited basis. 14 CFR Part 375 of the Department’s Economic Regulations sets forth the regulatory requirements for these services. The Foreign Air Carrier Licensing Division in the Office of International Aviation processes these applications and maintains records about these operations.

Foreign Dignitary Visitors: The Department hosts dignitaries from around the world. Office of International Transportation and Trade provides substantive and logistical support for Secretarial meetings with heads of state, ministers, ambassadors and others.

Foreign Travel: It is periodically necessary for the Secretary, Deputy Secretary, and Under Secretary for Policy to travel abroad. Office of International Transportation and Trade provides the logistical and substantive support for these international trips/missions.

FTAA: The Department is involved in the Free Trade Agreement of the Americas (FTAA) negotiations and Office of International Transportation and Trade plays an active role in the interagency process for developing USG proposals and negotiating positions.

FTA Negotiations: Office of International Transportation and Trade works with the U.S. transportation community and through the interagency process led by the U.S. Trade Representative to assure that U.S. transportation interests and policy positions are fully represented in on-going Free Trade Agreement talks with: 1) Australia, 2) Central America, 3) Morocco, and 4) Southern Africa Customs Union. Chile and Singapore FTA texts are undergoing final steps toward Presidential signature.

G

GATS: Office of International Transportation and Trade works with the U.S. transportation community and through the interagency process led by the U.S. Trade Representative to assure that U.S. transportation interests and policy positions are fully represented in on-going General Agreement on Trade in Services (GATS) negotiations.

General Aviation Operator and Services Reimbursement:

Procedures for Reimbursement of General Aviation Operators and Service Providers in the Washington, D.C., Area.

On November 30, 2005, President Bush signed into law the Transportation, Treasury, Housing and Urban Development, the Judiciary, the District of Columbia, and Independent Agencies Appropriation Act, 2006 (P.L. 109-115, 119 Stat. 2396, hereafter the Act, or the 2006 Appropriation Act). Section 185 of the Act authorized the Department of Transportation to provide reimbursement to fixed-based general aviation operators and providers of general aviation ground support services at five metropolitan Washington, D.C. area airports, for the direct and incremental financial losses they incurred while the airports were closed due to Federal Government actions taken after the terrorist attacks on September 11, 2001. The airports are: Ronald Reagan Washington National Airport; College Park Airport in College Park, Maryland; Potomac Airfield in Fort Washington, Maryland; Washington Executive/Hyde Field in Clinton, Maryland; and Washington South Capitol Street Heliport in Washington, D.C. A total of up to $17,000,000 was appropriated for this purpose. This proposed rule would establish the eligibility requirements and application procedures for those who may qualify for assistance under this statute.

Four files are available to assist applicants in preparing their applications seeking reimbursement for direct and incremental financial losses incurred while five metropolitan Washington, D.C. area airports were closed due to Federal Government actions taken after the terrorist attacks on September 11, 2001.

These four files are as follows:

H

I

ICAO Facilitation Committee: Office of International Transportation and Trade provides the leadership for an interagency working group that considers changes to international standards and recommended practices governing the facilitation of aircraft, passengers and cargo through the International Civil Aviation Organization.

ICAO's Proposed Noise Certification Standard: Many countries have separate regulations or rules regarding the type of aircraft that are operated in their countries due to environmental concerns for noise. International Civil Aviation Organization (ICAO) also issues standards for noise levels on a world-wide basis. Individual countries, however, are free to impose stricter standards. In 2001 the ICAO Council adopted a new Chapter 4 noise certification standard for commercial jet aircraft at 10 decibels below the existing Stage 3 standard and the ICAO Assembly adopted a resolution setting forth a comprehensive "balanced approach" to noise management at international airports. Together with the Federal Aviation Administration and the Departments of Commerce and State, DOT's Office of International Aviation worked to resolve implementation issues with European governments and the European Union. As a result, the EU rescinded its "hushkit" regulation, which imposed severe restrictions on aircraft modified with hushkits or new engines to meet the Chapter 3 noise standards.

Immunized Alliances: List of immunized alliances.

