14 CFR Part 241 · GlobalLawDB

Contents

01Section 01 [Reserved]#

1Section 1 Introduction to System of Accounts and Reports#

02Section 02 [Reserved]#

2Section 2 General Accounting Policies#

03Section 03 Definitions for Purposes of This System of Accounts and Reports#

Account, clearing. An account used as a medium for the temporary accumulation of costs that are redistributed to appropriate applicable accounts. Acquisition, date of. The date on which the title to owned property or equipment (or the right to use or control the reassignment of leased property or equipment) passes to the air carrier. Addition, property. Additional equipment, land, structures, and other tangible property; extensions of fuel, water, and oil distribution equipment; additions to buildings and other structures; and additional safety devices applied to equipment not previously thus equipped. (See also Modification.) Affiliated group. A combination of companies comprised of the air carrier, any person controlling the air carrier or under common control with the air carrier, and organizational divisions (as defined in sections 1-6) of and persons controlled by the air carrier. Agency, cargo. Any person (other than the air carrier preforming the direct air transportation or one of its bona fide regular employees or an indirect air carrier lawfully engaged in air transportation under authority conferred by any applicable part of the Economic Regulations of the Department) who for compensation or profit: (1) Solicits, obtains, receives or furnishes directly or indirectly property or consolidated shipments of property for transportation upon the aircraft of an air carrier subject to this part, or (2) procures or arranges for air transportation of property upon aircraft of an air carrier subject to this part by charter, lease, or any other arrangement. Agent, ticket. Any person (other than the air carrier performing the direct air transportation or one of its bona fide regular employees, or an air carrier which subcontracts the performance of charter air transportation which it has contracted to perform) who for compensation or profit: (1) Solicits, obtains, receives, or furnishes directly or indirectly passengers or groups of passengers for transportation upon the aircraft of an air carrier subject to this part, or (2) procures or arranges for air transportation of passengers or groups of passengers upon aircraft of an air carrier subject to this part by charter, lease, or any other arrangement. Agreement. Any oral or written agreement, contract, understanding, or arrangement, and any amendment, revision, modification, renewal, extension, cancellation or termination thereof. Air carrier. Any citizen of the United States who undertakes, whether directly or indirectly or by a lease or any other arrangement, to engage in air transportation. Air carrier, charter. An air carrier holding a certificate issued under 49 U.S.C. 41102(a)(3). Air carrier, large certificated. An air carrier holding a certificate issued under 49 U.S.C. 41102, as amended, that: (1) Operates aircraft designed to have a maximum passenger capacity of more than 60 seats or a maximum payload capacity of more than 18,000 pounds; or (2) conducts operations where one or both terminals of a flight stage are outside the 50 states of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the U.S. Virgin Islands. Air carrier, surviving. An entity (air carrier) which, as the result of a business combination, has acquired the net assets, and carries on the operations of, one or more predecessor air carriers, and which may be newly organized at the time of the combination or may be one of the predecessor air carriers. Aircraft. Any contrivance now known or hereafter invented, used or designed for navigation of or flight in the air. Aircraft days assigned to service-carrier's equipment means the number of days that aircraft owned or acquired through rental or lease are in the possession of the reporting air carrier and are available for service on the reporting carrier's routes plus the number of days such aircraft are in service on routes of others under wet-lease agreements. Includes days in overhaul, or temporarily out of service due to schedule cancellations. Excludes days that newly acquired aircraft are on hand but not available for productive use, days dry-leased or rented to others, and days in possession but formally withdrawn from air transportation service. Aircraft day assigned to service-carrier routes—same as aircraft days assigned to service carrier's equipment but excluding the number of days owned or rented equipment are in the possession of others under interchange agreements and including the number of days aircraft of others are in the possession of the air carrier under interchange agreements. Aircraft, leased (rented). Aircraft obtained from (or furnished to) others under lease or rental arrangements. Leased and rented aircraft do not include those used under interchange agreements designed to provide oneplane service over the routes of the air carriers involved. Aircraft type. A distinctive model as designated by the manufacturer. Airport. A landing area regularly used by aircraft for receiving or discharging passengers or cargo. Airport, alternate. An approved airport to which a flight may proceed if a landing at the airport to which the flight was dispatched becomes inadvisable. Airport-to-airport distance. The great circle distance between airports, measured in statute miles in accordance with part 247 of this chapter. Air transportation. The carriage by aircraft of persons, property, or mail. Air transportation, charter. Air transportation authorized pursuant to 49 U.S.C. 41102. Airworthiness (or Airworthy). When applied to a particular aircraft or component part, it denotes the ability of such aircraft or component part to perform its function satisfactorily through a range of operations determined by the Federal Aviation Administration. Allocate. To assign an item or group of items of investment, revenue, or cost to an object, activity, process, or operation, in accordance with cost responsibilities, benefits received, or other measure of apportionment. Allocation, bases of. Bases of distribution whereby revenues, expenses, and/or costs are equitably apportioned among revenue, expense, property and equipment, and other accounts. Amortization. The gradual extinguishment of an amount in an account by distributing such amount over a fixed period, over the life of the asset or liability to which it applies or over the period during which it is anticipated the benefit will be realized. Asset, contingent. An asset the existence, value, or ownership of which depend upon the occurrence or nonoccurrence of a specific event or upon the performance or nonperformance of a specified act. Associated company. A company in which the accounting air carrier holds 5 percent or more of the outstanding proprietary interest; or a company which holds 5 percent or more of the outstanding proprietary interest of the accounting air carrier; or a company that, directly or through one or more intermediaries, controls or is controlled by, or is under common control with the accounting air carrier. Companies owned or controlled jointly with other air carriers shall be regarded as associated companies for purposes of this system of accounts. (See also Control.) Betterment. Any improvement to property or equipment through the substitution of superior parts for inferior parts retired, the object of which is to make such property more useful or of greater capacity than at the time of acquisition or installation. (See also Modification.) BTS. The Bureau of Transportation Statistics. Cargo. All traffic other than passengers. Cargo transported. Cargo on board each flight stage. Certificated point. A city, place or population center authorized to receive scheduled air service under a Certificate of Public Convenience and Necessity or under an exemption issued to an air carrier. Certificate of Public Convenience and Necessity. A certificate issued to an air carrier under 49 U.S.C. 41102, by the Department of Transportation authorizing the carrier to engage in air transportation. Company, predecessor. An air carrier whose net assets and operations have been taken over by one or more other air carriers. Compensation (of personnel). Remuneration to air carrier employees for personal services. Includes salaries, wages, overtime pay, cost-of-living differentials, bonuses, etc., as distinguished from per diem allowances or reimbursement for expenses incurred by personnel for the benefit of the air carrier. Continental United States. The 48 contiguous States and the District of Columbia. Control (including the terms Controlling, Controlled by, and Under common control). The possession, directly or indirectly, of the power positively to direct, or cause the direction of or negate the direction of, the management and policies of a company, whether such power is through one or more intermediary companies or alone or in conjunction with or pursuant to an agreement, and whether such power is established through a majority or minority ownership or voting of securities, common directors, officers, or stockholders, voting trusts, holding trusts, associated companies, contract, or any other direct or indirect means. Controlling person. (See Person Controlling an air carrier) Cost. The amount of cash (or its equivalent) actually paid for property, materials and supplies, and services, including that amount paid to put the property or materials and supplies in readiness for use. It includes such items as transportation charges, installation charges, and customs duties, less any cash or other discounts. Cost, book. The amount at which an asset is recorded in an account without the deduction of amounts in related allowances or other accounts. Cost, depreciated. The cost of property and equipment less the related allowances for depreciation. Cost, removal. The cost of demolishing, dismantling, tearing down, or otherwise removing property and equipment, including the cost of related transportation and handling. Debt, expense on. Expenses incurred by or for the air carrier in connection with the issuance and sale of evidences of debt (exclusive of the sale of reacquired securities), such as fees for drafting mortgages and trust deeds; fees and taxes for issuing or recording evidences of debt; cost of engraving and printing bonds, certificates of indebtedness, and other commercial paper; specific costs of obtaining governmental authority for issuance and filing notices thereunder; fees for legal services; fees and commissions paid underwriters, brokers, and salesmen for marketing such evidences of debt; fees and expenses of listing on exchanges; and other like costs. Deferred taxes. Tax effects which are deferred for allocation to income tax expense of future periods. Department. Department of Transportation. Departures completed, percent scheduled. The percent of scheduled departures that were performed. Departures completed, scheduled. The number of takeoffs performed at each airport pursuant to published schedules, exclusive of extra sections to scheduled departures. Departure performed. A takeoff made at an airport. Departure, scheduled. A takeoff scheduled at an airport, as set forth in published schedules. Depreciation (of depreciable property and equipment). The loss in service value, not restored by current maintenance, incurred in the course of service from causes known to be in current operation, against which the carrier is not protected by insurance, and the effect of which can be forecast with reasonable accuracy. The causes of depreciation include wear and tear, decay, action of the elements, inadequacy, obsolescence, changes in the art, changes in demand, and requirements of public authorities. Discount (of securities issued or assumed by the air carrier). The excess of (1) the par or stated value of securities over (2) the then current money value of the consideration received from their sale less the amount included for dividends or for interest accrued. DOT. Department of Transportation. Equipment. Tangible property other than land, structures, and improvements. Equity security. Any instrument representing ownership shares (for example, common, preferred, and other capital stock), or the right to acquire (for example, warrants, rights, and call options) or dispose of (for example, put options) ownership shares in an enterprise at fixed or determinable prices. The term does not encompass preferred stock that by its terms either must be redeemed by the issuing enterprise or is redeemable at the option of the investor, nor does it include treasury stock or convertible bonds. Equivalent unit. A new unit substituted for an existing unit that is worn out, is damaged beyond repair, or has become inadequate in service, the substituted unit having substantially no greater capacity than the unit for which substituted. Estimated economic life of leased property. The estimated remaining period during which the property is expected to be economically usable by one or more users, with normal repairs and maintenance, for the purpose for which it was intended at the inception of the lease, without limitation by the lease term. Expense, capital stock. Expenses incurred by or for the air carrier in connection with the initial issuance and sale of capital stock (exclusive of the sale of reacquired capital stock), such as fees and commissions paid to promoters, underwriters, brokers, and salesmen; fees for legal services; cost of soliciting subscriptions for capital stock; including fees, commissions, and advertising; specific costs of obtaining governmental authority for issuance and filing notices thereunder; fees and taxes for issuance of capital stock and listing on exchanges; and the cost of preparing, engraving, printing, issuing, and distributing prospectuses and stock certificates. Flight, developmental. A flight for (1) the development of a new route either prior or subsequent to certification by the Department of Transportation; (2) the extension of an existing route; or (3) the integration of a new type of aircraft or service. Flight, extra section. A flight, conducted as an integral part of scheduled service, that has not been provided for in published schedules and is required for transportation of traffic that cannot be accommodated on a regularly scheduled flight. Flights made in ferrying aircraft to meet schedules, or for similar operational reasons, are not extra sections and are classified as nonrevenue flights even if an occasional shipment, as a matter of special accommodation, is on board. Flight, ferry. A flight for the purpose of returning an aircraft to base, equipment equalization, or moving an aircraft to and from a maintenance base. Flight, paid positioning. A flight for the purpose of positioning an empty aircraft in connection with a charter flight for which a specific charge is set forth in a tariff or contract for application directly to the positioning miles operated. Such flights are considered revenue flights for Form 41 reporting purposes. Flight, personnel training. A flight for the purpose of obtaining flying time for flight personnel or a flight in connection with a personnel training program. Flight stage. The operation of an aircraft from takeoff to landing. For purposes of classifying flight stages as between “domestic”, “territorial”, and “international”, technical stops are disregarded. (See Stops, technical.) Freight. Property, other than mail, transported by air. Generally accepted accounting principles (GAAP). The body of authoritative accounting knowledge governing the recording, presenting and disclosing of financial transactions, as incorporated in the pronouncements of the Financial Accounting Standards Board. Group basis (in depreciation accounting). A plan under which (1) depreciation is based upon the application of a single depreciation rate to the total book cost of all property included in a given depreciable property and equipment account or class, despite differences in service life of individual items of property and equipment, (2) the full original cost, less any salvage realized, of an item of depreciable property or equipment retired is charged to the allowance for depreciation regardless of the age of the item, and (3) no gain or loss is recognized on the retirement of individual items of property or equipment. Horsepower, maximum continuous for reciprocating engines. The brake horsepower developed in standard atmosphere at a specified altitude and under the maximum conditions of crankshaft rotational speed and engine manifold pressure, and approved for use during periods of unrestricted duration. Horsepower, maximum continuous for turbine engines. The brake horsepower developed at specified altitudes, atmospheric temperatures, and flight speeds and under the maximum conditions of rotor shaft rotational speed and gas temperature, and approved for use during periods of unrestricted duration. Thrust, maximum continuous for turbine engines. The jet thrust developed at specified altitudes, atmospheric temperatures, and flight speeds and under the maximum conditions of rotor shaft rotational speed and gas temperature, and approved for use during periods of unrestricted duration. Hours, aircraft. The airborne hours of aircraft computed from the moment an aircraft leaves the ground until it touches the ground at the end of a flight. Hours flown, revenue aircraft. The aircraft hours of flights performed in revenue service. Hours in capitalized projects, aircraft. Aircraft hours applicable to ferrying newly acquired aircraft from the factory, to capitalized extension and development preoperating projects and to other costs which have been capitalized. Hours per aircraft per day—carrier's equipment, revenue. Average hours of productive use per day in revenue service of reporting carrier's equipment determined by dividing (1) Aircraft days assigned to service—carrier's equipment into (2) Revenue aircraft hours minus Revenue hours on other carrier's interchange equipment plus Total hours by others on the carrier's interchange equipment. Hours per aircraft per day—carrier's routes, revenue. Average hours of productive use per day in revenue service on reporting carrier's routes determined by dividing (1) Aircraft days assigned to service-carrier's routes into (2) Revenue aircraft hours. Hours, ramp-to-ramp. The aircraft hours computed from the moment the aircraft first moves under it own power for purposes of flight, until it comes to rest at the next point of landing. Improvement. An addition or alteration to land, a building, or a unit of equipment that results in a better piece of property, in the sense of greater durability, or in increased productivity or efficiency. (See also Modification.) Income tax expense. The amount of income taxes (whether or not currently payable or refundable) allocable to a period in the determination of net income. Income taxes. Taxes based on income determined under provisions of the United States Internal Revenue Code and foreign, State, and other taxes (including franchise taxes) based on income. Insurance, self. The assumption by an air carrier of a risk of loss or liability arising from an accident or other contingent event. Interchange agreement. An agreement under which aircraft of one air carrier are utilized to provide one-plane service over its own routes and the routes of other air carriers. Interperiod tax allocation. The process of apportioning income taxes among periods. Inventory, perpetual. A book inventory kept in continuous agreement with stock on hand by means of a detailed record. Investor controlled company (for purposes of applying the equity method of accounting). Any business entity in which the accounting air carrier is able to exercise significant influence over operating and financial policies of the issuing company. Significant influence will be presumed, unless established to the contrary by waiver request, with ownership of 20 percent or more of the outstanding voting capital stock. Ability to exercise influence may be indicated in several ways, such as representation on the Board of Directors, participation in policy-making processes, material intercompany transactions, interchange of managerial personnel, or technological dependency. Investor controlled companies shall also be regarded as associated companies for purposes of this system of accounts (see also Associated company). Item, delayed. An item relating to transactions that occurred during a prior accounting period and that requires further accounting treatment for a true statement of financial condition or operating results. It includes adjustments of errors in the operating revenue, operating expense, and other income accounts for prior periods. Liability, contingent. A possible source of obligation of an air carrier dependent upon the fulfillment of conditions regarded as uncertain. Load, available. Represents the maximum salable load. It is the allowable gross weight less the empty weight, less all justifiable aircraft equipment, and less the operating load (consisting of minimum fuel load, oil, flight crew, steward's supplies, etc.). For passenger aircraft, the available load must not exceed the weight of the maximum number of passengers who can be accommodated in the seats installed in the aircraft plus the weight of the traffic that can be accommodated in the cargo space. Load, average revenue. The average total revenue tons carried in revenue services, determined by dividing total revenue ton-miles by aircraft miles flown in revenue services. Load, average revenue passenger. Average number of revenue passengers carried in passenger services, determined by dividing revenue passenger-miles by aircraft miles flown in revenue passenger services. Load factor, over-all revenue. The percent that total revenue ton-miles (passenger plus nonpassenger) are of available ton-miles in revenue services. Load factor, revenue passenger. The percent that revenue passenger-miles are of available seat-miles in revenue passenger services. Load, minimum fuel. The minimum quantity of fuel with which an aircraft may be dispatched in accordance with the safety operating needs of the air carrier. Load, salable. (See Load, available.) Mail, nonpriority. All mail for which transportation by air is provided on a space available basis. Mail, priority. All mail for which transportation by air is provided on a priority basis. Mile. A statute mile (5,280 feet). Miles completed, percent scheduled aircraft. The percent of scheduled aircraft miles which were performed. Miles completed, scheduled aircraft. The aircraft miles performed on scheduled flights computed between only those scheduled points actually served. Miles flown, aircraft. The miles (computed in airport-to-airport distances) for each flight stage actually completed, whether or not performed in accordance with the scheduled pattern. For this purpose, operation to a flag stop is a stage completed even though a landing is not actually made. In cases where the interairport distances are inapplicable, aircraft miles flown are determined by multiplying the normal crusing speed for the aircraft type by the airborne hours. Miles flown, nonrevenue aircraft. The aircraft miles flown on nonrevenue flights, such as ferry (including empty backhauls to MAC one-way charters), personnel training, extension and development, and abortive revenue flights. Miles, revenue aircraft. The aircraft miles flown in revenue service. Miles, scheduled aircraft. The sum of the airport-to-airport distances of all flights scheduled to be performed over the air carrier's certificated routes pursuant to published flight schedules. Flights listed in the published schedules for operation only as extra sections, when traffic warrants, are excluded. Modification. An alteration in a structure or unit of equipment that changes its design and is made to correct an error, increase production, improve efficiency of operation, or for some other reason. Obsolescence. The process of becoming out of date due to progress of the arts and sciences, changed economic conditions, legislation, etc., which ultimately results in the retirement or other disposition of property. Off-Line. Installations maintained or facilities used for other than scheduled certificated air services. On-Line. Installations maintained or facilities used in conducting scheduled certificated air services. Domestic. Flight stages with both terminals within the 50 States of the United States and the District of Columbia. Territorial. Flight stages with both terminals within territory under U.S. jurisdiction where at least one of the terminals is not within a State or the District of Columbia. International. Flight stages with one or both terminals outside of territory under U.S. jurisdiction. Operations, systems. The over-all operations of an air carrier including all of the operating entities of an air carrier having multiple operations. Passenger-mile. One passenger transported 1 mile. Passenger-miles are computed by multiplying the aircraft miles flown on each flight stage by the number of passengers transported on that stage. Passenger-mile, nonrevenue. One nonrevenue passenger transported one mile. Passenger-mile, revenue. One revenue passenger transported one mile. Passenger, nonrevenue. A person traveling free or under token charges, except those expressly named in the definition of revenue passenger; a person traveling at a fare or discount available only to employees or authorized persons of air carriers or their agents or only for travel on the business of the carriers; and an infant who does not occupy a seat. (This definition is for 14 CFR part 241 traffic reporting purposes and may differ from the definitions used in other parts by the Federal Aviation Administration and the Transportation Security Administration for the collection of Passenger Facility Charges and Security Fees.) The definition includes, but is not limited to following examples of passengers when traveling free or pursuant to token charges: (1) Directors, officers, employees, and others authorized by the air carrier operating the aircraft; (2) Directors, officers, employees, and others authorized by the air carrier or another carrier traveling pursuant to a pass interchange agreement; (3) Travel agents being transported for the purpose of familiarizing themselves with the carrier's services; (4) Witnesses and attorneys attending any legal investigation in which such carrier is involved; (5) Persons injured in aircraft accidents, and physicians, nurses, and others attending such persons; (6) Any persons transported with the object of providing relief in cases of general epidemic, natural disaster, or other catastrophe; (7) Any law enforcement official, including any person who has the duty of guarding government officials who are traveling on official business or traveling to or from such duty; (8) Guests of an air carrier on an inaugural flight or delivery flights of newly-acquired or renovated aircraft; (9) Security guards who have been assigned the duty to guard such aircraft against unlawful seizure, sabotage, or other unlawful interference; (10) Safety inspectors of the National Transportation Safety Board or the FAA in their official duties or traveling to or from such duty; (11) Postal employees on duty in charge of the mails or traveling to or from such duty; (12) Technical representatives of companies that have been engaged in the manufacture, development or testing of a particular type of aircraft or aircraft equipment, when the transportation is provided for the purpose of in-flight observation and subject to applicable FAA regulations; (13) Persons engaged in promoting air transportation; (14) Air marshals and other Transportation Security officials acting in their official capacities and while traveling to and from their official duties; and (15) Other authorized persons, when such transportation is undertaken for promotional purpose. Passenger, revenue. A passenger for whose transportation an air carrier receives commercial remuneration. (This definition is for 14 CFR part 241 traffic reporting purposes and may differ from the definitions used in other parts by the Federal Aviation Administration and the Transportation Security Administration for the collection of Passenger Facility Charges and Security Fees.) This includes, but is not limited to, the following examples: (1) Passengers traveling under publicly available tickets including promotional offers (for example two-for-one) or loyalty programs (for example, redemption of frequent flyer points); (2) Passengers traveling on vouchers or tickets issued as compensation for denied boarding or in response to consumer complaints or claims; (3) Passengers traveling at corporate discounts; (4) Passengers traveling on preferential fares (Government, seamen, military, youth, student, etc.); (5) Passengers traveling on barter tickets; and (6) Infants traveling on confirmed-space tickets. Passengers transported. Passengers on board each flight stage. Person controlling an air carrier. Any person, as defined in 49 U.S.C. 40102, whom the Department has found, in any proceeding, to control an air carrier, or who holds, directly or indirectly, the legal or beneficial ownership of more than 50 percent of the outstanding voting capital stock or capital of an air carrier, and who does not make a proper showing to the Department that he or she does not control the carrier despite such stock ownership, shall be deemed to be a person controlling the carrier for the purpose of this part. A brokerage firm which holds record ownership of securities merely for the convenience of the customer beneficially owning the stock shall not be deemed a person controlling an air carrier. Premium (as applied to securities issued or assumed by the air carrier). The excess of (1) the then current money value of the consideration received from their sale, less the amount included therein for dividends or interest accrued, over (2) their par or stated value. Pretax accounting income. Income or loss for a period exclusive of related income tax expense. Property (as applied to traffic). (See Cargo.) Replacement. Substitution of new for existing facilities that are worn out, damaged beyond repair, or have become inadequate in service. Reporting carrier for T-100 purposes means the air carrier in operational control of the flight, i.e., the carrier that uses its flight crew under its own FAA operating authority. Residual value. The predetermined portion of the cost of a unit of property or equipment excluded from depreciation. It shall represent a fair and reasonable estimate of recoverable value as at the end of the service life over which the property or equipment is depreciated and shall give due consideration to the proceeds anticipated from disposition of the property or equipment and the extent to which costs attaching to property or equipment are otherwise recoverable through charges against income. Retirement. The permanent withdrawal of assets from services of the corporate entity through sale, abandonment, demolition, or other disposal. Retirement, date of. The date on which property or equipment is permanently withdrawn from services of the corporate entity. Route, certificated. The route(s) over which an air carrier is authorized to provide air transportation by a Certificate of Public Convenience and Necessity issued by the Department of Transportation pursuant to 49 U.S.C. 41102. This definition is applicable to an air carrier issued a Certificate of Public Convenience by the Civil Aeronautics Board before its sunset in 1984. Salvage value. The amount received for property retired, less the expenses incurred in connection with the sale or in the preparation of the property for sale; or, if retained, the amount at which the material recovered is charged to materials and supplies or other appropriate account. Seats available. Installed seats in an aircraft (including seats in lounges) exclusive of any seats not offered for sale to the public by the carrier; provided that in no instance shall any seat sold be excluded from the count of available seats. Seats, average available. The average number of seats available for passengers, determined by dividing available seat-miles by revenue aircraft miles flown in passenger service. Seat-miles available, revenue. The aircraft miles flown on each flight stage multiplied by the number of seats available for revenue use on that stage. Section 41103 cargo operations. The carriage, pursuant to 49 U.S.C. 41103, by aircraft of property and/or mail as a common carrier for compensation or hire in commerce between a place in any State of the United States, or the District of Columbia, or Puerto Rico, or the U.S. Virgin Islands, and a place in any other of those entities, or between places in the same State or other entity through the air-space over any place outside thereof, or between places within the District of Columbia, Puerto Rico, or the U.S. Virgin Islands. This includes commerce moving partly by aircraft and partly by other forms of transportation, as well as commerce moving wholly by aircraft. Segment, service. A pair of points served or scheduled to be served by a single stage of at least one flight within any given time period. Service, charter. Nonscheduled air transport service in which the party receiving transportation obtains exclusive use of an agreed upon portion of the total capacity of an aircraft with the remuneration paid by the party receiving transportation accruing directly to, and the responsibility for providing transportation is that of, the accounting air carrier. Service, coach (tourist). Transport service specifically established for the carriage of passengers at special reduced passenger fares that are predicated on both the operation of specifically designated aircraft space and a reduction in the quality of service regularly and ordinarily provided. Service, first class. Transport service established for the carriage of passengers moving at either standard fares or premium fares, or at reduced fares not predicated upon the operation of specifically allocated aircraft space, and for whom standard or premium quality services are provided. Service life. The period between the date of installation of property or equipment and its date of retirement. Service, mixed. Transport service for the carriage of both first-class and coach passengers on the same aircraft. Service, nonpassenger. Transport service established for the carriage of traffic other than passengers. Service, nonscheduled. Includes transport service between points not covered by Certificates of Public Convenience and Necessity issued by the Department of Transportation to the air carrier; services pursuant to the charter or hiring of aircraft; other revenue services not constituting an integral part of the services performed pursuant to published schedules; and related nonrevenue flights. Service, passenger-cargo. Transport service established for the carriage of passengers which may also be used jointly for the transportation of cargo. Service, scheduled. Transport service operated pursuant to published flight schedules, including extra sections and related nonrevenue flights. Service, transport. The operation of facilities for the carriage of traffic by air. Services, all. The total of scheduled and nonscheduled transport services. Stop, flag. A point on an air carrier's operating system that is scheduled to be served only when traffic is to be picked up or discharged. Stops, technical. Aircraft landing made for purposes other than enplaning or deplaning traffic. For purposes of identifying reporting entities, landings made for stopover passengers are regarded as technical stops. Tariff, published. A publication containing fares and rates applicable to the transportation of persons or cargo and rules relating to or affecting such fares or rates of transportation, filed with the Department of Transportation. Taxable income. The excess of revenues over deductions or the excess of deductions over revenues to be reported for income tax purposes for a period. Tax effects. Differentials in income taxes of a period attributable to (1) revenue or expense transactions which enter into the determination of pretax accounting income in one period and into the determination of taxable income in another period, (2) deductions or credits that may be carried backward or forward for income tax purposes, and (3) adjustments of prior periods (or of the opening balance of retained earnings) and direct entries to other stockholders' equity accounts which enter into the determination of taxable income in a period but which do not enter into the determination of pretax accounting income of that period. A permanent difference does not result in a “tax effect” as the term is used in this System of Accounts and Reports. Ton. A short ton (2,000 pounds). Ton-mile. One ton transported 1 mile. Ton-miles are computed by multiplying the aircraft miles flown on each flight stage by the number of tons transported on that stage. Ton-mile, nonrevenue. One ton of nonrevenue traffic transported 1 mile. Ton-mile, passenger. One ton of passenger weight (including all baggage) transported 1 mile. (See also Weight, passenger.) Ton-mile, revenue. One ton of revenue traffic transported 1 mile. Ton-miles available, revenue. The aircraft miles flown on each flight stage multiplied by the ton capacity available for use on that stage. Traffic, deplaned. A count of the number of passengers getting off and tons of cargo unloaded from an aircraft. For this purpose, passengers and cargo on aircraft leaving a carrier's system on interchange flights are considered as deplaning and the interchange point; and passengers and cargo moving from one operation to another operation of the same carrier, for which separate reports are required by the Department of Transportation, are considered as deplaning at the junction point. Traffic, enplaned. A count of the number of passengers boarding and tons of cargo loaded on an aircraft. For this purpose, passengers and cargo on aircraft entering a carrier's system on interchange flights are considered as enplaning at the interchange point; and passengers and cargo moving from one operation to another operation of the same carrier, for which separate reports are required by the Department of Transportation, are considered as enplaning at the junction point. Traffic, nonrevenue. Passengers and cargo transported by air for which no remuneration or token service charges are received by the air carrier. Airline employees, officers and directors, or other persons, except for ministers of religion, who are traveling under reduced-rate transportation authorized by 49 U.S.C. 41511(a) and 14 CFR part 223, as well as travel agents, cargo agents, and tour conductors traveling at reduced fares are also considered nonrevenue traffic. Traffic office. A facility where air transportation is sold, and related processes of documentation and reservation confirmation are performed. Traffic, revenue. Passengers and cargo transported by air for which remuneration is received by the air carrier. Airline employees, officers and directors, or other persons, except for ministers of religion, who are traveling under reduced-rate transportation authorized by 49 U.S.C. 41511(a) and 14 CFR part 223, travel agents, cargo agents, and tour conductors traveling at reduced fares, and other passengers and cargo carried for token service charges, are not considered as revenue traffic. Transportation, free. The carriage of any person or cargo (other than cargo owned by the air carrier) without compensation. Unit basis (in depreciation accounting). A plan under which depreciation expenses is accrued upon the basis of the book cost of the individual item of property in relation to the service life and salvage value of the particular item. Value, service. The difference between the book cost and the residual value of property and equipment. Weight, allowable gross. The maximum gross weight (of the aircraft and its contents) which an aircraft is licensed to carry into the air on each flight stage. Weight, average available. The average capacity available for revenue traffic, determined by dividing available ton-miles by aircraft miles in revenue service. Weight, empty. The weight of the airframe, engines, propellers, and fixed equipment of an aircraft. Empty weight excludes the weight of the crew and payload, but includes the weight of all fixed ballast, unusable fuel supply, undrainable oil, total quantity of engine coolant, and total quantity of hydraulic fluid. Weight, passenger. For the purposes of this part, a standard weight of 200 pounds per passenger (including all baggage) is used for all civil operations and classes of service. Other weights may be prescribed in specific instances upon the initiative of the Department of Transportation or upon a factually supported request by an air carrier. Wet-Lease Agreement means an agreement under which one carrier leases an aircraft with flight crew to another air carrier. Editorial Note:For Federal Register citations affecting Section 03, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.govinfo.gov.

