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Office of the Secretary, DOT Pt.

241

construed to be an order and direction any air carrier, foreign air carrier or ticket
of the Board to such individual to in- agent.
spect and examine lands, buildings, The issuance of these credentials to the
holder hereof constitutes an order and direc-
equipment, accounts, records, and
tion on the part of the Civil Aeronautics
memorandums in accordance with the Board to such individual to carry out these
authority conferred on the Board by duties as aforesaid and as more fully de-
the Act. scribed in part 240 of the Board’s Economic
Regulations.
UNITED STATES OF AMERICA, CIVIL Failure to honor these credentials will re-
AERONAUTICS BOARD, WASHINGTON, D.C. sult in penalties as provided by law.
Number lllllllllllllllllll UNITED STATES OF AMERICA,
Expires lllllllllllllllllll CIVIL AERONAUTICS BOARD,
WASHINGTON, D.C.
(Secs. 204, 407, 701, 72 Stat. 743; 49 U.S.C. 1324,
1377, 1441)
[photo] [ER–822, 38 FR 26601, Sept. 24, 1973, as amend-
ed by ER–914, 40 FR 27017, June 26, 1975; ER–
941, 40 FR 58850, Dec. 19, 1975]

§ 240.2 Obligation of air carriers, for-
eign air carriers, and ticket agents.
Signature
Upon the demand of a special agent
This is to certify thatllllll, whose or auditor of the Board, and upon the
signature and photograph appear hereon is a
duly designated ———————————————
presentation of the identification card
and credentials issued to him in ac-
cordance with this part: (a) Any air
of the Civil Aeronautics Board and is author- carrier or foreign air carrier shall
ized and directed to perform the duties of
said office in accordance with the laws of the
forthwith permit such special agent or
United States and regulations thereunder, auditor to inspect and examine all
and his authority will be respected accord- lands, buildings and equipment; (b) any
ingly. air carrier, foreign air carrier or ticket
By authority of the Civil Aeronautics Board. agent shall forthwith permit such spe-
cial agent or auditor to inspect and ex-
Secretary
amine all accounts, records, memoran-
dums, documents, papers and cor-
CIVIL AERONAUTICS BOARD respondence now or hereafter existing,
Name llllllllllllllllllll and kept or required to be kept by the
Date Issued lllllllllllllllll air carrier, foreign air carrier, or tick-
Number lllllllllllllllllll et agent, and shall permit such special
Height llllllllllllllllllll agent or auditor to make such notes
Weight lllllllllllllllllll and copies thereof as he deems appro-
Hair lllllllllllllllllllll priate.
Eyes lllllllllllllllllllll
Date of Birth llllllllllllllll (Sec. 204(a), Federal Aviation Act of 1958, as
The holder hereof is authorized to inves- amended, 72 Stat. 743; (49 U.S.C. 1324))
tigate violations of the Federal Aviation [ER–914, 40 FR 27017, June 26, 1975]
Act, as amended, collect evidence in cases in
which the regulatory authority of the Civil
Aeronautics Board is or may be involved and PART 241—UNIFORM SYSTEM OF
perform other duties imposed upon him by ACCOUNTS AND REPORTS FOR
law. LARGE CERTIFICATED AIR CAR-
Under the Federal Aviation Act and part
240 of the Economic Regulations of the Civil RIERS
Aeronautics Board (14 CFR part 240), the
duly accredited special agents and auditors Sec.
of the Board are empowered at all times to 01 Authority Under Which Accounting and
obtain access to all lands, buildings and Reporting Rules and Regulations are
equipment of any air carrier or foreign air Prescribed and Administered.
carrier and to inspect, examine, and make 02 [Reserved]
notes and copies of all accounts, records, 03 Definitions for Purposes of This System
memorandums, documents, papers and cor- of Accounts and Reports.
respondence kept or required to be kept by 04 Air Carrier Groupings.

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Pt. 241 14 CFR Ch. II (1–1–00 Edition)
GENERAL ACCOUNTING PROVISIONS GENERAL REPORTING PROVISIONS—LARGE
CERTIFICATED AIR CARRIERS
1 Introduction to System of Accounts and
Reports. 21 Introduction to System of Reports.
1–1 Applicability of system of accounts and 22 General Reporting Instructions.
reports.
FINANCIAL REPORTING REQUIREMENTS
1–2 Waivers from this system of accounts
and reports. 23 Certification and Balance Sheet Ele-
1–3 General description of system of ac- ments.
counts and reports. 24 Profit and Loss Elements.
1–4 System of accounts coding.
1–5 Records. TRAFFIC REPORTING REQUIREMENTS
1–6 Accounting entities. 25 Traffic and Capacity Elements.
1–7 Interpretation of accounts.
AUTHORITY: 49 U.S.C. 329 and chapters 401,
1–8 Address for reports and correspondence. 411, 417.
2 General Accounting Policies.
2–1 Generally accepted accounting prin- SOURCE: ER–755, 37 FR 19726, Sept. 21, 1972,
ciples. unless otherwise noted.
2–2 Basis of allocation between entities.
2–3 Distribution of revenues and expenses SECTION 01—AUTHORITY UNDER WHICH
within entities. ACCOUNTING AND REPORTING RULES
2–4 Accounting period. AND REGULATIONS ARE PRESCRIBED
2–5 Revenue and accounting practices. AND ADMINISTERED

BALANCE SHEET CLASSIFICATIONS This Uniform System of Accounts and Re-
ports for Large Certificated Air Carriers is
3 Chart of Balance Sheet Accounts.
issued, prescribed and administered under
4 General.
the following provisions of the Federal Avia-
5 [Reserved]
tion Act of 1958, as amended (72 Stat. 731, 49
6 Objective Classification of Balance Sheet U.S.C. 1301):
Elements.
GENERAL POWERS
PROFIT AND LOSS CLASSIFICATION
SEC. 204. (a) The Board is empowered to
7 Chart of Profit and Loss Accounts. perform such acts, to conduct such inves-
8 General. tigations, to issue and amend such orders,
9 Functional Classification—Operating Rev- and to make and amend such general or spe-
enues. cial rules, regulations, and procedure, pursu-
10 Functional Classification—Operating Ex- ant to and consistent with the provisions of
penses of Group I Air Carriers. this Act, as it shall deem necessary to carry
11 Functional Classification—Operating Ex- out the provisions of, and to exercise and
penses of Group II and Group III Air Car- perform its powers and duties under, this
riers. Act.
12 Objective Classification—Operating Rev-
enues and Expenses. FILING OF REPORTS
14 Objective Classification—Nonoperating SEC. 407. (a) The Board is empowered to re-
Income and Expense. quire annual, monthly, periodical, and spe-
15 Objective Classification—Income Taxes cial reports from any air carrier; to prescribe
for Current Period. the manner and form in which such reports
16 Objective Classification—Discontinued shall be made; and to require from any air
Operations. carrier specific answers to all questions upon
17 Objective Classification—Extraordinary which the Board may deem information to be
Items. necessary. Such reports shall be under oath
18 Objective Classification—Cumulative Ef- whenever the Board so requires. The Board
fect of Changes in Accounting Principles. may also require any air carrier to file with
it a true copy of each or any contract, agree-
OPERATING STATISTICS CLASSIFICATIONS
ment, understanding, or arrangement, be-
19 Uniform Classification of Operating Sta- tween such air carrier and any other carrier
tistics. or person, in relation to any traffic affected
19–1 Applicability. by the provisions of this Act.
19–2 Maintenance of data.
DISCLOSURE OF STOCK OWNERSHIP
19–3 Accessibility and transmittal of data.
19–4 Service classes. SEC. 407. (b) Each air carrier shall submit
19–5 Air transport traffic and capacity ele- annually, and at such other times as the
ments. Board shall require, a list showing the names
19–6 Public disclosure of traffic data. of each of its stockholders or members hold-
19–7 Passenger origin-destination survey. ing more than 5 per centum of the entire

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Office of the Secretary, DOT Pt. 241
capital stock or capital, as the case may be, 1002(i), or any term, condition or limitation
of such air carrier, together with the name of any permit or certificate issued under
of any person for whose account, if other Title IV, or (B) any rule or regulation issued
than the holder, such stock is held; and a re- by the Postmaster General under this Act,
port setting forth a description of the shares shall be subject to a civil penalty of not to
of stock, or other interest, held by such air exceed $1,000 for each such violation. If such
carrier, or for its account, in persons other violation is a continuing one, each day of
than itself. such violation shall constitute a separate of-
fense: Provided, That this subsection shall
FORM OF ACCOUNTS
not apply to members of the Armed Forces of
SEC. 407. (d) The Board shall prescribe the the United States, or those civilian employ-
forms of any and all accounts, records, and ees of the Department of Defense who are
memoranda to be kept by air carriers, in- subject to the provisions of the Uniform
cluding the accounts, records, and memo- Code of Military Justice, while engaged in
randa of the movement of traffic, as well as the performance of their official duties; and
of the receipts and expenditures of money, the appropriate military authorities shall be
and the length of time such accounts, responsible for taking any necessary discipli-
records, and memoranda shall be preserved; nary action with respect thereto and for
and it shall be unlawful for air carriers to making to the Administrator or Board, as
keep any accounts, records, or memoranda appropriate, a timely report of any such ac-
other than those prescribed or approved by tion taken.
the Board: Provided, That any air carrier (2) Any such civil penalty may be com-
may keep additional accounts, records, or promised by the Administrator in the case of
memoranda if they do not impair the integ- violations of Titles III, V, VI, or XII, or any
rity of the accounts, records, or memoranda rule, regulation, or order issued thereunder,
prescribed or approved by the Board and do or by the Board in the case of violations of
not constitute an undue financial burden on Titles IV or VII, or any rule, regulation or
such air carrier. order issued thereunder, or under section
1002(i), or any term, condition, or limitation
INSPECTION OF ACCOUNTS AND PROPERTY of any permit or certificate issued under
SEC. 407. (e) The Board shall at all times Title IV, or by the Postmaster General in
have access to all lands, buildings, and the case of regulations issued by him. The
equipment of any carrier and to all accounts, amount of such penalty, when finally deter-
records, and memoranda, including all docu- mined, or the amount agreed upon in com-
ments, papers, and correspondence, now or promise, may be deducted from any sums
hereafter existing, and kept or required to be owing by the United States to the person
kept by air carriers; and it may employ spe- charged.
cial agents or auditors, who shall have au-
thority under the orders of the Board to in- FAILURE TO FILE REPORTS; FALSIFICATION OF
spect and examine any and all such lands, RECORDS
buildings, equipment, accounts, records, and SEC. 902. (e) Any air carrier, or any officer,
memoranda. The provisions of this section agent, employee, or representative thereof,
shall apply, to the extent found by the Board who shall, knowingly and willfully, fail or
to be reasonably necessary for the adminis- refuse to make a report to the Board or Ad-
tration of this Act, to persons having control ministrator as required by this Act, or to
over any air carrier, or affiliated with any keep or preserve accounts, records, and
air carrier within the meaning of section 5(8) memoranda in the form and manner pre-
of the Interstate Commerce Act, as amended. scribed or approved by the Board or Adminis-
trator, or shall, knowingly and willfully, fal-
CLASSIFICATION
sify, mutilate, or alter any such report, ac-
SEC. 416. (a) The Board may from time to count, record, or memorandum, or shall
time establish such just and reasonable clas- knowingly and willfully file any false report,
sifications or groups of air carriers for the account, record, or memorandum, shall be
purposes of this title as the nature of the deemed guilty of a misdemeanor and, upon
services performed by such air carriers shall conviction thereof, be subject for each of-
require; and such just and reasonable rules fense to a fine of not less than $100 and not
and regulations, pursuant to and consistent more than $5,000.
with the provisions of this title, to be ob-
served by each such class or group, as the REFUSAL TO TESTIFY
Board finds necessary in the public interest. SEC. 902. (g) Any person who shall neglect
or refuse to attend and testify, or to answer
SAFETY, ECONOMIC AND POSTAL OFFENSES
any lawful inquiry, or to produce books, pa-
SEC. 901. (a)(1) Any person who violates (A) pers, or documents, if in his power to do so,
any provision of Title III, IV, V, VI, VII, or in obedience to the subpena or lawful re-
XII of this Act, or any rule, regulation, or quirement of the Board or Administrator,
order issued thereunder, or under section shall be guilty of a misdemeanor and, upon

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Pt. 241 14 CFR Ch. II (1–1–00 Edition)
conviction thereof, shall be subject to a fine or the Board shall issue an appropriate order
of not less than $100 nor more than $5,000, or to compel such person to comply therewith.
imprisonment for not more than one year, or
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
both.
ed by ER–1400, 50 FR 11, Jan. 2, 1985]
FILING OF COMPLAINTS AUTHORIZED
SECTION 02 [RESERVED]
SEC. 1002. (a) Any person may file with the
Administrator or the Board, as to matters SECTION 03—DEFINITIONS FOR PURPOSES
within their respective jurisdictions, a com- OF THIS SYSTEM OF ACCOUNTS AND RE-
plaint in writing with respect to anything PORTS
done or omitted to be done by any person in
contravention of any provisions of this Act, Account, clearing. An account used as a me-
or of any requirement established pursuant dium for the temporary accumulation of
thereto. If the person complained against costs that are redistributed to appropriate
shall not satisfy the complaint and there applicable accounts.
shall appear to be any reasonable ground for Acquisition, date of. The date on which the
investigating the complaint, it shall be the title to owned property or equipment (or the
duty of the Administrator or the Board to in- right to use or control the reassignment of
vestigate the matters complained of. When- leased property or equipment) passes to the
ever the Administrator or the Board is of the air carrier.
opinion that any complaint does not state Act. The Federal Aviation Act of 1958, as
facts which warrant an investigation or ac- amended.
tion, such complaint may be dismissed with- Addition, property. Additional equipment,
out hearing. In the case of complaints land, structures, and other tangible prop-
against a member of the Armed Forces of the erty; extensions of fuel, water, and oil dis-
United States acting in the performance of tribution equipment; additions to buildings
his official duties, the Administrator or the and other structures; and additional safety
Board, as the case may be, shall refer the devices applied to equipment not previously
complaint to the Secretary of the depart- thus equipped. (See also Modification.)
ment concerned for action. The Secretary Affiliated group. A combination of compa-
shall, within ninety days after receiving nies comprised of the air carrier, any person
such a complaint, inform the Administrator controlling the air carrier or under common
or the Board of his disposition of the com- control with the air carrier, and organiza-
plaint, including a report as to any correc- tional divisions (as defined in sections 1–6) of
tive or disciplinary actions taken. and persons controlled by the air carrier.
Agency, cargo. Any person (other than the
INVESTIGATIONS ON INITIATIVE OF air carrier preforming the direct air trans-
ADMINISTRATOR OR BOARD portation or one of its bona fide regular em-
ployees or an indirect air carrier lawfully en-
SEC. 1002. (b) The Administrator or Board,
gaged in air transportation under authority
with respect to matters within their respec-
conferred by any applicable part of the Eco-
tive jurisdictions, is empowered at any time
nomic Regulations of the Department) who
to institute an investigation, on their own
for compensation or profit: (1) Solicits, ob-
initiative, in any case and as to any matter
tains, receives or furnishes directly or indi-
or thing within their respective jurisdic-
rectly property or consolidated shipments of
tions, concerning which complaint is author-
property for transportation upon the aircraft
ized to be made to or before the Adminis-
of an air carrier subject to this part, or (2)
trator or Board by any provision of this Act,
procures or arranges for air transportation
or concerning which any question may arise
of property upon aircraft of an air carrier
under any of the provisions of this Act, or re-
subject to this part by charter, lease, or any
lating to the enforcement of any of the pro-
other arrangement.
visions of this Act. The Administrator or the
Agent, ticket. Any person (other than the
Board shall have the same power to proceed
air carrier performing the direct air trans-
with any investigation instituted on their
portation or one of its bona fide regular em-
own motion as though it had been appealed
ployees, or an air carrier which subcontracts
to by complaint.
the performance of charter air transpor-
ENTRY OR ORDERS FOR COMPLIANCE WITH ACT
tation which it has contracted to perform)
who for compensation or profit: (1) Solicits,
SEC. 1002. (c) If the Administrator or the obtains, receives, or furnishes directly or in-
Board finds, after notice and hearing, in any directly passengers or groups of passengers
investigation instituted upon complaint or for transportation upon the aircraft of an air
upon their own initiative, with respect to carrier subject to this part, or (2) procures or
matters within their jurisdiction, that any arranges for air transportation of passengers
person has failed to comply with any provi- or groups of passengers upon aircraft of an
sion of this Act or any requirement estab- air carrier subject to this part by charter,
lished pursuant thereto, the Administrator lease, or any other arrangement.