Improving air links between the United States and Africa: In 1997, the Department launched the African Aviation Initiative to stimulate the dormant aviation relations between the U.S. and Africa. Concurrently with the economic initiative, but on a separate track, the Safe Skies for Africa Initiative was developed to assist African countries in improving air safety, security and air navigation. In November 1999, Tanzania initialed the first Open-Skies agreement between the U.S. and an African country, followed quickly in 2000 by Namibia, Burkina Faso, Ghana, The Gambia, Nigeria, Morocco, Rwanda, Benin, and Senegal. Cape Verde and Uganda signed on in 2002. Talks continue to be held with other countries that express interest in Open Skies. For further information, contact the Office of International Affairs.

Independent Travel Agency Study Commission: The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21) authorized the establishment of an independent Commission to study the marketing position of travel agencies in today's markets. The Commission is titled the National Commission to Ensure Consumer Information and Choice in the Airline Industry and has been funded at $1 million for a life of 6 months after each of nine Commissioners has been named, one of which the Secretary of Transportation shall designate as Chairperson.

The law directed the Commission to undertake "… a study of: (a) whether the financial condition of travel agents is declining and, if so, the effect that this will have on consumers; and (b) whether there are impediments to information regarding the services and products offered by the airline industry and, if so, the effects of those impediments on travel agents, internet-based distributors, and consumers…"

Information Dissemination: Significant daily information is generated on international transport matters in the form of correspondence, cable traffic, print media and others. The Office of International Transportation and Trade serves to disseminate this information to appropriate DOT offices.

International Pricing (Standard Foreign Fare Level): List of Standard Foreign Fare Level

International Policy Council (IPC): Office of International Transportation and Trade manages the IPC and provides staff support and analysis to help define the mission priorities and work program for this senior level inter-modal working group responsible for coordinating the Department’s international programs.

J

K

L

Licensing: See U.S. Air Carrier Economic Authority

Loan Guarantees: Following the terrorist events of September 11, 2001, the Administration and the Congress passed the Air Transportation Safety and System Stabilization Act. Among other things, that Act established two programs to provide financial assistance to airlines. One of these, the Loan Guarantee Program, provided up to $10 billion in loan guarantees to support air carrier attempts to secure loans to sustain their operations in the longer term. The Stabilization Act established the Air Transportation Stabilization Board to administer the program. The Secretary of Transportation, the Secretary of the Treasury, and the Chairman of the Federal Reserve Board serve as voting members of the Board. The Office of Aviation Analysis, in conjunction with the Department’s Office of the General Counsel, analyzes all applications submitted to the Board and advises the Secretary with respect to the Department’s recommendation on each application. Sixteen applications were filed by the June 28, 2002 deadline. The Board has approved five applications of America West Airlines, American Trans Air, Aloha Airlines, Frontier, and US Airways. The Board has conditionally approved (but not closed on) the loan guarantee application of World Airways. The Board also conditionally approved a loan guarantee for Evergreen International Airlines, but the carrier subsequently refinanced its debt in the public market and withdrew its loan guarantee application. Eight applications were denied. The Office of Aviation Analysis maintains a list all loan guarantee applications and the guarantee amounts requested. For further information contact the Office of Aviation Analysis.

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Mail Rates: (See Transportation of Mail)

Monitoring the health of the airline industry: One of the Department's primary responsibilities is to promote a healthy and competitive airline industry. This Office regularly monitors the fares, costs, traffic, capacity, financial positions, and operations of the airlines, as well as structural changes in the industry and general industry trends and growth. On a case-by-case basis, and at times under emergency circumstances, the Office of Aviation Analysis provides Department decision makers with "quick-turn" analyses of the industry at a particular point in time. The Office provided such an analysis right after the terrorist attacks of September 11 and on a periodic basis since then. Such analyses are also important if an airline files for bankruptcy by enabling the Department to evaluate the competitive effects of the bankruptcies on industry structure and consumers. Such analyses were conducted on the bankruptcies of Continental Airlines, TWA, US Airways and United Airlines. The Office of Aviation Analysis has also conducted several detailed studies on various industry trends and competitive issues in conjunction with the Department's oversight responsibility of the industry. Some examples that are available on this web page are the Dominated Hub Fares study, the Rural Air Fare Study, Transatlantic Deregulation-The Alliance Network Effect.