3Section 3 Chart of Balance Sheet Accounts#

[See footnotes at end of table] Name of account General classification Current assets: Cash 1010 Short-term investments 1100 Notes receivable 1200 Accounts receivable 1270 Allowance for uncollectible accounts 1290 Spare parts and supplies 1300 Allowance for obsolescence—Spare parts and supplies 1311 Prepaid items 1410 Other current assets 1420 Investments and special funds: Investments in associated companies 1510 Investments in investor controlled companies 1510.1 Investments in other associated companies 1510.2 Advances to associated companies 1510.3 Other investments and receivables 1530 Special funds 1550 Property and equipment 1600-1700 Operating Nonoperat- ing Airframes 1601 1701 Airframes 1601.1 1701.1 Unamortized airframe overhauls 1601.2 1701.2 Aircraft engines 1602 1702 Aircraft engines 1602.1 1702.1 Unamortized aircraft engine overhauls 1602.2 1702.2 Improvements to leased flight equipment 1607 1707 Flight equipment rotable parts and assemblies 1608 1708 Airframe parts and assemblies 1 1608.1 1 1708.1 Aircraft engine parts and assemblies 1 1608.5 1 1708.5 Other parts and assemblies 1 1608.9 1 1708.9 Flight equipment 1609 1709 Allowance for depreciation: Airframes 1611 1711 Aircraft engines 1612 1712 Improvements to leased flight equipment 1617 1717 Flight equipment rotable parts and assemblies 1618 1718 Flight equipment airworthiness allowance 2 1629 2 1729 Equipment 1630 1730 Furniture, fixtures and office equipment 1636 1736 Improvements to leased buildings and equipment 1639 1739 General classification Buildings 1640 1740 Maintenance buildings and improvements 1640.1 1740.1 Other buildings and improvements 1640.9 1740.9 Ground property and equipment 1649 1749 Allowance for depreciation: Equipment 1650 1750 Improvements to leased buildings and equipment 1654 1754 Furniture, fixtures, and office equipment 1656 1756 Buildings 1660 1760 Maintenance buildings and improvements 1660.1 1760.1 Other buildings and improvements 1660.9 1760.9 Allowance for depreciation of flight equipment and ground property and equipment, and amortization of overhaul and airworthiness costs 1668 1768 Land 1679 1779 Equipment purchase deposits and advance payments 1685 1785 Construction work in progress 1689 1789 Leased property under capital leases 1695 1795 Capital leases—flight equipment 1695.1 1795.1 Capital leases—other property and equipment 1695.2 1795.2 Leased property under capital leases, accumulated amortization 1696 1796 Accumulated amortization—capitalized flight equipment 1696.1 1796.1 Accumulated amortization—capitalized other property and equipment 1696.2 1796.2 Property on operating-type lease to others and property held for lease 1797 Property on operating-type lease to others and property held for lease, accumulated depreciation 1798 Other assets: Long-term prepayments 1820 Unamortized developmental and preoperating costs 1830 Other assets and deferred charges 1890 Current liabilities: Current maturities of long-term debt 2000 Notes payable: Banks 2005 Other 2015 Trade accounts payable 2021 Accounts payable—other 2025 Current obligations under capital leases 2080 Accrued salaries, wages 2110 Accrued vacation liability 2120 Accrued interest 2125 Accrued taxes 2130 Dividends declared 2140 Air traffic liability 2160 Other current liabilities 2190 Noncurrent liabilities: Long-term debt 2210 Advances from associated companies 2240 Pension liability 2250 Noncurrent obligations under capital leases 2280 Other noncurrent liabilities 2290 Deferred credits: Deferred income taxes 2340 Deferred investment tax credits 2345 Other deferred credits 2390 Stockholders' equity: Preferred stock 2820 Common stock 2840 Additional capital invested 2890 Premium on capital stock 2890.1 Discount on capital stock 2890.2 Other capital stock transactions 2890.3 Retained earnings 2900 Subscribed and unissued stock 2860 Treasury stock 2990 1 Prescribed for group II and group III air carriers only. 2 At the option of the air carrier, these accounts may be assigned Nos. 2629 and 2729, respectively, for accounting purposes. Note: Digits to right of decimals and italicized codes established for BTS control purposes only.

04Section 04 Air Carrier Groupings#

(a) All large certificated air carriers are placed into three basic air carrier groupings based upon their level of operations and the nature of these operations. In order to determine the level of operations, total operating revenues for a twelve-month period are used. The following operating revenue ranges are used to establish air carrier groupings: Carrier Group Total Annual Operating Revenues I 0-$100,000,000 II $100,000,001-$1,000,000,000 III $1,000,000,001 + For reporting purposes, Group I air carriers are further divided into two subgroups: (1) Air carriers with total annual operating revenues from $20,000,000 to $100,000,000 and (2) Air carriers with total annual operating revenues below $20,000,000. (b) Both the criteria for establishing air carrier groupings and the assignment of each air carrier to a specific group of carriers will be reviewed periodically by the Director, Office of Airline Information, to assure the maintenance of appropriate standards for the grouping of carriers. When an air carrier's level of operations passes the upper or lower limit of its currently assigned carrier grouping, the carrier is not automatically transferred to a different group and a new level of reporting. The Office of Airline Information will issue an updated listing of the carrier groups on an annual basis. A carrier may petition for reconsideration of its assigned carrier grouping or request a waiver from the accounting and reporting requirements that are applicable to a particular group under the provisions of section 1-2 of this Uniform System of Accounts and Reports.

4Section 4 General#

(a)The balance sheet accounts are designed to show the financial condition of the air carrier as at a given date, reflecting the asset and liability balances carried forward subsequent to the closing or constructive closing of the air carrier's books of account.

(b)The balance sheet accounts prescribed in this system of accounts for each air carrier group are set forth in Section 3, Chart of Balance Sheet Accounts. The balance sheet elements to be included in each account are presented in section 6.

5Section 5 [Reserved]#

6Section 6 Objective Classification of Balance Sheet Elements#

Source: ER-980, 42 FR 29, Jan. 3, 1977, unless otherwise noted. Current Assets 1010 Cash.

(a)Record here the cost of capital stock issued by the air carrier reacquired by it and not retired or canceled.

(1)Flight equipment replacement parts of a type which ordinarily would be recurrently expended and replaced rather than repaired and reused;

(2)Unissued fuel inventories for use in the overall or system operations of the carrier. Adjustments of inventories for aircraft fuel due to retroactive price increases and decreases shall not be entered in this account but in profit and loss account 45, Aircraft Fuels and Oils; and

(3)Unissued and unapplied materials and supplies held in stock such as unissued shop materials, expendable tools, stationery and office supplies, passenger service supplies, and restaurant and food service supplies.

(b)Separate records shall be established for each class and series of capital stock held in this account.

(c)Delayed credits or charges to income shall not be entered in this account directly but in appropriate profit and loss accounts.

(d)Net income or loss accounted for during the current fiscal year shall not be entered in this account until the close of the fiscal year. Individual proprietorships or partnerships may clear net income or loss accounted for during the year directly to balance sheet account 2890 Additional Capital Invested, or optionally, to this account for subsequent transfer to balance sheet account 2890 Additional Capital Invested.

(e)A separate subaccount to this account shall be maintained to record changes in the valuation of marketable equity securities included in noncurrent assets. Such changes shall be reflected in this subaccount to the extent the balance in this subaccount represents a net unrealized loss as of the current balance sheet date. 2990 Treasury Stock.

(f)Record here the cost of patents, copyrights and other intangible properties, rights and privileges acquired as a part of a business from other air carriers and other intangibles not provided for elsewhere. This account shall be subdivided to reflect the nature of each intangible asset included in this account.

(g)Record here the difference between the purchase price to the air carrier of property and equipment acquired as a part of a business from another air carrier through consolidation, merger, or reorganization, pursuant to a plan approved by the DOT, and the depreciated cost to the predecessor company at date of acquisition. Record here also such differences relating to purchases of property and equipment from associated companies unless other treatment is approved by the BTS. Separate subaccounts shall be established to record the amounts applicable to each such acquisition.

(h)Balances in this account relating to property acquisition adjustments shall be amortized by charges to profit and loss account 89.9 Other Miscellaneous Nonoperating Debits unless otherwise directed or approved by the BTS. Current Liabilities 2000 Current Maturities of Long-term Debt. Record here the face value or principal amount of debt securities issued or assumed by the air carrier which is payable within 12 months of the balance sheet date unless such debt is to refinance, or where payment is to be made from assets of a type not properly classifiable as current. 2005 Notes Payable—Banks. Record here the face value of all notes, drafts, acceptances, or other similar evidences of indebtedness payable on demand or within one year to a bank or another financial institution with the exception of current maturities of long-term debt which should be included in account 2000. 2015 Notes Payable—Other. Record here the face value of all notes, drafts, acceptances, or other similar evidences of indebtedness payable on demand or within one year to an associated company or party other than a financial institution. 2021 Trade Accounts Payable. Record here all accounts payable within one year which accrued from generally recognized trade practices. 2025 Accounts Payable—Other. Record here all accounts payable within one year which are not provided for in accounts 2000 to 2021, inclusive. 2080 Current Obligations Under Capital Leases. Record here the total current liability applicable to property obtained under capital leases. 2110 Accrued Salaries, Wages. Record here amounts accrued for unpaid compensation to personnel, which have been charged to profit and loss or capitalized, as compensation for the period in which accrued. 2120 Accrued Vacation Liability.

(i)Subaccounts shall be established within this account for the separate recording of each class or type of spare parts and supplies. 1311 Allowance for Obsolescence—Spare Parts and Supplies.

7Section 7 Chart of Profit and Loss Accounts#

Objective classification of profit and loss elements Functional or financial activity to which applicable (00) Group I carriers Group II carriers Group III carriers operating revenues and expenses Transport revenues: 01 Passenger: 01.1 Passenger—first class 31, 32 31, 32 31, 32. 01.2 Passenger—coach 31, 32 31, 32 31, 32. 05 Mail: 05.1 Priority 31, 32 31, 32 31, 32. 05.2 Nonpriority 31, 32 31, 32 31, 32. 05.3 Foreign 31, 32 31, 32 31, 32. 06 Property: 06.1 Freight 31, 32 31, 32 31, 32. 06.2 Excess passenger baggage 31, 32 31, 32 31, 32. 07 Charter: 07.1 Passenger 32 32 32. 07.2 Property 32 32 32. 19 Air transport—other: 19.1 Reservation cancellation fees 31, 32 31, 32 31, 32. 19.2 Miscellaneous operating revenues 31, 32 31, 32 31, 32. 08 Public service revenues (subsidy) 48 48 48. Transport-related revenues and expenses: 09 In-flight sales: 09.1 Liquor and food—gross revenues 48 48 48. 09.2 Movies and stereo—gross revenues 48 48 48. 09.3 Other—gross revenues 48 48 48. 09.4 Liquor and food—depreciation expense 71 71 71. 09.5 Liquor and food—other expense 71 71 71. 09.6 Movies and stereo—depreciation expense 71 71 71. 09.7 Movies and stereo—other expense 71 71 71. 09.8 Other—depreciation expense 71 71 71. 09.9 Other—expense 71 71 71. 10 Restaurant and food service (ground): 10.1 Gross revenues 48 48 48. 10.2 Depreciation expense 71 71 71. 10.3 Other expenses 71 71 71. 11 Rents: 11.1 Gross revenues 48 48 48. 11.2 Depreciation expense 71 71 71. 11.3 Other expenses 71 71 71. 12 Limousine service: 12.1 Gross revenues 48 48 48. 12.2 Depreciation expense 71 71 71. 12.3 Other expenses 71 71 71. 13 Interchange sales: 13.1 Associated companies—gross revenues 48 48 48. 13.2 Outside—gross revenues 48 48 48. 13.3 Associated companies—depreciation expense 71 71 71. 13.4 Associated companies—other expense 71 71 71. 13.5 Outside—depreciation expense 71 71 71. 13.6 Outside—other expense 71 71 71. 14 General service sales: 14.1 Associated companies—gross revenues 48 48 48. 14.2 Outside—gross revenues 48 48 48. 14.3 Associated companies—depreciation expense 71 71 71. 14.4 Associated companies—other expense 71 71 71. 14.5 Outside—depreciation expense 71 71 71. 14.6 Outside—other expense 71 71 71. 16 Substitute (replacement) service: 16.1 Gross revenues 48 48 48. 16.2 Expense 71 71 71. 17 Air cargo service: 17.1 Gross revenues 48 48 48. 17.2 Depreciation expense 71 71 71. 17.3 Other expense 71 71 71. 18 Other transport related items: 18.1 Gross revenues 48 48 48. 18.2 Depreciation expense 71 71 71. 18.3 Other expense 71 71 71. 19 Other operating revenues: 19.1 Reservations cancellation fees 31, 32 31, 32 31, 32. 19.9 Miscellaneous operating revenues 31, 32, 41 31, 32, 41 31, 32, 41. Transport expenses: 21 General management personnel 53, 69 53, 55, 64, 67, 68 53, 55, 61, 62, 63, 65, 66, 68. 23 Pilots and copilots 51 51 51. 24 Other flight personnel 51, 69 51, 55 51, 55. 25 Maintenance labor: 25.1 Labor—airframes and other flight equipment 52 52. 25.2 Labor—aircraft engines 52 52. 25.6 Labor—flight equipment 52 25.9 Labor—ground property and equipment 52, 53 52, 53 52, 53. 26 Aircraft and traffic handling personnel 69 26.1 General aircraft and traffic handling personnel 64, 67 61, 62, 63, 65. 26.2 Aircraft control personnel 64 61. 26.3 Passenger handling personnel 64, 67 62, 65. 26.4 Cargo handling personnel 64, 67 62, 65. 28 Trainees, instructors and unallocated shop labor: 28.1 Trainees and instructors 51, 53, 69 51, 53, 55, 64,67, 68 51, 53, 55, 61, 62, 63, 65, 66, 68. 28.2 Unallocated shop labor 53 53 53. 30 Communications personnel 53, 69 53, 55, 64, 67, 68 53, 55, 61, 62, 63, 65, 66, 68. 31 Recordkeeping and statistical personnel 53, 69 53, 55, 64, 67, 68 53, 55, 61, 62, 63, 65, 66, 68. 32 Lawyers and law clerks 69 68 68. 33 Traffic solicitors 69 67 65. 34 Purchasing personnel 53, 69 53, 68 53, 68. 35 Other personnel 53, 69 53, 55, 64, 67, 68 53, 55, 61, 62, 63, 65, 66, 68. 36 Personnel expenses 51, 53, 69 51, 53, 55, 64, 67, 68 51, 53, 55, 61, 62, 63, 65, 66, 68. 37 Communications purchased 53, 69 53, 55, 64, 67, 68 53, 55, 61, 62, 63, 65, 66, 68. 38 Light, heat, power, and water 53, 69 53, 55, 64, 67, 68 53, 55, 61, 62, 63, 65, 66, 68. 39 Traffic commissions 69 39.1 Commissions—passenger 67 65. 39.2 Commissions—property 67 65. 40 Legal fees and expenses 69 68 68. 41 Professional and technical fees and expenses 51, 53, 69 51, 53, 55, 64, 67, 68 51, 53, 55, 61, 62, 63, 65, 66, 68 43 General services purchased: 43.1 Airframe and other flight equipment repairs 52 52 43.2 Aircraft engine repairs 52 52 43.6 Flight equipment repairs 52 43.7 Aircraft interchange charges 51, 52 51, 52 51, 52 43.8 General interchange service charges 52, 69 52, 55, 64, 67, 68 52, 55, 61, 62, 63, 65, 66, 68 43.9 Other services 52, 53, 69 52, 53, 55, 64, 67, 68 52, 53, 55, 61, 62, 63, 65, 66, 68 44 Landing fees 69 64 61. 45 Aircraft fuels and oils 51 45.1 Aircraft fuels 51 51. 45.2 Aircraft oils 51 51. 46 Maintenance materials: 46.1 Airframes and other flight equipment 52 52 46.2 Aircraft engines 52 52. 46.6 Flight equipment 52 46.9 Ground property and equipment 52, 53 52, 53 52, 53. 47 Rentals 51, 53, 69 51, 53, 55, 64, 67, 68 51, 53, 55, 61, 62, 63, 65, 66, 68. 49 Shop and servicing supplies 53, 69 53, 64 53, 61. 50 Stationery, printing, and office supplies 53, 69 53, 55, 64, 67, 68 53, 55, 61, 62, 63, 65, 66, 68. 51 Passenger food expense 69 55 55. 53 Other supplies 51, 53, 69 51, 53, 55, 64, 67, 68 51, 53, 55, 61, 62, 63, 65, 66, 68. 54 Inventory adjustments 53, 69 53, 55 53, 55. 55 Insurance—general 51, 53, 69 51, 53, 68 51, 53, 68. 56 Insurance—traffic liability 69 55, 64 55, 62. 57 Employee benefits and pensions 51, 53, 69 51, 53, 55, 64, 67, 68 51, 53, 55, 61, 62, 63, 65, 66, 68. 58 Injuries, loss and damage 51, 53, 69 51, 53, 55, 64, 67, 68 51, 53, 55, 61, 62, 63, 65, 66, 68. 59 Schedules and timetables 69 67 65, 66. 60 Advertising 69 67 66. 61 Foreign exchange gains and losses 69 68 68. 62 Other promotional and publicity expenses 69 67 66. 63 Interrupted trips expense 69 55 55. 64 Memberships 53, 69 53, 55, 64, 67, 68 53, 55, 61, 62, 63, 65, 66, 68. 65 Corporate and fiscal expenses 69 68 68. 66 Uncollectible accounts 69 68 68. 67 Clearance, customs and duties 69 64 61, 62. 68 Taxes—payroll 51, 53, 69 51, 53, 55, 64, 67, 68 51, 53, 55, 61, 62, 63, 65, 66, 68. 69 Taxes—other than payroll 51, 69 51, 68 51, 68. 71 Other expenses 51, 53, 69 51, 53, 55, 64, 67, 68 51, 53, 55, 61, 62, 63, 65, 66 68. 72 Aircraft overhauls 52, 53 52, 53 52, 53. 72.1 Airworthiness allowance provisions—airframes 52, 53 52, 53 52, 53. 72.3 Airframe overhauls deferred 52, 53 52, 53 52, 53. 72.6 Airworthiness allowance provisions—aircraft engines 52, 53 52, 53 52, 53. 72.8 Aircraft engine overhauls deferred 52, 53 52, 53 52, 53. 73 Provisions for obsolescence and deterioration—expendable parts: 73.1 Current provisions 70 70 70. 73.2 Inventory decline credits 70 70 70. 74 Amortizations: 74.1 Developmental and preoperating expenses 70 70 70. 74.2 Other intangibles 70 70 70. 75 Depreciation: 75.1 Airframes 70 70 70. 75.2 Aircraft engines 70 70 70. 75.3 Airframe parts 70 70 70. 75.4 Aircraft engine parts 70 70 70. 75.5 Other flight equipment 70 70 70. 75.6 Flight equipment 70 70 70. 75.8 Maintenance equipment and hangars 70 70 70. 75.9 General ground property 70 70 70. 76 Amortization expense, capital leases: 76.1 Amortization—capitalized flight equipment 70 70 70 76.2 Amortization—capitalized other property and equipment 70 70 70 77 Uncleared expense credits: 77.8 Uncleared interchange expense credits 53, 69 53, 55, 64, 67, 68 53, 55, 61, 62, 63, 65, 66, 68. 77.9 Other uncleared expense credits 53, 69 53, 55, 64, 67, 68 53, 55, 61, 62, 63, 65, 66, 68. 78 Direct maintenance—flight equipment 52 52 52. 79 Applied burden Dr/Cr: 79.6 Flight equipment 52 Dr, 53 Cr 52 Dr, 53 Cr 52 Dr, 53 Cr. 79.8 General ground property 52 Dr, 53 Cr 52 Dr, 53 Cr 52 Dr, 53 Cr. nonoperating income and expense 81 Interest on long-term debt and capital leases: 81.1 Interest expense, long-term debt 81 81 81 81.2 Interest expense, capital leases 81 81 81 82 Other interest: 82.1 Interest expense, short-term debt 81 81 81 83.1 Imputed interest capitalized—credit 81 81 81 83.2 Imputed interest deferred—debit 81 81 81 83.3 Imputed interest deferred—credit 81 81 81 83.4 Interest capitalized—credit 81 81 81 84.1 Amortization of discount and expense on debt 81 81 81 84.2 Amortization of premium on debt 81 81 81 85 Foreign exchange gains and losse 81 81 81 89 Other nonoperating income and expense-net: 80.0 Interest income 81 81 81 86.0 Income from nontransport ventures 81 81 81 87.0 Equity in income of investor controlled companies 81 81 81 88.1 Intercompany transaction adjustment-credit 81 81 81 88.2 Dividend income 81 81 81 88.3 Net unrealized gain or loss on marketable equity securities 81 81 81. 88.4 Net realized gain or loss on marketable equity securities 81 81 81. 88.5 Capital gains and losses—operating property 81 81 81. 88.6 Capital gains and losses—other 81 81 81. 88.7 Unapplied cash discounts 81 81 81. 88.9 Other miscellaneous nonoperating credits 81 81 81. 89.1 Intercompany transaction adjustment—debit 81 81 81. 89.9 Other miscellaneous nonoperating debits 81 81 81. income taxes 91 Provision for income taxes: 91.1 Income taxes before investment tax credits 91 91 91. 91.2 Investment tax credits utilized 91 91 91. 92 Provisions for deferred income taxes: 92.1 Current provisions for deferred taxes 91 91 91. 92.2 Application of deferred taxes 91 91 91. 92.3 Adjustment of deferred taxes 91 91 91. 93 Investment tax credits deferred and amortized: 93.1 Investment tax credits deferred 91 91 91. 93.2 Amortization of deferred investment tax credits 91 91 91. 94 Excess profits taxes 91 91 91. discontinued operations 95 Discontinued operations: 95.1 Income from discontinued operations 96 96 96. 95.2 Loss on disposal of discontinued operations 96 96 96. extraordinary items 96 Extraordinary items 97 97 97. 97 Income taxes applicable to extraordinary items 97 97 97. changes in accounting principles 98 Cumulative effects of change in accounting principles 98 98 98.

