Regulations last checked for updates: May 01, 2025

Title 14 - Aeronautics and Space last revised: Apr 02, 2025
All TitlesTitle 14Chapter IIPart 399Subpart C - Subpart C—Policies Relating to Rates and Tariffs
Collapse to view only § 399.39 - Equipment purchase deposits.
Table of Contents

§ 399.35 - Special tariff permission.

§ 399.36 - Unreasonable discrimination.

§ 399.39 - Equipment purchase deposits.

Appendix Appendix A - Appendix A to Subpart C of Part 399—Example of SIFL Adjustment

§ 399.35 - Special tariff permission.

The Secretary of Transportation may approve, under such terms as the Secretary may require, a carrier's application for Special Tariff Permission to file a tariff for foreign air transportation required under part 293 of this chapter on less than the notice required by 49 U.S.C. 41504(b).

[Doc. No. DOT-OST-2014-0140, 84 FR 15947, Apr. 16, 2019]
§ 399.36 - Unreasonable discrimination.

(a) As used in this section:

(1) Unreasonable discrimination means unjust discrimination or unreasonable preference or prejudice; and

(2) Rate means rate, fare, or charge.

(b) Except in unusual circumstances or as provided in paragraph (c) of this section, the Departmentwill find a rate for domestic air transportation to constitute unreasonable discrimination only if:

(1) There is a reasonable probability that the rate will result in significant long-run economic injury to passengers or shippers;

(2) The rate is in fact discriminatory according to a reasonable cost allocation or other rational basis;

(3) The rate does not provide transportation or other statutorily recognized benefits that justify the discrimination; and

(4) Actual and potential competitive forces cannot reliably be expected to eliminate the undesirable effects of the discrimination within a reasonable period.

(c) A rate that discriminates on the basis of the status of the traffic carried will not be presumed to be unreasonably discriminatory, unless the use of the status categories in question is contrary to established national anti-discrimination policy.

[PS-93, 45 FR 36062, May 29, 1980]
§ 399.39 - Equipment purchase deposits.

Equipment purchase deposits are advance payments made by air carriers to manufacturers for the purchase of equipment to be delivered in the future, or funds segregated by air carriers for this purpose. It is the policy of the Department not to recognize equipment purchase deposits in an air carrier's investment base for ratemaking purposes. When equipment is acquired by an air carrier and placed in air-transport service, the Department will recognize in the air carrier's investment base interest on purchase deposits on such equipment capitalized and amortized in accordance with the Uniform System of Accounts and Reports for Certificated Air Carriers (part 241 of this chapter).

[PS-32, 32 FR 5370, Mar. 30, 1967]
Appendix Appendix A - Appendix A to Subpart C of Part 399—Example of SIFL Adjustment

[Methodology for determining change in operating expense per available seat-mile]