Multilateral Aviation Agreements: Historically, the United States has negotiated air service rights for U.S. airlines on a bilateral basis. Given the global nature of the airline industry now and of the services provided, the United States is progressing beyond this approach and negotiating aviation agreements that encompass services involving more than one foreign trading partner. The first such agreement was with four of the countries in the Asia-Pacific Economic cooperation (APEC) forum. This multilateral aviation agreement represents the first successful effort to expand the Open-Skies provisions in a broader context. The European Union, comprising several European countries, has received a mandate to negotiate an aviation agreement with the United States. The Department, together with counterparts at the State Department, expects to begin such negotiations with the European Union in the near future.

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NAFTA: Office of International Transportation and Trade chaired the NAFTA land transportation negotiations and leads the Department’s efforts to implement the Agreement’s land transportation provisions. For more detailed information on DOT's NAFTA programs, click here.

Nigeria Transportation Project: Office of International Transportation and Trade provides overall coordination for this turn-key project that encompasses improvements in aviation safety and security, assistance in privatizing port services, port training, and technical assistance to develop a multi-modal oversight system.

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Open Skies Agreement: See Bilateral Agreements

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Passenger Facility Charges: The Department of Transportation may authorize a commercial service airport or agency that controls a commercial service airport to impose a fee on each paying passenger of an air carrier or foreign air carrier boarding an aircraft to finance airport-related projects. 49 USC 40117. The fee may be $1, $2, $3, $4, or $4.50. In order to impose such a charge the agency controlling the airport must submit an application to the Federal Aviation Administration.

Passenger Manifests: The Department requires that U.S. and foreign airlines operating aircraft with more than 60 seats collect information on the name of each U.S. citizen on the aircraft and to request the name and phone number of a contact for that passenger for all flights that have either an origin or destination in the United States. 14 CFR Part 243. The purpose of this information is to ensure that the U.S. government has prompt and adequate information about the passengers on the aircraft in case of an aviation disaster. In the case of an aviation disaster, the carrier involved would be required to provide the information to the Department of State and, in certain instances, to the National Transportation Safety Board. These requirements apply not only to passenger carriers but also to all-cargo carriers, since they could transport cargo handlers and other persons on their aircraft. The Foreign Air Carrier Licensing Division in the Office of International Aviation maintains information regarding the passenger manifest requirements for foreign air carriers. The Department’s Office of Aviation Enforcement and Proceedings maintains this information with respect to U.S. carriers.

Promotion of Competition in the U.S. Airline Industry: Increasing competition in the U.S. airline industry is a fundamental responsibility of the Department of Transportation under our governing statute. It is the Department's policy to encourage the entry of new airlines into the market not only to increase the level of services and airline choices available to the public, but also to promote lower airfares for consumers. As a result of this policy, over the past several years a number of new airlines have entered the industry, such as Southwest Airlines, Jet Blue, and AirTran. These carriers have provided important new services to consumers, expanded services at satellite airports, and significantly lowered airfares. This increased competition has spurred the larger carriers to lower their fares and to develop new services to compete with these low-fare carriers, further increasing the service and fare options to consumers. Two major studies by the Office of Aviation Analysis have contributed significantly toward the development of this pro-entry policy: The Southwest Effect (1993), The Low Cost Airline Service Revolution (1996), and Dominated Hub Fares (2001).

Public Charters: Any person that wishes to arrange charter flights that are advertised and held out to members of the general public must first submit a charter prospectus to the Department (Special Authorities Division of the Office of International Aviation) which contains the required information set forth in Part 380 of the DOT's Economic Regulations (14 CFR Part 380) together with a $39 filing fee made payable to the Department of Transportation. A person conducting such operations is generally referred to as a "tour operator" and are classified as a form of "indirect" air carrier. They differ from travel "agents" in that they undertake the legal responsibility to the passenger for providing the transportation service. Our regulations include requirements designed to protect customers' monies. Tour packages may or may not include hotel accommodations.

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Reports, Statistics, Studies, and Other Publications: The Office of Aviation and International Affairs publishes many reports, studies, and other publications that are directly related to domestic and international issues of interest or concern to the Department.