8Section 8 General#

(a)The profit and loss accounts are designed to reflect, through natural groupings, the elements entering into the derivation of income or loss accruing to the proprietary interests during each accounting period.

(b)The prescribed system of accounts provides for the co-ordinate grouping of all revenues and expenses in terms of both major natural objectives and functional activities and for subdivision of both to provide varying degrees of detail for air carriers of differing accounting capacities and/or requirements.

(c)The detailed objective accounts established for each air carrier group, by the dual subdivision of profit and loss elements in terms of both natural objectives and functional activities, are set forth in section 7, Chart of Profit and Loss Accounts.

(d)The prescribed system of accounts provides generally that profit and loss elements shall be grouped in accordance with their inherent characteristics within the following primary classifications:

(1)Operating revenues. (i) This primary classification shall include revenues of a character usually and ordinarily derived from the performance of air transportation and air transportation-related services, which relate to services performed during the current accounting year, and adjustments of a recurrent nature applicable to services performed in prior accounting years.

(ii)Operating expenses shall be subclassified in terms of functional activities as provided in sections 10 and 11.

(2)Operating expenses. (i) This primary classification shall include expenses of a character usually and ordinarily incurred in the performance of air transportation and air transportation-related services, which relate to services performed during the current accounting year, and adjustments of a recurring nature attributable to services performed in prior accounting years.

(3)Nonoperating income and expense—net. This primary classification (8100) shall include income and loss incident to commercial ventures not inherently related to the performance of the common carrier air transport services of the accounting entity; other revenues and expenses attributable to financing or other activities which are extraneous to and not an integral part of air transportation or its incidental services; and special recurrent items of a nonperiod nature.

(4)Income taxes for current period. This primary classification (9100) shall include provisions for Federal, state, local, and foreign taxes which are based upon the net income of the air carrier for the current period together with refunds for excess profits credits or carryback of losses and increases or reductions of income taxes of prior years of a magnitude which will not distort net income of the current accounting year. Income taxes applicable to special income credits or debits recorded in profit and loss classification 9700 Extraordinary Items, and other material income tax items not allocable to income of the current accounting year, shall not be included in this classification but in profit and loss classification 9700 Extraordinary Items.

(5)Discontinued operations. This primary classification (9600) shall include earnings and losses of discontinued nontransport operations and gains or losses from the disposal of nontransport operations the result of which are customarily accounted for through profit and loss objective accounts 86, 87 and 88.2.

(6)Extraordinary items. This primary classification (9700) shall include material items characterized by their unusual nature and infrequent occurrence.

(7)Cumulative effect of changes in accounting principles. This primary classification (9800) shall include the cumulative effect of material changes in accounting principles.

9Section 9 Functional Classification—Operating Revenues#

3900 Transport Revenues. This classification is prescribed for all air carrier groups and shall include all revenues from the air transportation of traffic of all classes. It shall consist of the following subclassifications: 3100 Scheduled Services. This subclassification shall include revenues from the transportation by air of individual passengers or cargo shipments (as opposed to charter flights) pursuant to published schedules, including extra sections and other flights performed as an integral part of published flight schedules. 3200 Nonscheduled Services. This subclassification shall include revenues from the transportation by air of traffic applicable to the performance of aircraft charters, and other air transportation services not part of services performed pursuant to published flight schedules (but shall not include data applicable to flights performed as extra sections to published flight schedules, which shall be reported in the subclassification 3100 Scheduled Services). 4800 Transport-Related Revenues.

(a)This classification is prescribed for all air carrier groups and shall include all revenues from the United States Government as direct grants or aids for providing air transportation facilities and all revenues from services which grow from and are incidental to the air transportation services performed by the air carrier.

(b)Revenues related to services of a magnitude or scope beyond an incidental adjunct to air transportation services shall not be included in this classification (see section 1-6(b)). Revenues applicable to such services shall be included in profit and loss classification 8100, Nonoperating Income and Expense-Net, and the accounting modified to conform with that of a nontransport division whether or not the service is organized as a nontransport division.

10Section 10 Functional Classification—Operating Expenses of Group I Air Carriers#

5100 Flying Operations.

(a)This function shall include all expense items applicable to the generation of transport-related revenues included in section 9, Function 4800.

(b)Such expense related to services of a magnitude or scope beyond an incidental adjunct to air transportation services shall not be included in this function (see section 1-6(b)). Expenses applicable to the generation of such revenues shall be included in profit and loss classification 8100, Nonoperating Income and Expense-Net, and the accounting modified to conform with that of a nontransport division whether or not the service is organized as a nontransport division.

(c)This function shall also include expenses representing increases in costs incurred in common with the air transport service, to the extent such increases result from the added transport-related services, as well as a pro rata share of the costs incurred by the air carrier in operating facilities which are used jointly with others. As a general rule, this function shall not include those expenses, other than joint facilities costs, which would remain as an essential part of the air transport services if the transport-related services were terminated.

(d)Costs incurred by aircraft handling personnel in visual inspection, minor check and servicing of aircraft, while in line service, shall not be included in this function when performed as an incidental routine during the normal productive use of aircraft but shall be included in function 6900 General Services and Administration.

(e)Each Group I air carrier shall maintain the following subfunctions: 5200 Direct Maintenance. a. This subfunction shall include the costs of labor, materials and outside services consumed directly in periodic maintenance operations and the maintenance and repair of property and equipment, of all types and classes, regardless of the location at which incurred, exclusive of costs specifically identified with maintenance property and equipment expenses in balance sheet accounts 1630 Equipment, 1639 Improvements to Leased Buildings and Equipment, and 1640.1 Maintenance Buildings and Improvements which shall be included in subfunction 5300 Maintenance Burden. b. The cost of direct labor, materials and supplies, as well as outside repairs, used in the maintenance and repair of property and equipment shall be recorded on running job orders or tickets covering repairs and periodic inspections except servicing. Where a number of like items are maintained on a group basis, it will be necessary to maintain only one job order for each group. c. When supervisory personnel such as crew chiefs, inspectors and foremen are engaged in direct labor in connection with equipment maintenance, a proportionate part of their salaries and wages shall be charged to the appropriate direct labor accounts. The cost of transporting property to and from shops for repair and maintenance shall be included as a part of the cost of the materials and supplies used in the repair or maintenance of such property and equipment. Transportation charges, customs and duties, etc.; shall be included in the cost of repairs and maintenance operations when made by outside parties. 5300 Maintenance Burden. a. This subfunction shall include all overhead or general expenses which are specifically identified with activities involved in periodic maintenance operations and the maintenance and repair of property and equipment of all types and classes, including the cost of direct labor, materials and outside services identified with the maintenance and repair of maintenance property and equipment included in balance sheet accounts 1630 Equipment, 1639 Improvements to Leased Buildings and Equipment, and 1604.1 Maintenance Buildings and Improvements. It shall include expenses specifically related to the administration of maintenance stocks and stores, the keeping of pertinent maintenance operations records, and the scheduling, controlling, planning and supervision of maintenance operations. b. This subfunction shall not include expenses related to financial accounting, purchasing or other overhead activities which are of general applicability to all operating functions. Such expenses shall be included in function 6900 General Services and Administration. c. This subfunction shall include only those expenses attributable to the current air transport operations of the air carrier. Maintenance burden associated with capital projects of the air carrier, other than overhauls of airframes and aircraft engines shall be allocated to such projects. Maintenance burden incurred in common with services to other companies and operating entities shall be allocated to such services on a pro rata basis unless the services are so infrequent in performance or small in volume as to result in no appreciable demands upon the air carrier's maintenance facilities. When overhauls of airframes or aircraft engines are as a consistent practice accounted for on an accrual basis instead of being expensed directly, maintenance burden shall be allocated to such overhauls on a pro rata basis. Standard burden rates may be employed for quarterly allocations of maintenance burden provided the rates are reviewed at the close of each calendar year. When the actual burden rate for the year differs materially from the standard burden rate applied, adjustment shall be made to reflect the actual cost incurred for the full accounting year. Allocations of maintenance burden to capital projects, and service sales to others shall be made through the individual maintenance burden objective accounts, except that the air carrier may make such allocations by credits to profit and loss account 77 Uncleared Expense Credits provided that use of that account will not undermine the significance of the individual maintenance burden objective accounts in terms of the expense levels associated with the air carrier's air transport services. Maintenance burden allocated to overhauls shall be credited to profit and loss subaccounts 5372.1 or 5372.6 Airworthiness Allowance Provisions. 6900 General Services and Administration. This function shall include expenses incurred on the ground in controlling and protecting the in-flight movement of aircraft; landing, handling, or servicing aircraft on the ground; selling transportation; servicing and handling traffic of all classes; promoting the development of traffic; administering operations generally; and all other expenses not otherwise provided for in functions 5100 Flying Operations, 5400 Maintenance and 7000 Depreciation and Amortization. 7000 Depreciation and Amortization. This function shall include all charges to expense to record losses suffered through current exhaustion of the serviceability of property and equipment due to wear and tear from use and the action of time and the elements, which are not replaced by current repairs, as well as losses in serviceability caused by obsolescence, supersession, discoveries, change in demand or actions by public authority. It shall also include charges for the amortization of capitalized developmental and preoperating costs, leased property under capital leases and other intangible assets applicable to the performance of air transportation. (See sections 6-1696, 1830 and 1890.) 7100 Transport-Related Expenses.

11Section 11 Functional Classification—Operating Expenses of Group II and Group III Air Carriers#

5100 Flying Operations.

(a)This function shall include all expense items applicable to the generation of transport-related revenues included in section 9, Function 4800.

(c)This function shall also include expenses representing increases in costs incurred in common with the air transport service, to the extent such increases result from the added transport-related services, as well as a pro rata share of the costs incurred by the air carrier in operating facilities which are used jointly with others. As a general rule, this function shall not include those expenses, other than joint facilities, costs, which would remain as an essential part of the air transport services if the transport-related services were terminated.

(d)Group III air carriers shall subdivide this function as follows: 6500 Reservations and Sales. This subfunction shall include expenses incident to direct sales solicitation, documenting sales, controlling and arranging or confirming aircraft space sold, and in developing tariffs and schedules for publication. It shall also include expenses attributable to the operation of city traffic offices. Expenses incurred in stimulating traffic and promoting the air carrier or air transportation generally shall not be included in this subfunction but in subfunction 6600 Advertising and Publicity. 6600 Advertising and Publicity. a. This subfunction shall include expenses incurred in creating public preference for the air carrier and its services; stimulating development of the air transport market; and promoting the air carrier or developing air transportation generally. b. This subfunction shall not include expenses incurred in direct sales solicitation and selling of aircraft space. Such costs shall be included in subfunction 6500 Reservations and Sales. 6800 General and Administrative.

(e)Both Group II air carriers and Group III air carriers shall maintain the following subfunctions: 5200 Direct Maintenance. a. This subfunction shall include the costs of labor, materials and outside services consumed directly in periodic maintenance operations and the maintenance and repair of property and equipment of all types and classes, regardless of the location at which incurred, exclusive of maintenance property and equipment included in balance sheet accounts 1630 Equipment, 1639 Improvements to Leased Buildings and Equipment, and 1640.1 Maintenance Buildings and Improvements, which shall be included in subfunction 5300 Maintenance Burden. b. The cost of direct labor, materials and supplies, as well as outside repairs, used in the maintenance and repair of property and equipment shall be recorded on running job orders or tickets covering repairs and periodic inspections except servicing. Where a number of like items are maintained on a group basis, it will be necessary to maintain only one job order for each group. c. When supervisory personnel such as crew chiefs, inspectors and foremen are engaged in direct labor in connection with equipment maintenance, a proportionate part of their salaries and wages shall be charged to the appropriate direct labor accounts. The cost of transporting property to and from shops for repair and maintenance shall be included as a part of the cost of the materials and supplies used in the repair or maintenance of such property and equipment. Transportation charges, customs and duties, etc., shall be included in the cost of repairs and maintenance operations when made by outside parties. 5300 Maintenance Burden. a. This subfunction shall include all overhead or general expenses used directly in the activities involved in periodic maintenance operations and the maintenance and repair of property and equipment of all types and classes, including the cost of direct labor, materials and outside services used in the maintenance and repair of maintenance property and equipment included in balance sheet accounts 1630 Equipment, 1639 Improvements to Leased Buildings and Equipment, and 1640.1 Maintenance Buildings and Improvements. It shall include expenses related to the administration of maintenance stocks and stores, the keeping of pertinent maintenance operation records, and the scheduling, controlling, planning and supervision of maintenance operations. b. This subfunction shall not include expenses related to financial accounting, purchasing or other overhead activities which are of general applicability to all operating functions. Such expenses shall be included in function 6800 General and Administrative. c. This subfunction shall include only those expenses attributable to the current air transport operations of the air carrier. Maintenance burden associated with capital projects of the air carrier, other than overhauls of airframes and aircraft engines, shall be allocated to such projects. Maintenance burden incurred in common with services to other companies and operating entities shall be allocated to such services on a pro rata basis unless the services are so infrequent in performance or small in volume as to result in no appreciable demands upon the air carrier's maintenance facilities. When overhauls of airframes or aircraft engines are as a consistent practice accounted for on an accrual basis instead of being expensed directly, maintenance burden shall be allocated to such overhauls on a pro rata basis. Standard burden rates may be employed for quarterly allocations of maintenance burden provided the rates are reviewed at the close of each calendar year. When the actual burden rate for the year differs materially from the standard burden rate applied, adjustment shall be made to reflect the actual costs incurred for the full accounting year. Allocations of maintenance burden to capital projects, and service sales to others shall be made through the individual maintenance burden objective accounts, except that the air carrier may make such allocations by credits to profit and loss account 77 Uncleared Expense Credits under such circumstances in which the use of that account will not undermine the significance of the individual maintenance burden objective accounts in terms of the expense levels associated with the air carrier's air transport services. Maintenance burden allocated to overhauls shall be credited to profit and loss subaccounts 5372.1 or 5372.6 Airworthiness Allowance Provisions. 5500 Passenger Service. This function shall include all expenses chargeable directly to activities contributing to the comfort, safety and convenience of passengers while in flight and when flights are interrupted. It shall not include expenses incurred in enplaning or deplaning passengers, or in securing and selling passenger transportation and caring for passengers prior to entering a flight status. Such expenses shall be included in functions 6400 Aircraft and Traffic Servicing and 6700 Promotion and Sales, respectively. 6400 Aircraft and Traffic Servicing.

12Section 12 Objective Classification—Operating Revenues and Expenses#

00 General Instructions.

(a)This classification is established only for purposes of control by the BTS and reporting on Form 41 by air carriers, and shall reflect all maintenance burden applied in accordance with the provisions of section 24, schedule P-5 of this system of accounts and reports.

(b)This classification shall be subdivided as follows by all air carrier groups: 79.6 Applied Burden—Flight Equipment. 79.8 Applied Burden—General Ground Property.

(1)Charge the appropriate account prescribed for each service purchased or expense element incurred expressly for the benefit of the air carrier regardless of whether incurred directly by the air carrier or through an agent or other intermediary, and (2) except as provided in objective account 77 Uncleared Expense Credits, credit or charge, as appropriate, the account prescribed for each expense element which may be involved in distributions of expenses between (i) separate operating entities of the air carrier, (ii) incidental and transport services or transport functions, (iii) balance sheet and profit and loss elements and (iv) the air carrier and others, when the expenses are incurred initially by or for the benefit of the air carrier. At the option of the air carrier, standard rates applicable to each objective account comprising a particular pool of expenses subject to assignment between two or more activities, may be established for proration purposes, provided the rates established are predicated upon the experience of the air carrier and are reviewed and modified as appropriate at least once each year. 21 General Management Personnel. Record here the compensation, including vacation and sick leave pay, of general officers and supervisors, and immediate assistants regardless of locality at which based, responsible for an activity not provided for in profit and loss accounts 25 through 35, inclusive, or an activity involving two or more such accounts. 23 Pilots and Copilots. Record here the compensation, including vacation and sick leave pay, of pilots and copilots assigned or held inactive awaiting assignment to flight duty. 24 Other Flight Personnel. Record here the compensation, including vacation and sick leave pay, of other flight personnel assigned or held inactive awaiting assignment to flight status, not responsible for the in-flight management of aircraft, such as engineers, navigation officers and cabin attendants. 25 Maintenance Labor.

(c)This account shall not be credited with amounts applicable to objective accounts of the Flying Operations, Depreciation, and Direct Maintenance functions. Credits applicable to such functions shall be carried to the individual objective accounts to which applicable.

(d)This account shall be subdivided as follows by all air carrier groups: 77.8 Uncleared Interchange Expense Credits. Record here credits to operating expenses, from operations performed for others under aircraft interchange agreements, which have not been cleared to the objective accounts to which applicable. 77.9 Other Uncleared Expense Credits. Record here credits to operating expenses, from other than operations under aircraft interchange agreements, which have not been cleared to the objective accounts to which applicable. 78 Direct Maintenance—Flight Equipment. This classification is established for purposes of control by the BTS and shall include all charges to operating expenses for maintenance of flight equipment of all types and classes. 79 Applied Burden Debit/Credit.

14Section 14 Objective Classification—Nonoperating Income and Expense#

80 Interest Income. Included under account 89 Other Nonoperating Income and Expense—Net. 81 Interest on Long-term Debt and Capital Leases.

(a)Record here all debits and credits of a nonoperating character which are not otherwise provided for in this section.

(b)This account shall be subdivided as follows by all air carrier groups: 80.0 Interest Income. (a) Record here interest income from all sources. This account shall include as an increase or reduction of interest received the proportionate amortization of any discount or premium on the purchase price of securities of others held by the air carrier. (b) This account shall not include interest on securities issued or assumed by the air carrier and subsequently reacquired. 86.0 Income from Nontransport Ventures. (a) Record here the gross revenues and expenses applicable to operations not reasonably considered as incidental to the commercial air transport services of the accounting entity; rents from nonoperating properties used by others; income or loss from nontransport divisions; and other income or loss from activities of the air carrier which are extraneous to the air transport and incidental services of the accounting entity. (b) This account shall include revenues and expenses applicable to nonscheduled transport services performed for the defense establishment when separate reports for such services are required in accordance with section 21 “Introduction to System of Reports.” Where the foregoing transport services are not required to be separately reported, gross revenues from such services shall be included in profit and loss account 07 Charter, or other appropriate revenue account, and gross expenses shall be included in the appropriate operating expense functions. 87.0 Equity in Income of Investor Controlled Companies. Record here the equity in the current earnings or losses of investor controlled companies. Dividends declared on the stock of such companies shall not be included in this account as income but shall be entered in balance sheet subaccount 1510.1 Investments in Investor Controlled Companies as a return on investment. 88.1 Intercompany Transaction Adjustment—Credit. Record here all intercompany credits for any differences between amounts at which transactions between the air carrier and its nontransport divisions or associated companies are initially recorded and are to be settled. 88.2 Dividend income. Record here income from dividends declared on stocks of other than investor controlled companies. Dividends declared on stock of investor controlled companies shall not be included in this account but shall be entered in balance sheet subaccount 1510.1 Investments in Investor Controlled Companies. 88.3 Net Unrealized Gain or Loss on Marketable Equity Securities. Record here the net unrealized gain or loss on the valuation of marketable equity securities. 88.4 Net Realized Gain or Loss on Marketable Equity Securities. Record here the net realized gain or loss on the valuation of marketable equity securities. 88.5 Capital gains and losses—operating property. Record here gains or losses on retirements of operating property and equipment, flight equipment expendable parts, or miscellaneous materials and supplies sold or otherwise retired in connection with a general retirement program as opposed to incidental sales performed as a service to others. 88.6 Capital gains and losses—other. Record here gains or losses not required to be reported in accounts 88.3, 88.4 and 88.5 such as gains or losses on retirement of nonoperating property and equipment, investments in other than marketable equity securities, and the transfer of assets in a troubled debt restructuring. 88.7 Unapplied cash discounts. Record here cash discounts on routine purchases of materials, repair parts or supplies. Cash discounts on classes of assets included in property and equipment accounts shall not be recorded in this account but shall be applied as a reduction of the cost of such accounts. 88.9 Other miscellaneous nonoperating credits. Record here all credits of a nonoperating character not provided for otherwise, such as royalties from patents, gains from reacquisition and retirement or resale of debt securities issued by the air carrier, and gains resulting from troubled debt restructurings. 89.1 Intercompany Transaction Adjustment—Debit. Record here all intercompany debits for any differences between amounts at which transactions between the air carrier and its nontransport divisions or associated companies are initially recorded and are to be settled. 89.9 Other Miscellaneous Nonoperating Debits. Record here all debits of a nonoperating character not provided for otherwise, such as the following: (a) Fines or penalties imposes by governmental authorities; (b) Costs associated with employment discrimination that include the following: (1) Fines or penalties paid by the carrier as a result of a judicial or administrative decree; or the amount paid to the complainant in settling or securing a consent decree; (2) Back pay awards as a result of a judicial or administrative decree or a compromise settlement regardless of admission of guilt; (3) Attorneys' fees or court costs awarded to the complainant by a judicial or administrative decree or as a result of a compromise settlement regardless of admission of guilt; (4) The fees of outside legal counsel or of experts retained in the unsuccessful defense of a discrimination suit or in securing a compromise settlement or consent decree, unless the amounts attributable to the discrimination are not reasonably identifiable; or (5) Any other expenses, such as employee salaries, resulting from employment practices that were found to be discriminatory or that were the subject of a compromise settlement or consent decree where the amounts attributable to discrimination are reasonably identifiable. (c) Amortization expense attributable to capital leases recorded in balance sheet Account 1795, Leased Property under Capital Leases; (d) Costs related to property held for future use; (e) Donations for charitable, social or community welfare purposes; (f) Losses on reacquired and retired or resold debt securities of the air carrier; (g) Losses resulting from troubled debt restructurings; (h) Losses on uncollectible nonoperating receivables; or (i) Accruals to allowance for uncollectible nonoperating receivables. (Secs. 204, 404, 407, and 1002 of the Federal Aviation Act of 1958, as amended, 72 Stat. 743, 760, 766, 788, (49 U.S.C. 1324, 1374, 1377, 1482))

15Section 15 Objective Classification—Income Taxes for Current Period#

91 Provision for Income Taxes.

(a)Record here investment tax credits of the current period which are transferred to balance sheet account 2345 Deferred Investment Tax Credits in accordance with the provisions of balance sheet account 2130 Accrued Taxes. This account shall also include amounts for previously deferred investment tax credits amortized during the current period.

(b)This account shall be subdivided as follows by all carrier groups: 93.1 Investment Tax Credits Deferred. 93.2 Amortization of Deferred Investment Tax Credits.

(c)This account shall be subdivided as follows by all carrier groups: 91.1 Income Taxes Before Investment Tax Credits. Record here accruals of income taxes based upon taxable income of the period. 91.2 Investment Tax Credits Utilized. Record here investment tax credits utilized to reduce the accrued liability for income taxes. 92 Provisions for Deferred Income Taxes.

16Section 16 Objective Classification—Discontinued Operations#

95 Discontinued Operations.

(a)Record here the earnings (losses) of discontinued nontransport operations. For the purposes of this system of accounts and reports discontinued operations shall refer to the disposal of investor controlled companies and nontransport ventures whether sold, abandoned, spun off, or otherwise disposed of. This account shall not include earnings or losses from discontinued transport or transport-related operations.

(b)This account shall be subdivided as follows by all air carrier groups: 95.1 Income from Discontinued Operations. Record here the results of operations of the discontinued operations. 95.2 Loss of Disposal of Discontinued Operations. Record here the gain or loss on the disposal of an operation. If loss is anticipated it should be provided for at the measurement date. If gain is anticipated it should be recognized when realized.