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Office of the Secretary, DOT Pt. 241
Agreement. Any oral or written agreement, Airport. A landing area regularly used by
contract, understanding, or arrangement, aircraft for receiving or discharging pas-
and any amendment, revision, modification, sengers or cargo.
renewal, extension, cancellation or termi- Airport, alternate. An approved airport to
nation thereof. which a flight may proceed if a landing at
Air carrier. Any citizen of the United States the airport to which the flight was dis-
who undertakes, whether directly or indi- patched becomes inadvisable.
rectly or by a lease or any other arrange- Airport-to-airport distance. The great circle
ment, to engage in air transportation. distance between airports, measured in stat-
Air carrier, charter. An air carrier holding a ute miles in accordance with part 247 of this
certificate issued under 49 U.S.C. 41102(a)(3). chapter.
Air carrier, large certificated. An air carrier Air transportation. The carriage by aircraft
holding a certificate issued under 49 U.S.C. of persons, property, or mail.
41102, as amended, that: (1) Operates aircraft Air transportation, charter. Air transpor-
designed to have a maximum passenger ca- tation authorized pursuant to section
pacity of more than 60 seats or a maximum 401(d)(3).
payload capacity of more than 18,000 pounds; Airworthiness (or Airworthy). When applied
or (2) conducts operations where one or both to a particular aircraft or component part, it
terminals of a flight stage are outside the 50 denotes the ability of such aircraft or com-
ponent part to perform its function satisfac-
states of the United States, the District of
torily through a range of operations deter-
Columbia, the Commonwealth of Puerto
mined by the Federal Aviation Administra-
Rico and the U.S. Virgin Islands.
tion.
Air carrier, surviving. An entity (air carrier)
Allocate. To assign an item or group of
which, as the result of a business combina-
items of investment, revenue, or cost to an
tion, has acquired the net assets, and carries object, activity, process, or operation, in ac-
on the operations of, one or more predecessor cordance with cost responsibilities, benefits
air carriers, and which may be newly orga- received, or other measure of apportionment.
nized at the time of the combination or may Allocation, bases of. Bases of distribution
be one of the predecessor air carriers. whereby revenues, expenses, and/or costs are
Aircraft. Any contrivance now known or equitably apportioned among revenue, ex-
hereafter invented, used or designed for navi- pense, property and equipment, and other ac-
gation of or flight in the air. counts.
Aircraft days assigned to service—carrier’s Amortization. The gradual extinguishment
equipment. The number of days that aircraft of an amount in an account by distributing
owned or acquired through rental or lease such amount over a fixed period, over the life
(but not interchange) are in the possession of of the asset or liability to which it applies or
the reporting air carrier and are available over the period during which it is antici-
for service on the reporting carrier’s routes pated the benefit will be realized.
plus the number of days such aircraft are in Asset, contingent. An asset the existence,
service on routes of others under interchange value, or ownership of which depend upon
agreements. Includes days in overhaul, or the occurrence or nonoccurrence of a specific
temporarily out of service due to schedule event or upon the performance or non-
cancellations. Excludes days that newly ac- performance of a specified act.
quired aircraft are on hand but not available Associated company. A company in which
for productive use, days rented or leased to the accounting air carrier holds 5 percent or
others (for other than interchange) and days more of the outstanding proprietary inter-
in possession but formally withdrawn from est; or a company which holds 5 percent or
air transportation service. more of the outstanding proprietary interest
Aircraft days assigned to service— carrier of the accounting air carrier; or a company
routes—same as aircraft days assigned to serv- that, directly or through one or more inter-
ice-carrier’s equipment but excluding the num- mediaries, controls or is controlled by, or is
ber of days owned or rented equipment are in under common control with the accounting
the possession of others under interchange air carrier. Companies owned or controlled
agreements and including the number of jointly with other air carriers shall be re-
days aircraft of others are in the possession garded as associated companies for purposes
of the air carrier under interchange agree- of this system of accounts. (See also Control.)
ments. Betterment. Any improvement to property
Aircraft, leased (rented). Aircraft obtained or equipment through the substitution of su-
from (or furnished to) others under lease or perior parts for inferior parts retired, the ob-
rental arrangements. Leased and rented air- ject of which is to make such property more
craft do not include those used under inter- useful or of greater capacity than at the
change agreements designed to provide time of acquisition or installation. (See also
oneplane service over the routes of the air Modification.)
carriers involved. BTS. The Bureau of Transportation Statis-
Aircraft type. A distinctive model as des- tics.
ignated by the manufacturer. Cargo. All traffic other than passengers.

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Pt. 241 14 CFR Ch. II (1–1–00 Edition)
Cargo transported. Cargo on board each printing bonds, certificates of indebtedness,
flight stage. and other commercial paper; specific costs of
Certificated point. A city, place or popu- obtaining governmental authority for
lation center authorized to receive scheduled issuance and filing notices thereunder; fees
air service under a Certificate of Public Con- for legal services; fees and commissions paid
venience and Necessity or under an exemption underwriters, brokers, and salesmen for mar-
issued to an air carrier. keting such evidences of debt; fees and ex-
Certificate of Public Convenience and Neces- penses of listing on exchanges; and other like
sity. A certificate issued to an air carrier costs.
under 49 U.S.C. 41102, by the Department of Deferred taxes. Tax effects which are de-
Transportation authorizing the carrier to en- ferred for allocation to income tax expense
gage in air transportation. of future periods.
Company, predecessor. An air carrier whose Department. Department of Transportation.
net assets and operations have been taken Departures completed, percent scheduled. The
over by one or more other air carriers. percent of scheduled departures that were
Compensation (of personnel). Remuneration performed.
to air carrier employees for personal serv- Departures completed, scheduled. The num-
ices. Includes salaries, wages, overtime pay, ber of takeoffs performed at each airport
cost-of-living differentials, bonuses, etc., as pursuant to published schedules, exclusive of
distinguished from per diem allowances or extra sections to scheduled departures.
reimbursement for expenses incurred by per- Departure performed. A takeoff made at an
sonnel for the benefit of the air carrier. airport.
Continental United States. The 48 contiguous Departure, scheduled. A takeoff scheduled
States and the District of Columbia. at an airport, as set forth in published sched-
Control (including the terms Controlling, ules.
Controlled by, and Under common control). The Depreciation (of depreciable property and
possession, directly or indirectly, of the equipment). The loss in service value, not re-
power positively to direct, or cause the di- stored by current maintenance, incurred in
rection of or negate the direction of, the the course of service from causes known to
management and policies of a company, be in current operation, against which the
whether such power is through one or more carrier is not protected by insurance, and
intermediary companies or alone or in con- the effect of which can be forecast with rea-
junction with or pursuant to an agreement, sonable accuracy. The causes of depreciation
and whether such power is established include wear and tear, decay, action of the
through a majority or minority ownership or elements, inadequacy, obsolescence, changes
voting of securities, common directors, offi- in the art, changes in demand, and require-
cers, or stockholders, voting trusts, holding ments of public authorities.
trusts, associated companies, contract, or Discount (of securities issued or assumed by
any other direct or indirect means. the air carrier). The excess of (1) the par or
Controlling person. (See Person Controlling stated value of securities over (2) the then
an air carrier) current money value of the consideration re-
Cost. The amount of cash (or its equiva- ceived from their sale less the amount in-
lent) actually paid for property, materials cluded for dividends or for interest accrued.
and supplies, and services, including that DOT. Department of Transportation.
amount paid to put the property or mate- Equipment. Tangible property other than
rials and supplies in readiness for use. It in- land, structures, and improvements.
cludes such items as transportation charges, Equity security. Any instrument rep-
installation charges, and customs duties, resenting ownership shares (for example,
less any cash or other discounts. common, preferred, and other capital stock),
Cost, book. The amount at which an asset is or the right to acquire (for example, war-
recorded in an account without the deduc- rants, rights, and call options) or dispose of
tion of amounts in related allowances or (for example, put options) ownership shares
other accounts. in an enterprise at fixed or determinable
Cost, depreciated. The cost of property and prices. The term does not encompass pre-
equipment less the related allowances for de- ferred stock that by its terms either must be
preciation. redeemed by the issuing enterprise or is re-
Cost, removal. The cost of demolishing, dis- deemable at the option of the investor, nor
mantling, tearing down, or otherwise remov- does it include treasury stock or convertible
ing property and equipment, including the bonds.
cost of related transportation and handling. Equivalent unit. A new unit substituted for
Debt, expense on. Expenses incurred by or an existing unit that is worn out, is damaged
for the air carrier in connection with the beyond repair, or has become inadequate in
issuance and sale of evidences of debt (exclu- service, the substituted unit having substan-
sive of the sale of reacquired securities), tially no greater capacity than the unit for
such as fees for drafting mortgages and trust which substituted.
deeds; fees and taxes for issuing or recording Estimated economic life of leased property.
evidences of debt; cost of engraving and The estimated remaining period during

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Office of the Secretary, DOT Pt. 241
which the property is expected to be eco- senting and disclosing of financial trans-
nomically usable by one or more users, with actions, as incorporated in the pronounce-
normal repairs and maintenance, for the pur- ments of the Financial Accounting Stand-
pose for which it was intended at the incep- ards Board.
tion of the lease, without limitation by the Group basis (in depreciation accounting). A
lease term. plan under which (1) depreciation is based
Expense, capital stock. Expenses incurred by upon the application of a single depreciation
or for the air carrier in connection with the rate to the total book cost of all property in-
initial issuance and sale of capital stock (ex- cluded in a given depreciable property and
clusive of the sale of reacquired capital equipment account or class, despite dif-
stock), such as fees and commissions paid to ferences in service life of individual items of
promoters, underwriters, brokers, and sales- property and equipment, (2) the full original
men; fees for legal services; cost of soliciting cost, less any salvage realized, of an item of
subscriptions for capital stock; including depreciable property or equipment retired is
fees, commissions, and advertising; specific charged to the allowance for depreciation re-
costs of obtaining governmental authority gardless of the age of the item, and (3) no
for issuance and filing notices thereunder; gain or loss is recognized on the retirement
fees and taxes for issuance of capital stock of individual items of property or equipment.
and listing on exchanges; and the cost of pre- Horsepower, maximum continuous for recipro-
paring, engraving, printing, issuing, and dis- cating engines. The brake horsepower devel-
tributing prospectuses and stock certifi- oped in standard atmosphere at a specified
cates. altitude and under the maximum conditions
Flight, developmental. A flight for (1) the de- of crankshaft rotational speed and engine
velopment of a new route either prior or sub- manifold pressure, and approved for use dur-
sequent to certification by the Department ing periods of unrestricted duration.
of Transportation; (2) the extension of an ex-
Horsepower, maximum continuous for turbine
isting route; or (3) the integration of a new
engines. The brake horsepower developed at
type of aircraft or service.
specified altitudes, atmospheric tempera-
Flight, extra section. A flight, conducted as
tures, and flight speeds and under the max-
an integral part of scheduled service, that
has not been provided for in published sched- imum conditions of rotor shaft rotational
ules and is required for transportation of speed and gas temperature, and approved for
traffic that cannot be accommodated on a use during periods of unrestricted duration.
regularly scheduled flight. Flights made in Thrust, maximum continuous for turbine en-
ferrying aircraft to meet schedules, or for gines. The jet thrust developed at specified
similar operational reasons, are not extra altitudes, atmospheric temperatures, and
sections and are classified as nonrevenue flight speeds and under the maximum condi-
flights even if an occasional shipment, as a tions of rotor shaft rotational speed and gas
matter of special accommodation, is on temperature, and approved for use during pe-
board. riods of unrestricted duration.
Flight, ferry. A flight for the purpose of re- Hours, aircraft. The airborne hours of air-
turning an aircraft to base, equipment craft computed from the moment an aircraft
equalization, or moving an aircraft to and leaves the ground until it touches the ground
from a maintenance base. at the end of a flight.
Flight, paid positioning. A flight for the pur- Hours flown, revenue aircraft. The aircraft
pose of positioning an empty aircraft in con- hours of flights performed in revenue serv-
nection with a charter flight for which a spe- ice.
cific charge is set forth in a tariff or con- Hours in capitalized projects, aircraft. Air-
tract for application directly to the posi- craft hours applicable to ferrying newly ac-
tioning miles operated. Such flights are con- quired aircraft from the factory, to capital-
sidered revenue flights for Form 41 reporting ized extension and development preoperating
purposes. projects and to other costs which have been
Flight, personnel training. A flight for the capitalized.
purpose of obtaining flying time for flight Hours per aircraft per day—carrier’s equip-
personnel or a flight in connection with a ment, revenue. Average hours of productive
personnel training program. use per day in revenue service of reporting
Flight stage. The operation of an aircraft carrier’s equipment determined by dividing
from takeoff to landing. For purposes of (1) Aircraft days assigned to service—car-
classifying flight stages as between ‘‘domes- rier’s equipment into (2) Revenue aircraft
tic’’, ‘‘territorial’’, and ‘‘international’’, hours minus Revenue hours on other car-
technical stops are disregarded. (See Stops, rier’s interchange equipment plus Total
technical.) hours by others on the carrier’s interchange
Freight. Property, other than mail, trans- equipment.
ported by air. Hours per aircraft per day—carrier’s routes,
Generally accepted accounting principles revenue. Average hours of productive use per
(GAAP). The body of authoritative account- day in revenue service on reporting carrier’s
ing knowledge governing the recording, pre- routes determined by dividing (1) Aircraft

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Pt. 241 14 CFR Ch. II (1–1–00 Edition)
days assigned to service-carrier’s routes into less the empty weight, less all justifiable air-
(2) Revenue aircraft hours. craft equipment, and less the operating load
Hours, ramp-to-ramp. The aircraft hours (consisting of minimum fuel load, oil, flight
computed from the moment the aircraft first crew, steward’s supplies, etc.). For passenger
moves under it own power for purposes of aircraft, the available load must not exceed
flight, until it comes to rest at the next the weight of the maximum number of pas-
point of landing. sengers who can be accommodated in the
Improvement. An addition or alteration to seats installed in the aircraft plus the weight
land, a building, or a unit of equipment that of the traffic that can be accommodated in
results in a better piece of property, in the the cargo space.
sense of greater durability, or in increased Load, average revenue. The average total
productivity or efficiency. (See also Modi- revenue tons carried in revenue services, de-
fication.) termined by dividing total revenue ton-miles
Income tax expense. The amount of income by aircraft miles flown in revenue services.
taxes (whether or not currently payable or Load, average revenue passenger. Average
refundable) allocable to a period in the de- number of revenue passengers carried in pas-
termination of net income.
senger services, determined by dividing rev-
Income taxes. Taxes based on income deter-
enue passenger-miles by aircraft miles flown
mined under provisions of the United States
in revenue passenger services.
Internal Revenue Code and foreign, State,
and other taxes (including franchise taxes) Load factor, over-all revenue. The percent
based on income. that total revenue ton-miles (passenger plus
Insurance, self. The assumption by an air nonpassenger) are of available ton-miles in
carrier of a risk of loss or liability arising revenue services.
from an accident or other contingent event. Load factor, revenue passenger. The percent
Interchange agreement. An agreement under that revenue passenger-miles are of available
which aircraft of one air carrier are utilized seat-miles in revenue passenger services.
to provide one-plane service over its own Load, minimum fuel. The minimum quan-
routes and the routes of other air carriers. tity of fuel with which an aircraft may be
Interperiod tax allocation. The process of ap- dispatched in accordance with the safety op-
portioning income taxes among periods. erating needs of the air carrier.
Inventory, perpetual. A book inventory kept Load, salable. (See Load, available.)
in continuous agreement with stock on hand Mail, nonpriority. All mail for which trans-
by means of a detailed record. portation by air is provided on a space avail-
Investor controlled company (for purposes of able basis.
applying the equity method of accounting). Any Mail, priority. All mail for which transpor-
business entity in which the accounting air tation by air is provided on a priority basis.
carrier is able to exercise significant influ- Mile. A statute mile (5,280 feet).
ence over operating and financial policies of
Miles completed, percent scheduled aircraft.
the issuing company. Significant influence
The percent of scheduled aircraft miles
will be presumed, unless established to the
which were performed.
contrary by waiver request, with ownership
of 20 percent or more of the outstanding vot- Miles completed, scheduled aircraft. The air-
ing capital stock. Ability to exercise influ- craft miles performed on scheduled flights
ence may be indicated in several ways, such computed between only those scheduled
as representation on the Board of Directors, points actually served.
participation in policy-making processes, Miles flown, aircraft. The miles (computed
material intercompany transactions, inter- in airport-to-airport distances) for each
change of managerial personnel, or techno- flight stage actually completed, whether or
logical dependency. Investor controlled com- not performed in accordance with the sched-
panies shall also be regarded as associated uled pattern. For this purpose, operation to
companies for purposes of this system of ac- a flag stop is a stage completed even though
counts (see also Associated company). a landing is not actually made. In cases
Item, delayed. An item relating to trans- where the interairport distances are inappli-
actions that occurred during a prior account- cable, aircraft miles flown are determined by
ing period and that requires further account- multiplying the normal crusing speed for the
ing treatment for a true statement of finan- aircraft type by the airborne hours.
cial condition or operating results. It in- Miles flown, nonrevenue aircraft. The air-
cludes adjustments of errors in the operating craft miles flown on nonrevenue flights, such
revenue, operating expense, and other in- as ferry (including empty backhauls to MAC
come accounts for prior periods. one-way charters), personnel training, exten-
Liability, contingent. A possible source of sion and development, and abortive revenue
obligation of an air carrier dependent upon flights.
the fulfillment of conditions regarded as un- Miles, revenue aircraft. The aircraft miles
certain. flown in revenue service.
Load, available. Represents the maximum Miles, scheduled aircraft. The sum of the
salable load. It is the allowable gross weight airport-to-airport distances of all flights