Rural Airport Listing (PDF)  (XLS Format) (CVS Format)

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Saint Lawrence Seaway Development Cooperation: Significantly different toll policies for shipping using this shared waterway is an on-going source of concern. Office of International Transportation and Trade, in cooperation with the SLSDC, monitors shipping on the Seaway and the effect of Canadian toll policies on U.S. Great Lakes interests, plus reform options and proposals.

Science and Technology (S&T) Cooperation Initiatives: The Assistant Secretary for Aviation and International Affairs serves as the lead representative for the United States to promote the interaction of government, academia, and industry in transportation S&T cooperation initiatives globally. Office of International Transportation and Trade provides staff leadership to this effort.

Service to Small Communities: This Office administers two programs designed to improve service to small communities. The Essential Air Service (EAS) program guarantees that certain small communities will receive a minimum level of service to provide them access to the National air transportation system. This program provides over $100 million annually to support service at these communities. Service to small communities was severely impacted by the events of September 11. The operating costs for these services increased and significant traffic declines resulted in substantially reduced revenues. As a result, over 100 subsidy rates for EAS services had to be renegotiated quickly to facilitate a continuation of service at these points. The Small Community Air Service Development Program is a grant-in aid program that provides financial assistance to small communities to improve their air service. For the past two fiscal years this program has worked with an annual budget of $20 million. In June 2002, the Department made the maximum number of grant awards under the statute to 40 communities in 38 states. The Office is currently in the process of soliciting proposals for the fiscal year 2003 available funds. Because of many changes in airline service over the years, the needs of small communities for air service have changed considerably which affects these two small community programs. The Department has initiated major legislative changes to restructure the way the Department provides financial assistance to small communities in conjunction with their air service to make it more efficient and responsive to community needs. (See Small Community Air Service Development Pilot Program)

September 11 terrorist attacks: Financial recovery of the airline industry since the terrorist attacks of September 11, 2001, has been a top priority for the Department. Many of the airlines in the industry were facing considerable financial difficulties prior to the September 11 terrorist attacks due to sluggish economy as well as high cost structures. The events of September 11 further exacerbated these problems and plunged these airlines, as well as several others, into the worst financial position in aviation history. The Air Transportation Safety and System Stabilization Act, among other things, established two programs to provide financial assistance to the industry in the post-9/11 marketplace. The Office of Aviation Analysis has played a central role in both of these programs. The first is the Air Carrier Compensation Program, which provided up the $5 billion to provide immediate financial relief to the airlines right after September 11 to ensure that they could continue to provide service. Within three days after the Act was passed, the Department paid over $2.3 billion to the airlines. The second program is the Loan Guarantee program, which provided $10 billion in guarantees to support air carrier attempts to secure loans to sustain their operations in the longer term.

Slots: Since 1969, the FAA has had rules in place that limit the number of operations (takeoff and landing positions or slots) at four congested airports, New York LaGuardia, New York JFK, Chicago O'Hare, and Reagan Washington National. Restricting takeoffs and landings (slots) at certain congested airports has been an effective method of controlling delays for several years. In part because of perceived inequity and inflexibility in the distribution of slots to individual airlines, in December 1985 the Department issued rules that "grandfathered" slots to airlines that held slots. The Department also allowed individual airlines to buy or sell the rights to slots in an attempt to improve the slot-rationing process and make slot-controlled access more rational.

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21) requires the Department to provide increased access to the four U.S. slot-controlled airports (airports where the number of take-offs and landings by airlines are limited)--Chicago's O'Hare airport, New York's LaGuardia and Kennedy airports and Washington, DC's Ronald Reagan Airport. Because of the congestion at the airports, however, the number of slot "exemptions" (relief from the overall limitations) is limited and the demand to serve them far exceeds the access available. Award of these slots constituted the first domestic route cases since the domestic airline industry was deregulated in 1978. The cases are hotly contested because access to the airports has both important economic and political implications. The slot restrictions at Chicago expired in July 1, 2002. The restrictions at the two New York airports will expire in 2007. The slot restrictions at Ronald Reagan Airport remains in effect with no scheduled expiration date. However, on April 1, 2004, the Department issued two orders granting Beyond-Perimeter and Within-Perimeter Slot Exemptions at Ronald Reagan Washington National Airport.