17Section 17 Objective Classification—Extraordinary Items#

96 Extraordinary Items. Record here material items characterized by their unusual nature and infrequent occurrence. Events or transactions which are material and either unusual or nonrecurring, but not both, shall be recorded in the profit and loss accounts to which they relate and disclosed on BTS Form 41 Schedule P-2 with identification as to their nature and financial effects. 97 Income Taxes Applicable to Extraordinary Items. Record here income taxes allocable to items of income included in profit and loss account 96 Extraordinary Items and income tax assessments that do not constitute ordinary adjustments of a recurrent nature. Records supporting entries to this account shall be maintained with sufficient particularity to identify the nature and gross amount of each extraordinary credit and each extraordinary debit.

18Section 18 Objective Classification—Cumulative Effect of Changes in Accounting Principles#

98 Cumulative Effect of Changes in Accounting Principles. Record here the difference between the amount of retained earnings at the beginning of the period of a change in accounting principle and the amount of retained earnings that would have been reported at that date if the new accounting principle had been applied retroactively for all periods which would have been affected and by recognizing only the direct effects of a change and the related income tax effect.

19Section 19 Uniform Classification of Operating Statistics#

21Section 21 Introduction to System of Reports#

(a)Each large certificated air carrier shall file with the BTS, monthly, quarterly, semiannually, and annually BTS Form 41 Reports of financial and operating statistics as prescribed herein unless waiver has been made by the BTS.

(b)The system prescribed provides for the submission by each air carrier of four classes of financial and operating statistics, on individual schedules of the BTS Form 41 Report, grouped as follows: A. Certification. B. Balance Sheet Elements. P. Profit and Loss Elements. T. Traffic and Capacity Elements.

(c)The prescribed system of reports provides that the frequency of reporting shall be monthly for some schedules, quarterly for some, semiannually for some and annually for others. It also provides in some areas for the classification of large certificated air carriers into Group I, Group II, and Group III with the form and content differentiated as between groups.

(d)Each schedule of the prescribed BTS Form 41 Report has been assigned a specific code. The prefix alphabetical codes A, B, P and T, respectively, have been employed to denote certification, balance sheet, profit and loss, and traffic and capacity. The digits immediately following the alphabetical prefix designate the particular schedule.

(e)[Reserved]

(f)[Reserved]

(g)Four separate air carrier entities shall be established for large certificated air carriers conducting scheduled service for the purpose of submitting the prescribed reports. They are as follows: (1) Domestic operations; (2) operations via the Atlantic Ocean; (3) operations via the Pacific Ocean; and (4) operations in Latin American areas. With respect to the first classification, the domestic entity shall embrace all operations within and between the 50 States of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the U.S. Virgin Islands, and shall also include Canadian transborder operations. The reports to be submitted by each entity shall be comparable to those required of a distinct legal entity whether the reporting entity constitutes such an entity, a semiautonomous physically separated operating division of the carrier, or an entity established for reporting purposes only.

(h)Two separate entities shall be established for large certificated air carriers predominantly engaged in conducting charter activities for the purpose of submitting the prescribed reports: (1) Domestic operations; and (2) international operations. The domestic entity includes all operations within and between the 50 States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the U.S. Virgin Islands. All other operations will be in the international entity.

(i)The entities for which separate reports shall be made by the different route and charter air carriers will be set semiannually by the Office of Airline Information.

(j)As a general rule separate reports shall be filed for the air carrier and for each associated company air carriers as defined in section 03 which is an air carrier. However, transactions of associated companies in which 100 percent equity control resides in the reporting air carrier shall be consolidated with transactions of the reporting air carrier when such associated companies perform services related to the transport operations of the reporting air carrier almost exclusively and are not engaged in air transportation for their own account.

(k)Generally, route air carriers' nonscheduled services shall be treated as an integral part of the reporting entity to which most closely related without regard to the geographic area in which such nonscheduled services may actually be performed. However, supplemental reports shall be made of nonscheduled services (including service for the Department of Defense) in areas not encompassed by the prescribed reporting entity in any month in which the available ton-miles of such nonscheduled services exceed 5 percent of the available ton-miles of the reporting entity. Such supplemental reports shall continue until waived by the BTS upon a showing that such nonscheduled operations will not in the subsequent 12-month period exceed the 5-percent limit. The supplemental reports to be filed each month or calendar quarter, as applicable, shall be comprised of report Schedules P-5, T-1, and T-2. Transport and nontransport revenues pertaining to such separately reported nonscheduled services shall be reported on Schedule P-2 each quarter.

(l)When and as required in the national interest, any air carrier which performs nonscheduled transport services for the Department of Defense shall, when directed by the Department, make separate reports for such services as if they were conducted by a physically separate transport entity, such reports shall consist of Schedules P-1 through P-7, T-1, and T-2. The letter “D” shall be inserted on such reports, following the schedule number of each P and T schedule. When a carrier has more than one reporting entity, nonscheduled transport and nonscheduled Defense services shall be assigned to the reporting entity to which more closely related.

22Section 22 General Reporting Instructions#

(a)One copy of each schedule in the BTS Form 41 report shall be filed with the BTS and shall be received on or before the due date indicated for each such schedule in the list titled “Due Dates of Schedules in BTS Form 41 Report.” List of Schedules in BTS Form 41 Report[See footnotes at end of table] Schedule No. Title Filing frequency Applicability by carrier group I II III A Certification Q (1) X X B-1 Balance sheet Q (1) X X B-1.1 Balance sheet SA (2) NA NA B-7 Airframe and aircraft engine acquisitions and retirements Q NA X X B-12 Statement of changes in financial position Q (1) X X B-43 Inventory of airframes and aircraft engines A X X X P-1.1 Statement of operations SA (2) NA NA P-1.2 Statement of operations Q (1) X X P-1(a) Interim operations report M X X X P-2 Notes to BTS Form 41 report Q (1) X X P-5.1 Aircraft operating expenses Q(1), SA(2) X NA NA P-5.2 Aircraft operating expenses Q NA X X P-6 Operating expenses by objective groupings Q (1) X X P-7 Operating expenses by functional groupings—Group III air carriers Q NA NA X P-10 Employment statistics by labor category A (1) X X P-12(a) Fuel consumption by type of service and entity M (1) X X T-100 U.S. air carrier traffic and capacity data by nonstop segment and on-flight market M X X X T-100(f) Foreign air carrier traffic data by nonstop segment and on-flight market M (see 14 CFR 217) T-8 Report of all-cargo operations A (3) (3) (3) M = Monthly, Q = Quarterly, SA = Semiannually, A = Annually, NA = Not Applicable, X = All Carriers. (1) Applicable to Group I Air Carriers with annual operating revenues of $20 million or more. (2) Appilcable to Group I Air Carriers with annual operating revenues below $20 million. (3) Applicable to Air Carriers conducting 49 U.S.C. 41103 all-cargo operations. Due Dates of Schedules in BTS Form 41 Report Due dates 1 Financial data on schedule No. Traffic and capacity data on schedule No. January 20 P-12(a) January 30 P-1(a) T-100, T-100(f) February 10 2 A, B-1, B-1.1, B-7, B-12, P-1.1, P-1.2, P-2, P-5.1, P-5.2, P-6, P-7, P-10. February 20 P-12(a) March 1 P-1(a) T-100, T-100(f), March 20 P-12(a) March 30 B-43, P-1(a). T-100, T-100(f), T-8 April 20 P-12(a) April 30 P-1(a) T-100, T-100(f) May 10 A, B-1, B-7, B-12, P-1.2, P-2, P-5.1, P-5.2, P-6, P-7. May 20 P-12(a) May 30 P-1(a) T-100, T-100(f) June 20 P-12(a) June 30 P-1(a) T-100, T-100(f) July 20 P-12(a) July 30 P-1(a) T-100, T-100(f) August 10 A, B-1, B-1.1, B-7, B-12, P-1.1, P-1.2, P-2, P-5.1, P-5.2, P-6, P-7. August 20 P-12(a) August 30 P-1(a) T-100, T-100(f) September 20 P-12(a) September 30 P-1(a) T-100, T-100(f) October 20 P-12(a) October 30 P-1(a) T-100, T-100(f) November 10 A, B-1, B-7, B-12, P-1.2, P-2, P-5.1, P-5.2, P-6, P-7. November 20 P-12(a) November 30 P-1(a) T-100, T-100(f) December 20 P-12(a) December 30 P-1(a) T-100, T-100(f) 1 Due dates falling on a Saturday, Sunday or national holiday will become effective the first following work day. 2 Reporting due dates on Form 41 Schedules B and P are extended to March 30 if preliminary schedules are filed at the Department by February 10

(b)Each large certificated air carrier shall file the applicable schedules of the BTS Form 41 Report with the BTS in accordance with the above instructions with the following exceptions:

(1)The time for filing B and P report schedules for the final quarter or semiannual period of each calendar year may be extended to the following March 30 if the preliminary Schedules B-1 or B-1.1 and P-1.1 or P-1.2 are submitted, as applicable, and are received on or before their respective due dates.

(2)For the third month of any calendar quarter, Schedule P-1(a) need not be filed if Schedule P-1.1 or P-1.2 for the quarter or semiannual period, as applicable, is received on the due date prescribed for Schedule P-1(a).

(3)Income and expense data on Schedule P-1(a) for each month will be withheld by the BTS from public disclosure, until such time as (i) the semiannual or quarterly financial reports are due, (ii) the semiannual or quarterly financial reports are filed, or (iii) information covered by monthly reports is publicly released by the carrier concerned, whichever occurs first. Before that time, income and expense data reported on Schedule P-1(a) will be disclosed to parties to any proceeding before the DOT to the extent that such data are relevant and material to the issues in the proceeding upon a determination to this effect by the administrative law judge assigned to the case or by the DOT. Any data to which access is granted may be introduced into evidence, subject to the normal rules of admissibility of evidence. The DOT will make other disclosure of these data upon its own motion or upon application of any interested person, when the DOT finds the public interest so requires. The BTS may, from time to time, publish summary information compiled from Schedule P-1(a) in a form which will not identify the individual carrier. At the request of an air carrier, and upon a showing by such air carriers that public disclosure of its preliminary year-end report would adversely affect its interests and would not be in the public interest, the BTS will withhold such preliminary year-end report from public disclosure until such time as (i) the final report is filed, (ii) the final report is due, or (iii) information covered by the preliminary report is publicly released by the carrier concerned, whichever occurs first.

(c)If circumstances prevent the filing of a report on or before the prescribed due date, consideration will be given to the granting of an extension upon receipt of a written request therefor. To provide ample time for consideration and communication to the air carrier of the action taken, such a request must be delivered to the BTS in writing at least three (3) days in advance of the due date, setting forth good and sufficient reason to justify the granting of the extension and the date when the report can be filed. Except in cases of emergency, no such request will be entertained which is not in writing and received by the BTS at least three (3) days before the prescribed due date. If a request is denied, the air carrier remains subject to the filing requirements to the same extent as if no request for extension of time had been made.

(d)[Reserved]

(e)All financial data reported on B, P and G schedules shall reflect the status of the air carrier's books of account for the period for which the report is being made and shall conform to the instructions contained in this Uniform System of Accounts and Reports. At the option of the air carrier, Group III air carriers may round reported financial data to the nearest thousands of dollars by typing “($000)” at the top of each amount column. All Group I and Group II air carriers may, at their option, round reported financial data to the nearest whole dollars by dropping the cents. All rounded amounts must be balanced within and between schedules. This option applies only to the submission of hardcopy reports. Instructions for the submission of data in ADP format are contained in the Accounting and Reporting Directives, which are available from OAI.

(f)Traffic and other operational statistics included in schedules of the BTS Form 41 reports shall reflect data pertaining to the month, quarter or 12-months-to-date period for which the report is being made.

(g)Adjustments correcting errors in previously reported traffic and other operational statistics shall not be included in data reported in schedules for the current period but shall be effected by submission of corrected schedules for the period to which applicable or, if only a few items are involved, by written notice and authorization to the BTS to correct previously filed reports except that any correction which amounts to less than one-half of one percent (0.5%) of the corrected amount for the month to which related may be included in the report for the current month provided the amount of the correction is clearly noted on the Form 41 Report.

(h)All letters and statements of correction or revision of reported data shall be a part of the BTS Form 41 reports.

(i)All changes in accounting methods having a material impact upon the particular financial elements involved, and all changes in methods of computing and reporting traffic and capacity statistics having a material impact upon the particular statistic involved shall be adequately explained and identified in the report first reflecting such changes. Such explanations related to financial position or financial results shall be made on BTS Form 41 Schedule P-2. Changes in methods for computing or reporting traffic and capacity statistics shall be identified and explained on a separate sheet attached to the first report affected. (See sec. 2-16.) The reporting requirements shall not be construed, in any sense, as relieving the air carrier of the responsibility for conforming its procedures to those otherwise prescribed in this system of accounts and reports.

(j)All financial statements released by carriers to the public reflecting a financial position or operating results for dates or reporting periods not covered by reports on file with the BTS shall be filed with the Board simultaneously with their public release. (Approved by the Office of Management and Budget under control number 2138-0013) Editorial Note:For Federal Register citations affecting part 241, section 22, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.govinfo.gov.

23Section 23 Certification and Balance Sheet Elements#

Schedule A—Certification (a) The certification of the BTS Form 41 Report shall be signed by an elective corporate officer, executive, or director. Other persons may be authorized by the carrier to sign the certification provided a written authorization disclosing the individual's name and title is forwarded to the Department of Transportation. Since corrections or revisions of reported data are a part of the BTS Form 41 Report, all correspondence relating to such matters shall be signed only by the person(s) authorized to sign the certification. (b) The certification of the Form 41 reports, embodied in Schedule A thereof, shall read as follows: I, the undersigned (Title of officer in charge of accounts) ____ of the (Full name of the reporting company) ___ do certify that this report and all schedules, ADP-media submissions, Passenger Origin-Destination Survey submissions and supporting documents which are submitted herewith or have been submitted heretofore as parts of this report filed for the above indicated period have been prepared under my direction; that I have carefully examined them and declare that they correctly reflect the accounts and records of the company, and to the best of my knowledge and belief are a complete and accurate statement, after adjustments to reflect full accruals, of the operating revenues and expenses, income items, assets, liabilities, capital, retained earnings, and operating statistics for the periods reported in the several schedules, the Schedule T-100 ADP-media submissions, and the Passenger Origin-Destination Survey; that the various items herein reported were determined in accordance with the Uniform System of Accounts and Reports for Large Certificated Air Carriers prescribed by the Department of Transportation; and that the data contained herein are reported on a basis consistent with that of the preceding report except as specifically noted in the financial and statistical statements. Schedule B-1 Balance Sheet (a) This schedule shall be filed by all Group II and Group III air carriers and Group I air carriers that have annual operating revenues of $20 million or more. (b) This schedule shall reflect the balances at the close of business on the last day of each calendar quarter for the overall or system operations of each air carrier in conformance with the provisions of sections 4, 5 and 6. (c) Individual proprietors or partners shall report the aggregate capital contributed by the proprietor or partners in account 2890 Additional Capital Invested. Schedule B-1.1—Balance Sheet (a) This schedule shall be filed semiannually by Group I air carriers with annual operating revenues below $20 million. (b) Each carrier shall insert in the space provided for “OAG Code” its carrier code as contained in the Official Airlines Guide (OAG). If the OAG does not contain a carrier code for the reporting carrier, a code will be provided by the Office of Airline Information upon request. This code will then be inserted in the space provided for “carrier code.” (c) This schedule shall show the account balances at the close of business on June 30 or December 31, as applicable, of each semiannual reporting period. (d) “Current Assets” shall include all resources that may reasonably be expected to be realized in cash or sold or consumed within one year. This group of assets is classified into three basic accounts: (1) “Cash and Equivalents” shall include cash on hand and on deposit, U.S. Government securities, and other temporary cash investments. (2) “Notes and Accounts Receivable-Net” shall include general traffic accounts receivable, government receivables, notes and receivables from associated companies, officers, employees and others, and a deduction for a reasonable allowance for bad debts. (3) “Other Current Assets” shall contain all other current assets not provided for in the above classifications. This account shall include, but is not limited to, short-term prepayments, expendable spare parts, supplies and other inventories of flight equipment replacement parts that are usually replaced rather than repaired, and materials and supplies held in stock, such as fuel and oil, expendable tools, office supplies and food service supplies. Spare parts may be reduced by an allowance for obsolescence to provide for losses in value. (e) “Property and Equipment” shall be segregated into that which is owned and that which is leased under capital leases. All property and equipment, with the deception of land, shall be reported net of accumulated depreciation or amortization. (f) “Other Assets” shall included all assets not included in the above categories, such as long-term investments, long-term prepayments, long-term receivables, deferred charges, intangible assets, equipment purchase deposits, and construction work in progress. (g) “Current Liabilities” shall include all obligations, the liquidation of which is reasonably expected to require the use of existing resources within one year. This group of liabilities is classified into three basic accounts: (1) “Notes and Accounts Payable” shall include any payments on long-term debt, short-term notes and accounts payable, and accrued expenses that are payable within one year. (2) “Accrued Taxes” shall include tax liabilities, such as those imposed on income, property and payroll, which are reasonably expected to be liquidated within one year. (3) “Other Current Liabilities” shall include all current liabilities which are not provided for elsewhere, such as air traffic liabilities for unused transportation sold (includes sales of transportation on both the reporting carrier and other carriers). (h) “Long-Term Debt” shall include all obligations which are not reasonably expected to be liquidated within one year. Typical examples include bonds payable, long-term notes payable, lease obligations, and pension obligations. (i) “Other Liabilities” shall include any debts or obligations which are not properly listed in the “Current Liabilities” or “Long-Term Debt” sections. (j) “Deferred Credits” shall include all credit balances of a general clearing nature, including credits held in suspense pending receipt of further information necessary for final disposition. Included in this account are deferred income taxes and deferred investment tax credits. (k) “Stockholder's Equity” shall be reported as follows: (1) “Capital Stock” shall be segregated as between common and preferred. The number of shares outstanding, along with the par or stated value of the stock, shall be reported. In the case of no-par stock without stated value, the full consideration received shall be reported. (2) “Other Paid-In Capital” shall include the difference between the price at which the capital stock is sold and the par or stated value of the stock. (3) “Retained Earnings” shall represent the net income or loss from all operations of the corporate entity less dividends. (4) “Treasury Stock” shall represent the cost of stock issued by the carrier and reacquired by it but not retired or cancelled. (l) The statement of certification shall be signed by the carrier's chief accounting officer. (m) All substantive matters that may materially influence interpretations or conclusions in regard to the financial condition or the earnings position of the air carrier which are not clearly identified in the body of the schedule or which represent information that cannot be expressed adequately in monetary terms shall be completely and clearly stated in a note attached to this schedule and cross-referenced to the affected account or accounts. Schedule B-7 Airframe and Aircraft Engine Acquisitions and Retirements (a) This schedule shall be filed by all Group II and Group III air carriers. (b) Data applicable to acquisitions and data applicable to retirements shall be grouped and reported separately. The data reported within each group (acquisitions; retirements) shall be further subgrouped and reported as follows: (1) Acquisitions: the indicated data shall be reported for each individual airframe, identified by type, model, and design of cabin as to use for passengers exclusively, cargo exclusively, or both passengers and cargo in combination. Data pertaining to aircraft engines shall be reported in aggregate for each type or model; however, leased aircraft engines shall be separately reported under captions entitled: Capital Leases—Aircraft Engines; and Operating Leases—Aircraft Engines. Airframe units leased from others for a period of more than 90 days shall be reported in a separate subsection of this schedule, captioned as follows: Capital Leases—Airframe Units; and Operating Leases—Airframe Units. In addition, a notation shall be made by license number of airframe units of the air carrier returned after lease to others for a period of more than 90 days. Airframe units obtained through interchange lease arrangements shall not be so reported. (2) Retirements: The indicated data shall be reported for the sale or retirement of each airframe, each type of aircraft engine (stating the number of units retired) and, to the extent retired along with airframes and engines, in aggregates by accounts, operating property and equipment included in accounts 1607 and 1608 and nonoperating property and equipment included in accounts 1707 and 1708. Disposition of properties in accounts 1608 and 1708 not related to airframe and aircraft engine retirements shall be reported in a separate group for each account. Airframe units leased from others for a period of more than 90 days shall be reported, upon return to the lessor, in a separate subsection of this schedule and captioned as follows: Capital Leases—Airframe Units; and Operating Leases—Airframe Units. In addition, a notation shall be made by license number and name of lessee of airframe units leased to others for a period of more than 90 days; moreover, airframe units leased to others under sales-type or direct financing leases shall be separately captioned and reported on this schedule. Airframe units leased under interchange arrangements shall not be so reported. Aircraft engines leased from others for a period of more than 90 days shall be reported, upon return to the lessor, in a separate subsection of this schedule and captioned as follows: Capital Leases—Aircraft Engines; and Operating Leases—Aircraft Engines. In addition, a notation shall be made by model number, number of units, and name of lessee of aircraft engines leased to others for a period of more than 90 days; moreover, aircraft engines leased to others under sales-type or direct financing leases shall be separately captioned and reported on this schedule. Aircraft engines leased under interchange arrangements shall not be so reported. (c) All dates shall indicate the day, the month and the year; shall be provided on a unit basis for airframes only, and, shall be reported for each aircraft engine group by date of transaction. (d) Column 1, “Year of First Delivery—Airframe,” shall reflect, for each reported airframe, the year that the airframe was first delivered by its manufacturer. (e) Column 2, “Airframe Manufacturer's Serial Number,” shall reflect the serial number assigned to each reported airframe by its manufacturer. (f) Column 4, “Acquisitions or Retirements,” shall be used to indicate, for each item entered, whether it represents an acquisition or retirement. This shall be indicated by inserting in Column 4 an “A” for acquisition or an “R” for retirement. (g) Column 8, “Maximum Seating Capacity,” shall reflect the number of passenger seats installed in each airframe acquired. When airframes are designed for multiple adjustable seating configurations, the maximum number of seats for which designed shall be reported. When the seating configuration of airframes is modified subsequent to original acquisition, the revised passenger capacity of each airfame shall be reported in the quarter in which modified and referenced to identify original capacity reported. (h) Column 9, “Cost,” shall reflect the book cost of reported airframe and aircraft engine acquisitions and retirements. (i) Column 10, “Amortization/Depreciated Cost,” shall reflect the book cost, less amortization or depreciation expense, for airframes and aircraft engines that have been retired. (j) Column 11, “Realization,” shall reflect the proceeds from the disposition of airframes and aircraft engines, including any insurance proceeds. (k) Column 12, “Acquired From/Disposition,” shall reflect: (1) for acquisitions: the name of the person or organization from which airframes and aircraft engines are acquired and (2) for dispositions (retirements): the name of the person or organization to which airframes and aircraft engines are sold or a notation as to the nature of the retirement and the account to which any depreciated cost has been charged, if not sold. Items included in accounts 1607, 1608, 1707, and 1708, sold as a part of an airframe or aircraft sales transaction, shall also be identified by the name of the buyer. Other sales of items included in these accounts shall be reported in a separate group in aggregate for each property account affected. Schedule B-12—Statement of Cash Flows (a) This Schedule shall be filed quarterly by all Group II and Group III air carriers and Group I air carriers that have annual operating revenues of $20 million or more. (b) This schedule shall be filed for the overall or system operations of the air carrier. (c) The statement of cash flows shall separately disclose the amount of net cash provided or used during the reporting period from the carrier's operating activities, investing activities and financing activities. The effect on cash and cash equivalents of the total amount of net cash provided or used during the quarter from each of the above activities shall be clearly disclosed so as to reconcile beginning and ending cash and cash equivalents. (d) Carriers may use either the direct or indirect method of reporting cash flows. Under either method, the reporting of cash flows from investing and financing activities will remain the same. However, the reporting of cash flows from operating activities does differ between the two methods. (e) For carriers electing to use the direct method, cash flows from operating activities are reported as gross amounts of the principal components of cash receipts and cash payments from operating activities, such as cash received from passengers and shippers, cash paid to suppliers, and cash paid to employees. Each carrier using the direct method shall provide as part of its statement of cash flows, a separate schedule that reconciles net income (as reported on Schedule P-1.2 in Account 9899) to cash flow from operating activities. (f) For carriers electing to use the indirect method, cash flows from operating activities shall reflect net income (as reported on Schedule P-1.2 in Account 9899) along with the adjustments necessary to reconcile net income (Account 9899) to net cash for the period (Net Cash Provided or Used By Operating Activities). (g) Regardless of the method used, the statement of cash flows shall reflect the amount of net cash flow provided or used by operating activities during the reporting period. (h) The balance of “Cash and Cash Equivalents,” at the beginning and ending of the quarterly period covered by the report, should equal the sum of Accounts 1010, “Cash,” and 1100, “Short-term Investments,” as reported on the immediately preceding and current quarterly Schedule B-1, “Balance Sheet.” If the sum of these two accounts does not equal the total “Cash and Cash Equivalents” reported on the statement of cash flows, then a footnote explaining the difference shall be provided as part of the statement of cash flows. (i) Carriers shall submit Schedule B-12 in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information. Schedule B-43—Inventory of Airframes and Aircraft Engines (a) This schedule shall be filed by all Group I, Group II and Group III air carriers. (b) The indicated data shall be reported for each individual airframe, identified by type, model and design of cabin (main deck) as to use for passengers exclusively, cargo exclusively, or both passengers and cargo in combination. Type and model refers to aircraft models such as B-707-100, B-707-200, DC-10-40, Beech-18, Piper PA-32, etc. Aircraft type designations are prescribed in Accounting and Reporting Directive No. 178, “List of Aircraft Type Numeric Codes.” Copies of this directive and subsequent updates to the list of aircraft type codes are available from the Department's Office of Airline Information. Airframes that are authorized for operation over water under FAA regulation FAR 121 shall be so indicated by asterisk. (c) Data pertaining to aircraft engines shall be reported on a group basis by type of engine and by type of aircraft to which related. (d) Data in this schedule shall be grouped and subtotaled as data pertaining to airframes and data pertaining to aircraft engines. Data pertaining to nonoperating airframes and aircraft engines shall be reported in a group below the data for operating equipment. Data pertaining to airframes and aircraft engines obtained under operating and capital leases shall be reported, by type of lease, in a separately captioned grouping below nonoperating airframes and aircraft engines and subgrouped within those groups according to operating and nonoperating equipment. (e) Column 1, “Year of First Delivery—Airframe,” shall reflect, for each reported airframe, the year that the airframe was first delivered by its manufacturer. (f) Column 2, “Airframe Manufacturer's Serial Number,” shall reflect the serial number assigned to each reported airframe by its manufacturer. (g) Data pertaining to airframes and aircraft engines obtained under operating leases shall be listed in Columns 1 through 9; the cost of improvements to equipment under operating leases shall be reported in Columns 10 through 12. (h) Column 9, “Available Capacity (Weight),” shall reflect, for each reported aircraft type, the available capacity (stated in pounds) that is used in computing the available ton-miles reported on Schedules T-100, T-1, and T-2. (i) Column 10, “Acquired Cost or Capitalized Value,” shall include (1) the acquisition cost of owned airframes and aircraft engines; (2) the total capitalized cost of obtaining airframes and engines under capital leases; and (3) the cost of improvements to airframes and engines obtained under operating leases. (j) Column 11, “Allowance for Depreciation or Amortization,” shall include (1) the accumulations of all provisions for losses due to use and obsolescence that are applicable to owned airframes and aircraft engines, (2) the amount of amortization recorded for amortizing the value of airframes and engines obtained under capital leases, and (3) the amount of amortization recorded for amortizing the value of improvements to airframes and aircraft engines obtained under operating leases. (k) Column 12, “Depreciated Cost or Amortized Value,” shall be calculated as either (1) Acquired Cost (Column 10) less the Allowance for Depreciation (Column 11) or (2) Capitalized Value (Column 10) less Amortization (Column 11). (l) Column 13, “Estimated Residual Value,” shall state, in dollars, the residual value assigned to owned and capital-leased airframes and aircraft engines, including any overhaul value not subject to depreciation. (m) Column 14, “Estimated Depreciable or Amortizable Life (Months),” shall state the estimated depreciable or amortizable life from the date of acquisition of each airframe and each group of aircraft engines. Editorial Note:For Federal Register citations affecting part 241, section 23, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.govinfo.gov.