Year ended September 1979 Trunks Locals Trunks plus locals Total passenger/cargo 16
Total operating expense 1 (millions)$16,455$2,522$18,977$19,384
Less:
All-cargo expenses 2269269269
Belly offset 39521531,1051,153
Nonscheduled 414146187205
Transport related 537931410416
Plus: Capitalized lease adjustment 101192121121
Passenger operating expense14,8332,29417,12717,462
Passenger fuel cost 114,103N.A.
Scheduled service ASM's (mils.)281,67133,051314,722318,459
Passenger nonfuel operating expense per ASM (dollars).04138N.A.
Passenger fuel expense per ASM (dollars).01304N.A.
Total passenger expense per ASM (dollars).05442.05483
Year ended September 1978
Total operating expense 1 (millions)14,0812,03316,11416,448
Less:
All-cargo expenses 2282282282
Belly offset 38691521,0211,065
Nonscheduled 419353246256
Transport related 541930449454
Plus: Capitalized lease adjustment 107817979
Passenger operating expense12,3961,79914,19514,470
Passenger fuel cost 113,129N.A.
Scheduled service ASM's (mils.)262,06827,067289,135292,255
Passenger nonfuel operating expense per ASM (dollars).03827N.A.
Passenger fuel expense per ASM (dollars).01082N.A.
Total passenger expense per ASM (dollars).04909.04951
Percent change in nonfuel operating expense per ASM (percent)8.13N.A.
Projected change in nonfuel expense from April 1, 1979 to April 1, 1980 68.13N.A.
Estimated change in fuel cost, year ended September 1979 average to April 1, 1980 1473.06N.A.
Nonfuel operating expense per ASM at April 1, 1980 7 (dollars).04474N.A.
Fuel expense per ASM at April 1, 1980 7 (dollars).02257N.A.
Total expense per ASM at April 1, 1980 7 (dollars).06731 15 .06782
Year ended March 1977
Total operating expense 1 (millions)$11,726$1,520$13,316$13,601
Less:
All-cargo expense 2238238238
Belly offset 372996825865
Nonscheduled 422035225266
Transport related 5427111538554
Passenger operating expense10,1121,34811,46011,678
Passenger fuel cost2,1902302,420N.A.
Scheduled service ASM's (mils.)239,59323,428263,021265,837
Operating expense per ASM (dollars).04221.05754.04357.04393
Projected expense per ASM (dollars) as at July 1, 1977 13.04593
Projected operating expense per ASM as at April 1, 1980 (page 1) (dollars).06782
Ceiling adjustment factor 8 (percent)47.66
D.P.F.I. formula effective July 15, 1977 12:
Terminal charge$16.16
Plus.0884/mile (0-500 miles).
Plus.0674/mile (501-1,500 miles).
Plus.0648/mile (over 1,500 miles).
Ceiling formula through April 30, 1980 9:
Terminal charge$23.86
Plus.1305/mile (0-500 miles).
Plus.0995/mile (501-1,500 miles).
Plus.0957/mile (over 1,500 miles).

1 Total operating expense for all operations and service (in millions).

2 Scheduled all-cargo operations expense.

3 Total scheduled-service cargo revenue, less scheduled all-cargo operations revenue, carried as a by-product in aircraft belly compartments. Includes freight, express, priority and non-priority U.S. mail, and excess baggage.

4 Total non-scheduled revenues times 0.95, assuming charter operations would only be conducted at a profit.

5 Total transport-related expense, less any excess of expense over total transport-related revenues.

6 We here project costs from April 1, 1979 (the midpoint of the data year ended September 1979) to April 1, 1980 the resultant increase factor effective through April 30, 1980.

7 Operating expense per ASM for year-ended September, 1979, times projected change.

8 Projected operating expense per ASM on April 1, 1980 divided by the operating expense as at July 1, 1977.

9 Adjustment results in a 2.5 percent increase in level over current January 1, 1980 factor.

10 Additional rental expense that would have been incurred had leases not been capitalized under FASB-13, less actual amortization of capitalized lease expense.

11 Total fuel cost, scheduled service, times complement of rate of All-Cargo expense to total Operating Expense.

12 Order 77-7-26.

13 Year ended March, 1977 cost per ASM, times cost escalation factor of 1.04543 (to July 5, 1977). See DPFI workpapers, Y.E. March, 1977.

14 Estimated average cost per gallon for the trunk plus local service carriers at April 1, 1980, divided by the average for the year ended September, 1979 (48.33¢).

15 Change in Trunks plus Locals cost per ASM as at April 1, 1980, to year ended September, 1979 times total Psgr/Cargo cost for the year ended September, 1979.

16 Includes Alaskan, Hawaiian and other regional carriers.

[PS-92, 45 FR 24119, Apr. 9, 1980, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15947, Apr. 16, 2019]
authority: 49 U.S.C. 40113(a), 41712, 46106, 46107, and 42305
source: PS-21, 29 FR 1446, Jan. 29, 1964, unless otherwise noted.
cite as: 14 CFR 399.39
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