The primary administration of slots as handled by the Federal Aviation Administration, although the Office of Aviation Analysis is responsible for the allocation and slot exemptions. Over the past two years this Office has completed cases allocating all of the available slot exemptions at these airports.

Small Community Air Service Development Program: On April 5, 2000, the President signed the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21), Public Law 106-181. Among other things, the statute established the Small Community Air Service Development Pilot Program, a new pilot program designed to help smaller communities to enhance their air service. This program was reauthorized for five years, through FY 2008, by Vision 100-Century in Aviation Reauthorization Act, P.L. 108-176, and eliminated the "pilot" status of the program. The statute directs the Secretary to assist communities in developing projects that will enhance their access to the national air transportation system through public-private partnerships, and to help communities overcome factors that might be inhibiting improvements in their current air service. The Department provides this assistance in the form of financial grants. The program was not funded in its first year, fiscal year 2001, but was funded and implemented in each of fiscal years 2002 and 2003. In 2002, the Department awarded 40 grants. In FY 2003, the Deaprtment awarded 36 grants. For FY2004, in the FY 2004 Consolidated Appropriations Act, P.L. 108-199, Congress appropriated approximately $20 million for the program.

Standard Foreign Fare Level: (See international pricing)

Standard Industry Fare Level: The Airline Deregulation Act of 1978 (ADA), Public Law 95-504, substantially amended the Federal Aviation Act of 1958, setting both deadlines and policies for the economic deregulation of interstate and overseas (domestic) air transportation. Among other things, the ADA significantly limited the Civil Aeronautics Board's (CAB) discretion to prescribe domestic fare levels and required the CAB to establish a "Standard Industry Fare Level" (SIFL), based upon fares in effect on July 1, 1979. To serve the benchmark for evaluating a statutory zone of reasonableness for air fares since deregulation, as required by the deregulation law, the CAB and now the Department periodically updates the SIFL by the percentage change in airline operating cost per available seat-mile. It is also used by others in the government as well as the public in estimating the economic value of transportation services. The Office of Aviation Analysis recalculates the SIFL twice a year and makes available to the public publishable data tables.

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Teaming With Other USG Agencies: DOT, thru the Office of International Transportation and Trade, participates with other Federal agencies at seminars and workshops sponsored to familiarize foreign officials with U.S. companies interested in pursuing international projects as well as affirm USG support for U.S. industries. The networking opportunities afforded by these seminars and workshops serve to familiarize U.S. companies with DOT efforts on their behalf and alert DOT officials to the many transport-related interests and goals of U.S. industry.

Technological Solutions to Customer Service Issues: Technology can and should be the cornerstone for airline and airports to facilitate consumer assess to flight information and to provide services that minimize the adverse consequences of air travel delays and cancellations. In an October 2000 report, the Department highlights opportunities relating to passenger transfers (e-tickets), scheduling data, weather information, passenger check-in, on-time performance, and web pages where technology can enhance the flow of information to airline consumers and reduce traveler stress and inconvenience.

Trade Advocacy: Through direct government-to-government contacts, and in coordination with U.S. business and the Commerce Department’s Advocacy Center, Office of International Transportation and Trade spearheads the Department’s efforts to level the playing field for the broad spectrum of U.S. businesses seeking to export their transport related goods and services in a very competitive international market.

Trade Policy: Office of International Transportation and Trade works closely with and within the interagency trade policy mechanism that has been established by the U.S. Trade Representative to develop and coordinate transportation interests on trade and trade-related investment issues within the U.S. Government.

Trade Promotion Coordinating Committee (TPCC): The TPCC was established to coordinate Governmental efforts to increase U.S. exports. Office of International Transportation and Trade provides staff support to the working groups of the TPCC and actively participates in the drafting of the annual National Export Strategy, the TPCC’s report to Congress.

Transportation of Mail: 49 USC 41903 requires that duly licensed U.S. certificated carriers transport mail on their authorized foreign air transportation service and their services within Alaska. 49 USC 41901 and 41907 require the Department to “set fair and reasonable rates” that the U.S. Postal Service will pay air carriers to transport international mail and mail within Alaska. The Office of Aviation Analysis issues orders seeking mail rates.

Last Updated: 9/20/2006