24Section 24 Profit and Loss Elements#

Schedule P-1.1—Statement of Operations (a) This schedule shall be filed semiannually by Group I air carriers with annual operating revenues below $20 million. Data reported on this schedule shall be for the overall or system operations of the air carrier. (b) This schedule shall show the results of operations for six-month periods ending June 30 and December 31. Data reported in the “12 Months-to-Date” column shall represent for each individual item the sum of the amount reported in the “Current Period” column and the next previous six-month period. (c) Each carrier shall insert in the space provided for “OAG Code” its carrier code as contained in the Official Airlines Guide (OAG). If the OAG does not contain a carrier code for the reporting carrier, a code will be provided by the Office of Airline Information upon request. This code will then be placed in the space provided for “carrier code.” (d) “Operating Revenue” shall be put in categories as follows: (1) “Transport Revenue” shall include the revenue generated by the performance of air transportation services. This category shall be subdivided as follows: (i) “Scheduled Service” shall include all transport revenue derived from operations between pairs of points which are served on a regularly scheduled basis. Transport revenue received from scheduled service operations shall be subdivided as follows: (A) Passengers. Revenue generated from the transportation of passengers shall be included in this category. (B) Other. Revenue generated by the transportation of property and mail shall be included in this category. (ii) “Nonscheduled Service” shall include all transport revenue derived from operations between pairs of points which are not served on a regularly scheduled basis. (2) “Transport-Related Revenue” shall include monies received for providing air transportation facilities associated with the performance of services which flow from and are incidental to air transportation services performed by the air carrier. This category shall be subdivided as follows: (i) Public Service Revenue. This category shall include amounts of compensation paid to the carrier under 49 U.S.C 41733. (ii) Other. This category shall include other transport-related revenue such as in-flight sales, restaurant and food service (ground), rental of property or equipment, limousine service, interchange sales, and cargo pick-up and delivery charges. (e) “Operating Expense” shall be segregated as follows: (1) “Flying Operations” shall include expenses incurred directly in the in-flight operation of aircraft and expenses incurred in the holding of aircraft and aircraft operation personnel in readiness for assignment to an in-flight status. (2) “Maintenance” shall include all expenses which are specifically identifiable with the repair and upkeep of property and equipment used in the performance of air transportation. (3) “General and Administrative” shall include that portion of all expenses of a general corporate nature and all other expenses not provided for elsewhere which are related to air transport operations either directly or indirectly. (4) “Depreciation and Amortization” shall include all depreciation and amortization expenses applicable to property and equipment used in providing air transportation services. These expenses shall be segregated between those applicable to owned property and equipment and those applicable to property and equipment which is leased. (5) “Transport-Related Expense” shall include all expenses associated with the transport-related revenues reported on line 5 of this schedule. (f) “Operating Profit (Loss)” shall be computed by subtracting the total operating expenses from the total operating revenues. (g) “Nonoperating Income and Expense” shall include all revenues and expenses resulting from commercial ventures which are not inherently related to the performance of air transport services. For example, the revenues and expenses related to operating a hotel or motel would be reported under this category. This category shall also include the total interest expense incurred from all sources and shall be subdivided as follows: (1) Interest Expense. (2) Other Nonoperating (Net). (h) “Income Tax” shall reflect the provisions for accruals of Federal, State, local, and foreign taxes based upon taxable income, and computed at the normal and surtax rates in effect during the current accounting year. (i) “Discontinued Operations, Extraordinary Items or Accounting Changes” shall reflect any earnings or losses from discontinued operations, the net of the tax amount of extraordinary items, and the cumulative effect of any changes in accounting principles. (j) Any air carrier that does not file Schedule P-1(a) in accordance with the filing option described in section 22—General Reporting Instructions shall, for the sixth month of any semi-annual period during which the option is exercised, type in the bottom margin of this statement of operations the total number of full-time and part-time employees to be labeled as such and calculated in accordance with paragraph (d) of the reporting instructions for Schedule P-1(a). Schedule P-1.2—Statement of Operations (a) This schedule shall be filed quarterly by all Group II and Group III air carriers and Group I air carriers that have annual operating revenues of $20 million or more. (b) Route and charter carriers shall file separate statements of operations for each separate operating entity and for the overall, or system operations. (c) Data reported on this schedule shall conform with the instructions pertaining to profit and loss classifications within this Uniform System of Accounts and Reports. (d) Data reported in the “12 Months-to-Date” column shall represent for each item the sum of amounts reported in the “Quarter” column for the current and next previous three quarters. (e) Group III air carriers shall subdivide total Transport Revenues-Passenger (Account 3901) between Accounts 3901.1, Passenger-Flight Class and Account 3901.2 Passenger-Coach, only for operations that are reported in the international entity (Atlantic, Pacific and Latin American). First class and coach passenger revenues associated with transport operations reported in the domestic entity shall be reported as a combined total in Account 3901 Transport Revenues-Passenger. (f) All Group I and Group II air carriers shall report first class and coach passenger revenues as a combined total in Account 3901 Transport Revenues-Passenger, for both domestic and international entity operations. However, U.S. air carriers in any carrier group that elect to do so may continue to report first class and coach revenue data, if they consider such voluntary reporting to be less burdensome than changing their existing financial reporting system. (g) Any air carrier that does not file Schedule P-1(a) in accordance with the filing option described in section 22—General Reporting Instructions shall, for the third month of any calendar quarter during which the option is exercised, type in the bottom margin of the system statement of operations the total number of full-time and part-time employees to be labeled as such and calculated in accordance with paragraph (d) of the reporting instructions for Schedule P-1(a). Schedule P-1(a)—Interim Income Statement (a) This schedule shall be filed by all air carriers. (b) This schedule shall be filed for the overall or system operations of the air carrier. (c) Data reported on this schedule shall reflect the results of operations for the month covered by the report and shall conform to the instructions pertaining to profit and loss classifications within this Uniform System of Accounts and Reports. (d) Air carriers shall report on this schedule: (1) Total operating revenues, (2) Total operating expenses, (3) Operating profit or loss, (4) Net income, (5) Passenger revenues—scheduled service, (6) Public service revenues (subsidy) and other information on (7) The total number of full-time and (8) Part-time employees. Total number of full-time employees and total number of part-time employees shall reflect for the overall or system operations of the air carrier the total number of full-time and part-time employees, respectively, who worked or received pay for any part of the pay period(s) ending nearest the 15th day of the month. For the purposes of this part, “part-time employees” means those employees hired to work less than the number of hours that is customary or standard for their occupational specialty. (e) In the event of a labor strike, the “number of employees” to be reported on this schedule shall be determined on and actual payroll basis. Actual payroll shall be determined in accordance with paragraph (d) of these reporting instructions. An air carrier that on October 24, 1978, held a certificate issued under 49 U.S.C. 41102 shall also report in a footnote on this schedule the number of full-time employees who were deprived of employment because of a strike (i.e., the number of full-time employees who, but for a strike, would have been included in the number reported in accordance with paragraph (d)(7)). Schedule P-2—Notes to BTS Form 41 Report (a) This schedule shall be filed quarterly by all Group II and Group III air carriers and Group I air carriers with annual revenues of $20 million or more. Carriers shall submit Schedule P-2 in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information. (b) Route and charter air carriers shall file this schedule for each separate operating entity and for the overall, or system operations of the carrier. (c) All substantive matters which may influence materially interpretations or conclusions in regard to the financial condition or the earnings position of the air carrier which are not clearly identified in the body of the Form 41 report or which represent information that cannot be expressed adequately in monetary terms shall be completely and clearly stated in this schedule and cross-referenced to the affected account or accounts. The informative disclosure on this schedule for the system operations of the air carrier shall conform, at the end of each carrier's fiscal or calendar year, with the footnotes prepared for audited financial statements. (d) The amounts and estimated delivery dates of any purchase commitments of material size and not of a recurrent routine character shall be explained on this schedule. In the case of commitments involving flight equipment, the amount for each equipment type may be given in total, including any engines, airframes and spares; but the number of airframes and the number of engines by type shall be given, as well as the estimated delivery date for each complete aircraft. Reports on commitments other than for flight equipment are required only in the December 31 report of each calendar year. (e) Each scheduled air carrier shall include on this schedule a description of each interruption in air transport operations, the aggregate effect of which is ten (10) percent or more of the scheduled revenue plane-miles which, except for the interruption, would have been operated during the month or either of 2 consecutive months affected. The information to be reported for each such interruption in operations shall consist of: (1) For the report period in which partial or complete interruption first occurs, the nature of the interruption and dates of partial and/or complete cessation of operations, as applicable; (2) For each report period until full resumption of operations, an estimate of the revenue plane-miles canceled in each month of the quarter because of the interruption; and (3) For the report period in which scheduled operations are resumed, dates of partial and/or complete resumption, as applicable. Schedule P-5.1—Aircraft Operating Expenses (a) This schedule shall be filed by all Group I air carriers. Group I air carriers that have annual operating revenues of $20 million or more shall file this schedule quarterly and only report direct operating expense data (lines 1 thru 9). Group I air carriers with annual operating revenues below $20 million shall file this schedule semiannually and report both direct and indirect operating expense data (lines 1 thru 16). (b) Subject to the provisions of Section 22(a), quarterly reports are due on May 10, August 10, November 10 and February 10 for the first, second, third and fourth calendar quarters, respectively. Semiannual reports are due on August 10 and February 10. (c) Each carrier shall indicate in the space provided its full corporate name and an “X” shall be inserted in the appropriate box to indicate whether the data being reported are quarterly or six months data. The period-ending data shall be indicated in the space provided. (d) Route and charter air carriers subject to the quarterly filing requirement shall file this schedule for each operating entity of the air carrier. Air carriers subject to the semiannual filing requirement shall file this schedule for the overall or system operations of the air carrier. (e) This schedule shall show the direct and indirect expenses incurred in aircraft operations plus total aircraft hours, gallons of fuel issued, and aircraft days assigned to service. Direct expense data applicable to each aircraft type operated by the carrier shall be reported in separate colums of this schedule. Each aircraft type reported shall be identified at the head of each column in the space provided. “Aircraft Type” refers to aircraft models such as B-707-100, B-707-200, DC-10-40, Beech-18, Piper PA-32, etc, Aircraft Type designations are prescribed in the Accounting and Reporting Directives, which is available from the Office of Airline Information, RTS-42. In the space provided for “Aircraft Code” carriers shall insert the four digit code which is prescribed in the Accounting and Reporting Directives for the reported aircraft type. (f) Direct aircraft operating expenses shall be reported in the following categories: (1) Line 2 “Flying Operations (Less Rental)” shall be subdivided as follows: (i) Line 3 “Pilot and Copilot” expense shall include pilots' and copilots' salaries, and related employee benefits, pensions, payroll taxes and personnel expenses. (ii) Line 4 “Aircraft Fuel and Oil” expense shall include the cost of fuel and oil used in flight operations and nonrefundable aircraft fuel and oil taxes. (iii) Line 5 “Other” expenses shall include general (hull) insurance, and all other expenses incurred in the in-flight operation of aircraft and holding of aircraft and aircraft operational personnel in readiness for assignment to an in-flight status that are not provided for otherwise on this schedule. (2) Line 6 “Total Flying Operations (Less Rentals)” shall equal the sum of lines 3, 4 and 5. (3) Line 7 “Maintenance-Flight Equipment” shall include the cost of labor, material and related overhead expended by the carrier to maintain flight equipment, general services purchased for flight equipment maintenance from associated or other outside companies, and provisions for flight equipment overhauls. (4) Line 8 “Depreciation and Rental-Flight Equipment” expense shall include depreciation of flight equipment, amortization of capitalized leases for flight equipment, provision for obsolescence and deterioration of spare parts, and rental expense of flight equipment. (5) Line 9 “Total Direct Expense” shall equal the sum of lines 6, 7 and 8. (g) Line 10 Indirect aircraft operating expenses shall be reported only in total for all aircraft types and shall be segregated according to the following categories: (1) Line 11 “Flight Attendant Expense” shall include flight attendants' salaries, and related employee benefits, pensions, payroll taxes and personnel expenses. (2) Line 12 “Traffic Related Expense” shall include traffic solicitor salaries, traffic commissions, passenger food expense, traffic liability insurance, advertising and other promotion and publicity expenses, and the fringe benefit expenses related to all salaries in this classification. (3) Line 13 “Departure Related (Station) Expense” shall include aircraft and traffic handling salaries, landing fees, clearance, customs and duties, related fringe benefit expenses and maintenance and depreciation on ground property and equipment. (4) Line 14 “Capacity Related Expense” shall include salaries and fringe benefits for general management personnel, recordkeeping and statistical personnel, lawyers, and law clerks, and purchasing personnel; legal fees and expenses; stationery; printing; uncollectible accounts; insurance purchased-general; memberships; corporate and fiscal expenses; and all other expenses which cannot be identified or allocated to some other specifically identified indirect cost category. (h) Line 15 “Total Indirect Expense” shall equal the sum of lines 11, 12, 13 and 14. (i) Line 16 “Total Operating Expense” shall equal the sum of lines 9 and 15. (j) Line 17 “Total Aircraft Hours” shall equal the sum of revenue and nonrevenue aircraft hours. (k) Line 18 “Gallons of Fuel Issued” shall equal the aircraft fuels issued (account Z921). (l) Line 19 “Aircraft Days Assigned to Service” equals the number of days that aircraft owned or acquired through rental or lease are in the possession of the reporting air carrier and are available for service on the reporting carrier's routes plus the number of days such aircraft are in service on routes of others under wet-lease agreements. Includes days in overhaul, or temporarily out of service due to schedule cancellations. Excludes days that newly acquired aircraft are on hand but not available for productive use, days dry-leased or rented to others, and days in possession but formally withdrawn from air transportation service. Schedule P-5.2—Aircraft Operating Expenses and Related Statistics (a) This schedule shall be filed by all Group II and Group III air carriers. (b) Route and charter air carriers shall file this schedule for each operating entity of the air carrier. (c) Data applicable to each aircraft type operated by the air carrier shall be reported in separate columns of this schedule. “Aircraft Type” refers to aircraft models (such as B-707-100, B-707-300, DC-9-30, etc.) that are prescribed in the Accounting and Reporting Directives, which is available from the Office of Airline Information. In the space provided for “Aircraft Code” carriers shall insert the four digit code which is prescribed in the Accounting and Reporting Directives for the reported aircraft type. For route air carriers, expenses of operating aircraft provided by other carriers under interchange agreements shall be separately reported in total for all such aircraft as if for a distinct aircraft type. Interchange expenses applicable to aircraft of the same type as those owned or operated by the air carrier shall be distributed in summary memo form as item 98.1 and 98.2 to each aircraft type owned or operated by that air carrier. Aircraft types not generally used in revenue service shall be separately reported. If more than one type of aircraft is involved, a separation of data relating to each type of aircraft shall not be required. (d) Each aircraft type for which a report is being made shall be identified at the head of each column in the space provided. Data applicable to aircraft designed primarily for cargo services and only incidentally used for passenger services shall be reported in separate columns, and the word “cargo” shall be inserted after the aircraft type at the head of the column. The prescribed reporting by aircraft types may be reviewed from time to time upon request by individual air carriers, or upon the initiative of the BTS, and groupings of aircraft types for reporting purposes may be prescribed or amended in specific instances. (e) Italicized codes and item titles do not constitute accounts or account numbers prescribed for air carrier accounting, but shall be used for reporting purposes only. (f) Item 79.6 “Applied Maintenance Burden” shall reflect a memorandum allocation by each air carrier of the total expenses included in subfunction 5300 “Maintenance Burden” between maintenance of flight equipment, by aircraft type, and maintenance of ground property and equipment. The allocation of subfunction 5300 (maintenance burden) shall include the net effect of charges and credits to profit and loss account 5272 Flight Equiment Airworthiness Provisions. (g) Item 73 “Obsolescence and Deterioration—Expendable Parts” shall reflect (for obsolescence and deterioration of flight equipment expandable parts) the gross provisions for losses in value of expendable parts during the current accounting period offset by any credits applicable to the current period for adjustments for excess inventory levels determined pursuant to section 6-1311. (h) The total of function 5100 “Flying Operations” reported on this schedule shall agree with corresponding amounts reported on Schedule P-1.2. Schedule P-6—Operating Expenses by Objective Groupings (a) This schedule shall be filed quarterly by all Group II and Group III air carriers and Group I air carriers that have annual operating revenues of $20 million or more. (b) Route and charter air carriers shall file this schedule for each separate operating entity. (c) Line 36 “Total Operating Expenses” shall agree with the corresponding amount reported on Schedule P-1. Schedule P-7—Operating Expenses by Functional Groupings—Group III Air Carriers (a) This schedule shall be filed by all Group III air carriers. (b) Route and charter air carriers shall file this schedule for each operating entity of the air carrier. (c) Line 38 “Total Operating Expenses” shall agree with the corresponding amount reported on Schedule P-1.2. Schedule P-10—Employment Statistics by Labor Category (a) This schedule shall be filed annually by all Group II and Group III air carriers and Group I air carriers that have annual operating revenues of $20 million or more. (b) Separate sets of this schedule shall be filed for each operating entity of the air carrier. Employees will be allocated to the reporting entities on a basis consistent with that used in the allocation of salaries for Form 41 financial reporting purposes. (c) Column 3, “Number of Employees,” shall reflect, for each category in column 1, the weighted average number of full-time employees who received pay for any part of the calendar year. In determining the weighted average, all temporary or part-time employees shall be restated, based on their hours paid, as an equivalent number of full-time employees. The calculation shall be based on a standard full-time 2,080/hour year with overtime hours excluded from the computation. (d) Labor category description—“Other personnel” shall include all employees whose salary is chargeable to accounts 30, 32, 34 and 35 in this Uniform System of Accounts and Reports. (e) Labor category description—“Transport-related” shall include all employees whose salary is not chargeable to one of the various salary accounts contained in the Uniform System of Accounts and Reports. For example, this category would include those employees who work in transport-related operations and other activities for which a separate payroll account is not prescribed. The number of employees reported as transport-related shall be calculated in accordance with paragraph (c) of these reporting instructions. Schedule P-12(a)—Fuel Consumption by Type of Service and Entity (a) This schedule shall be filed monthly by all Group II and Group III air carriers and Group I air carriers that have annual operating revenues of $20 million or more. (b) A single copy (original only) of this schedule shall be filed to report monthly fuel consumption data by type of service and entity. (c) For the purposes of this schedule, type of service shall be either scheduled service or nonscheduled service as those terms are defined in section 03 of part 241. (d) For the purpose of this schedule, scheduled service shall be reported separately for: (1) Intra-Alaskan operations; (2) domestic operations, which shall include all operations within and between the 50 States of the United States (except Intra-Alaska), the District of Columbia, the Commonwealth of Puerto Rico and the United States Virgin Islands and Canadian transborder operations; (3) Atlantic operations (excluding Bermuda); (4) Pacific operations which shall include the North/Central Pacific, South Pacific (including Australia) and the Trust Territories; and (5) Latin American operations which shall include the Caribbean (including Bermuda and the Guianas), Mexico and South/Central America. (e) For the purpose of this schedule, nonscheduled service shall be reported separately for domestic operations and international operations as defined in paragraph (d) above, except that domestic and international MAC operations shall be reported on separate lines. (f) The cost data reported on each line shall represent the average cost of fuel, as determined at the station level, consumed in that entity. (g) The cost of fuel shall include shrinkage but exclude (1) “through-put” and “in to plane” fees, i.e., service charges or gallonage levies assessed by or against the fuel vendor or concessionaire and passed on to the carrier in a separately identifiable form and (2) nonrefundable Federal and State excise taxes. However, “through-put” and “in to plane” charges that cannot be identified or segregated from the cost of fuel shall remain a part of the cost of fuel as reported on this schedule. (h) Each air carrier shall maintain records for each station showing the computation of fuel inventories and consumption for each fuel type. The periodic average cost method shall be used in computing fuel inventories and consumption. Under this method, an average unit cost for each fuel type shall be computed by dividing the total cost of fuel available (Beginning Inventory plus Purchases) by the total gallons available. The resulting unit cost shall then be used to determine the ending inventory and the total consumption costs to be reported on this schedule. (i) Where amounts reported for a specific entity include other than Jet A fuel, a footnote shall be added indicating the number of gallons and applicable costs of such other fuel included in amounts reported for that entity. (j) Where any adjustment(s) recorded on the books of the carrier results in a material distortion of the current month's schedule, carriers shall file a revised schedule P-12(a) for the month(s) affected. (k) Data reported on this schedule shall be withheld from public release until the quarterly Form 41 P schedules for the calendar quarter to which the monthly schedules relate are due at the BTS. However, aggregate data may be released before that time without identifying individual carriers. Provisions governing the due dates for submitting the quarterly P schedules are contained in paragraphs (a) and (b) of section 22 of this part. Individual carrier fuel data withheld from public disclosure may be disclosed by the BTS to: (1) Parties to any proceeding before the DOT to the extent such material is relevant and material to the issues in the proceeding upon a determination to this effect by the administrative law judge assigned to the case or by the DOT; (2) Agencies and other components of the Federal Government for their internal use only; and (3) Such persons and in such circumstances as the BTS determines to be in the public interest or consistent with its regulatory functions and responsibilities. (Approved by the Office of Management and Budget under control number 2138-0013) Editorial Note:For Federal Register citations affecting part 241 section 24, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.govinfo.gov.

25Section 25 Traffic and Capacity Elements#

General Instructions. (a) All prescribed reporting for traffic and capacity elements shall conform with the data compilation standards set forth in section 19—Uniform Classification of Operating Statistics. (b) Carriers submitting Schedule T-100 shall use magnetic computer tape or IBM compatible disk for transmitting the prescribed data to the Department. Upon good cause shown, OAI may approve the request of a U.S. air carrier, under section 1-2 of this part, to use hardcopy data input forms or submit data via e-mail. Schedule T-8—Report of all-cargo operations. (a) This schedule shall be filed annually by all air carriers that conduct all-cargo operations under certificates issued under 49 U.S.C. 41103. (b) [Reserved] (c) Statement of operations. This statement shall include the following elements: (1) Total operating revenue, categorized as follows: (i) Transport revenues from the carriage of property in scheduled and nonscheduled service; (ii) Transport revenues from the carriage of mail in scheduled and nonscheduled service; and (iii) Transport-related revenues. (2) Total operating expenses; and (3) Operating profit or loss, computed by subtracting the total operating expenses from the total operating revenues. (d) Summary of traffic and capacity statistics. This summary shall include the following elements: (1) Total revenue ton-miles, which are the aircraft miles flown on each flight stage times the number of tons of revenue traffic carried on that stage. They shall be categorized as follows: (i) Property; and (ii) Mail. (2) Revenue tons enplaned, reflecting the total revenue tons of cargo loaded on aircraft during the annual period; (3) Available ton-miles, reflecting the total revenue ton-miles available for all-cargo service during the annual period, and computed by multiplying aircraft miles flown on each flight stage by the number of tons of aircraft capacity available for that stage; (4) Aircraft miles flown, reflecting the total number of aircraft miles flown in cargo service during the annual period; (5) Aircraft departures performed, reflecting the total number of take-offs performed in cargo service during the annual period; and (6) Aircraft hours airborne, reflecting the aircraft hours of flight (from take-off to landing) performed in cargo service during the annual period. Schedule T-100 U.S. Air Carrier Traffic and Capacity Data By Nonstop Segment and On-Flight Market (a) Schedule T-100 collects detailed on-flight market and nonstop segment data on all revenue flights flown by U.S. certificated air carriers. This schedule is filed monthly. Separate data shall be reported for each operating entity (Latin America, Atlantic, Pacific; International, or Domestic) of the air carrier. Data for each operating entity shall be reported using the five digit entity code prescribed under section 19-5(c) of this part. (b) Guidelines for reporting the automated monthly Schedule T-100 are included in the Appendix to this section. (c) Reported data shall be compiled as aggregates of the basic data elements and service classes contained in sections 19-4 and 19-5 of this part. (d) Joint-service operations. The air carrier in operational control of the aircraft (the carrier that uses its flight crews under its own FAA operating authority) must report joint-service operations. (Approved by the Office of Management and Budget under control number 2138-0013) Editorial Note:For Federal Register citations affecting part 241, section 25, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.govinfo.gov.