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Office of the Secretary, DOT Pt. 241
scheduled to be performed over the air car- control an air carrier, or who holds, directly
rier’s certificated routes pursuant to pub- or indirectly, the legal or beneficial owner-
lished flight schedules. Flights listed in the ship of more than 50 percent of the out-
published schedules for operation only as standing voting capital stock or capital of an
extra sections, when traffic warrants, are ex- air carrier, and who does not make a proper
cluded. showing to the Department that he or she
Modification. An alteration in a structure does not control the carrier despite such
or unit of equipment that changes its design stock ownership, shall be deemed to be a per-
and is made to correct an error, increase pro- son controlling the carrier for the purpose of
duction, improve efficiency of operation, or this part. A brokerage firm which holds
for some other reason. record ownership of securities merely for the
Obsolescence. The process of becoming out convenience of the customer beneficially
of date due to progress of the arts and owning the stock shall not be deemed a per-
sciences, changed economic conditions, legis- son controlling an air carrier.
lation, etc., which ultimately results in the Premium (as applied to securities issued or as-
retirement or other disposition of property. sumed by the air carrier). The excess of (1) the
Off-Line. Installations maintained or fa- then current money value of the consider-
cilities used for other than scheduled certifi- ation received from their sale, less the
cated air services. amount included therein for dividends or in-
On-Line. Installations maintained or facili- terest accrued, over (2) their par or stated
ties used in conducting scheduled certifi- value.
cated air services. Pretax accounting income. Income or loss for
Domestic. Flight stages with both terminals a period exclusive of related income tax ex-
within the 50 States of the United States and pense.
the District of Columbia. Property (as applied to traffic). (See Cargo.)
Territorial. Flight stages with both termi- Replacement. Substitution of new for exist-
nals within territory under U.S. jurisdiction ing facilities that are worn out, damaged be-
where at least one of the terminals is not yond repair, or have become inadequate in
within a State or the District of Columbia. service.
International. Flight stages with one or Residual value. The predetermined portion
both terminals outside of territory under of the cost of a unit of property or equip-
U.S. jurisdiction. ment excluded from depreciation. It shall
Operations, systems. The over-all operations represent a fair and reasonable estimate of
of an air carrier including all of the oper- recoverable value as at the end of the service
ating entities of an air carrier having mul- life over which the property or equipment is
tiple operations. depreciated and shall give due consideration
Passenger-mile. One passenger transported 1 to the proceeds anticipated from disposition
mile. Passenger-miles are computed by mul- of the property or equipment and the extent
tiplying the aircraft miles flown on each to which costs attaching to property or
flight stage by the number of passengers equipment are otherwise recoverable
transported on that stage. through charges against income.
Passenger-mile, nonrevenue. One nonrevenue Retirement. The permanent withdrawal of
passenger transported one mile. assets from services of the corporate entity
Passenger-mile, revenue. One revenue pas- through sale, abandonment, demolition, or
senger transported one mile. other disposal.
Passenger, nonrevenue. Person receiving air Retirement, date of. The date on which prop-
transportation from the air carrier for which erty or equipment is permanently withdrawn
remuneration is not received by the air car- from services of the corporate entity.
rier. Air carrier employees or others receiv- Route, certificated. The route(s) over which
ing air transportation against whom token an air carrier is authorized to provide air
service charges are levied are considered transportation by a Certificate of Public
nonrevenue passengers. Infants for whom a Convenience and Necessity issued by the De-
token fare is charged are not counted as pas- partment of Transportation pursuant to sec-
sengers. tion 401(d) (1) or (2) of the Act.
Passenger, revenue. Person receiving air Salvage value. The amount received for
transportation from the air carrier for which property retired, less the expenses incurred
remuneration is received by the air carrier. in connection with the sale or in the prepa-
Air carrier employees or others receiving air ration of the property for sale; or, if re-
transportation against whom token service tained, the amount at which the material re-
charges are levied are considered nonrevenue covered is charged to materials and supplies
passengers. Infants for whom a token fare is or other appropriate account.
charged are not counted as passengers. Seats available. Installed seats in an air-
Passengers transported. Passengers on board craft (including seats in lounges) exclusive of
each flight stage. any seats not offered for sale to the public by
Person controlling an air carrier. Any person, the carrier; provided that in no instance
as defined in 49 U.S.C. 40102, whom the De- shall any seat sold be excluded from the
partment has found, in any proceeding, to count of available seats.

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Pt. 241 14 CFR Ch. II (1–1–00 Edition)
Seats, average available. The average num- enue services not constituting an integral
ber of seats available for passengers, deter- part of the services performed pursuant to
mined by dividing available seat-miles by published schedules; and related nonrevenue
revenue aircraft miles flown in passenger flights.
service. Service, passenger-cargo. Transport service
Seat-miles available, revenue. The aircraft established for the carriage of passengers
miles flown on each flight stage multiplied which may also be used jointly for the trans-
by the number of seats available for revenue portation of cargo.
use on that stage. Service, scheduled. Transport service oper-
Section 41103 cargo operations. The carriage, ated pursuant to published flight schedules,
pursuant to 49 U.S.C. 41103, by aircraft of including extra sections and related nonrev-
property and/or mail as a common carrier for enue flights.
compensation or hire in commerce between a Service, transport. The operation of facili-
place in any State of the United States, or ties for the carriage of traffic by air.
the District of Columbia, or Puerto Rico, or Services, all. The total of scheduled and
the U.S. Virgin Islands, and a place in any nonscheduled transport services.
other of those entities, or between places in Stop, flag. A point on an air carrier’s oper-
the same State or other entity through the ating system that is scheduled to be served
air-space over any place outside thereof, or only when traffic is to be picked up or dis-
between places within the District of Colum- charged.
bia, Puerto Rico, or the U.S. Virgin Islands. Stops, technical. Aircraft landing made for
This includes commerce moving partly by purposes other than enplaning or deplaning
aircraft and partly by other forms of trans- traffic. For purposes of identifying reporting
portation, as well as commerce moving whol- entities, landings made for stopover pas-
ly by aircraft. sengers are regarded as technical stops.
Segment, service. A pair of points served or Tariff, published. A publication containing
scheduled to be served by a single stage of at fares and rates applicable to the transpor-
least one flight within any given time pe- tation of persons or cargo and rules relating
riod. to or affecting such fares or rates of trans-
Service, charter. Nonscheduled air transport portation, filed with the Department of
service in which the party receiving trans- Transportation.
portation obtains exclusive use of an agreed Taxable income. The excess of revenues over
upon portion of the total capacity of an air- deductions or the excess of deductions over
craft with the remuneration paid by the revenues to be reported for income tax pur-
party receiving transportation accruing di- poses for a period.
rectly to, and the responsibility for pro- Tax effects. Differentials in income taxes of
viding transportation is that of, the account- a period attributable to (1) revenue or ex-
ing air carrier. pense transactions which enter into the de-
Service, coach (tourist). Transport service termination of pretax accounting income in
specifically established for the carriage of one period and into the determination of tax-
passengers at special reduced passenger fares able income in another period, (2) deductions
that are predicated on both the operation of or credits that may be carried backward or
specifically designated aircraft space and a forward for income tax purposes, and (3) ad-
reduction in the quality of service regularly justments of prior periods (or of the opening
and ordinarily provided. balance of retained earnings) and direct en-
Service, first class. Transport service estab- tries to other stockholders’ equity accounts
lished for the carriage of passengers moving which enter into the determination of tax-
at either standard fares or premium fares, or able income in a period but which do not
at reduced fares not predicated upon the op- enter into the determination of pretax ac-
eration of specifically allocated aircraft counting income of that period. A permanent
space, and for whom standard or premium difference does not result in a ‘‘tax effect’’ as
quality services are provided. the term is used in this System of Accounts
Service life. The period between the date of and Reports.
installation of property or equipment and its Ton. A short ton (2,000 pounds).
date of retirement. Ton-mile. One ton transported 1 mile. Ton-
Service, mixed. Transport service for the miles are computed by multiplying the air-
carriage of both first-class and coach pas- craft miles flown on each flight stage by the
sengers on the same aircraft. number of tons transported on that stage.
Service, nonpassenger. Transport service es- Ton-mile, nonrevenue. One ton of nonrev-
tablished for the carriage of traffic other enue traffic transported 1 mile.
than passengers. Ton-mile, passenger. One ton of passenger
Service, nonscheduled. Includes transport weight (including all baggage) transported 1
service between points not covered by Cer- mile. (See also Weight, passenger.)
tificates of Public Convenience and Neces- Ton-mile, revenue. One ton of revenue traf-
sity issued by the Department of Transpor- fic transported 1 mile.
tation to the air carrier; services pursuant to Ton-miles available, revenue. The aircraft
the charter or hiring of aircraft; other rev- miles flown on each flight stage multiplied

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Office of the Secretary, DOT Pt. 241
by the ton capacity available for use on that which an aircraft is licensed to carry into
stage. the air on each flight stage.
Traffic, deplaned. A count of the number of Weight, average available. The average ca-
passengers getting off and tons of cargo un- pacity available for revenue traffic, deter-
loaded from an aircraft. For this purpose, mined by dividing available ton-miles by air-
passengers an cargo on aircraft leaving a craft miles in revenue service.
carrier’s system on interchange flights are Weight, empty. The weight of the airframe,
considered as deplaning and the interchange engines, propellers, and fixed equipment of
point; and passengers and cargo moving from an aircraft. Empty weight excludes the
one operation to another operation of the weight of the crew and payload, but includes
same carrier, for which separate reports are the weight of all fixed ballast, unusable fuel
required by the Department of Transpor- supply, undrainable oil, total quantity of en-
tation, are considered as deplaning at the gine coolant, and total quantity of hydraulic
junction point. fluid.
Traffic, enplaned. A count of the number of Weight, passenger. For the purposes of this
passengers boarding and tons of cargo loaded part, a standard weight of 200 pounds per pas-
on an aircraft. For this purpose, passengers senger (including all baggage) is used for all
and cargo on aircraft entering a carrier’s civil operations and classes of service. Other
system on interchange flights are considered weights may be prescribed in specific in-
as enplaning at the interchange point; and stances upon the initiative of the Depart-
passengers and cargo moving from one oper- ment of Transportation or upon a factually
ation to another operation of the same car- supported request by an air carrier.
rier, for which separate reports are required
by the Department of Transportation, are [ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
considered as enplaning at the junction ed by Amdt. 241–58, 54 FR 5590, Feb. 89, 1989]
point. EDITORIAL NOTE: For FEDERAL REGISTER ci-
Traffic, nonrevenue. Passengers and cargo tations affecting Section 03, see the List of
transported by air for which no remunera- CFR Sections Affected in the Finding Aids
tion or token service charges are received by
section of this volume.
the air carrier. Airline employees, officers
and directors, or other persons, except for
SECTION 04—AIR CARRIER GROUPINGS
ministers of religion, who are traveling
under reduced-rate transportation author- (a) All large certificated air carriers are
ized by 49 U.S.C. 41511(a) and 14 CFR part 223, placed into three basic air carrier groupings
as well as travel agents, cargo agents, and based upon their level of operations and the
tour conductors traveling at reduced fares nature of these operations. In order to deter-
are also considered nonrevenue traffic. mine the level of operations, total operating
Traffic office. A facility where air transpor- revenues for a twelve-month period are used.
tation is sold, and related processes of docu- The following operating revenue ranges are
mentation and reservation confirmation are used to establish air carrier groupings:
performed.
Traffic, revenue. Passengers and cargo Carrier Group Total Annual Operating Revenues
transported by air for which remuneration is
received by the air carrier. Airline employ- I ............................. 0–$100,000,000
ees, officers and directors, or other persons, II ............................ $100,000,001–$1,000,000,000
III ........................... $1,000,000,001 +
except for ministers of religion, who are
traveling under reduced-rate transportation
authorized by 49 U.S.C. 41511(a) and 14 CFR For reporting purposes, Group I air
part 223, travel agents, cargo agents, and carriers are further divided into two
tour conductors traveling at reduced fares, subgroups: (1) Air carriers with total
and other passengers and cargo carried for annual operating revenues from
token service charges, are not considered as $20,000,000 to $100,000,000 and (2) Air car-
revenue traffic. riers with total annual operating reve-
Transportation, free. The carriage of any
person or cargo (other than cargo owned by
nues below $20,000,000.
the air carrier) without compensation. (b) Both the criteria for establishing
Unit basis (in depreciation accounting). A air carrier groupings and the assign-
plan under which depreciation expenses is ment of each air carrier to a specific
accrued upon the basis of the book cost of group of carriers will be reviewed peri-
the individual item of property in relation to odically by the Director, Office of Air-
the service life and salvage value of the par- line Information, to assure the mainte-
ticular item. nance of appropriate standards for the
Value, service. The difference between the
book cost and the residual value of property
grouping of carriers. When an air car-
and equipment. rier’s level of operations passes the
Weight, allowable gross. The maximum gross upper or lower limit of its currently as-
weight (of the aircraft and its contents) signed carrier grouping, the carrier is

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Sec. 1–1 14 CFR Ch. II (1–1–00 Edition)

not automatically transferred to a dif- substantive results as between air car-
ferent group and a new level of report- riers.
ing. The Office of Airline Statistics
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
will issue an updated listing of the car-
ed at 60 FR 66723, Dec. 26, 1995]
rier groups on an annual basis. A car-
rier may petition for reconsideration of Sec. 1–3 General description of system
its assigned carrier grouping or request of accounts and reports.
a waiver from the accounting and re-
porting requirements that are applica- (a) This system of accounts and re-
ble to a particular group under the pro- ports is designed to permit limited con-
visions of section 1–2 of this Uniform traction or expansion to reflect the
System of Accounts and Reports. varying needs and capacities of dif-
ferent air carriers without impairing
[Amdt. 241–60, 56 FR 12658, Mar. 27, 1991, as
amended at 60 FR 66723, Dec. 26, 1995] basic accounting comparability as be-
tween air carriers. In its administra-
GENERAL ACCOUNTING tion three air carrier groups, des-
PROVISIONS ignated Group I, Group II, and Group
III, respectively (see section 04), are es-
SECTION 1—INTRODUCTION TO SYSTEM OF tablished by the BTS. This grouping
ACCOUNTS AND REPORTS will be reviewed from time to time
Sec. 1–1 Applicability of system of ac- upon petition of individual air carriers
counts and reports. or by initiative of the BTS with the
Each large certificated air carrier view of a possible regrouping of the air
shall keep its books of account, records carriers.
and memoranda and make reports to (b) Under the system of accounts pre-
the BTS in accordance with this sys- scribed, balance sheet elements are ac-
tem of accounts and reports. The BTS counted for by all air carrier groups
reserves the right, however, under the within a fixed uniform pattern of spe-
provisions of sections 49 U.S.C. 41701 cific accounts. All profit and loss ele-
and 41708, to expand or otherwise mod- ments are accounted for within specific
ify the classes of carriers subject to objective accounts established for each
this system of accounts and reports. air carrier group resulting from dual
[ER–1400, 50 FR 11, Jan. 2, 1985, as amended classifications, designated for each air
at 60 FR 66723, Dec. 26, 1995] carrier group, which are descriptive of
both basic areas of financial activity,
Sec. 1–2 Waivers from this system of or functional operation, and objective
accounts and reports. served. The profit and loss elements of
A waiver from any provision of this the three air carrier groups can be re-
system of accounts or reports may be duced to broad objectives and general
made by the BTS upon its own initia- or functional classifications which are
tive or upon the submission of written comparable for all air carrier groups.
request therefor from any air carrier, Both balance sheet and profit and loss
or group of air carriers, provided that accounts and account groupings are de-
such a waiver is in the public interest signed, in general, to embrace all ac-
and each request for waiver expressly tivities, both air transport and other
demonstrates that: existing peculiar- than air transport, in which the air
ities or unusual circumstances warrant
carrier engages and provide for the sep-
a departure from a prescribed proce-
aration of elements identifiable exclu-
dure or technique; a specifically de-
sively with other than air transport ac-
fined alternative procedure or tech-
nique will result in a substantially tivities. Profit and loss elements which
equivalent or more accurate portrayal are recorded during the current ac-
of operating results or financial condi- counting year are subclassified as be-
tion, consistent with the principles em- tween (1) those which relate to the cur-
bodied in the provisions of this system rent accounting year and adjustments
of accounts and reports; and the appli- of a recurrent nature applicable to
cation of such alternative procedure prior accounting years, and (2) extraor-
will maintain or improve uniformity in dinary items of material magnitude.

