[Federal Register: June 10, 2002 (Volume 67, Number 111)]
[Notices]
[Page 39784-39785]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10jn02-139]
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DEPARTMENT OF TRANSPORTATION
Office of the Secretary
[Docket Nos. OST-95-179 and OST-95-623]
Proposed Agency Information Collection; Comment Request;
Disclosure of Code-Sharing Arrangements and Long-Term Wet Leases
AGENCY: Office of the Secretary (OST), DOT.
ACTION: Notice and request for comments.
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SUMMARY: In accordance with the Paperwork Reduction Act of 1995 (44
U.S.C. 3501 et seq.), this notice announces and requests comments on
the Department of Transportation's intention to request the extension
of a previously approved collection that reflects DOT's current
consumer notification rules and policies to ensure that consumers have
pertinent information about airline code-sharing arrangements and long-
term wet leases in domestic and international air transportation. The
information collection requirement in the rule, among other things, (1)
requires travel agents doing business in the United States, foreign air
carriers, and U.S. air carriers (a) to give consumers reasonable and
timely notice if air transportation they are considering purchasing
will be provided by an airline different from the
[[Page 39785]]
airline holding out the transportation, and (b) to disclose the
identity of the airline that will actually operate the aircraft; and
(2) for tickets issued in the United States, requires U.S. and foreign
air carriers and travel agents to provide written notice of the
transporting carrier's identity at the time of purchase of air
transportation involving a code-sharing or long-term wet-lease
arrangement.
DATES: Comments on this notice must be received on or before August 9,
2002.
ADDRESSES: Comments on this notice should be directed to the
Competition and Policy Analysis Division (X-55), Office of Aviation
Analysis, U.S. Department of Transportation, Room PL-401, Docket Nos.
OST-95-179 and OST-95-623, 400 Seventh Street, SW., Washington, DC
20590. Three copies are requested but not required.
FOR FURTHER INFORMATION CONTACT: Jack Schmidt, Office of the Assistant
Secretary for Aviation and International Affairs, Office of the
Secretary, U.S. Department of Transportation, 400 Seventh St. SW.,
Washington, DC 20590, (202) 366-5903.
SUPPLEMENTARY INFORMATION:
Title: Disclosure of Code-sharing Arrangements and Long-term Wet
Leases.
OMB Control Number: 2105-0537.
Type of request: Extension of a previously approved collection.
Abstract: Code-sharing is the name given to a common airline
industry marketing practice where, by mutual agreement between
cooperating carriers, at least one of the airline designator codes used
on a flight is different from that of the airline operating the
aircraft. In one version, two or more airlines each use their own
designator codes on the same aircraft operation. Although only one
airline operates the flight, each airline in a code-sharing arrangement
may hold out, market and sell the flight as its own in published
schedules. Code-sharing also refers to other arrangements where a code
on a passenger's ticket is not that of the operator of the flight, but
where the operator does not also hold out the service in its own name.
Such code-sharing arrangements are common between commuter air carriers
and their larger affiliates and the number of arrangements between U.S.
air carriers and foreign air carriers has also been increasing.
Arrangements falling into this category are similar to leases of
aircraft and crew (wet leases).
The Department recognizes the strong preference of air travelers
for on-line service (service by a single carrier) on connecting flights
over interline service (service by multiple carriers). Code-sharing
arrangements are, in part, a marketing response to this demand for on-
line service since these arrangements enable airlines to hold out
multi-carrier service as on-line service. Often, code-sharing partners
offer services similar to those available for on-line connections with
the goal of offering ``seamless'' service (i.e., service where the
transfers from flight to flight or airline to airline are facilitated).
For example, they may locate gates near each other to make connections
more convenient or coordinate baggage handing to give greater assurance
that baggage will be properly handled.
Code-sharing arrangements can help airlines operate more
efficiently because they can reduce costs by providing a joint service
with one aircraft rather than operating separate services with two
aircraft. Particularly in thin markets, this efficiency can lead to
increased price and service options for consumers or enable the use of
equipment sized appropriately for the market. Therefore, the Department
recognizes that code-sharing, as well as long-term wet leases, can
offer significant economic benefits.
Although code-sharing and wet-lease arrangements can offer
significant consumer benefits, they can also be misleading unless
consumers know that the transportation they are considering for
purchase will not be provided by the airline whose designator code is
shown on the ticket and unless they know the identity of the airline on
which they will be flying. The growth in the use of code-sharing, wet-
leasing and similar marketing tools, particularly in international air
transportation, had given the Department concern about whether the
then-current disclosure rules (14 CFR 399.88) protected the public
interest adequately.
Affected Public: All U.S. air carriers, foreign air carriers,
computer reservations systems (CRSs), travel agents doing business in
the United States, and the traveling public.
Respondents: U.S. air carriers, foreign air carriers, ticket agents
(including travel agents), and the traveling public.
Estimated Number of Respondents: 33,898 excluding travelers.
Estimated Number of Responses per Respondent: An average of 3,009
phone calls of 15 seconds duration (unweighted average) based on 102
million phone calls and 33,898 respondents.
Estimated Total Annual Burden on Respondents: Annual reporting
burden for this data collection is estimated at 424,994 hours for all
travel agents and airline ticket agents and 424,994 hours for air
travelers based on 15 seconds per phone call and an average of 2.1
phone calls per trip.
Most of this data collection (third party notification) is
accomplished through highly automated computerized systems.
Comments are invited on: (a) Whether this collection of information
(third party notification) is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
burden of the proposed collection of information; (c) ways to enhance
the quality, utility, and clarity of the information to be collected;
and (d) ways to minimize the burden of the collection of information on
the respondents, including through the use of automated techniques or
other forms of information technology.
Issued in Washington, DC, on June 4, 2002.
Randall D. Bennett,
Director, Office of Aviation Analysis.
[FR Doc. 02-14360 Filed 6-7-02; 8:45 am]
BILLING CODE 4910-62-P