1-1Sec. 1-1 Applicability of system of accounts and reports.#

Each large certificated air carrier shall keep its books of account, records and memoranda and make reports to the BTS in accordance with this system of accounts and reports. The BTS reserves the right, however, under the provisions of sections 49 U.S.C. 41701 and 41708, to expand or otherwise modify the classes of carriers subject to this system of accounts and reports.

1-2Sec. 1-2 Waivers from this system of accounts and reports.#

A waiver from any provision of this system of accounts or reports may be made by the BTS upon its own initiative or upon the submission of written request therefor from any air carrier, or group of air carriers, provided that such a waiver is in the public interest and each request for waiver expressly demonstrates that: existing peculiarities or unusual circumstances warrant a departure from a prescribed procedure or technique; a specifically defined alternative procedure or technique will result in a substantially equivalent or more accurate portrayal of operating results or financial condition, consistent with the principles embodied in the provisions of this system of accounts and reports; and the application of such alternative procedure will maintain or improve uniformity in substantive results as between air carriers.

1-3Sec. 1-3 General description of system of accounts and reports.#

(a)This system of accounts and reports is designed to permit limited contraction or expansion to reflect the varying needs and capacities of different air carriers without impairing basic accounting comparability as between air carriers. In its administration three air carrier groups, designated Group I, Group II, and Group III, respectively (see section 04), are established by the BTS. This grouping will be reviewed from time to time upon petition of individual air carriers or by initiative of the BTS with the view of a possible regrouping of the air carriers.

(b)Under the system of accounts prescribed, balance sheet elements are accounted for by all air carrier groups within a fixed uniform pattern of specific accounts. All profit and loss elements are accounted for within specific objective accounts established for each air carrier group resulting from dual classifications, designated for each air carrier group, which are descriptive of both basic areas of financial activity, or functional operation, and objective served. The profit and loss elements of the three air carrier groups can be reduced to broad objectives and general or functional classifications which are comparable for all air carrier groups. Both balance sheet and profit and loss accounts and account groupings are designed, in general, to embrace all activities, both air transport and other than air transport, in which the air carrier engages and provide for the separation of elements identifiable exclusively with other than air transport activities. Profit and loss elements which are recorded during the current accounting year are subclassified as between (1) those which relate to the current accounting year and adjustments of a recurrent nature applicable to prior accounting years, and (2) extraordinary items of material magnitude.

(c)In order to afford air carriers as much flexibility and freedom as possible in establishing ledger and subsidiary accounts to meet their individual needs, a minimum number of account subdivisions have been prescribed in this Uniform System of Accounts. It is intended, however, that each air carrier, in maintaining its accounting records, will provide subaccount and subsidiary account segregations of accounting elements which differ in nature of accounting characteristics, in a manner which will render individual elements readily discernible and traceable throughout the accounting system, and will provide for relating profit and loss elements to applicable balance sheet counterparts.

1-4Sec. 1-4 System of accounts coding.#

(a)A four digit control number is assigned for each balance sheet and profit and loss account. Each balance sheet account is numbered sequentially, within blocks, designating basic balance sheet classifications. The first two digits of the four digit code assigned to each profit and loss account denote a detailed area of financial activity or functional operation. The first two digits, thus assigned to each profit and loss account, are numbered sequentially within blocks, designating more general classifications of financial activity and functional operation. The second two digits assigned to profit and loss accounts denote objective classifications.

(b)A fifth digit, appended as a decimal, has been assigned for internal control by the BTS of prescribed subdivisions of the primary objective balance sheet and profit and loss classifications. A different fifth digit code number from that assigned by the BTS may be adopted for internal recordkeeping by the air carrier provided the prescribed subclassification of objective accounts is not impaired and the code number assigned by the BTS is employed in reporting to the BTS on Form 41 Reports.

1-5Sec. 1-5 Records.#

(a)The general books of account and all books, records, and memoranda which support in any way the entries therein shall be kept in such manner as to provide at any time full information relating to any account. The entries in each account shall be supported by such detailed information as will render certain the identification of all facts essential to a verification of the nature and character of each entry and its proper classification under the prescribed Uniform System of Accounts. Registers, or other appropriate records, shall be maintained of the history and nature of each note receivable and each note payable.

(b)The books and records referred to herein include not only accounting records in a limited technical sense, but all other records such as organization tables and charts, internal accounting manuals and revisions thereto, minute books, stock books, reports, cost distributions and other accounting work sheets, correspondence, memoranda, etc., which may constitute necessary links in developing the history of, or facts regarding, any accounting or financial transaction.

(c)All books, records and memoranda shall be preserved and filed in such manner as to readily permit the audit and examination thereof by representatives of the DOT. All books, records, and memoranda shall be housed or stored in such manner as to afford protection from loss, theft, or damage by fire, flood or otherwise and no such books and records shall be destroyed or otherwise disposed of, except in conformance with 14 CFR part 249 for the preservation of records.

1-6Sec. 1-6 Accounting entities.#

(a)Separate accounting records shall be maintained for each air transport entity for which separate reports to the BTS are required to be made by sections 21(g) and for each separate corporate or organizational division of the air carrier. For purposes of this Uniform System of Accounts and Reports, each nontransport entity conducting an activity which is not related to the air carrier's transport activities and each transport-related activity or group of activities qualifying as a nontransport venture pursuant to paragraph (b) of this section, whether or not formally organized within a distinct organizational unit, shall be treated as a separately operated organizational division; except that provisions of this paragraph and paragraph (b) shall not apply to leasing activities.

(b)As a general rule, any activity or group of activities comprising a transport-related service provided for in transport-related revenue and expense accounts 09 through 18 shall be considered a separate nontransport venture under circumstances in which either: (1) A separate corporate or legal entity has been established to perform such services, (2) the aggregate annual revenue rate, as determined in section 2-1(d), during either of the prior two years exceeds the greater of $1 million per annum or one percent of the air carrier's total annual transport revenues, or (3) the aggregate annual expense rate, as determined in section 2-1(d), during either of the prior two years exceeds the greater of $1 million or one percent of the carrier's total annual operating expenses: Provided, That revenues and expenses from in-flight sales, and interchange sales shall be considered related to air transportation and accounted for accordingly, regardless of the revenue or expense standard set forth above.

(c)The records for each required accounting entity shall be maintained with sufficient particularity to permit a determination that the requirements of section 2-1 have been complied with.

1-7Sec. 1-7 Interpretation of accounts.#

To the end that uniform accounting may be maintained, questions involving matters of accounting significance which are not clearly provided for should be submitted to the Director, Office of Airline Information, K-25, Bureau of Transportation Statistics, for explanation, interpretation, or resolution.

1-8Sec. 1-8 Address for reports and correspondence.#

Reports required by this section shall be submitted to the Bureau of Transportation Statistics in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information.

19-1Sec. 19-1 Applicability.#

(a)United States air carrier. Each large certificated U.S. air carrier shall file with the Department, on a monthly basis, Form 41 Schedule T-100 “U.S. Air Carrier Traffic and Capacity Data By Nonstop Segment and On-flight Market,” and summary data as prescribed in this section and in sections 22 and 25 of this part.

(b)Foreign (non-U.S.) air carrier: Each foreign air carrier as required by part 217 of this chapter shall file Form 41 Schedule T-100(f) “Foreign Air Carrier Traffic Data by Nonstop Segment and On-flight Market.” The “Instructions to Foreign Air Carriers for Reporting Traffic Data on Form 41 Schedule T-100(f),” (Instructions-Foreign Air Carriers) are included in the Appendix to § 217.10 of this chapter.

(c)Reports required by this section shall be submitted to the Bureau of Transportation Statistics in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information.

(d)On-flight market and nonstop segment detail data by carrier shall be made public only as provided in section 19-6.

19-2Sec. 19-2 Maintenance of data.#

(a)Each air carrier required to file Form 41 Schedule T-100 data shall maintain its operating statistics, covering the movement of traffic in accordance with the uniform classifications prescribed. Codes are prescribed for each operating element and service class. All traffic statistics shall be compiled in terms of each flight stage as actually performed.

(b)Each carrier shall maintain data applicable to the specified traffic and capacity elements prescribed in section 19-5 and section 25, and by general service classes prescribed in section 19-4 of this part.

(c)Operating statistics shall be maintained in accordance with the type of record, either nonstop segment or on-flight market.

(d)Schedule T-100 collects summarized flight stage data and on-flight market data. All traffic statistics shall be compiled in terms of each revenue flight stage as actually performed. The detail T-100 data shall be maintained in a manner permitting monthly summarization and organization into two basic groupings: The nonstop segment information that must be summarized by equipment type, within class of service, within pair-of-points, without regard to individual flight numbers. The second grouping requires that the enplanement/deplanement information be broken out into separate units called “on-flight market records.” These records must be summarized by class of service, within pair-of-points, without regard for equipment type or flight number.

(e)The Department may authorize joint-service operations between two direct air carriers. Examples of these joint-services are blocked-space agreements, part-charter agreements, code-share agreements, wet-lease agreements, and other similar arrangements. Joint services operations are reported by the air carrier in operational control of the aircraft. The traffic moving under these agreements is reported on Schedule T-100 the same way as any other traffic on the aircraft.

(f)Any questions regarding T-100 should be e-mailed to T100.Support@dot.gov.

19-3Sec. 19-3 Accessibility and transmittal of data.#

(a)Each reporting air carrier shall maintain its prescribed operating statistics in a manner and at such locations as will permit ready accessability for examination by representatives of the Department. The record retention requirements are prescribed in part 249 of this chapter.

(b)[Reserved]

(c)Form 41 Schedule T-100 reports shall be transmitted in accordance with the standard practices established by the Department, and must be received by the Department within 30 days following the end of each reporting month.

19-4Sec. 19-4 Service classes.#

The statistical classifications are designed to reflect the operating elements attributable to each distinctive class of service offered. The operating elements shall be grouped in accordance with their inherent characteristics as follows:

(a)Scheduled services. Scheduled services shall include traffic and capacity elements applicable to air transportation provided pursuant to published schedules and extra sections to scheduled flights. Scheduled Passenger/Cargo (Service Class F) is a composite of first class, coach, and mixed passenger/cargo service. The following classifications shall be reported, as applicable: U.S. Air Carriers: K—Scheduled Services (F + G) F—Scheduled Passenger/Cargo G—Scheduled All-Cargo Foreign Air Carriers: F—Scheduled Passenger/Cargo G—Scheduled All-Cargo

(b)Nonscheduled services. Nonscheduled services shall include all traffic and capacity elements applicable to the performance of nonscheduled aircraft charters, and other air transportation services not constituting an integral part of services performed pursuant to published flight schedules. The following classifications shall be reported, as applicable: U.S. Air Carriers: V—Nonscheduled Services (L + N + P + R) L—Nonscheduled Civilian Passenger/Cargo P—Nonscheduled Civilian Cargo N—Nonscheduled Military Passenger/Cargo R—Nonscheduled Military Cargo Foreign Air Carriers: L—Nonscheduled Civilian Passenger Cargo P—Nonscheduled Civilian All-Cargo Charters Q—Nonscheduled Services (Other than Charter)

(c)All Services. This classification shall reflect, for the applicable elements, the aggregate amounts for all services performed by the operating entity: U.S. Air Carriers: Z—All Services (V + K)

19-5Sec. 19-5 Air transport traffic and capacity elements.#

(a)Within each of the service classifications prescribed in section 19-4, data shall be reported as applicable to specified air transport traffic and capacity elements.

(b)These reported items are as follows: Code Description Segment Market Computed by DOT Carrier, carrier entity code S M Reporting period date S M Origin airport code S M Destination airport code S M Service class code S M Aircraft type code S 110 Revenue passengers enplaned M 130 Revenue passengers transported S 140 Revenue passenger-miles CFD * 210 Revenue cargo tons enplaned CFD * 217 Enplaned freight M 219 Enplaned mail M 230 Revenue tons transported CFD * 237 Transported freight S 239 Transported mail S 240 Revenue ton-miles CFD * 241 Revenue ton-miles passenger CFD * 247 Revenue ton-miles freight CFD * 249 Revenue ton-miles mail CFD * 270 Available capacity payload S 280 Available ton-miles CFD * 310 Available seats, total S 320 Available seat-miles CFD * 410 Revenue aircraft miles flown CFD * 430 Revenue aircraft miles scheduled CFD * 501 Inter-airport distance CFD * 510 Revenue aircraft departures performed S 520 Revenue aircraft departures scheduled S 610 Revenue aircraft hours (airborne) S 630 Aircraft hours (ramp-to-ramp) S 650 Total aircraft hours (airborne) S * CFD = Computed by DOT from detail Schedule T-100 and T-100(f) data.

(c)These reported items are further described as follows:

(1)Reporting period date. The year and month or quarter to which the reported data are applicable.

(2)Carrier, Carrier entity code. Each foreign air carrier shall report its name and code (assigned by DOT). Each U.S. air carrier shall report its name and entity code (a five digit code assigned by DOT that identifies both the carrier and its entity) for its particular operations. The Office of Airline Information (OAI) will assign or confirm codes upon request; OAI's address is in the Appendix to section 25 of this part and the Appendix to § 217.10 of this chapter.

(3)Service class code. The service class codes are prescribed in section 19-4 of this part. In general, classes are divided into two broad categories, either K (scheduled) or V (nonscheduled), where K = F + G for all carriers and V = L + N + P + R for U.S. air carriers and comprises L + P and Q for foreign air carriers. Refer to section 19-4 for the more information on service class codes F, G, L, N, P, R and Q.

(4)Record type code. This code indicates whether the data pertain to nonstop segment (record type S) or on-flight market (record type M).

(5)Aircraft type code. This code represents the aircraft types, as described in the Appendix to section 25 of this part.

(6)Origin, Destination airport code(s). These codes represent the industry designators described in the Appendix to section 25 of this part. A common private industry source of these industry designator codes is the Official Airline Guides (OAG). OAI will assign codes upon request if not listed in the OAG.

(7)110 Revenue passengers enplaned. The total number of revenue passengers enplaned at the origin point of a flight, boarding the flight for the first time; an unduplicated count of passengers in a market. Under the T-100 system of reporting, these enplaned passengers are the sum of the passengers in the individual on-flight markets. Report only the total revenue passengers enplaned in item 110. For all air carriers and all entities, item 110 revenue passengers enplaned is reported on Form 41 Schedule T-100 in column C-1, as follows: Col. All carrier groups and entities C-1 110 Revenue passengers enplaned.

(8)130 Revenue passengers transported. The total number of revenue passengers transported over single flight stage, including those already on board the aircraft from a previous flight stage. Report only the total revenue passengers transported in item 130. For all air carriers and all entities, item 130 revenue passengers transported is reported on Form 41 Schedule T-100 in Column B-7, as follows: Col. All carrier groups and entities B-7 130 Revenue passengers transported.

(9)140 Revenue passenger-miles. Computed by multiplying the interairport distance of each flight stage by the number of passengers transported on that flight stage.

(10)210 Revenue cargo tons enplaned. The total number of cargo tons enplaned. This data element is a sum of the individual on-flight market figures for each of the following categories: 217 Freight and 219 mail. This element represents an unduplicated count of the revenue traffic in a market.

(11)230 Revenue tons transported. The number of tons of revenue traffic transported. This element is the sum of the following elements: 231 Passengers transported-total, 237 Freight, and 239 Mail.

(12)240 Revenue ton-miles—total. Ton-miles are computed by multiplying the revenue aircraft miles flown (410) on each flight stage by the number of tons transported on that stage. This element is the sum of 241 through 249.

(13)241 Revenue ton-miles—passenger. Equals the number of passengers times 200, times interairport distance, divided by 2000. A standard weight of 200 pounds per passenger, including baggage, is used for all operations and service classes.

(14)247 Revenue ton-miles—freight. Equals the volume of freight in whole tons times the interairport distance.

(15)249 Revenue ton-miles—mail. Equals the volume of mail in whole tons times the interairport distance.

(16)270 Available capacity-payload. The available capacity is collected in pounds. This figure shall reflect the payload or total available capacity for passengers, mail and freight applicable to the aircraft with which each flight stage is performed.

(17)280 Available ton-miles. The aircraft miles flown on each flight stage multiplied by the available capacity on the aircraft in tons.

(18)310 Available seats. The number of seats available for sale. This figure reflects the actual number of seats available, excluding those blocked for safety or operational reasons. Report the total available seats in item 310. For all air carriers and all entities, item 310 available seats, total is reported on Form 41 Schedule T-100 in column B-4, as follows. Col. All carrier groups and entities B-4 310 Available seats, total.

(19)320 Available seat-miles. The aircraft miles flown on each flight stage multiplied by the seat capacity available for sale.

(20)410 Revenue aircraft miles flown. Revenue aircraft miles flown are computed in accordance with the airport pairs between which service is actually performed; miles are generated from the data for scheduled aircraft departures (Code 520) times the interairport distances (Code 501).

(21)430 Revenue aircraft miles scheduled. The number of revenue aircraft miles scheduled. All such data shall be maintained in conformity with the airport pairs between which service is scheduled, whether or not in accordance with actual performance.

(22)501 Interairport distance. The great circle distance, in official statute miles as prescribed in part 247 of this chapter, between airports served by each flight stage. Official interairport mileage may be obtained from the Office of Airline Information at the address included in section 25 of this part.

(23)Revenue aircraft departures performed. The number of revenue aircraft departures performed.

(24)520 Revenue aircraft departures scheduled. The number of revenue aircraft departures scheduled, whether or not actually performed.

(25)610 Revenue aircraft hours (airborne). The elapsed time, computed from the moment the aircraft leaves the ground until its next landing.

(26)630 Aircraft hours (ramp-to-ramp). The elapsed time, computed from the moment the aircraft first moves under its own power from the boarding ramp at one airport to the time it comes to rest at the ramp for the next point of landing. This data element is also referred to as “block” and block-to-block aircraft hours.

(27)650 Total aircraft hours (airborne). The elapsed time, computed from the moment the aircraft leaves the ground until it touches down at the next landing. This includes flight training, testing, and ferry flights.

(28)810 Aircraft days assigned to service—carrier's equipment. The number of days that aircraft owned or acquired through rental or lease (but not interchange) are in the possession of the reporting air carrier and are available for service on the reporting carrier's routes plus the number of days such aircraft are in service on routes of others under interchange agreements. Includes days in overhaul, or temporarily out of service due to schedule cancellations. Excludes days that newly acquired aircraft are on hand, but not available for productive use, days rented or leased to others (for other than interchange) and days in possession but formally withdrawn from air transportation service.

(29)820 Aircraft days assigned to service—carrier's routes. The same as “aircraft days assigned to service—carrier's equipment,” but excluding the number of days that the reporting carrier's owned or rented equipment are in the possession of others under interchange agreements and including the number of days aircraft of others are in the possession of the reporting air carrier under interchange agreements.

(30)921 Aircraft fuels issued (gallons). The amount of aircraft fuels issued, in U.S. gallons, during the reporting period for both revenue and nonrevenue flights.

19-6Sec. 19-6 Public disclosure of traffic data.#

(a)Detailed domestic on-flight market data and nonstop segment data except military data shall be made publicly available after processing. Domestic data are defined as data from air transportation operations from a place in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, or a U.S. territory or possession to a place in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, or a U.S. territory or possession. Domestic military operations are reported under service codes N or R.

(b)Detailed international on-flight market and nonstop segment data in Schedule T-100 and Schedule T-100(f) reports, except military data, shall be publicly available immediately following the Department's determination that the database is complete. Military operations are reported under service codes N or R. Data for on-flight markets and nonstop segments involving no U.S. point shall not be made publicly available for three years. Industry and carrier summary data may be made public before the end of six months or the end of three years, as applicable, provided there are three or more carriers in the summary data disclosed. The Department may, at any time, publish international summary statistics without carrier detail. Further, the Department may release nonstop segment and on-flight market detail data by carrier before the end of the confidentiality period as follows:

(1)To foreign governments as provided in reciprocal arrangements between the foreign country and U.S. Government for exchange of on-flight market and/or nonstop segment data submitted by air carriers of that foreign country and U.S. carriers serving that foreign country;

(2)To parties to any proceeding before the Department under 49 U.S.C. Subtitle VII, as required by the Administrative Law Judge or other decisionmaker of the Department. Parties may designate agents or consultants to receive the data in their behalf, provided the agents or consultants agree to abide by the disclosure restrictions. Any data to which access is granted pursuant to this provision may be introduced into evidence, subject to the normal rules of admissibility of evidence.

(3)To agencies and other components of the U.S. Government for their internal use only.

19-7Sec. 19-7 Passenger origin-destination survey.#

(a)All U.S. large certificated air carriers conducting scheduled passenger operations (except helicopter carriers) shall participate in a Passenger Origin-Destination (O & D) Survey covering domestic and international operations, as described in the instructions manual entitled, Instructions to Air Carriers for Collecting and Reporting Passenger Origin-Destination Survey Statistics (Appendix A to this section), and in Passenger Origin-Destination Directives issued by the Department's Bureau of Transportation Statistics (BTS), Office of Airline Information (OAI). Copies of these Instructions and Directives are provided to each large carrier participating in the Survey. Copies are also available from the Office of Airline Information, RTS-42, U.S. Department of Transportation, 1200 New Jersey Avenue, SE., Washington, DC 20590. Copies of these Instructions and Directives are available on the BTS Web page at (http://www.bts.gov/programs/airline_information/).

(b)Reports required by this section shall be submitted to the Bureau of Transportation Statistics in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information.

(c)A statistically valid sample of light coupons shall be selected for reporting purposes. The sample shall consist of at least 1 percent of the total lifted ticket flight coupons for all large domestic markets listed in the Instructions and 10 percent for all others—including domestic and international markets. The sample shall be selected and reported in accordance with the requirements of paragraph (a) of their section, except that the participating O & D carriers with nonstandard ticketing procedures, or other special operating characteristics, may propose alternative procedures. Such departures from standard O & D Survey practices shall not be authorized unless approved in writing by the Director, Office of Airline Information under the procedures in Sec. 1-2 of 14 CFR part 241. The data to be recorded and reported from selected lifted ticket flight coupons, as stipulated in the Instructions and Directives shall include the following data elements: Point of origin, carrier on each flight-coupon stage, fare-basis code for each flight-coupon stage, points of stopover or connection (interline and intraline), point of destination, number of passengers, and total dollar value of ticket (fare plus tax).

(d)Data covering the operations of foreign air carriers that are similar to the information collected in the Passenger Origin-Destination Survey are generally not available to the Department, the U.S. carriers, or U.S. interests. Therefore, because of the damaging competitive impact on U.S. carriers and the adverse effect upon the public interest that would result from unilateral disclosure of the U.S. survey data, the Department has determined its policy to be that the international data in the Passenger Origin-Destination Survey shall be disclosed only as follows:

(1)To an air carrier directly participating in and contributing input data to the Survey or to a legal or consulting firm designated by an air carrier to use on its behalf O & D data in connection with a specific assignment by such carrier.

(2)To parties to any proceeding before the Department to the extent that such data are relevant and material to the issues in the proceeding upon a determination to this effect by the Administrative Law Judge or by the Department's decision-maker. Any data to which access is granted pursuant to this section may be introduced into evidence subject to the normal rules of admissability of evidence.

(3)To agencies and other components of the U.S. Government.

(4)To other persons upon a showing that the release of the data will serve specifically identified needs of U.S. users which are consistent with U.S. interests.

(5)To foreign governments and foreign users as provided in formal reciprocal arrangements between the foreign and U.S. governments for the exchange of comparable O & D data.