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Office of the Secretary, DOT Sec. 1–6

(c) In order to afford air carriers as Sec. 1–5 Records.
much flexibility and freedom as pos-
(a) The general books of account and
sible in establishing ledger and sub-
all books, records, and memoranda
sidiary accounts to meet their indi-
which support in any way the entries
vidual needs, a minimum number of ac-
therein shall be kept in such manner as
count subdivisions have been pre-
scribed in this Uniform System of Ac- to provide at any time full information
counts. It is intended, however, that relating to any account. The entries in
each air carrier, in maintaining its ac- each account shall be supported by
counting records, will provide sub- such detailed information as will
account and subsidiary account seg- render certain the identification of all
regations of accounting elements facts essential to a verification of the
which differ in nature of accounting nature and character of each entry and
characteristics, in a manner which will its proper classification under the pre-
render individual elements readily dis- scribed Uniform System of Accounts.
cernible and traceable throughout the Registers, or other appropriate records,
accounting system, and will provide for shall be maintained of the history and
relating profit and loss elements to ap- nature of each note receivable and each
plicable balance sheet counterparts. note payable.
(b) The books and records referred to
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
herein include not only accounting
ed at 60 FR 66723, Dec. 26, 1995]
records in a limited technical sense,
Sec. 1–4 System of accounts coding. but all other records such as organiza-
tion tables and charts, internal ac-
(a) A four digit control number is as- counting manuals and revisions there-
signed for each balance sheet and profit
to, minute books, stock books, reports,
and loss account. Each balance sheet
cost distributions and other accounting
account is numbered sequentially,
work sheets, correspondence, memo-
within blocks, designating basic bal-
randa, etc., which may constitute nec-
ance sheet classifications. The first
two digits of the four digit code as- essary links in developing the history
signed to each profit and loss account of, or facts regarding, any accounting
denote a detailed area of financial ac- or financial transaction.
tivity or functional operation. The (c) All books, records and memoranda
first two digits, thus assigned to each shall be preserved and filed in such
profit and loss account, are numbered manner as to readily permit the audit
sequentially within blocks, designating and examination thereof by representa-
more general classifications of finan- tives of the DOT. All books, records,
cial activity and functional operation. and memoranda shall be housed or
The second two digits assigned to prof- stored in such manner as to afford pro-
it and loss accounts denote objective tection from loss, theft, or damage by
classifications. fire, flood or otherwise and no such
(b) A fifth digit, appended as a dec- books and records shall be destroyed or
imal, has been assigned for internal otherwise disposed of, except in con-
control by the BTS of prescribed sub- formance with 14 CFR part 249 for the
divisions of the primary objective bal- preservation of records.
ance sheet and profit and loss classi-
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
fications. A different fifth digit code
ed at 60 FR 66723, Dec. 26, 1995]
number from that assigned by the BTS
may be adopted for internal record- Sec. 1–6 Accounting entities.
keeping by the air carrier provided the
prescribed subclassification of objec- (a) Separate accounting records shall
tive accounts is not impaired and the be maintained for each air transport
code number assigned by the BTS is entity for which separate reports to
employed in reporting to the BTS on the BTS are required to be made by
Form 41 Reports. sections 21(g) and for each separate
corporate or organizational division of
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
the air carrier. For purposes of this
ed at 60 FR 66723, Dec. 26, 1995]

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Sec. 1–7 14 CFR Ch. II (1–1–00 Edition)

Uniform System of Accounts and Re- reau of Transportation Statistics, for
ports, each nontransport entity con- explanation, interpretation, or resolu-
ducting an activity which is not re- tion.
lated to the air carrier’s transport ac- [Amdt. 241–58, 54 FR 5591, Feb. 6, 1989, as
tivities and each transport-related ac- amended at 60 FR 66723, Dec. 26, 1995]
tivity or group of activities qualifying
as a nontransport venture pursuant to Sec. 1–8 Address for reports and cor-
paragraph (b) of this section, whether respondence.
or not formally organized within a dis- All reports required under this part
tinct organizational unit, shall be and related correspondence shall be ad-
treated as a separately operated orga- dressed to: Office of Airline Informa-
nizational division; except that provi- tion, K–25, Room 4125, U.S. Department
sions of this paragraph and paragraph of Transportation, 400 Seventh St.,
(b) shall not apply to leasing activities. SW., Washington, DC 20590.
(b) As a general rule, any activity or
[Amdt. 241–58, 54 FR 5592, Feb. 6, 1989, as
group of activities comprising a trans-
amended at 60 FR 66723, Dec. 26, 1995]
port-related service provided for in
transport-related revenue and expense SECTION 2—GENERAL ACCOUNTING
accounts 09 through 18 shall be consid- POLICIES
ered a separate nontransport venture
under circumstances in which either: Sec. 2.1 Generally accepted account-
(1) A separate corporate or legal entity ing principles.
has been established to perform such (a) The accounting provisions con-
services, (2) the aggregate annual rev- tained in this part are based on gen-
enue rate, as determined in section 2– erally accepted accounting principles
1(d), during either of the prior two (GAAP). Persons subject to this part
years exceeds the greater of $1 million are authorized to implement, as pre-
per annum or one percent of the air scribed by the Financial Accounting
carrier’s total annual transport reve- Standards Board, newly issued GAAP
nues, or (3) the aggregate annual ex- pronouncements until and unless the
pense rate, as determined in section 2– Director, Office of Airline Information
1(d), during either of the prior two (OAI), issues an Accounting Directive
years exceeds the greater of $1 million making an initial determination that
or one percent of the carrier’s total an- implementation of a new pronounce-
nual operating expenses: Provided, That ment would adversely affect the De-
revenues and expenses from in-flight partment’s programs.
sales, and interchange sales shall be (b) The Director, OAI, shall review
considered related to air transpor- each newly issued GAAP pronounce-
tation and accounted for accordingly, ment to determine its affect on the De-
regardless of the revenue or expense partment’s regulatory programs. If
standard set forth above. adopting a specific change in GAAP
(c) The records for each required ac- would adversely affect the Depart-
counting entity shall be maintained ment’s programs, the Director will
with sufficient particularity to permit issue the results of the review in the
a determination that the requirements form of an Accounting Directive. The
of section 2–1 have been complied with. directive will state the reasons why the
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend- particular change should not be incor-
ed by ER–841, 39 FR 11994, Apr. 2, 1974; ER– porated in the uniform system of ac-
1022, 42 FR 46495, Sept. 15, 1977; ER–1027, 42 counts and contain accounting guid-
FR 60127, Nov. 25, 1977; 60 FR 66723, Dec. 26, ance for maintaining the integrity of
1995] the Department’s air carrier account-
ing provisions.
Sec. 1–7 Interpretation of accounts. (c) Objections and comments relating
To the end that uniform accounting to the Department’s decision not to
may be maintained, questions involv- implement a change in generally ac-
ing matters of accounting significance cepted principles may be addressed to
which are not clearly provided for Director, Office of Airline Information,
should be submitted to the Director, K–25, Room 4125, U.S. Department of
Office of Airline Information, K–25, Bu- Transportation, 400 Seventh St., SW.,

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Office of the Secretary, DOT Sec. 2–4

Washington, DC 20590. If significant ob- bases as will result: (1) With respect to
jections are raised urging adoption of a transport-related services, in the as-
particular GAAP pronouncement, the signment thereto of proportionate di-
Department will institute a rule- rect overheads, as well as direct labor
making. and materials, of the applicable ex-
[Amdt. 241–58, 54 FR 5592, Feb. 6, 1989, as pense functions prescribed by this sys-
amended at 60 FR 66723, Dec. 26, 1995] tem of accounts and reports, and (2)
with respect to separate ventures, in
Sec. 2–2 Basis of allocation between the assignment thereto of proportional
entities. general and administrative overheads
(a) The provisions of this section as well as the direct overheads, labor,
shall apply to each person controlling and materials.
an air carrier, each person controlled [ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
by the air carrier, as well as each ed by ER–841, 39 FR 11994, Apr. 2, 1974; ER–
transport entity and organizational di- 1401, 50 FR 238, Jan. 3, 1985. Redesignated and
vision of the air carrier for which sepa- further amended by Amdt. 241–58, 54 FR 5592,
rate records must be maintained pursu- Feb. 6, 1989]
ant to section 1–6.
(b) Each transaction shall be re- Sec. 2–3 Distribution of revenues and
corded and placed initially under ac- expenses within entities.
counting controls of the particular air (a) Revenues and expenses attrib-
transport entity or organizational divi- utable to a single natural objective ac-
sion of the air carrier or member of an count or functional classification shall
affiliated group to which directly be assigned accordingly.
traceable. If applicable to two or more (b) Revenue and expense items which
accounting entities, a proration shall are common to two or more natural ob-
be made from the entity of original re- jective accounts shall be recorded in
cording to other participating entities the objective accounts to which they
on such basis that the statements of fi- predominantly relate.
nancial condition and operating results (c) Expense items contributing to
of each entity are comparable to those more than one function shall be
of distinct legal entities. The alloca- charged to the general overhead func-
tions involved shall include all debits tions to which applicable except that
and credits associated with each enti- where only incidental contribution is
ty. made to more than a single function an
(c) For purposes of this section, in- item may be included in the function
vestments by the air carrier in re- to which primarily related, provided
sources or facilities used in common by such function is not distorted by in-
the regulated air carrier and those cluding an aggregation of amounts ap-
transport-related revenue services de- plicable to other functions. When as-
fined as separate nontransport ven- signment of expense items on the basis
tures under section 1–6(b) shall not be of the primary activity to which re-
allocated between such entities but lated does not in the aggregate result
shall be reflected in total in the appro- in a fair presentation of the expenses
priate accounts of the entity which applicable to each function, apportion-
predominately uses those investments. ment shall be made between functions
Where the entity of predominate use is based upon a study of the contribution
a nontransport venture, the air carrier to each function during a representa-
shall reflect the investment in account tive period.
1510.3, Advances to Associated Compa-
nies. [ER–755, 37 FR 19726, Sept. 21, 1972. Redesig-
(d) For purposes of this Uniform Sys- nated by Amdt. 241–58, 54 FR 5592, Feb. 6,
tem of Accounts and Reports, all reve- 1989]
nues shall be assigned to or appor-
tioned between accounting entities on Sec. 2–4 Accounting period.
bases which will fully recognize the (a) The accounting year of each air
services provided by each entity, and carrier subject to this Uniform System
expenses, or costs, shall be apportioned of Accounts shall be the calendar year
between accounting entities on such unless otherwise approved by the BTS.

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Sec. 2–5 14 CFR Ch. II (1–1–00 Edition)

(b) Each air carrier shall keep its fi- amined shall not exceed the maximums
nancial accounts and records on a full set forth below:
accrual basis for each quarter so that
Maximum
all transactions, as nearly as may rea- Class of carrier months 1
sonably be ascertained, shall be fully
reflected in the air carrier’s books for TWA ..................................................................... 18
the quarter in which revenues have Trunks (except TWA) .......................................... 12
All other route air carriers .................................... 6
been earned and the costs attaching to
the revenues so earned in each quarter 1 Applies only to carriers on a yield or average-fare basis.
have been incurred independently of (3) The nature of the documents
the incidence of sales or purchases and
which were examined for purposes of
settlement with debtors or creditors.
the verification.
(c) Expenditures incurred during the
(4) The totals for each of the various
current accounting year which demon-
strably benefit operations to be per- types of documents examined, on ac-
formed during subsequent accounting tual or sampling basis.
years to a significant extent shall be (5) A description of the sampling
deferred and amortized to the period in technique and conversion to totals, if
which the related operations are per- sampling was employed.
formed when of sufficient magnitude to (6) The amount and basis for all esti-
distort the accounting results of the mates employed in the verification.
year in which incurred. (7) The amount of resulting adjust-
(d) Expenditures charged directly or ments and the quarter in which such
amortized to operations within one ac- adjustments were, or are to be, made in
counting year shall not be reversed in the accounts.
a subsequent accounting year and re- (d) For those carriers who use the
amortized or charged directly against sales-lift match method to determine
operations of subsequent years except earned revenue, the analysis sup-
that retroactive adjustments are per- porting the physical inventory
mitted where necessary to conform verification shall include:
with adjustments required by the DOT (1) The cutoff date for the liability to
for ratemaking purposes.
be verified; such cutoff date shall be at
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend- the end of a calendar month.
ed by ER–1027, 42 FR 60127, Nov. 25, 1977; ER– (2) A trial balance as of the cutoff
1188, 45 FR 48870, July 22, 1980; 60 FR 66723, date of all subaccounts supporting the
66725, Dec. 26, 1995]
Air Traffic Liability control account;
Sec. 2–5 Revenue and accounting prac- the subsidiary trial balance must agree
tices. with the Air Traffic Liability control
account or a reconciliation statement
(a) Revenue accounting practices
furnished.
shall conform to the provisions of ac-
count 2160, Air Traffic Liability. (3) A statement to the effect that a
sales listing of the value of all un-
(b) Each route air carrier shall phys-
ically verify the reliability of its pas- matched auditor coupons has been
senger revenue accounting practice at compiled and compared to the general
least once each accounting year. ledger control figure; the statement re-
(c) For those carriers who use the quired by this subparagraph shall indi-
yield or average-fare method to deter- cate whether or not the value of the
mine earned revenue, the analysis sup- unmatched coupons is in agreement
porting the verification shall include: with the general ledger. If the sales
(1) The cutoff date for the liability to listing is not in agreement with the Air
be verified; such cutoff date shall be at Traffic Liability control account, the
the end of a calendar month. amount of such difference shall be
(2) The number of months after the shown on such statement.
cutoff date during which documents [ER–948, 41 FR 12290, Mar. 25, 1976, as amend-
were examined to verify the liability; ed by ER–1401, 50 FR 238, Jan. 3, 1985. Redes-
the number of months after the cutoff ignated at Amdt. 241–58, 54 FR 5592, Feb. 6,
date during which documents are ex- 1989; 60 FR 66725, Dec. 26, 1995]