(e)The Department reserves the right to make such other disclosures of the O & D data as is consistent with its regulatory functions and responsibilities. Appendix A to § 19-7—Instructions to Air Carriers for Collecting and Reporting Passenger Origin-Destination Survey Statistics All questions, comments, extension and waiver requests should be e-mailed to ODsurvey.Support@dot.gov. B. Narrative Description A single O&D Survey is conducted continuously by the large U.S. certificated air carriers. Foreign air carriers do not directly participate in the Survey, although some of their data are captured in the Survey, since passengers who share a ticketed itinerary between a U.S. carrier and a foreign carrier may be sampled by the U.S. carrier. The authority for these instructions is found in 14 CFR part 241, sec. 19-7. The Survey samples revenue passenger trips moving in whole or in part on domestic and/or international scheduled services of the carriers participating in the Survey. In general, these requirements do not apply to small certificated, all-cargo and all charter carriers. The source documents for the Survey data are passenger tickets. These data are collected from the “lifted” flight coupons of tickets (a portion of a multi-part ticket booklet of three 1 or more coupons, including one for each stage of the passenger's trip itinerary which is lifted by the carrier as the passenger boards a particular flight segment). 1 Each ticket booklet is comprised of one or more flight coupons for passenger travel in a city-pair market, plus a passenger coupon (the traveler's receipt) and the auditor coupon (for the carrier's internal controls). The Survey data are taken from the coupon that is lifted by a participating carrier, unless it is apparent from the lifted coupon that another participating carrier has already recorded and reported the data, in which instance the ticket coupon is non-reportable for the second honoring/participating carrier. The complete passenger itinerary, and related data on type of fare and dollar value of the ticket, is recorded as one entry from the sampled, reportable flight coupon. The recording of data from the sampled flight coupon normally consists of transcribing the information exactly as indicated on the ticket. The detail recorded for each trip shows the complete routing from the origin city (airport code) to the destination city (airport code) including, in sequence from the origin, each point of transfer and stopover (intraline and interline), the summarized fare-basis code shown for each flight coupon stage of the itinerary, and the total dollar value of the fare and tax for the entire ticket. Prior to 1987, the Survey was generally based on a 10-percent sample of passenger tickets. Beginning July 1, 1987, the Survey is collected primarily on the basis of a stratified, scientific sample of at least 1 percent of tickets in domestic major markets and 10 percent of tickets in all other domestic and in all international city-pair markets. The Survey data are taken from the selected flight coupons of the tickets sampled: single-coupon or double-coupon round trips in domestic major markets where the ticket serial number ends in double zero (00) and all other ticket coupons ending in zero (0). This procedure yields a “two-tiered” stratified sample. Group tickets are included on the basis of a 10-percent sample when the number of passengers on such a group ticket is 10 or less. Group tickets with more than 10 passengers on each ticket are included on the basis of a 100 percent census, i.e., all such tickets are sampled, regardless of serial number, and the total data listed are conformed to a 10 percent sample for inclusion in the O&D Survey. Following the selection of reportable flight coupons and the recording of data, each participating carrier shall edit and summarize 2 the data into a quarterly report to the Department. 2 These summarization procedures include showing two or more passengers with the same itinerary as one O&D record and compressing extremely lengthy itineraries (such as around-the-world tickets) into a standard trip stage length limit (which may be either seven or twenty-three stages, at the carrier's option), as explained in Section V.D. II. Effective Date of Instructions These data collection and reporting instructions are effective on and after July 1, 1987 and apply to all flight coupons lifted on or after July 1, 1987. III. Carriers Participating in Survey A. Participating carriers. As defined in section 19-7 of the Department's Economic Regulations (14 CFR part 241), the participants in the O&D Survey include all large certificated air carriers conducting scheduled passenger services (except helicopter carriers). These participating carriers collect and report data in accordance with these Instructions, and supplemental Passenger Origin-Destination Directives that may be issued periodically. The list of participating carriers will be issued by reporting directive under the authority in 14 CFR 385.27(b). B. Amendments to list of participating carriers. As new carriers begin service, they will be required to file O&D Survey Data. These carriers will not be added to the participating carrier list automatically, but will be added when the next annual review is made. IV. Submission of Reports A. Period covered by reports. Reports are to be filed for each calendar quarter of the year as shown below: Report Time period covered 1st quarter Jan. 1 through Mar. 31. 2nd quarter Apr. 1 through June 30. 3rd quarter July 1 through Sept. 30. 4th quarter Oct. 1 through Dec. 31. B. Filing date for reports. Reports are to be filed with the Department on or before the dates listed below. The mailing address is on the inside cover to these instructions. Report Due date 1 1st quarter May 15 2nd quarter Aug. 15 3rd quarter Nov. 15 4th quarter Feb. 15 1 Due dates falling on Saturday, Sunday or national holiday will become effective the first following work day. C. Format of the Report. Reports required by this section shall be submitted to the Bureau of Transportation Statistics in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information. D. [Reserved] E. All reports shall be filed with the Bureau of Transportation Statistics in a format specified in accounting and reporting directives issued by the Bureau of Transportation Statistics' Director of Airline Information. V. Selection of Sample and Recording of Data. 4 4 Upon approval of the Director, Office of Airline Information, carriers may continue current reporting procedures (up to twenty-three stages of a passenger flight) and may report a uniform 10 percent sample of tickets lifted (each zero ending lifted coupon) without reducing the sample size from 10 percent to 1 percent for domestic major markets. Note that the domestic major markets will be reviewed each year at June 30, based on the prior 12 months O&D data, and the list amended as necessary. The list could remain static for more than a year, although it will be reviewed annually. Necessary amendments will be effective on January 1 of the following year. A. Sampling Basis. Each participating carrier in this O&D Survey shall search all listed flight coupons, whether the coupons are its own ticket stock or on the ticket stock of another U.S. or foreign carrier (either standard IATA and ARC ticket stock or nonstandard ticket stock), and is to select for reporting purposes the following flight coupons: (1) Major domestic markets. All single-passenger flight coupons that are either a single flight coupon ticket or part of a round trip, two coupon ticket where the ticket serial number ends in the digits double-zero (00). Note. The list of major domestic markets will be issued by reporting directive under the authority in 14 CFR 385.27(b). (2) International markets and all other domestic markets. (a) All single-passenger flight coupons with ticket serial numbers ending with the digit zero (0); (b) Those group-ticket flight coupons with 10 or fewer passengers with ticket serial numbers ending with the digit zero (0); (c) Those group-ticket flight coupons with 11 or more passengers without regard to serial number; and (d) Itineraries in major domestic markets that comprise more than two coupons are sampled on a uniform 10 percent basis, by selecting all ticket serial numbers ending with the digit zero (0). B. Selection of Reportable Flight Coupons. The flight coupons identified above are to be examined to isolate the reportable flight coupons, i.e. coupons from which data are to be recorded. Flight coupon data are reported only by the first honoring and participating carrier (operating carrier). Such carriers shall report the required data for the entire ticketed itinerary. If a participating carrier has preceded an examining carrier on any stage in the trip itinerary, including any stage in a conjunction itinerary and any stage in a reissued ticket (either before or after reissue) that coupon is not reportable. For conjunction tickets, the ticket number for the first ticket booklet determines if the conjunction tickets should be reported in the Survey. Otherwise, conjunction tickets do not require special treatment and are governed by the rules for regular tickets. No adjustment is made in the Survey for alterations or changes in the trip itinerary subsequent to the stage covered by the reportable coupon. C. Optional Use of Other Sampling Procedures. (1) Alternative sampling procedures or alternative O&D data systems may be proposed by participating carriers with nonstandard ticketing procedures, or other special operating characteristics. Data reported under proposed alternative procedures must approximate the usefulness and statistical validity of the O&D Survey. (2) Such departures from the prescribed O&D Survey practices shall not be authorized unless approved in writing by the Director, Office of Airline Information (address inside front cover). The proposed alternative O&D Survey procedures must be described in detail in the letter requesting the waiver. D. Recording of Data from Reportable Flight Coupons. (1) The following items are to be reported from the reportable flight coupons: (a) Point of origin, (b) Operating carrier on each flight stage (if unknown, identify ticketed carrier), (c) Ticketed carrier on each flight stage, (d) Fare-basis on each flight coupon, C, D, F, G, X or Y, (e) Points of stopover or connection (interline and intraline), (f) Point of destination, (g) Number of passengers, and (h) Total dollar value of ticket (fare plus tax and other charges, such as Passenger Facility Charges). (2) The individual items are to be recorded in the sequence of occurrence in the itinerary as follows: (a) All entries for points (airport codes 5 ) in an itinerary are to be recorded in three-letter airport code data to fit into the stage-length limitation (seven or twenty-three stages at the carrier's option), all airport codes are to be reported, including data on commuter, foreign, intra-state and other carriers' portions of itineraries. Normally codes are recorded as they appear on the ticket. However, if a code is obviously incorrect, record the correct code. For instance, if a ticket is coded DCA-NYC or Washington/National to New York when the flight stage actually operated from Washington, Dulles to Newark (EWR), record the correct airport code. When only name spellings of a city appear on the ticket for multi-airport cities (such as Washington, New York, San Francisco, or Los Angeles), record the specific three letter airport code. In cases where two airport codes are shown on the ticket for a point, such as when the passenger arrives at an airport such as San Francisco and departs from another local airport such as Oakland, record the code for the arrival airport, enter a surface segment indicator (—) to the departure airport, and record the departure airport code. (When the surface portion is at the beginning or end of an itinerary, the surface indicator is to be omitted). For example: 5 Codes to be used are those appearing in the Official Airline Guide at the time the data are being recorded. If a code is not found in the OAG, contact the Director, Office of Airline Information (address inside front cover). 000001 UCA YV UA Y JFK TW TW X Passenger(s) Utica MesaOperatingCarrier UnitedTicketedCarrier Fare Code New YorkKennedyAirport TWAOperatingCarrier TWATicketedCarrier Fare Code Surface Transportation SFO (Blank space) San Francisco Operating Carrier Ticketed Carrier Fare Code OAK UA UA G LAX DL DL F Oakland UnitedOperatingCarrier UnitedTicketedCarrier Fare Los Angeles DeltaOperatingCarrier DeltaOperatingCarrier Fare Code SLC NW NW D PHX AA AA C LAX Salt Lake City NorthwestOperatingCarrier NorthwestTicketedCarrier Fare Code Phoenix AmericanOperatingCarrier AmericanTicketedCarrier Fare Code Los Angeles JL JL C NRT 04596 Japan Air LinesOperatingCarrier Japan Air LinesTicketedCarrier Fare Code Tokyo Narita Dollars of Fare + Tax In the above example, the passenger trip stages or segments are compressed into the maximum of 7 stages so that several intermediate city-pairs (Los Angeles to Seattle to Anchorage, or LAX—SEA—Anc) and the related carriers have not been recorded, as prescribed below in this Section V.D.(3)(e). In addition, after the fourth city-pair (Los Angeles-Salt Lake City), the passenger trip itinerary moves from the initial four-part ticket booklet onto another “conjunction” ticket, and the summary fare code data are not recorded beyond the initial four-part ticket. (b) All entries for operating and ticketed carriers for a coupon stage of an itinerary are to be recorded using two character IATA-assigned or DOT codes, as in the above example. Note that the fare code summary was properly inserted after the ticketed carrier's code, i.e., UA for United Air Lines and Y for unrestricted coach class service. When a two-character carrier code is shown on the ticket, record that code for the ticketed carrier. However, if a code is obviously incorrect, record the correct carrier code. If the reporting carrier does not know the operating carrier on a downline code-share segment, it would use the ticketed carrier's code for both the operating and ticketed carriers. The reporting carrier is not responsible for knowing the operating carrier of a downline code-share where it is not a party to the code-share segment. Except for the infrequent compression of data to fit into the stage-length limitation (7 or 23 stages at the carrier's option), all carrier codes are to be recorded, including data on air taxis, commuters, intra-state, and other carrier portions of itineraries. On tickets involving interchange service or other cooperative carrier arrangements, the juncture point(s) where the passenger moves from one carrier system to another is to be recorded as an intermediate point in the itinerary, even when not shown on the ticket and even though the flight may overfly the juncture point. (c) Entries for fare-basis codes are to be taken from the “fare basis” and “fare description” portions of the ticket and simplified into the appropriate category, as shown below. No attempt shall be made to determine and record fare-basis codes for that portion of a conjunction ticket appearing in the ticket. Fare-basis codes are to be recorded in one-character alphabetic codes. The fare-basis codes are recorded as follows: C—Unrestricted Business Class D—Restricted Business Class F—Unrestricted First Class G—Restricted First Class X—Restricted Coach/Economy Class Y—Unrestricted Coach/Economy Class U—Unknown (This fare category is used when none is shown on a ticket coupon, or when a fare category is not discernible, or when two or more carrier fare codes are compressed into a single stage of a passenger trip). (d) In recording the number of passengers, each single-passenger ticket is to be recorded as one passenger. Tickets for infants under two years of age not occupying a seat are not to be counted. A revenue passenger is defined in Section X. For group tickets of 10 or fewer passengers per ticket record the actual number of passengers on each ticket, i.e., either 2, 3, 4, 5, 6, 7, 8, 9 or 10. For group tickets with 11 or more passengers (those sampled at a 100-percent rate) record the actual number of passengers traveling on each ticket, but keep these entries separate from the group ticket records with 10 or fewer passengers and from the single-passenger ticket records. Group tickets with 11 or more passengers are to be sorted and summarized to combine all passengers for all itineraries which are identical in every respect, i.e., points, carriers, fare basis codes, and average dollar value (as defined in paragraph (e), below). The total number of passengers on each summarized record is to be divided by 10, rounding to the nearest whole passenger. If the quotient ends in 0.5 or more, raise to the next whole passenger. If the quotient ends in less than 0.5, drop the fraction. These large group-ticket records, after division by 10 for compatibility with the other data, are to be merged with the single-passenger records and with the group-ticket entries from tickets of 10 or fewer passengers for the quarterly O&D Survey report. (e) The total dollar value shall be taken from the “Total” box on each ticket and shall be the sum of the fare plus tax for the entire ticket. Record this amount in whole U.S. dollars, with the cents dropped. Do not round cents to nearest whole dollar. Amounts on tickets stated in foreign currency are to be converted to U.S. dollar equivalents. For all group tickets, the dollar value to be recorded shall be the average amount per passenger, determined by dividing the total dollar value for the entire group by the number of passengers on the group ticket, dropping cents in the average amount. (3) The length of the itineraries to be recorded is limited to a maximum of seven stages or twenty-three stages, at the carrier's option. This recognizes that the vast majority of tickets sampled have seven stages or fewer and that the rare occurrences of extremely lengthy itineraries do not impact the overall Survey results enough to justify their reporting burden. Therefore, trips longer than these limits are compressed to fall within the stated maximums. The ticketed origin and destination are retained, but the intermediate routing is compressed by applying the following rules, in sequence: (a) Combine any contiguous open, unknown carrier, or surface stages eliminating the connecting point, and ignoring the fare-basis codes, if different: (b) Combine any contiguous stages via the same non-U.S. carrier, eliminating the connecting point, and ignoring the fare-basis codes, if different; (c) Combine any contiguous stages via different non-U.S. carrier, making the carrier “UK”, eliminating the connecting point, and ignoring fare-basis codes, if different: (d) Combine any contiguous stages via the same U.S. carrier, eliminating the connecting point, and ignoring the fare-basis codes, if different, and; (e) If the trip, after applying the four steps above, is still too long, record the compressed routing through to the stage length limitation city (seventh or twenty-third city), enter UK as the final carrier, and then record the ticketed destination as the next (the 8th or 24th) city. VI. Summarization of Recorded Data A. General. Prior to the submission of each quarterly report to the Department, each carrier is to summarize the data in accordance with the rules in Section VI.B. In special hardship cases, carriers may submit a waiver request (with justification under Section 1-2 of 14 CFR part 241) requesting permission to report their flight coupon records exactly as represented on their lifted tickets. Waiver requests must provide the documentation described in Section VI.C. so that the Department can develop the necessary procedures and edit routines to ensure the accuracy and reliability of the overall O&D Survey results. The granting of such waivers will depend upon the availability of resources for the Department to assume this additional burden, which can only be determined on a case by case basis, after evaluating each carrier's need. B. Rules for Summarization. Sort the recorded entries into sequence by the entire record (excluding the passenger field) i.e., by origin, complete routing (including fare-basis codes), tickets destination, and dollar value of ticket. All identical records are then to be combined into one summary record. The number of passengers on the summary record is to be the sum of the passenger amounts of all the individual records combined. Passengers are only summarized where records are identical in all respects except in the number of passengers including dollar value of ticket. Note: Do not summarize dollars over identical records. This summarization is to include the entries from group tickets, but only after the entries for group tickets with 11 or more passengers have been summarized and divided by 10, as stated in Section V.D.(2)(d). C. Waiver Requests. Requests for permission to depart from the required O&D Survey procedures should include a procedural statement describing the process the carrier proposed to employ in examining, selecting and editing the data from reportable flight coupons for the O&D Survey, as well as a flow chart diagramming the proposed procedures. D. Quantity and Quality Controls. Carriers are expected to establish and maintain continuous quantity and quality controls on the flow of all lifted flight coupons through their system processes to determine the total number of coupons handled and the number of reportable coupons selected. Such data controls and tests have not been specified by the Department, and necessarily must be developed by each carrier. Each participating carrier shall develop and use on a continuous basis such control tests as are necessary to ensure that all reportable coupons are being selected, recorded and reported as intended by these O&D Survey Instructions. Such controls should extend over all ADP processing, both in-house and that from external service bureaus. VII. Editing of Recorded Data A. City and Airport Codes. Prior to submission of O&D Survey reports, each carrier is to edit the recorded data to validate city and airport codes. This edit is to verify that the codes recorded are valid official codes, and it is independent of whether or not the carriers shown actually operated into or out of the airport shown. Any questions about airport codes should be addressed to the Director, Office of Airline Information (see inside of cover). B. Edit Responsibility of Carriers. Each carrier is responsible for developing edit procedures and internal controls over its data entry and processing procedures so that valid and reliable data are captured in the O&D Survey inputs and are properly summarized in the outputs. Since the carriers have many different statistical systems, it is not practicable for the Department of Transportation to prescribe specific controls in this area, and each carrier is responsible for developing the appropriate internal control procedures to edit the O&D Survey data and ensure the integrity of these data. The Department will control the accuracy of its processing of the sampled data upon receipt from the carriers. C. System Documentation of Edits. Carriers are required to maintain written O&D Survey procedural statements and flow charts. As provided in Section VIII, these must be established, or re-certified as of July 1, 1987, and thereafter when significant procedural revisions occur. VIII. Control of Sample Selection and Data Recording A. Sample Accuracy and Reliability. In order to maximize the accuracy and reliability of the sample selection and data recording, each carrier is to: (1) Develop a written statement describing the procedures it will employ in examining and selecting reportable flight coupons and in recording, summarizing, editing, and testing the Survey data. (2) Submit any proposed changes in the above procedures to the Department's Office of Airline Information, prior to implementation of such changes. (3) Establish continuous quantity controls on the flow of all lifted flight coupons through the carrier's accounting processing to determine the total number of coupons handled, and the number of reportable coupons selected. Tests are to be made continuously to assure that all reportable coupons are being selected and the data recorded. Such tests should be completed while the “lifted” flight coupons (representing earned passenger revenues for flight segments operated) remain in the possession of the carrier. Establish such other internal control procedures as are necessary for supervising and monitoring the accuracy of the recording of data from reportable flight coupons. B. Staff Review. The OAI staff will review the carrier procedures and practices and may request modifications or the use of special procedures necessary to improve the sample or to bolster the controls for accuracy and reliability. [Reserved] X. Glossary of Terms Selected terms used in the foregoing instructions are here defined and explained in the context of the O&D Survey. ADP. An abbreviation for automated data processing, which is the term applied to all forms of machine processed data. Carrier. Any scheduled air carrier, U.S. or foreign, that appears on a coupon stage in a ticketed itinerary, including helicopter, air taxi, commuter, intra-Alaska carriers, and intra-state carriers. City or origin. (See origin.) Conjunction ticket. Two or more tickets concurrently issued to a passenger and which together constitute a single contract of carriage. Connecting point. An intermediate point in an itinerary at which the passenger deplanes from one flight and boards another flight, either on the same carrier or from the flight of one carrier to a flight of another carrier, for continuation of the journey. Coupon stage. (See flight-coupon stage.) Destination. The last point in the itinerary and the last point at which the passenger is to deplane at the completion of the journey. (In roundtrip itineraries, the destination and the origin are the same.) Dollar value of ticket. (See total dollar value of ticket.) Domestic. Itineraries within or between the 50 U.S. States and the District of Columbia are considered domestic for this Survey. Fare basis code. The alphabetic code(s) or combination of alphabetic and numeric codes appearing in the “Fare basis” box on the flight coupon which describe the applicable service and discount to which the passenger is entitled. All fare basis codes are summarized into basic categories; namely C—Unrestricted Business Class, D—Restricted Business Class, F—Unrestricted First Class, G—Restricted First Class, X—Restricted Coach/Economy Class, Y—Unrestricted Coach/Economy Class, and U—Unknown (This fare category is used when none is shown on a ticket coupon, or when a fare category is not discernible, or when two or more carrier fare codes are compressed into a single stage of a passenger trip). Fare ladder. The “For-issuing-office-only” box of a ticket. Flight-coupon stage. The portion of an itinerary which lies between two contiguous points in the itinerary and between which points the passenger is to travel on a single flight. Group ticket. A single ticket valid for the transportation of two or more passengers over the same itinerary. Interline transfer. An occurrence at an intermediate point in an itinerary where a passenger changes from one carrier to another carrier, with or without a stopover. Intermediate point. Any point in an itinerary, other than the origin or destination, at which the passenger makes an interline or intraline connection or stopover. International. The world area outside the 50 U.S. States and the District of Columbia. Itineraries between points outside the 50 States are considered as international for this Survey, as well as itineraries between the 50 States and U.S. possessions, and between or within U.S. possessions. Intraline transfer. An occurrence at an intermediate point in an itinerary where a passenger changes from a flight of one carrier to another flight of that same carrier, with or without stopover, or where the passenger changes from one class of service to another class of service on the same flight. Itinerary. All points in the passenger journey, beginning with the origin, followed by the routing, and ending with the destination, in the sequence shown on the ticket. Operating air carrier. Under a code-share arrangement, the air carrier whose aircraft and flight crew are used to perform a flight segment. Origin. The first point in the itinerary and the point where the passenger first boards a carrier at the beginning of the itinerary. Participating carrier. A carrier which is governed by the Survey data collection and reporting instructions contained herein and which is required to file Survey reports with the Department of Transportation. Point. A city or airport (always identified by its airport code). Reissued ticket. A ticket issued in exchange for all or part of the unused portion of a previously issued ticket. Reportable flight coupon. A flight coupon in an itinerary in which the carrier examining the coupon is the first participating carrier to lift a flight coupon in the itinerary and from which coupon the examining carrier records the Survey data. Reporting carrier. The carrier in a given itinerary which has lifted the reportable flight coupon in that itinerary and which carrier is required to record the Survey data for that itinerary for the report to the Department. Routing. The carrier on each flight-coupon stage in an itinerary and the intermediate points of routing stopover or connection (interline or intraline) in the sequence of occurrence in the movement of the passenger from origin to destination. The routing also includes fare-basis summary codes on each flight-coupon stage, to the extent these are available from the ticket. Scheduled service. Transport service operated on a certificated large air carrier's routes pursuant to published flight schedules, including extra sections of scheduled flights. Stage. (See flight-coupon stage.) Ticketed air carrier. Under a code-share arrangement, the air carrier whose two-character air carrier code is used for a flight segment, whether or not it actually operates the flight segment. Total dollar value of ticket. The sum of the fare plus tax for the entire ticketed itinerary, in whole U.S. dollars with cents dropped. For a group ticket, the amount is the average per passenger. For fares stated in foreign currency, it is the equivalent in U.S. dollars. Transfer. (See interline transfer and intraline transfer.) [Reserved]

19-8Sec. 19-8 Passenger Origin—Destination#

19-8.119-8.1 Purpose.#

The purpose of this part is to set forth required data that certain air carriers must submit to the Department, either themselves or via third party vendors, so that information on air carriers' ticket pricing, passenger volumes, and trip routings can be made available to consumers of air transportation.

19-8.10-8.10 Staff review.#

The OAI staff will review the carrier procedures and practices and may request modifications or the use of special procedures necessary to improve the sample or to bolster the controls for accuracy and reliability.