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Office of the Secretary, DOT Sec. 3
[See footnotes at end of table]
BALANCE SHEET CLASSIFICATIONS
General classification
SECTION 3—CHART OF BALANCE SHEET Name of account
ACCOUNTS
[See footnotes at end of table] General classification

General classification Buildings ................................ 1640 1740
Name of account Maintenance buildings and
improvements ................. 1640.1 1740.1
Other buildings and im-
Current assets:
provements ..................... 1640.9 1740.9
Cash ................................... ...................... 1010
Ground property and equip-
Short-term investments ...... ...................... 1100
ment ................................... 1649 1749
Notes receivable ................ ...................... 1200
Allowance for depreciation:
Accounts receivable ........... ...................... 1270
Allowance for uncollectible Equipment .......................... 1650 1750
accounts ......................... ...................... 1290 Improvements to leased
Spare parts and supplies ... ...................... 1300 buildings and equipment 1654 1754
Allowance for obsoles- Furniture, fixtures, and of-
cence—Spare parts and fice equipment ................ 1656 1756
supplies ........................... ...................... 1311 Buildings ............................. 1660 1760
Prepaid items ..................... ...................... 1410 Maintenance buildings
Other current assets .......... ...................... 1420 and improvements ...... 1660.1 1760.1
Investments and special Other buildings and im-
funds: provements ................. 1660.9 1760.9
Investments in associated Allowance for depreciation of
companies ...................... ...................... 1510 flight equipment and ground
Investments in investor property and equipment,
controlled companies ...... ...................... 1510.1 and amortization of over-
Investments in other asso- haul and airworthiness
ciated companies ............ ...................... 1510.2 costs ................................... 1668 1768
Advances to associated Land ....................................... 1679 1779
companies ...................... ...................... 1510.3 Equipment purchase deposits
Other investments and re- and advance payments ...... 1685 1785
ceivables ......................... ...................... 1530 Construction work in progress 1689 1789
Special funds ...................... ...................... 1550 Leased property under capital
Property and equipment ........ ...................... 1600–1700 leases ................................. 1695 1795
Capital leases—flight equip-
ment ................................ 1695.1 1795.1
Operating Nonoperat-
Capital leases—other prop-
...................... ing
erty and equipment ......... 1695.2 1795.2
Leased property under capital
Airframes ................................ 1601 1701 leases, accumulated amor-
Airframes ............................ 1601.1 1701.1 tization ................................ 1696 1796
Unamortized airframe over- Accumulated amortization—
hauls ............................... 1601.2 1701.2 capitalized flight equip-
Aircraft engines ...................... 1602 1702 ment ................................ 1696.1 1796.1
Aircraft engines .................. 1602.1 1702.1 Accumulated amortization—
Unamortized aircraft engine capitalized other property
overhauls ........................ 1602.2 1702.2 and equipment ................ 1696.2 1796.2
Improvements to leased flight Property on operating-type
equipment ........................... 1607 1707 lease to others and prop-
Flight equipment rotable parts erty held for lease .............. ...................... 1797
and assemblies .................. 1608 1708 Property on operating-type
Airframe parts and assem- lease to others and prop-
blies ................................ 1 1608.1 1 1708.1
erty held for lease, accumu-
Aircraft engine parts and lated depreciation ............... ...................... 1798
assemblies ...................... 1 1608.5 1 1708.5
Other assets:
Other parts and assemblies 1 1608.9 1 1708.9
Long-term prepayments ..... ...................... 1820
Flight equipment .................... 1609 1709 Unamortized developmental
Allowance for depreciation: and preoperating costs ... ...................... 1830
Airframes ............................ 1611 1711 Other assets and deferred
Aircraft engines .................. 1612 1712 charges ........................... ...................... 1890
Improvements to leased Current liabilities:
flight equipment .............. 1617 1717 Current maturities of long-
Flight equipment rotable term debt ........................ ...................... 2000
parts and assemblies ..... 1618 1718 Notes payable:
Flight equipment airworthi- Banks .............................. ...................... 2005
ness allowance ................... 2 1629 2 1729
Other ............................... ...................... 2015
Equipment .............................. 1630 1730 Trade accounts payable ..... ...................... 2021
Furniture, fixtures and office Accounts payable—other ... ...................... 2025
equipment ........................... 1636 1736 Current obligations under
Improvements to leased build- capital leases .................. ...................... 2080
ings and equipment ............ 1639 1739 Accrued salaries, wages .... ...................... 2110
Accrued vacation liability .... ...................... 2120

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1010 14 CFR Ch. II (1–1–00 Edition)
[See footnotes at end of table] CURRENT ASSETS
General classification
Name of account 1010 Cash.
(a) Record here all general and work-
Accrued interest ................. ...................... 2125 ing funds available on demand as of the
Accrued taxes .................... ...................... 2130 date of the balance sheet which are not
Dividends declared ............. ...................... 2140
Air traffic liability ................. ...................... 2160
formally restricted or earmarked for
Other current liabilities ....... ...................... 2190 specific objectives. Funds deposited for
Noncurrent liabilities: special purposes which are to be satis-
Long-term debt ................... ...................... 2210 fied within one year shall be included
Advances from associated
companies ...................... ...................... 2240 in account 1100 Short-term Invest-
Pension liability .................. ...................... 2250 ments and funds restricted as to gen-
Noncurrent obligations eral availability, which are not offset
under capital leases ....... ...................... 2280
Other noncurrent liabilities ...................... 2290
by current liabilities, shall be included
Deferred credits: in account 1550 Special Funds.
Deferred income taxes ....... ...................... 2340 (b) Each air carrier shall subdivide
Deferred investment tax this account in such manner that the
credits ............................. ...................... 2345
Other deferred credits ........ ...................... 2390 balance can be readily segregated as
Stockholders’ equity: between balances in United States cur-
Preferred stock ................... ...................... 2820 rency and the balances in each foreign
Common stock ................... ...................... 2840
Additional capital invested ...................... 2890
currency.
Premium on capital stock ... ...................... 2890.1
Discount on capital stock ... ...................... 2890.2 1100 Short-term Investments.
Other capital stock trans-
actions ............................ ...................... 2890.3
(a) Record here the cost of short-
Retained earnings .............. ...................... 2900 term investments such as special de-
Subscribed and unissued posits and United States Government
stock ............................... 2860 securities, any other temporary cash
Treasury stock .................... ...................... 2990
investments, and the allowance for un-
1 Prescribed for group II and group III air carriers only.
2 At the option of the air carrier, these accounts may be as- realized gain or loss on current mar-
signed Nos. 2629 and 2729, respectively, for accounting pur- ketable equity securities.
poses.
(b) Special deposits for more than
Note: Digits to right of decimals and italicized codes estab-
lished for BTS control purposes only. one year, not offset by current liabil-
ities, shall not be included in this ac-
[ER–1401, 50 FR 239, Jan. 3, 1985, as amended count but in account 1550 Special
by Amdt. 248–58, 54 FR 5592, Feb. 6, 1989; 60 Funds.
FR 66723, Dec. 26, 1995] (c) This account should be charged or
credited for discount or premium on
SECTION 4—GENERAL
United States Government securities
(a) The balance sheet accounts are de- or other securities which should be am-
signed to show the financial condition of the ortized to profit and loss account 80 In-
air carrier as at a given date, reflecting the terest Income.
asset and liability balances carried forward
subsequent to the closing or constructive 1200 Notes Receivable.
closing of the air carrier’s books of account.
(b) The balance sheet accounts prescribed (a) Record here current notes receiv-
in this system of accounts for each air car- able including those from associated
rier group are set forth in Section 3, Chart of companies, company personnel, and all
Balance Sheet Accounts. The balance sheet other sources.
elements to be included in each account are (b) Balances of notes payable to asso-
presented in section 6. ciated companies shall not be offset
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend- against amounts carried in this ac-
ed by Amdt. 241–58, 54 FR 5592, Feb. 6, 1989] count. Balances with associated com-
panies which are not normally settled
SECTION 5 [RESERVED] currently shall not be included in this
SECTION 6—OBJECTIVE CLASSIFICATION account but in balance sheet account
OF BALANCE SHEET ELEMENTS
1510.3 Advances to Associated Compa-
nies.
SOURCE: ER–980, 42 FR 29, Jan. 3, 1977, un- [ER–980, 42 FR 29, Jan. 3, 1977, as amended by
less otherwise noted. ER–1401, 50 FR 241, Jan. 3, 1985]

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Office of the Secretary, DOT 1300

1270 Accounts Receivable. price increases and decreases shall not
be entered in this account but in profit
(a) Record here current accounts re-
and loss account 45, Aircraft Fuels and
ceivable including those due from the
Oils; and
United States Government, foreign
(3) Unissued and unapplied materials
governments, associated companies,
and supplies held in stock such as
company personnel, and other amounts
unissued shop materials, expendable
due for the performance of air trans-
tools, stationery and office supplies,
portation.
passenger service supplies, and res-
(b) Amounts due from the United
taurant and food service supplies.
States Government shall be main-
(b) Costs paid by the air carrier such
tained in such fashion as will clearly
as transportation charges and customs
and separately identify service mail
duties; excise, sales, use and other
pay receivables, subsidy receivables
taxes; special insurance; and other
and other than mail transportation re-
charges applicable to the cost of spare
ceivables.
parts and supplies shall be charged to
(c) Amounts due for the performance
this account when they can be defi-
of air transportation shall include
nitely allocated to specific items or
gross amounts due whether settled
units of property. If such costs cannot
through airline clearing houses or with
be so allocated, or if of minor signifi-
individual carriers. Amounts payable
cance in relation to the cost of such
collected as agent shall not be credited
property, such amounts may be
to this account, but should be included
charged to balance sheet account 1890
in account 2190 Other Current Liabil-
Other Assets and Deferred Charges and
ities.
cleared either by a suitable ‘‘loading
(d) Balances payable to associated
charge’’ as the parts are used or by cur-
companies shall not be offset against
rent charges to appropriate expense or
amounts carried in this account. Bal-
property accounts; so long as the meth-
ances with associated companies which
od of application does not cause mate-
are not normally settled currently
rial distortion in operating expenses
shall not be included in this account
from one accounting period to another.
but in balance sheet account 1510.3 Ad-
(c) Reusable spare parts and supplies
vances to Associated Companies.
recovered in connection with construc-
[ER–980, 42 FR 29, Jan. 3, 1977, as amended by tion, maintenance, or retirement of
ER–1401, 50 FR 241, Jan. 3, 1985] property and equipment shall be in-
cluded in this account at fair and rea-
1290 Allowance for Uncollectible Ac- sonable values but in no case shall such
counts.
values exceed original cost. Recoveries
(a) Record here accruals for esti- of normally reparable and reusable
mated losses from uncollectible ac- parts of a type for which losses in value
counts. may be covered on a practical basis
(b) All accounts against which allow- through valuation allowance provisions
ances have been established shall be shall be included in this account on an
examined quarterly for the purpose of original cost basis. Scrap and non-
redetermining the basis of accruals to usable parts, expensed from this ac-
be applied to subsequent accounting count and recovered, shall be included
periods and the reasonableness of al- at net amounts realizable therefrom
lowances already provided. with contra credit to the expense ac-
counts initially charged.
1300 Spare parts and supplies. (d) The cost of rotable parts and as-
(a) Record here the cost of: semblies of material value included in
(1) Flight equipment replacement this account which ordinarily are re-
parts of a type which ordinarily would paired and reused and possess a service
be recurrently expended and replaced life approximating that of the primary
rather than repaired and reused; property types to which related shall
(2) Unissued fuel inventories for use not be recorded in this account but in
in the overall or system operations of balance sheet account 1608 Flight
the carrier. Adjustments of inventories Equipment Rotable Parts and Assem-
for aircraft fuel due to retroactive blies. For purposes of identifying

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1311 14 CFR Ch. II (1–1–00 Edition)

rotable parts and assemblies of insig- penses as issued and shall not be
nificant unit value which may be in- charged to this account. If at the end
cluded in this account, a reasonable of any calendar year the amount of the
maximum unit value limitation may allowance exceeds the product of the
be established. applicable inventory for the year deter-
(e) Any losses sustained or gains real- mined consistently on a year-end or av-
ized upon the abandonment or other erage basis, and the sum of the stand-
disposition of flight equipment expend- ard percentage accrual rates for all
able parts shall be taken up as capital prior years including the current, the
gains or losses in the periods in which allowance shall be adjusted downward
sustained or realized. (See balance by the amount of the excess. Such ad-
sheet account 1311.) justments shall be charged to this ac-
(f) Items in this account shall be count and credited to profit and loss
charged to appropriate expense ac- account 73 Provisions for Obsolescence
counts as issued for use. Profit and loss and Deterioration—Expendable Parts.
on sales of inventory items as a routine (c) Where changing conditions neces-
service to others shall be included in sitate a revision or adjustment in rates
profit and loss accounts 14 General of accrual, such revision or adjustment
Service Sales—Associated Companies, shall be made applicable to current and
or 16 General Service Sales—Outside, subsequent accounting periods and
and the parts sold shall be removed shall not be applied retroactively to
from this accounts at full cost. prior accounting periods. Following re-
(g) Materials and supplies held in tirement of airframe or aircraft engine
small supply and purchased currently types to which related, any balance re-
may be charged to appropriate expense maining in this account shall be offset
accounts when purchased. against related balances carried in bal-
(h) An allowance for inventory ad- ance sheet account 1300 Spare Parts
justment applicable to materials and and Supplies and the net cleared to
supplies is prohibited. Items in this ac- profit and loss accounts 88.5 Capital
count shall be charged to appropriate Gains and Losses—Operating Property
expense accounts as issued for use. or 88.6 Capital Gains and Losses—
(i) Subaccounts shall be established Other.
within this account for the separate re-
[ER–980, 42 FR 29, Jan. 3, 1977, as amended by
cording of each class or type of spare ER–1401, 50 FR 241, Jan. 3, 1985]
parts and supplies.
[ER–980, 42 FR 29, Jan. 3, 1977, as amended by 1410 Prepaid Items.
ER–1401, 50 FR 241, Jan. 3, 1985] Record here prepayments of obliga-
tions which if not paid in advance
1311 Allowance for Obsolescence— would require the expenditure of work-
Spare Parts and Supplies.
ing capital within one year, such as
(a) Accruals shall be made to this ac- prepaid rent, insurance, taxes, interest,
count when allowances are established etc. Unexpired insurance and miscella-
for losses in the value of expendable neous prepayments applicable to peri-
parts. The accruals to this account ods extending beyond one year where
shall be made by charges to profit and significant in amount shall be charged
loss account 73 Provisions for Obsoles- to balance sheet account 1820 Long-
cence and Deterioration—Expendable Term Prepayments.
Parts. Records shall be maintained
with sufficient detail to permit asso- 1420 Other Current Assets.
ciation of the allowances with each Record here current assets not pro-
class or type of expendable parts. vided for in balance sheet accounts 1010
(b) The accruals to this account shall to 1410, inclusive.
be based upon a predetermination by
the air carrier of that portion of the INVESTMENTS AND SPECIAL FUNDS
total inventory of each class and type
of expendable parts against which an 1510 Investments in Associated Com-
allowance for loss is to be accrued. Ex- panies.
pendable parts issued for use in oper- (a) Record here net investments in
ations shall be charged to operating ex- associated companies.

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Office of the Secretary, DOT 1601

(b) [Reserved] (b) In the case of nontransport divi-
(c) This account shall be subdivided sions three subaccounts shall be main-
by all air carrier groups as follows: tained:
(1) Net investment;
[ER–980, 42 FR 29, Jan. 3, 1977, as amended by (2) current net profit or loss; and
ER–1027, 42 FR 60128, Nov. 25, 1977; ER–1188,
(3) current accounts receivable or
45 FR 48870, July 22, 1980]
payable between the air carrier and the
1510.1 Investments in Investor Con- nontransport division.
trolled Companies. (c) Each nontransport division shall
be accounted for separately in net
Record here the cost of investments amounts receivable which shall be in-
in investor controlled companies ex- cluded in this account or net amounts
cept that permanent impairment in the payable which shall be included in bal-
value of securities may be reflected ance sheet account 2240 Advances from
through charges to profit and loss clas- Associated Companies.
sification 8100, Nonoperating Income or
[ER–980, 42 FR 29, Jan. 3, 1977. Redesignated
Expense—Net. This account shall also by ER–1401, 50 FR 241, Jan. 3, 1985]
include the equity in undistributed
earnings or losses since acquisition. In 1530 Other Investments and Receiv-
the event dividends are declared by ables.
such companies, the air carrier shall Record here notes and accounts re-
credit this account for its share in divi- ceivable not due within one year, in-
dends declared and debit balance sheet vestments in securities issued by oth-
account 1270 Accounts Receivable. This ers, investments in leveraged leases,
account shall separately state: (a) The the noncurrent net investment in di-
cost of such investments at date of ac- rect financing and sales-type leases,
quisition and (b) the equity in undis- and the allowance for unrealized gain
tributed earnings or losses since acqui- or loss on noncurrent marketable eq-
sition. uity securities. Securities held as tem-
[Amdt. 241–58, 54 FR 5592, Feb. 6, 1989]
porary cash investments shall not be
included in this account but in balance
1510.2 Investments in Other Associ- sheet account 1100 Short-Term Invest-
ated Companies. ments. Investments in and receivables
from associated companies which are
Record here the cost of investments not settled currently shall be included
in associated companies other than in- in balance sheet account 1510 Invest-
vestor controlled companies. Cost shall ments in Associated Companies.
represent the amount paid at the date
of acquisition without regard to subse- [Amdt. 241–58, 54 FR 5592, Feb. 6, 1989]
quent changes in the net assets
1550 Special Funds.
through earnings or losses of such asso-
ciated companies. However, permanent Record here special funds not of a
impairment in the value of securities current nature and restricted as to
may be reflected through charges to general availability. Include items
profit and loss classification 8100, Non- such as sinking funds, cash and securi-
operating Income or Expense—Net. ties posted with courts of law, employ-
ee’s funds for purchase of capital stock,
[Amdt. 241–58, 54 FR 5592, Feb. 6, 1989] pension funds under the control of the
air carrier and equipment purchase
1510.3 Advances to Associated Compa- funds.
nies.
(a) Record here advances, loans, and OPERATING PROPERTY AND EQUIPMENT
other amounts not settled currently ‘‘Operating Property and Equipment’’ shall
with investor controlled and other as- encompass items used in air transportation
sociated companies and nontransport services and services related thereto.
divisions. Balances receivable from and
payable to different associated compa- 1601 Airframes.
nies and different nontransport divi- (a) Record here the total cost to the
sions shall not be offset. air carrier of airframes of all types and

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1602 14 CFR Ch. II (1–1–00 Edition)

classes together with the full com- for on a deferral and amortization
plement of instruments, appurtenances basis.
and fixtures comprising complete air-
[Amdt. 241–58, 54 FR 5593, Feb. 6, 1989]
frames including accessories necessary
to the installation of engines and flight 1608 Flight Equipment Rotable Parts
control and transmission systems, ex- and Assemblies.
cept as specifically provided otherwise
in accounts 1602 and 1607. Also record (a) Record here the total cost to the
here in separate subaccounts the costs air carrier of all spare instruments,
of airframes overhauls accounted for parts, appurtenances and subassem-
on a deferral and amortization basis. blies related to the primary compo-
(b) Airframes designed to permit nents of flight equipment units pro-
multiple payload configurations shall vided for in balance sheet accounts 1601
be recorded in this account at the total through 1607, inclusive. This account
cost of the maximum complement of shall include all parts and assemblies
instruments, appurtenances, and fix- of material value which are rotable in
tures used in the air carrier’s oper- nature, are generally reserviced or re-
ations. paired, are used repeatedly and possess
(c) This account shall be subdivided a service life approximating that of the
as follows by all air carriers: property type to which they relate.
1601.1 Airframes. Items of an expendable nature which
1601.2 Unamortized Airframe Overhauls. generally may not be repaired and re-
[ER–980, 42 FR 29, Jan. 3, 1977, as amended by used, shall not be recorded in this ac-
Amdt. 241–58, 54 FR 5593, Feb. 6, 1989] count but in account 1300 Spare Parts
and Supplies. Except for recurrent
1602 Aircraft Engines. service sales, flight equipment parts
(a) Record here the total cost to the recorded in this account shall not be
air carrier of complete units of aircraft charged to operating expenses as re-
engines of all types and classes to- tired. Profit or loss on sales of parts as
gether with a full complement of acces- a routine service to others shall be in-
sories, appurtenances, parts and fix- cluded in profit and loss account 14
tures comprising fully assembled en- General Service Sales, and parts sold
gines as delivered by the engine manu- shall be removed from this account at
facturer ready for operation in test but full cost irrespective of any allowance
without the accessories necessary to for depreciation which has been pro-
its installation in airframes. Also vided.
record here in separate subaccounts (b) This account shall be subdivided
the costs of aircraft engine overhauls as follows by Group II and Group III air
accounted for on a deferral and amorti- carriers:
zation basis.
1608.1 Airframe Parts and Assemblies.
(b) This account shall be subdivided 1608.5 Aircraft Engine Parts and Assem-
as follows by all air carriers: blies.
1602.1 Aircraft Engines. 1608.9 Other Parts and Assemblies.
1602.2 Unamortized Aircraft Engine Over-
hauls. [ER–980, 42 FR 29, Jan. 3. 1977, as amended by
Amdt. 241–58, 54 FR 5593, Feb. 6, 1989]
[ER–980, 42 FR 29, Jan. 3, 1977, as amended by
Amdt. 241–58, 54 FR 5593, Feb. 6, 1989] 1609 Flight Equipment.
1607 Improvements to Leased Flight This classification is established only
Equipment. for purposes of control by the BTS and
Record here the total cost incurred shall reflect the total cost of property
by the air carrier for modification, con- and equipment of all types and classes
version or other improvements to used in the in-flight operations of air-
leased flight equipment. Also record craft.
here, in separate subaccounts, the [ER–980, 42 FR 29, Jan. 3, 1977, as amended at
costs of airframe and aircraft engine 60 FR 66723, Dec. 26, 1995]
overhauls of leased aircraft accounted

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Office of the Secretary, DOT 1649

1629 Flight Equipment Airworthiness (f) Property and equipment of all
Allowances. types and classes used in ground and
marine transportation services.
(a) Record here accumulated provi-
sions for overhauls of flight equipment. (g) Property and equipment of all
types and classes used in storing and
(b) Separate subaccounts shall be es-
distributing fuel, oil and water, such as
tablished for recording accumulated
fueling trucks, tanks, pipelines, etc.
provisions related to each type of air-
(h) All other ground equipment of all
frame and aircraft engine, respectively. types and classes such as medical, pho-
NOTE: At the option of the air carrier, the tographic, employees’ training equip-
number ‘‘2629’’ may be assigned to this ac-
ment, and airport and airway lighting
count for accounting purposes. However, for
purposes of reporting on BTS Form 41, the equipment.
balance in this account shall be reported [ER–980, 42 FR 29, Jan. 3, 1977, as amended by
under account ‘‘1629.’’ Amdt. 241–58, 54 FR 5593, Feb. 6, 1989]
[ER–980, 42 FR 29, Jan. 3, 1977, as amended by
Amdt. 241–58, 54 FR 5593, Feb. 6, 1989; 60 FR 1636 Furniture, Fixtures, and Office
66723, Dec. 26, 1995] Equipment.
Record here the total cost to the air
1630 Equipment. carrier of furniture, fixtures and office
Record here the total cost to the air equipment of all types and classes
carrier of ground equipment to include wherever used or located.
the following: [Amdt. 241–58, 54 FR 5593, Feb. 6, 1989]
(a) Equipment assigned to aircraft or
active line operations as opposed to 1639 Improvements to Leased Build-
items held in stock for servicing pas- ings and Equipment.
sengers such as broilers, bottleware, Record here the total cost to the air
dishes, food boxes, thermos jugs, blan- carrier incurred in connection with
kets, first aid kits, etc. Spare items modification, conversion, or other im-
shall be carried in balance sheet ac- provements to leased buildings and
count 1300 Spare Parts and Supplies equipment.
and shall be charged directly to ex-
pense upon withdrawal from stock for 1640 Buildings.
replacing original complements. Record here the total cost to the air
(b) Equipment used in restaurants carrier of owned buildings, structures
and kitchens. and equipment and related improve-
(c) Equipment of all types and classes ments. Each air carrier shall maintain
used in enplaning and handling traffic the following subaccounts in which the
and in handling aircraft while on values fairly assignable to mainte-
ramps, including motorized vehicles nance and other operations shall be
used in ramp service. Classes of equip- separately recorded:
ment used interchangeably between 1640.9 Other Buildings and Improvements.
handling aircraft on ramps and in 1640.1 Maintenance Buildings and Improve-
ments.
maintaining aircraft may be classified
in accordance with normal predomi- [Amdt. 241–58, 54 FR 5593, Feb. 6, 1989]
nant use.
1649 Ground Property and Equipment.
(d) Nonairborne equipment of all
types and classes used in meteorolog- This classification is established only
ical and communication services which for purposes of control by the BTS and
is not a part of buildings. shall reflect the total cost of property
(e) Equipment of all types and classes and equipment of all types and classes
including motorized vehicles used in other than flight equipment, equip-
engineering and drafting services and ment purchase deposits and advance
in maintaining, overhauling, repairing payments, land, and work in progress.
and testing other classes of property [ER–980, 42 FR 29, Jan. 3, 1977, as amended at
and equipment. 60 FR 66723, Dec. 26, 1995]

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1668 14 CFR Ch. II (1–1–00 Edition)

1668 Allowance for Depreciation of (b) At the option of the air carrier
Flight Equipment and Ground this account may be used as a clearing
Property and Equipment and Amor- account for recording the cost of prop-
tization of Overhaul and Airworthi- erty and equipment acquisitions prior
ness Costs. to a distribution thereof to the appro-
(a) Record in accounts 1611 and 1618, priate property accounts, whether or
inclusive, and 1650 through 1660, inclu- not conditioning or modification is
sive, accruals for depreciation of flight necessary before placing in service.
equipment and ground property and [ER–980, 42 FR 29, Jan. 3, 1977, as amended by
equipment. Amdt. 241–58, 54 FR 5594, Feb. 6, 1989]
(b) As set forth in section 3, Chart of
Balance Sheet Accounts, separate ac- 1695 Leased Property Under Capital
counts shall be established for depre- Leases.
ciation allowances to parallel balance (a) Record here the total costs to the
sheet accounts 1601 through 1608 estab- air carrier for all property obtained
lished for recording the cost of flight under capital leases.
equipment and accounts 1630 through (b) This account shall be subdivided
1640 established for recording the cost by all air carrier groups as follows:
of ground property and equipment. 1695.1 Capital Leases—Flight Equipment.
(c) This account shall be used as a 1696.2 Capital Leases—Other Property and
control account and shall reflect the Equipment.
total amounts recorded in balance [ER–1401, 50 FR 241, Jan. 3, 1985, as amended
sheet accounts 1611 through 1618 and by Amdt. 241–58, 54 FR 5594, Feb. 6, 1989]
1650 through 1660 in addition to account
1629 Flight Equipment Airworthiness 1696 Leased Property Under Capital
Allowance. Leases—Accumulated Amortization.
(a) Record here accruals for amorti-
1679 Land.
zation of leased property obtained
Record here the initial cost and the under capital leases.
cost of improving land. (b) This account shall be subdivided
[Amdt. 241–58, 54 FR 5593, Feb. 6, 1989] by all air carrier groups as follows:
1696.1 Accumulated Amortization—Capital-
1685 Equipment Purchase Deposits ized Flight Equipment.
and Advance Payments. 1696.2 Accumulated Amortization—Capital-
ized Other Property and Equipment.
Record here the amount of purchase
deposits and advance payments made [ER–1401, 50 FR 241, Jan. 3, 1985, as amended
by Amdt. 241–58, 54 FR 5594,]
to acquire operating property and
equipment under outstanding purchase NON-OPERATING PROPERTY AND
commitments. Funds set aside but not EQUIPMENT
deposited or used as advance payments
should not be included in this account ‘‘Nonoperating Property and Equipment’’
but in Account 1550 Special Funds. includes investments in property and equip-
ment not separately accounted for within a
1689 Construction Work in Progress. nontransport division but assigned to other
than air transportation and transport-re-
(a) Record here all direct and indirect lated services, and property and equipment
costs of the air carrier that are ex- held for future use.
pended for constructing and readying
property and equipment of all types 1700 Non-operating Property and
and classes for installation in oper- Equipment.
ations. The amount reported shall re- The total cost to the air carrier of
flect all such expenses that are accu- nonoperating property and equipment
mulated to the balance sheet date. and related allowances for depreciation
Where properly includable in the prop- shall be recorded in balance sheet ac-
erty and equipment classification, counts 1701 through 1796 which, as set
record here also the accumulated costs forth in section 3, Chart of Balance
for uncompleted overhauls of air- Sheet Accounts, parallel balance sheet
frames, aircraft engines, or other mate- accounts 1601 through 1689, for record-
rial units of property. ing the cost of operating property and

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Office of the Secretary, DOT 1830

equipment. In addition to these ac- the normal air transport operations
counts, Account 1797 has been estab- conducted by the air carrier during the
lished for recording the cost of prop- current accounting period shall not be
erty on operating-type leases to others allocated to developmental or
and property held for lease; any accu- preoperating projects and charged to
mulated depreciation applicable to the this account. Nor shall this account be
assets contained in Account 1797 shall credited for revenues from aircraft
be recorded in Account 1798. flights of a developmental or
preoperating character the operating
[ER–1013, 42 FR 37515, July 21, 1977]
costs of which are charged to this ac-
1797 Property on Operating-type count. Any such revenues shall be in-
Lease to Others and Property Held cluded in the profit and loss account
for Lease. for the respective type of revenue. This
Record here the total cost to the air account shall include charges for only
carrier of property on operating-type those costs associated with projects di-
lease to others and property held for rected at obtaining new operating au-
lease. thority or expanding the physical ca-
pacity of the air carrier and shall not
[Amdt. 241–58, 54 FR 5594, Feb. 6, 1989] include costs incurred for the purpose
of generating revenues through rate
1798 Property on Operating-type adjustment. Accordingly, costs associ-
Lease to Others and Property Held
for Lease—Accumulated Deprecia- ated with regulatory proceedings in-
tion. volving route awards or amendments,
whether successful or unsuccessful to
Record here accruals for depreciation the carrier, shall be included in this ac-
of property on operating-type leases to count whereas costs associated with
others and property held for lease. regulatory proceedings involving rate
[Amdt. 241–58, 54 FR 5594, Feb. 6, 1989] or other revenue generation matters
shall be charged to appropriate expense
OTHER ASSETS accounts.
(c) Records shall be established for
1820 Long-Term Prepayments. new routes or extensions of existing
Record here prepayments of obliga- routes to record separately: (1) Costs
tions applicable to periods extending incurred in acquiring or applying for
beyond one year such as payments on the routes, including all costs incurred
leased property and equipment and prior to certification by the DOT and
other payments and advances for rents, inauguration of service by the air car-
rights, or other privileges. rier, and (2) costs incurred after rev-
enue operations begin over the new
1830 Unamortized Developmental and routes or extensions.
Preoperating Costs. (d) Subclassifications shall be estab-
(a) Record here costs accumulated lished to record for each developmental
and deferred by the air carrier per- project the period covered and the pur-
taining to the development of new pose of each item of expense. Each air
routes or extension of existing routes, carrier shall classify the costs of all
preparation for operation of new routes projects included in this account be-
subsequent to certification by the tween: (1) Those related and contrib-
DOT, the integration of new types of uting to the normal air transportation
aircraft or services, and other prepara- services currently conducted by the air
tions for substantial alterations in carrier; (2) those related to services
operational characteristics. conducted by the air carrier which are
(b) Costs chargeable to this account extraneous to or are not otherwise re-
shall include items directly related to lated to the air transportation services
each specific developmental or pre- currently conducted; and (3) those held
operating project, such as travel and in suspense pending status determina-
incidental expenses, legal expenses, tion in terms of possible contribution
flight crew training expenses, and regu- to the air transportation services and
latory proceedings expenses. Expenses inauguration of the service or oper-
which would be otherwise incurred in ation to which related.