19-8.219-8.2 Definitions.#

For purposes of this part: Airport see Origin or Destination. As Sold means to report ticket information as it appears on the ticket at the time the ticket was issued or reissued just prior to first known flown lift usage. For purposes of this part, any change to an existing ticket prior to the first segment being flown that results in a change to the ticket amount should be considered as requiring the ticket to be reissued. Any changes made to the ticket after the first segment is flown or that are incidental to the ticket value should not be considered as requiring the ticket to be reissued. For example, a last-minute schedule change by the carrier to an itinerary before first known flown lift usage that does not result in a change in the amount paid and does not change the intended trip destination should not be considered as a reissued ticket in this context. Partial reissued tickets shall not be included in the collection. Commuter Air Carrier means a commuter air carrier as defined in 14 CFR 298.2. Connecting point means an intermediate point in a sequence of travel at which the passenger deplanes from one flight and boards another flight, either on the same carrier or from the flight of one carrier to a flight of another carrier, for continuation of the journey. Coupon Stage (See Flight-Coupon). Destination means the airport code or terminus in the ticket sequence of travel where a passenger deplanes from a flight stage. Qualifying airports or terminus will be specified periodically in accounting and reporting directives issued by the OAI. Airport, or terminus, codes are most commonly assigned by the International Air Transport Association (IATA) and occasionally by the International Civil Aviation Organization (ICAO) or the Federal Aviation Administration (FAA) depending on the jurisdiction of the airport. A common private industry source of these industry designator codes is 3rd party schedule products and OAI will use one of these products as a source where possible. Where none exists, OAI will furnish a code upon request. Dwell Time means scheduled elapsed time (in minutes) between each ticketed coupon. Dwell time is not required to be reported at Via Airport stops. When dwell time exceeds 1,440 minutes, or 24 hours, report “9999”. Eligible Ticket means a ticket that meets the 40% sampling criteria where the right-most digit is equal to “0” (zero), “2” (two), “7” (seven) or “9” (nine) when following the standard sampling procedure. For ad-hoc procedures, an eligible ticket is any ticket that meets the approved sampling procedure selected. Flight Coupon means a defined origin and destination for a single stage of flight provided by a single Operating Carrier. Tickets are composed of one or more flight stages, also known as coupons or coupon stages. First Reporting Carrier Rule means a rule applied during the Reporting Event Evaluation. The rule states that the first Reporting Carrier in the sequence of travel for a Category Two ticket is designated as the carrier responsible for reporting the ticket. Flown Lift Usage is a record or indicator in the accounting system of the issuing carrier that represents a passenger ticket coupon that has been used by the passenger for travel on a flight. International Ticket means a ticket that involves an international point and is submitted by a Reporting Carrier, or a ticket submitted under 49 U.S.C. 41308 and 41309 for certain foreign air carriers granted antitrust immunity that includes a Reporting Carrier (or affiliate) operated leg in an itinerary. An international point is a point that resides outside of the 50 States. U.S. possessions are considered International Points. Issuing Carrier means an air carrier or foreign air carrier that issues an air travel ticket. Marketing Carrier means the air carrier that markets the seat on the aircraft, regardless of whether it operates the flight segment. Operating Carrier means the carrier that has operational control over the aircraft that is scheduled to depart from an airport. Under a code-share arrangement, the air carrier whose flight crew are used to perform a flight segment. Origin means an airport or terminus in the ticket sequence of travel where a passenger boards a flight stage. Qualifying airports or terminus will be specified periodically in accounting and reporting directives issued by the Office of Airline Information. Airport, or terminus, codes are most commonly assigned by the International Air Transport Association (IATA) and occasionally by the International Civil Aviation Organization (ICAO) or the Federal Aviation Administration (FAA) depending on the jurisdiction of the airport. A common private industry source of these industry designator codes is 3rd party schedule products and OAI will use one of these products as a source where possible. Where none exists, OAI will furnish a code upon request. Purchase Window Group means one of three groups indicating the advance purchase window of the ticket. “21AP” is less than or equal to 21 days prior to departure, “2290” is 22 to 90 days prior to departure, and “91UP” is more than 90 days prior to departure. Record Identification Number (RIN) means an air carrier assigned number that uniquely identifies each ticket within each reporting period. Reporting Carrier means the U.S. Certificated Air Carrier or Commuter Air Carrier that is required to report O&D data and reported a given itinerary to the Department. Reporting Event means the occurrence of a Reporting Carrier recognizing that a ticket has been flown and evaluating the ticket to determine if it should be reported to the O&D. Reporting Carrier List means a list maintained and published by the Office of Airline Information (OAI). Carriers report O&D data consistent with these regulations, but a carrier is not required to report until OAI adds the carrier to the Reporting Carriers List. Carriers must also determine the responsible reporting carrier for Category Two tickets using the first reporting carrier rule and should use the Reporting Carriers List to determine the responsible reporting carrier. Reporting Month means the month applicable to the ticket submission. Reportable Ticket means that the combination of flown lift usage, sampling process criteria, and the Category One and Category Two ticket evaluation determines if a ticket is reportable. Reporting Year means the year applicable to the ticket submission. Revenue Passenger has the same meaning as the definition in 14 CFR 241 Section 03—Definitions for Purposes of This System of Accounts and Reports—Passenger, Revenue. Routing means the sequence of travel for each flight stage including all intermediate points of routing stopover or connection (interline or intraline) in the movement of the passenger from the first airport in the sequence of travel to the last airport in the sequence of travel for the ticket. Scheduled Flight Month means month for a departure from an airport in the sequence of travel for a ticket. Scheduled Flight Year means year for a departure from an airport in the sequence of travel for a ticket. Scheduled Service means transport service held out and operated on a certificated air carrier or commuter carrier's routes pursuant to published flight schedules, including extra sections of scheduled flights. Tax Amount means all aggregated taxes and fees imposed by the U.S., government entity, or a foreign government, such as, but not limited to, Federal excise taxes, flight segment taxes, U.S. passenger facility surcharges, September 11 security fees, U.S. or international departure and arrival charges, and immigration charges. Taxes and mandatory fees charged by other foreign authorities, such as passenger service charges and airport taxes, are also considered part of Tax Amount. Ticket means a legal contract between an Issuing Carrier and a Revenue Passenger for transportation. Total Amount means:

(1)Gross total of funds collected on a ticket by the Issuing Carrier for the transportation of a passenger, inclusive of taxes and fees imposed by non-carrier entities or air carriers, and exclusive of ancillary fees not required to board the plane charged by the air carrier. Factors considered in determining what should be included in the Total Amount are as follows:

(i)Total Amount includes charges required to board the aircraft (domestic and international) that are recognized as revenue at the time of purchase of the ticket and at the time of first lift of the ticket.

(ii)Where a charge assessed at the time of purchase of the ticket is associated with a choice, such as seat assignment, where the consumer must pay the fee or charge regardless of the choice made, the charge is considered part of the Total Amount.

(iii)The Total Amount does not include charges for optional services (services offered which the consumer may choose not to utilize and thus not incur the fee or charge) such as baggage fees, seat upgrade fees, or ticket change fees. When a fee is assessed and there is a no cost option, that fee is considered an ancillary fee. When a fee is assessed for a service that provides something distinct from the air travel product then that fee is considered an ancillary fee.

(iv)The term Total Amount should align with standard passenger ticket documents; however, for air carriers that do not follow such standards or have, or may have, created new fees that may not be included in the standard passenger ticket document and yet are required to be paid to board the aircraft, these must also be included in Total Amount.

(2)Based on the criteria, the following is a non-exhaustive list of carrier-imposed fees and charges that must be reported as part of the Total Amount of the ticket: fuel surcharges, carrier usage charges, carrier interface fees, check-in fees, electronic usage charges, peak/holiday travel fees, transaction processing charges, and credit card surcharge fees. When a customer is assessed a fee based on how the customer acquires a ticket to board the aircraft, a booking fee, the fee is included in the Total Amount. Being required to pay a fee or charge for electronic or phone booking where there is no fee for purchase at the counter must be reported in the Total Amount. Being charged a call center fee for booking by phone when the customer could have booked online at no charge is not an example of a booking fee that must be reported. Carriers must also include all taxes and fees imposed by the U.S. or a foreign government, such as, but not limited to, Federal excise taxes, flight segment taxes, U.S. passenger facility surcharges, September 11 security fees, U.S. or international departure and arrival charges, and immigration charges. Carriers must also include taxes and mandatory fees charged by other foreign authorities, such as passenger service charges and airport taxes. USD means United States Dollars. Via Airport (Point(s)) means any point(s) of stopover at intermediate airports as part of a “direct” or “through” flight. These are points that are not usually recorded on a ticket as the passenger does not generally deplane from the aircraft at the intermediate point.

19-8.3-8.3 Applicability.#

(a)All U.S. certificated and commuter air carriers conducting scheduled passenger services (except helicopter carriers) shall participate in a Passenger Origin-Destination (O&D) Survey covering domestic and international air carrier operations, as prescribed by the Department's Office of Airline Information (OAI) in the instructions manual entitled, Instructions to Air Carriers for Collecting and Reporting Passenger Origin-Destination Survey Statistics and in Passenger Origin-Destination Directives issued by OAI. Copies of these Instructions and Directives are available on the BTS web page and will be provided to each reporting carrier at the time it becomes a reporting carrier.

(b)Air carriers are not required to begin reporting O&D until placed on the Reporting Carrier List that will be published by BTS/OAI 75 days prior to the beginning of each period of reporting. The Reporting Carrier List will identify each U.S. Certificated and Commuter Air Carrier required by this part to report O&D as designated by BTS OAI. Carriers may be added to this list as a result of consideration under this part or under 49 U.S.C. 41308 and 41309 for certain Foreign Air Carriers granted antitrust immunity. Foreign Air Carriers granted antitrust immunity under 49 U.S.C. 41308 and 41309 are not considered Reporting Carriers under this part but do report the same data under different legal authority.

(c)This section applies for air transportation taking place on or after July 1, 2025. Reporting pursuant to section 19-7 of this part is not required for air travel taking place on or after April 1, 2025.

19-8.4-8.4 Reporting of O&D data.#

(a)Each reporting carrier must file O&D data with the Bureau of Transportation Statistics Office of Airline Information (BTS/OAI) on a monthly basis for each of its reportable O&D tickets as follows. Collect the ticket information once there is an indication that the ticket has been flown, i.e. first known Flown Lift Usage. Report routing (and other ticket information) As Sold. Reporting carriers must determine the points ticketed and integrate the ticketed information required for reporting. It is at each reporting carrier's discretion whether to use a third-party provider to manage their O&D data submissions. The use of a third-party provider will not remove the responsibility of the reporting carrier to ensure that their data is reported accurately and on schedule.

(b)A statistically valid sample of flight coupons must be selected for reporting purposes. Flight coupons should only be sampled from tickets:

(1)issued for scheduled service itineraries;

(2)issued to revenue passengers who are individually ticketed (i.e. no group tickets, no infants flying without their own tickets); and

(3)that involve a U.S. airport or a U.S. air carrier operation at some point in the scheduled itinerary. The sample must consist of 40 percent of the total lifted ticket flight coupons for all domestic and international markets. Partially reissued tickets, which are tickets issued for changes to an itinerary after the first segment is flown, should not be included in the total lifted ticket flight coupons for all domestic and international markets from which the sample is drawn.

(c)The data recorded and reported from selected lifted flight ticket coupons must include the following information elements:

(1)Reporting Carrier,

(2)Reporting Month and Reporting Year,

(3)Record Identification Number (RIN),

(4)Issuing Carrier,

(5)Total Amount,

(6)Tax Amount,

(7)Airport code,

(8)Operating Carrier code,

(9)Marketing Carrier code,

(10)Scheduled Flight Year,

(11)Scheduled Flight Month,

(12)Dwell Time,

(13)Via Airport (if any),

(14)Purchase Window Group.

(d)Report Total Amount and Tax Amount in United States Dollars (USD) rounded to two decimal places.

(e)A Reporting Event evaluation occurs when a Reporting Carrier's revenue accounting system recognizes that any portion of a ticket has been flown, i.e., first known lift usage. This evaluation will inform the Reporting Carrier if a ticket in their system has been recognized that meets criteria that may require the ticket be reported. Situations may occur where the Reporting Carrier's revenue accounting system identifies a ticket from a flight that occurs after the first flight in the ticket sequence. This may occur when the first flight in the ticket sequence is not used for travel, or the Reporting Carrier's revenue accounting system does not recognize the first flight in the ticket for some other reason. When this occurs, the second (or subsequent) flight is the first known lift usage and becomes the Reporting Event. The Reporting Carrier is responsible for reporting the complete ticket information as it appears at the time of the Reporting Event which should correspond with the information at the time the ticket was sold. Reporting carriers should not report ticket information as flown if the ticket information changes after first known lift usage.

(f)Ticket reporting. (1) A ticket will be reported when:

(g)The primary ticket's right-most digit of the standard ticket document number forms the basis for the random sample size. All required information associated with a primary ticket must be reported, which may include information from a related conjunction ticket. A conjunction ticket is a ticket that is a continuation of a primary ticket itinerary. Conjunction tickets should not be included in the sample process on their own. Any Reporting Carrier that does not assign ticket numbers to passenger journeys, does not assign ticket numbers such that the final, right-most digit is not randomly assigned, or otherwise seeks to use an alternative method must develop an alternative method of creating a valid 40 percent sample. Those Reporting Carriers would need to submit their alternative sample methods to DOT for approval within 90 days of the date that the Reporting Carrier recognizes that it must make use of the alternative sample selection method to comply with the proposed reporting regulation for determining a Reportable Ticket.

(i)The criteria of the sampling process are met, and

(ii)The ticket meets either the criteria of a Category One or Category Two ticket.

(A)Category One ticket reporting process. Tickets issued by a Reporting Carrier are known as Category One tickets. These tickets will be reported by the Reporting Carrier if the sampling process criteria conditions are satisfied. The carrier that issues the ticket remains the Reporting Carrier regardless of which flight from the ticket is first recognized by the revenue accounting system as the first flown lift usage.

(B)Category Two ticket reporting process. Tickets issued by carriers that do not appear on the published Reporting Carrier List but are recognized by a carrier that participates on the ticket and is on the Reporting Carrier List are known as Category Two tickets. The examining Reporting Carrier must apply the “First Reporting Carrier” rule: The first carrier in a ticket's sequence of travel that also appears on the Reporting Carrier List is responsible for submitting the ticket to the O&D if the sampling criteria are also met. The first Reporting Carrier in the sequence of a Category Two ticket remains the Reporting Carrier regardless of which flight from the ticket is first recognized by the revenue accounting system. For the purposes of the First Reporting Carrier Rule, any carrier that appears on the Reporting Carrier List is considered a Reporting Carrier.

(iii)Additional provisions for Category Two tickets. Reporting Carriers should use all reasonable efforts to determine the required information from Category Two tickets. If the information for Operating Carrier, Via Airports, Dwell Time, Tax Amount, and Purchase Window Group is unavailable to the Reporting Carrier, however, then leave the fields for which information is unavailable blank. In cases where a carrier is unable to determine Dwell Time between coupons insert a “B” (for Break) in the appropriate dwell time slot where the reporting carrier provides an estimate of where in the itinerary the trip break occurs. Record a surface segment indicator (--, dash dash) where two consecutive stops within the itinerary have no air carrier operator. Record surface segments at the beginning and end of itineraries when the segments are designated with an airline flight number, appear on the ticket, and have a designator code that appears in an airline schedule source.

19-8.5-8.5 Form of reports.#

Reporting carriers should report individual tickets as separate records where the Record Identifier Number (RIN) uniquely identifies each record in a submission. Except where otherwise noted, all reports required by this part shall be filed within 45 days of the end of the month for which data are reported. The reports should be submitted to the Office of Airline Information in a format specified in the Instructions to Air Carriers for Collecting and Reporting Passenger Origin-Destination Survey Data or accounting and reporting directives issued by BTS/OAI.

(a)Each Reporting Carrier shall maintain its prescribed reportable records in a manner and at such locations as will permit ready accessibility for examination by representatives of DOT. The record retention requirements are prescribed in part 249 of this chapter.

(b)[Reserved]

19-8.6-8.6 Dissemination.#

Any Ticket that is submitted that involves a Reporting Carrier and an International Point providing service in whole or in part under this part are generally not available to the Department, the U.S. carriers, or U.S. interests. Therefore, because of the damaging competitive impact on U.S. carriers and the adverse effect upon the public interest that would result from unilateral disclosure of international ticket survey data that involves a Reporting Carrier, the Department will not disclose international ticket data that involves a Reporting Carrier in the Passenger Origin-Destination Survey to citizens or non-citizens except:

(a)To an air carrier directly participating in and contributing input data to the Survey under this part or to a legal or consulting firm designated by a directly participating air carrier to use on its behalf and in connection with a specific assignment by such carrier;

(b)To parties to any proceeding before the Department to the extent that such data are relevant and material to the issues in the proceeding upon a determination to this effect by the Administrative Law Judge or by the Department's decision-maker. Any data to which access is granted pursuant to this section may be introduced into evidence subject to the normal rules of admissibility of evidence;

(c)To agencies and other components of the U.S. Government;

(d)To other persons upon a showing that the release of the data will serve specifically identified needs of U.S. users which are consistent with U.S. interests; and

(e)To foreign governments and foreign users as provided in formal reciprocal arrangements between the foreign and U.S. Governments for the exchange of comparable O&D data.

19-8.7-8.7 Submission of data.#

(a)Period of coverage by submission. Reporting carriers must file data for each calendar month as shown in Table 1 to paragraph (a). Table 1 to Paragraph (a) Data report Time period covered January Jan 1 through Jan 31. February Feb 1 through Feb 28/29. March Mar 1 through Mar 31. April Apr 1 through Apr 30. May May 1 through May 31. June Jun 1 through Jun 30. July Jul 1 through Jul 29. August Aug 1 through Aug 31. September Sep 1 through Sep 30. October Oct 1 through Oct 31. November Nov 1 through Nov 30. December Dec 1 through Dec 31.

(b)Filing date for data. Reporting carriers must file data with the Department on or before the dates listed below, 45 days after the end of each reporting period. Reporting carriers must file all data through BTS approved channels as specified in accounting and reporting directives issued by BTS/OAI. Table 2 to Paragraph (b) Report Due date 1 January March 17. February April 15. March May 16. April June 15. May July 16. June August 15. July September 15. August October 16. September November 15. October December 16. November January 15. December February 15. 1 Due dates falling on Saturday, Sunday or national holiday will become effective the first following workday.

(c)Waiver requests. Requests for permission to depart from the required O&D Survey procedures should include a procedural statement describing the process the carrier proposes to employ in examining, selecting, and editing the data from reportable flight coupons for the O&D Survey, as well as a flow chart diagramming the proposed procedures.

(d)Quantity and quality controls. Carriers are expected to establish and maintain continuous quantity and quality controls on the flow of all lifted flight coupons through their system processes to determine the total number of coupons handled and the number of reportable coupons selected. Such data controls and tests have not been specified by the Department, and necessarily must be developed by each carrier. Each participating carrier shall develop and use on a continuous basis such control tests as are necessary to ensure that all reportable coupons are being selected, recorded, and reported as intended by these regulations, the Instructions to Air Carriers for Collecting and Reporting Passenger Origin—Destination Survey Data, and any related accounting and reporting directives. (Instructions and accounting and reporting directives are available from the Bureau of Transportation Statistics Office of Airline Information. Please visit https://www.bts.gov/ or call 800-853-1351 for more information.) Such controls should extend over all ADP processing, both in-house and that from third-party service providers.

19-8.8-8.8 Editing data.#

(a)City and airport, or terminus, codes. Prior to submission of O&D, each carrier is to edit the recorded data to validate city and airport or terminus codes. This edit is to verify that the codes recorded are valid official codes, and it is independent of whether the carriers shown operated into or out of the airport or terminus shown. Any questions about airport or terminus codes should be addressed to the Director, Office of Airline Information.

(b)Edit responsibility of carriers. Each carrier is responsible for developing edit procedures and internal controls over its data entry and processing procedures so that valid and reliable data are captured in the O&D inputs. Since the carriers have many different statistical systems, it is not practicable for the Department of Transportation to prescribe specific controls in this area, and each carrier is responsible for developing the appropriate internal control procedures to edit the O&D data and ensure the integrity of these data. The Department will control the accuracy of its processing of the sampled data upon receipt from the carriers or their third-party providers.

(c)System documentation of edits. Carriers are required to maintain written O&D procedural statements and flow charts.

19-8.9-8.9 Control of sample selection and data recording.#

Sample accuracy and reliability. To maximize the accuracy and reliability of the sample selection and data recording, each carrier is to:

(a)Develop a written statement describing the procedures it will employ in examining and selecting reportable flight coupons and in recording, summarizing, editing, and testing the Survey data;

(b)Submit any proposed changes in the procedures specified in paragraph (a) of this section to the Department's Office of Airline Information, prior to implementation of such changes;

(c)Establish continuous quantity controls on the flow of all lifted flight coupons through the carrier's accounting processing to determine the total number of coupons handled, and the number of reportable coupons selected. Tests are to be made continuously to assure that all reportable coupons are being selected and the data recorded. Such tests should be completed while the “lifted” flight coupons (representing earned passenger revenues for flight segments operated) remain in the possession of the carrier. Establish such other internal control procedures as are necessary for supervising and monitoring the accuracy of the recording of data from reportable flight coupons.

2-1Sec. 2-1 Generally accepted accounting principles.#

(a)The accounting provisions contained in this part are based on generally accepted accounting principles (GAAP). Persons subject to this part are authorized to implement, as prescribed by the Financial Accounting Standards Board, newly issued GAAP pronouncements until and unless the Director, Office of Airline Information (OAI), issues an Accounting Directive making an initial determination that implementation of a new pronouncement would adversely affect the Department's programs.

(b)The Director, OAI, shall review each newly issued GAAP pronouncement to determine its affect on the Department's regulatory programs. If adopting a specific change in GAAP would adversely affect the Department's programs, the Director will issue the results of the review in the form of an Accounting Directive. The directive will state the reasons why the particular change should not be incorporated in the uniform system of accounts and contain accounting guidance for maintaining the integrity of the Department's air carrier accounting provisions.

(c)Objections and comments relating to the Department's decision not to implement a change in generally accepted principles may be addressed to Director, Office of Airline Information, K-25, U.S. Department of Transportation, 1200 New Jersey Avenue, SE., Washington, DC 20590. If significant objections are raised urging adoption of a particular GAAP pronouncement, the Department will institute a rulemaking.

2-2Sec. 2-2 Basis of allocation between entities.#

(a)The provisions of this section shall apply to each person controlling an air carrier, each person controlled by the air carrier, as well as each transport entity and organizational division of the air carrier for which separate records must be maintained pursuant to section 1-6.

(b)Each transaction shall be recorded and placed initially under accounting controls of the particular air transport entity or organizational division of the air carrier or member of an affiliated group to which directly traceable. If applicable to two or more accounting entities, a proration shall be made from the entity of original recording to other participating entities on such basis that the statements of financial condition and operating results of each entity are comparable to those of distinct legal entities. The allocations involved shall include all debits and credits associated with each entity.

(c)For purposes of this section, investments by the air carrier in resources or facilities used in common by the regulated air carrier and those transport-related revenue services defined as separate nontransport ventures under section 1-6(b) shall not be allocated between such entities but shall be reflected in total in the appropriate accounts of the entity which predominately uses those investments. Where the entity of predominate use is a nontransport venture, the air carrier shall reflect the investment in account 1510.3, Advances to Associated Companies.

(d)For purposes of this Uniform System of Accounts and Reports, all revenues shall be assigned to or apportioned between accounting entities on bases which will fully recognize the services provided by each entity, and expenses, or costs, shall be apportioned between accounting entities on such bases as will result: (1) With respect to transport-related services, in the assignment thereto of proportionate direct overheads, as well as direct labor and materials, of the applicable expense functions prescribed by this system of accounts and reports, and (2) with respect to separate ventures, in the assignment thereto of proportional general and administrative overheads as well as the direct overheads, labor, and materials.

2-3Sec. 2-3 Distribution of revenues and expenses within entities.#

(a)Revenues and expenses attributable to a single natural objective account or functional classification shall be assigned accordingly.

(b)Revenue and expense items which are common to two or more natural objective accounts shall be recorded in the objective accounts to which they predominantly relate.

(c)Expense items contributing to more than one function shall be charged to the general overhead functions to which applicable except that where only incidental contribution is made to more than a single function an item may be included in the function to which primarily related, provided such function is not distorted by including an aggregation of amounts applicable to other functions. When assignment of expense items on the basis of the primary activity to which related does not in the aggregate result in a fair presentation of the expenses applicable to each function, apportionment shall be made between functions based upon a study of the contribution to each function during a representative period.

2-4Sec. 2-4 Accounting period.#

(a)The accounting year of each air carrier subject to this Uniform System of Accounts shall be the calendar year unless otherwise approved by the BTS.

(b)Each air carrier shall keep its financial accounts and records on a full accrual basis for each quarter so that all transactions, as nearly as may reasonably be ascertained, shall be fully reflected in the air carrier's books for the quarter in which revenues have been earned and the costs attaching to the revenues so earned in each quarter have been incurred independently of the incidence of sales or purchases and settlement with debtors or creditors.

(c)Expenditures incurred during the current accounting year which demonstrably benefit operations to be performed during subsequent accounting years to a significant extent shall be deferred and amortized to the period in which the related operations are performed when of sufficient magnitude to distort the accounting results of the year in which incurred.

(d)Expenditures charged directly or amortized to operations within one accounting year shall not be reversed in a subsequent accounting year and reamortized or charged directly against operations of subsequent years except that retroactive adjustments are permitted where necessary to conform with adjustments required by the DOT for ratemaking purposes.

2-5Sec. 2-5 Revenue and accounting practices.#

(a)Revenue accounting practices shall conform to the provisions of account 2160, Air Traffic Liability.

(b)Each route air carrier shall physically verify the reliability of its passenger revenue accounting practice at least once each accounting year.

(c)For those carriers who use the yield or average-fare method to determine earned revenue, the analysis supporting the verification shall include:

(1)The cutoff date for the liability to be verified; such cutoff date shall be at the end of a calendar month.

(2)The number of months after the cutoff date during which documents were examined to verify the liability; the number of months after the cutoff date during which documents are examined shall not exceed the maximums set forth below: Class of carrier Maximum months 1 TWA 18 Trunks (except TWA) 12 All other route air carriers 6 1 Applies only to carriers on a yield or average-fare basis.

(3)The nature of the documents which were examined for purposes of the verification.

(4)The totals for each of the various types of documents examined, on actual or sampling basis.

(5)A description of the sampling technique and conversion to totals, if sampling was employed.

(6)The amount and basis for all estimates employed in the verification.

(7)The amount of resulting adjustments and the quarter in which such adjustments were, or are to be, made in the accounts.

(d)For those carriers who use the sales-lift match method to determine earned revenue, the analysis supporting the physical inventory verification shall include:

(1)The cutoff date for the liability to be verified; such cutoff date shall be at the end of a calendar month.

(2)A trial balance as of the cutoff date of all subaccounts supporting the Air Traffic Liability control account; the subsidiary trial balance must agree with the Air Traffic Liability control account or a reconciliation statement furnished.

(3)A statement to the effect that a sales listing of the value of all unmatched auditor coupons has been compiled and compared to the general ledger control figure; the statement required by this subparagraph shall indicate whether or not the value of the unmatched coupons is in agreement with the general ledger. If the sales listing is not in agreement with the Air Traffic Liability control account, the amount of such difference shall be shown on such statement.

United States Government work; public domain under 17 U.S.C. § 105.