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(e) Amounts included in this account damaged or destroyed, costs for clear-
which contribute to or protect the po- ing wrecks and damaged property and
sition of the normal air transportation equipment, including salaries and
services currently conducted by the wages for the repair thereof, and pay-
carrier shall be amortized to profit and ments for damages to property of oth-
loss account 74 Amortization, unless ers. The cost of casualties shall not be
otherwise approved or directed by the charged directly against retained earn-
DOT. Other amounts included in this ings or appropriations thereof, but
account shall be amortized or charged shall be cleared through the applicable
to profit and loss account 89.9 Other profit and loss accounts in accordance
Miscellaneous Nonoperating Debits. with the foregoing.
[ER–980, 42 FR 29, Jan. 3, 1977, as amended at (d) Record here the unamortized debt
60 FR 66723, Dec. 26, 1995] expense related to the assumption by
the air carrier of debt of all types and
1890 Other Assets and Deferred classes. Amounts recorded shall be am-
Charges. ortized to profit and loss account 84
(a) Record here other assets and de- Amortization of Debt Discount, Pre-
ferred charges not provided for else- mium and Expense.
where. (e) Unamortized debt expense shall
(b) Record here debits, the proper not include the excess of the par value
final disposition of which cannot be de- of debt securities over the cash value of
termined until additional information consideration received. Instead, dis-
has been received. This account shall counts shall be recorded in a sub-
include the accumulated cost of labor, account of the related liability.
materials and outside services used in (f) Record here the cost of patents,
the process of manufacturing flight copyrights and other intangible prop-
equipment expendable parts and mate- erties, rights and privileges acquired as
rials and supplies for stock, the accu- a part of a business from other air car-
mulated cost of jobs in process for oth- riers and other intangibles not pro-
ers, projects to be charged to expense vided for elsewhere. This account shall
upon completion. This account shall be subdivided to reflect the nature of
also include unamortized debt expense, each intangible asset included in this
property acquisition adjustments and account.
intangible assets.
(g) Record here the difference be-
(c) This account shall be charged
tween the purchase price to the air car-
with property loss and other costs re-
rier of property and equipment ac-
lated to casualties and credited with
quired as a part of a business from an-
recoveries from purchased insurance
other air carrier through consolida-
and salvage. A debit or credit balance
tion, merger, or reorganization, pursu-
in this account related to property re-
ant to a plan approved by the DOT, and
tired as a result of a casualty shall be
the depreciated cost to the predecessor
recorded in profit and loss account 88.5
company at date of acquisition. Record
Capital Gains and Losses—Operating
here also such differences relating to
Property or 88.6 Capital Gains and
purchases of property and equipment
Losses—Other; however, any balances
from associated companies unless other
related to property not retired or to
treatment is approved by the BTS. Sep-
other casualties shall be recorded in
arate subaccounts shall be established
profit and loss account 58 Injuries, Loss
to record the amounts applicable to
and Damage. Proceeds from purchased
each such acquisition.
insurance for property damage, re-
ceived prior to repair of such damage, (h) Balances in this account relating
shall not be credited to this account to property acquisition adjustments
but to balance sheet account 2390 Other shall be amortized by charges to profit
Deferred Credits pending repair. The and loss account 89.9 Other Miscella-
records for each major casualty shall neous Nonoperating Debits unless oth-
be kept in such manner as to clearly erwise directed or approved by the
disclose insurance recoveries and the BTS.
total costs, which shall include charges [ER–1401, 50 FR 242, Jan. 3, 1985, as amended
for the depreciated cost of property at 60 FR 66723, Dec. 26, 1995]

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Office of the Secretary, DOT 2160

CURRENT LIABILITIES 2120 Accrued Vacation Liability.
2000 Current Maturities of Long-term (a) Record here accruals of liabilities
Debt. for personnel vacations. All vacation
policies, plans, or agreements whether
Record here the face value or prin- oral or written shall be accounted for
cipal amount of debt securities issued on an accrual basis whenever a lag ex-
or assumed by the air carrier which is ists between vacations earned and va-
payable within 12 months of the bal- cations taken, thereby resulting in a li-
ance sheet date unless such debt is to ability against the carrier under the
refinance, or where payment is to be applicable policy, plan or agreement.
made from assets of a type not prop- (b) This account shall be credited and
erly classifiable as current. the applicable personnel compensation
expense account concurrently charged
2005 Notes Payable—Banks. with the cost of any lag between vaca-
Record here the face value of all tions accrued and vacations taken. Ac-
notes, drafts, acceptances, or other cruals may be based upon standard
similar evidences of indebtedness pay- rates of lag, if such standard rates are
verified by physical inventory and ad-
able on demand or within one year to a
justed accordingly at least once each
bank or another financial institution
calendar year. Adjustments of balances
with the exception of current matu-
in this account shall be cleared to ap-
rities of long-term debt which should plicable compensation expense ac-
be included in account 2000. counts.
2015 Notes Payable—Other. [ER–980, 42 FR 29, Jan. 3, 1977, as amended by
ER–1027, 42 FR 60128, Nov. 25, 1977; ER–1188,
Record here the face value of all 45 FR 48870, July 22, 1980; Amdt. 241–58, 54 FR
notes, drafts, acceptances, or other 5594, Feb. 6, 1989]
similar evidences of indebtedness pay-
able on demand or within one year to 2125 Accrued Interest.
an associated company or party other Record here interest payable within
than a financial institution. one year for all outstanding obliga-
tions.
2021 Trade Accounts Payable.
Record here all accounts payable 2130 Accrued Taxes.
within one year which accrued from (a) Record here accruals for currently
generally recognized trade practices. payable income and other forms of
taxes which constitute a charge borne
2025 Accounts Payable—Other. by the air carrier as opposed to those
Record here all accounts payable collected as an agent for others.
(b) Each air carrier shall disclose in
within one year which are not provided
the footnotes of its BTS Form 41 for
for in accounts 2000 to 2021, inclusive.
each calendar quarter whether utilized
2080 Current Obligations Under Cap- credits are accounted for by the flow-
ital Leases. through method or the deferred meth-
od. The method selected shall be con-
Record here the total current liabil- sistently followed by the carrier.
ity applicable to property obtained
under capital leases. [Amdt. 241–58, 54 FR 5594, Feb. 6, 1989, as
amended at 60 FR 66723, Dec. 26, 1995]
[ER–1013, 42 FR 37515, July 21, 1977; 42 FR
38555, July 29, 1977; Amdt. 241–58, 54 FR 5594, 2140 Dividends Declared.
Feb. 6, 1989] Record here in separate subdivisions
for each class and series of capital
2110 Accrued Salaries, Wages. stock, all dividends declared but un-
Record here amounts accrued for un- paid on capital stock.
paid compensation to personnel, which
have been charged to profit and loss or 2160 Air Traffic Liability.
capitalized, as compensation for the (a) Record here balances representing
period in which accrued. the value of unused transportation

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2190 14 CFR Ch. II (1–1–00 Edition)

sold. Transportation sold includes both mate this refinancing can be dem-
sales for transportation to be provided onstrated.
by the air carrier and transportation to
[Amdt. 241–58, 54 FR 5594, Feb. 6, 1989]
be provided by another air carrier.
(b) Earned revenue, determined by 2240 Advances from Associated Com-
the yield or average fare method or by panies.
the sales-lift-match method, shall be
consistently and periodically cleared Record here net amounts due associ-
by debit to this account, and by credit ated companies and nontransport divi-
to the appropriate profit and loss rev- sions for notes, loans and advances
enue account. Amounts receivable for which are not settled currently. Bal-
transportation to be provided by the ances payable to and receivable from
air carrier shall be debited to balance different associated companies shall
sheet account 1270 Accounts Receiv- not be offset.
able.
2250 Pension Liability.
(c) Carriers who determine earned
revenue on a yield or average fare Record here the liability of the air
method may not accrue income during carrier under employee pension plans,
the accounting year in anticipation of to which either or both employees and
a favorable annual physical inventory the air carrier contribute, if the plan is
determination, nor for unused or administered by the air carrier.
unpresented tickets.
(d) Subaccounts to this account shall 2280 Noncurrent Obligations under
Capital Leases.
be established to record balances per-
taining to passenger and cargo trans- Record here the total noncurrent li-
portation sold, respectively, and sepa- ability applicable to property obtained
rately to sales in scheduled and non- under capital leases.
scheduled services.
[ER–1013, 42 FR 37515, July 21, 1977, as amend-
[ER–980, 42 FR 29, Jan. 3, 1977, as amended by ed by Amdt. 241–58, 54 FR 5594, Feb. 6, 1989]
ER–1401, 50 FR 242, Jan. 3, 1985]
2290 Other Noncurrent Liabilities.
2190 Other Current Liabilities. Record here noncurrent liabilities
Record here current and accrued li- not provided for in balance sheet ac-
abilities, including amounts payable counts 2210 to 2280, inclusive, such as
collected as an agent, not provided for the liability for installments received
in accounts 2110 to 2160, inclusive. on capital stock from company per-
sonnel who are not bound by legally
NON–CURRENT LIABILITIES enforceable subscription contracts, ac-
cruals for personnel dismissal liability,
2210 Long-Term Debt. and accruals of other demonstrable
(a) Record here the face value of prin- miscellaneous noncurrent liabilities.
cipal amount of debt securities issued [ER–1401, 50 FR 242, Jan. 3, 1985]
or assumed by the air carrier and held
by other than associated companies, DEFERRED CREDITS
which has not been retired or cancelled
and is not payable within 12 months of 2340 Deferred Income Taxes.
the balance sheet date.
Record here credits and debits rep-
(b) In cases where debt coming due
resenting the net tax effect of material
within 12 months is to be refunded, or
timing differences originating and re-
where payment is to be made from as-
versing in the current accounting pe-
sets of a type not properly classifiable
riod, giving appropriate recognition to
as current, the amount payable shall
the portion of investment tax credits
not be removed from this account. In
which would have been allowed if taxes
addition, this account shall include
were based on pretax accounting in-
short-term debt obligations when both
come by a reduction of the deferred tax
the intent to refinance the short-term
provision.
obligations on a long-term basis is es-
tablished and the ability to consum- [Amdt. 241–58, 54 FR 5594, Feb. 6, 1989]

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Office of the Secretary, DOT 2900

2345 Deferred Investment Tax Credits. to the business enterprise of individual
Record here investment tax credits proprietors or partners.
(b) Each air carrier shall maintain
utilized as reduction of tax liabilities,
the following subaccounts:
when the carrier exercises the option
2890.1 Premium on capital stock. Record here
to defer such credits for amortization in separate subdivisions for each class and
over the service life of the related series of capital stock issued the excess of
equipment. the cash value of consideration received over
the par or stated value and accrued dividends
[Amdt. 241–58, 54 FR 5594, Feb. 6, 1989]
of stock issued together with assessments
against stockholders representing payments
2390 Other Deferred Credits.
required in excess of par or stated value.
Record here credits, not provided for 2890.2 Discount on capital stock. Record here
elsewhere, the proper final disposition in separate subdivisions for each class and
of which cannot be effected until addi- series of capital stock issued, the excess of
tional information has been received. the par or stated value over the cash value of
consideration received, less accrued divi-
STOCKHOLDERS’ EQUITY dends. Discounts applicable to a particular
class and series of capital stock may be off-
2820 Preferred Stock. set against premiums from the same class
and series of capital stock. Discounts and
Record here in separate subdivisions premiums on different classes and series of
for each class and series, the par or capital stock shall not be offset. The air car-
stated value of preferred capital stock rier may, at its option, record in this sub-
issued or in the case of no-par stock account commissions and expenses incurred
without stated value, the full consider- in the issuance of capital stock and may
charge balance sheet account 2900 Retained
ation received. Earnings to the extent capital stock expense
may exceed any existing balance of paid-in
2840 Common Stock. capital over the par or stated value of cap-
Record here in separate subdivisions ital stock.
for each class and series, the par or 2890.3 Other Capital Stock Transactions.
stated value of common stock issued or Record here in separate subdivisions for each
class and series, the balance of credits aris-
in case of no-par stock without stated ing from the reacquisition and resale or can-
value, the full consideration received. cellation of capital stock, credits arising
from a reduction in the par or stated value of
2860 Subscribed and Unissued Stock. capital stock or the net balance of credits or
Record here in separate subdivisions debits resulting from other paid-in capital
for each class and series, the par or transactions such as proceeds attributable to
detachable stock purchase warrants related
stated value, or the subscription price
to debt issues, not provided for elsewhere,
in the case of stock without par or which is identified with a particular class
stated value, of legally enforceable and series of capital stock.
subscriptions to the capital stock of
the air carrier. 2900 Retained Earnings.
(a) Record here the net income or
2890 Additional Capital Invested.
loss from operations of the air carrier
(a) Record herein separate subdivi- and dividends declared on capital
sions for each class and series, the dif- stock.
ference between the price at which cap- (b) This account shall not be charged
ital stock is sold and the par or stated with dividends on treasury stock. If a
value of the stock; gains or losses aris- dividend is not payable in cash, the
ing from the reacquisition and the re- values entered in this account shall be
sale or retirement of each class and se- completely described.
ries of capital stock; donations; the ex- (c) Delayed credits or charges to in-
cess of retained earnings capitalized come shall not be entered in this ac-
over par or stated value of capital count directly but in appropriate profit
stock issued; adjustments in capital re- and loss accounts.
sulting from reorganization or recapi- (d) Net income or loss accounted for
talization; and proceeds attributable to during the current fiscal year shall not
detachable stock purchase warrants re- be entered in this account until the
lated to debt issues. This account shall close of the fiscal year. Individual pro-
also include balances of contributions prietorships or partnerships may clear

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2990 14 CFR Ch. II (1–1–00 Edition)

net income or loss accounted for during resents a net unrealized loss as of the
the year directly to balance sheet ac- current balance sheet date.
count 2890 Additional Capital Invested, [ER–980, 42 FR 29, Jan. 3, 1977, as amended by
or optionally, to this account for sub- ER–1401, 50 FR 242, Jan. 3, 1985]
sequent transfer to balance sheet ac-
count 2890 Additional Capital Invested. 2990 Treasury Stock.
(e) A separate subaccount to this ac- (a) Record here the cost of capital
count shall be maintained to record stock issued by the air carrier reac-
changes in the valuation of marketable quired by it and not retired or can-
equity securities included in noncur- celed.
rent assets. Such changes shall be re- (b) Separate records shall be estab-
flected in this subaccount to the extent lished for each class and series of cap-
the balance in this subaccount rep- ital stock held in this account.
[ER–980, 42 FR 29, Jan. 3, 1977, as amended by
Amdt. 241–58, 54 FR 5594, Feb. 6, 1989]

PROFIT AND LOSS CLASSIFICATION

SECTION 7—CHART OF PROFIT AND LOSS ACCOUNTS
Functional or financial activity to which applica-
ble (00)
Objective classification of profit and loss elements
Group I car- Group II car- Group III car-
riers riers riers

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.

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Office of the Secretary, DOT 2990

SECTION 7—CHART OF PROFIT AND LOSS ACCOUNTS—Continued
Functional or financial activity to which applica-
ble (00)
Objective classification of profit and loss elements
Group I car- Group II car- Group III car-
riers riers riers

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, 53, 55, 61, 62,
68. 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, 51, 53, 55, 61,
64,67, 68. 62, 63, 65,
66, 68.
28.2 Unallocated shop labor ..................................................................... 53 .................. 53 .................. 53.
30 Communications personnel ......................................................................... 53, 69 ............ 53, 55, 64, 67, 53, 55, 61, 62,
68. 63, 65, 66,
68.
31 Recordkeeping and statistical personnel .................................................... 53, 69 ............ 53, 55, 64, 67, 53, 55, 61, 62,
68. 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, 53, 55, 61, 62,
68. 63, 65, 66,
68.
36 Personnel expenses .................................................................................... 51, 53, 69 ...... 51, 53, 55, 64, 51, 53, 55, 61,
67, 68. 62, 63, 65,
66, 68.
37 Communications purchased ........................................................................ 53, 69 ............ 53, 55, 64, 67, 53, 55, 61, 62,
68. 63, 65, 66,
68.

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2990 14 CFR Ch. II (1–1–00 Edition)

SECTION 7—CHART OF PROFIT AND LOSS ACCOUNTS—Continued
Functional or financial activity to which applica-
ble (00)
Objective classification of profit and loss elements
Group I car- Group II car- Group III car-
riers riers riers

38 Light, heat, power, and water ..................................................................... 53, 69 ............ 53, 55, 64, 67, 53, 55, 61, 62,
68. 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, 51, 53, 55, 61,
67, 68. 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, 52, 55, 61, 62,
68. 63, 65, 66,
68
43.9 Other services ..................................................................................... 52, 53, 69 ...... 52, 53, 55, 64, 52, 53, 55, 61,
67, 68. 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, 51, 53, 55, 61,
67, 68. 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, 53, 55, 61, 62,
68. 63, 65, 66,
68.
51 Passenger food expense ............................................................................ 69 .................. 55 .................. 55.
53 Other supplies ............................................................................................. 51, 53, 69 ...... 51, 53, 55, 64, 51, 53, 55, 61,
67, 68. 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, 51, 53, 55, 61,
67, 68. 62, 63, 65,
66, 68.
58 Injuries, loss and damage ........................................................................... 51, 53, 69 ...... 51, 53, 55, 64, 51, 53, 55, 61,
67, 68. 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, 53, 55, 61, 62,
68. 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, 51, 53, 55, 61,
67, 68. 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, 51, 53, 55, 61,
67, 68. 62, 63, 65,
66 68.
72 Aircraft overhauls ........................................................................................ 52, 53 ............ 52, 53 ............ 52, 53.

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Office of the Secretary, DOT 2990

SECTION 7—CHART OF PROFIT AND LOSS ACCOUNTS—Continued
Functional or financial activity to which applica-
ble (00)
Objective classification of profit and loss elements
Group I car- Group II car- Group III car-
riers riers riers

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, 53, 55, 61, 62,
68. 63, 65, 66,
68.
77.9 Other uncleared expense credits ...................................................... 53, 69 ............ 53, 55, 64, 67, 53, 55, 61, 62,
68. 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.

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2990 14 CFR Ch. II (1–1–00 Edition)

SECTION 7—CHART OF PROFIT AND LOSS ACCOUNTS—Continued
Functional or financial activity to which applica-
ble (00)
Objective classification of profit and loss elements
Group I car- Group II car- Group III car-
riers riers riers

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.

[ER–755, 37 FR 19726, Sept. 21, 1972, as amended by ER–781, 37 FR 25223, Nov. 29, 1972; 37 FR
28277, Dec. 22, 1972; ER–797, 38 FR 10926, May 3, 1973; ER–841, 39 FR 11995, Apr. 2, 1974; ER–948,
41 FR 12295, Mar. 25, 1976; ER–980, 42 FR 35, Jan. 3, 1977; ER–1013, 42 FR 37515, July 21, 1977;
ER–1401, 50 FR 242, Jan. 3, 1985; Amdt. 241–56, 52 FR 9129, Mar. 23, 1987; Amdt. 241–58, 54 FR
5594, Feb. 6, 1989]

SECTION 8—GENERAL ments of a recurrent nature applicable to
services performed in prior accounting years.
(a) The profit and loss accounts are de- (ii) Operating revenues shall be subclassi-
signed to reflect, through natural groupings, fied in terms of functional activities as pro-
the elements entering into the derivation of vided in section 9.
income or loss accruing to the proprietary (2) Operating expenses. (i) This primary
interests during each accounting period. classification shall include expenses of a
(b) The prescribed system of accounts pro- character usually and ordinarily incurred in
vides for the co-ordinate grouping of all rev- the performance of air transportation and
enues and expenses in terms of both major air transportation-related services, which re-
natural objectives and functional activities late to services performed during the current
and for subdivision of both to provide vary- accounting year, and adjustments of a recur-
ing degrees of detail for air carriers of dif- ring nature attributable to services per-
fering accounting capacities and/or require- formed in prior accounting years.
ments. (ii) Operating expenses shall be subclassi-
(c) The detailed objective accounts estab- fied in terms of functional activities as pro-
lished for each air carrier group, by the dual vided in sections 10 and 11.
subdivision of profit and loss elements in (3) Nonoperating income and expense—net.
terms of both natural objectives and func- This primary classification (8100) shall in-
tional activities, are set forth in section 7, clude income and loss incident to commer-
Chart of Profit and Loss Accounts. cial ventures not inherently related to the
(d) The prescribed system of accounts pro- performance of the common carrier air
vides generally that profit and loss elements transport services of the accounting entity;
shall be grouped in accordance with their in- other revenues and expenses attributable to
herent characteristics within the following financing or other activities which are extra-
primary classifications: neous to and not an integral part of air
(1) Operating revenues. (i) This primary transportation or its incidental services; and
classification shall include revenues of a special recurrent items of a nonperiod na-
character usually and ordinarily derived ture.
from the performance of air transportation (4) Income taxes for current period. This pri-
and air transportation-related services, mary classification (9100) shall include provi-
which relate to services performed during sions for Federal, state, local, and foreign
the current accounting year, and adjust- taxes which are based upon the net income of

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Office of the Secretary, DOT 5400
the air carrier for the current period to- ules, which shall be reported in the sub-
gether with refunds for excess profits credits classification 3100 Scheduled Services).
or carryback of losses and increases or re- [ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
ductions of income taxes of prior years of a ed by ER–1401, 50 FR 243, Jan. 3, 1985]
magnitude which will not distort net income
of the current accounting year. Income taxes 4800 Transport-Related Revenues.
applicable to special income credits or debits
recorded in profit and loss classification 9700
(a) This classification is prescribed
Extraordinary Items, and other material in- for all air carrier groups and shall in-
come tax items not allocable to income of clude all revenues from the United
the current accounting year, shall not be in- States Government as direct grants or
cluded in this classification but in profit and aids for providing air transportation
loss classification 9700 Extraordinary Items. facilities and all revenues from serv-
(5) Discontinued operations. This primary ices which grow from and are inci-
classification (9600) shall include earnings dental to the air transportation serv-
and losses of discontinued nontransport op- ices performed by the air carrier.
erations and gains or losses from the dis- (b) Revenues related to services of a
posal of nontransport operations the result magnitude or scope beyond an inci-
of which are customarily accounted for dental adjunct to air transportation
through profit and loss objective accounts 86, services shall not be included in this
87 and 88.2. classification (see section 1–6(b)). Reve-
(6) Extraordinary items. This primary classi- nues applicable to such services shall
fication (9700) shall include material items be included in profit and loss classifica-
characterized by their unusual nature and
tion 8100, Nonoperating Income and Ex-
infrequent occurrence.
pense-Net, and the accounting modified
(7) Cumulative effect of changes in accounting
to conform with that of a nontransport
principles. This primary classification (9800)
shall include the cumulative effect of mate-
division whether or not the service is
rial changes in accounting principles. organized as a nontransport division.

[ER–755, 37 FR 19726, Sept. 21, 1972, as amend- [ER–841, 39 FR 11997, Apr. 2, 1974]
ed by ER–841, 39 FR 11997, Apr. 2, 1974; ER–
SECTION 10—FUNCTIONAL CLASSIFICA-
980, 42 FR 36, Jan. 3, 1977, Amdt. 241–58, 54 FR
TION—OPERATING EXPENSES OF GROUP
5594, Feb. 6, 1989]
I AIR CARRIERS
SECTION 9—FUNCTIONAL
5100 Flying Operations.
CLASSIFICATION—OPERATING REVENUES
(a) This function shall include ex-
3900 Transport Revenues. penses incurred directly in the in-flight
operation of aircraft and expenses at-
This classification is prescribed for taching to the holding of aircraft and
all air carrier groups and shall include aircraft operational personnel in readi-
all revenues from the air transpor- ness for assignment to an in-flight sta-
tation of traffic of all classes. It shall tus.
consist of the following subclassifica- (b) This function shall not include ex-
tions: penses incurred in repairing, servicing
3100 Scheduled Services. or storing aircraft, expenses incurred
This subclassification shall include reve- on the ground in protecting and con-
nues from the transportation by air of indi- trolling the inflight movement of air-
vidual passengers or cargo shipments (as op- craft, or the compensation of ground
posed to charter flights) pursuant to pub- personnel and other expenses incurred
lished schedules, including extra sections in scheduling or preparing aircraft or
and other flights performed as an integral
aircraft operational personnel for
part of published flight schedules.
flight assignment. Such expenses shall
3200 Nonscheduled Services.
be included in function 5400 Mainte-
This subclassification shall include reve-
nues from the transportation by air of traffic
nance or function 6900 General Services
applicable to the performance of aircraft and Administration.
charters, and other air transportation serv-
5400 Maintenance.
ices not part of services performed pursuant
to published flight schedules (but shall not (a) This function shall include all ex-
include data applicable to flights performed penses, both direct and indirect, spe-
as extra sections to published flight sched- cifically identifiable with the repair

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5400 14 CFR Ch. II (1–1–00 Edition)

and upkeep of property and equipment c. When supervisory personnel such as crew
as may be required to meet operating chiefs, inspectors and foremen are engaged
and safety standards; in inspecting or in direct labor in connection with equipment
maintenance, a proportionate part of their
checking property and equipment in salaries and wages shall be charged to the
accordance with prescribed operational appropriate direct labor accounts. The cost
standards; and in polishing or cleaning of transporting property to and from shops
property and equipment when such for repair and maintenance shall be included
polishing or cleaning is not an inci- as a part of the cost of the materials and
dental routine in connection with the supplies used in the repair or maintenance of
normal productive use of property and such property and equipment. Transpor-
tation charges, customs and duties, etc.;
equipment. shall be included in the cost of repairs and
(b) This function shall include the maintenance operations when made by out-
cost of direct labor, materials, and out- side parties.
side services and maintenances over- 5300 Maintenance Burden.
head or other costs specifically associ- a. This subfunction shall include all over-
ated with maintenance operations re- head or general expenses which are specifi-
cally identified with activities involved in
gardless of the location at which in-
periodic maintenance operations and the
curred. maintenance and repair of property and
(c) This function shall not include equipment of all types and classes, including
costs incurred in the construction, im- the cost of direct labor, materials and out-
provement, or modification of property side services identified with the maintenance
and equipment even when necessitated and repair of maintenance property and
to meet new or changed operating or equipment included in balance sheet ac-
counts 1630 Equipment, 1639 Improvements
safety standards. Such costs shall be to Leased Buildings and Equipment, and
charged to appropriate property and 1604.1 Maintenance Buildings and Improve-
equipment accounts. ments. It shall include expenses specifically
(d) Costs incurred by aircraft han- related to the administration of mainte-
dling personnel in visual inspection, nance stocks and stores, the keeping of per-
minor check and servicing of aircraft, tinent maintenance operations records, and
the scheduling, controlling, planning and su-
while in line service, shall not be in-
pervision of maintenance operations.
cluded in this function when performed b. This subfunction shall not include ex-
as an incidental routine during the penses related to financial accounting, pur-
normal productive use of aircraft but chasing or other overhead activities which
shall be included in function 6900 Gen- are of general applicability to all operating
eral Services and Administration. functions. Such expenses shall be included in
(e) Each Group I air carrier shall function 6900 General Services and Adminis-
tration.
maintain the following subfunctions: c. This subfunction shall include only
5200 Direct Maintenance. those expenses attributable to the current
a. This subfunction shall include the costs air transport operations of the air carrier.
of labor, materials and outside services con- Maintenance burden associated with capital
sumed directly in periodic maintenance op- projects of the air carrier, other than over-
erations and the maintenance and repair of hauls of airframes and aircraft engines shall
property and equipment, of all types and be allocated to such projects. Maintenance
classes, regardless of the location at which burden incurred in common with services to
incurred, exclusive of costs specifically iden- other companies and operating entities shall
tified with maintenance property and equip- be allocated to such services on a pro rata
ment expenses in balance sheet accounts 1630 basis unless the services are so infrequent in
Equipment, 1639 Improvements to Leased performance or small in volume as to result
Buildings and Equipment, and 1640.1 Mainte- in no appreciable demands upon the air car-
nance Buildings and Improvements which rier’s maintenance facilities. When over-
shall be included in subfunction 5300 Mainte- hauls of airframes or aircraft engines are as
nance Burden. a consistent practice accounted for on an ac-
b. The cost of direct labor, materials and crual basis instead of being expensed di-
supplies, as well as outside repairs, used in rectly, maintenance burden shall be allo-
the maintenance and repair of property and cated to such overhauls on a pro rata basis.
equipment shall be recorded on running job Standard burden rates may be employed for
orders or tickets covering repairs and peri- quarterly allocations of maintenance burden
odic inspections except servicing. Where a provided the rates are reviewed at the close
number of like items are maintained on a of each calendar year. When the actual bur-
group basis, it will be necessary to maintain den rate for the year differs materially from
only one job order for each group. the standard burden rate applied, adjustment

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Office of the Secretary, DOT 5100
shall be made to reflect the actual cost in- 7100 Transport-Related Expenses.
curred for the full accounting year. Alloca-
tions of maintenance burden to capital (a) This function shall include all ex-
projects, and service sales to others shall be pense items applicable to the genera-
made through the individual maintenance tion of transport-related revenues in-
burden objective accounts, except that the cluded in section 9, Function 4800.
air carrier may make such allocations by (b) Such expense related to services
credits to profit and loss account 77 of a magnitude or scope beyond an inci-
Uncleared Expense Credits provided that use dental adjunct to air transportation
of that account will not undermine the sig- services shall not be included in this
nificance of the individual maintenance bur- function (see section 1–6(b)). Expenses
den objective accounts in terms of the ex-
applicable to the generation of such
pense levels associated with the air carrier’s
air transport services. Maintenance burden
revenues shall be included in profit and
allocated to overhauls shall be credited to loss classification 8100, Nonoperating
profit and loss subaccounts 5372.1 or 5372.6 Income and Expense-Net, and the ac-
Airworthiness Allowance Provisions. counting modified to conform with
that of a nontransport division wheth-
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend- er or not the service is organized as a
ed by ER–980, 42 FR 36, Jan. 3, 1977; ER–1027,
nontransport division.
42 FR 60128, Nov. 25, 1977; ER–1188, 45 FR
48870, July 22, 1980; Amdt. 241–58, 54 FR 5595,
(c) This function shall also include
Feb. 6, 1989] expenses representing increases in
costs incurred in common with the air
6900 General Services and Administra- transport service, to the extent such
tion. increases result from the added trans-
port-related services, as well as a pro
This function shall include expenses rata share of the costs incurred by the
incurred on the ground in controlling air carrier in operating facilities which
and protecting the in-flight movement are used jointly with others. As a gen-
of aircraft; landing, handling, or serv- eral rule, this function shall not in-
icing aircraft on the ground; selling clude those expenses, other than joint
transportation; servicing and handling facilities costs, which would remain as
traffic of all classes; promoting the de- an essential part of the air transport
velopment of traffic; administering op- services if the transport-related serv-
erations generally; and all other ex- ices were terminated.
penses not otherwise provided for in
[ER–841, 39 FR 11997, Apr. 2, 1974, as amended
functions 5100 Flying Operations, 5400 by ER–1401, 50 FR 243, Jan. 3, 1985]
Maintenance and 7000 Depreciation and
Amortization. SECTION 11—FUNCTIONAL CLASSIFICA-
TION—OPERATING EXPENSES OF GROUP
7000 Depreciation and Amortization. II AND GROUP III AIR CARRIERS
This function shall include all
5100 Flying Operations.
charges to expense to record losses suf-
fered through current exhaustion of (a) This function shall include ex-
the serviceability of property and penses incurred directly in the in-flight
equipment due to wear and tear from operation of aircraft and expenses at-
use and the action of time and the ele- taching to the holding of aircraft and
ments, which are not replaced by cur- aircraft operational personnel in readi-
rent repairs, as well as losses in serv- ness for assignment to an in-flight sta-
iceability caused by obsolescence, tus.
supersession, discoveries, change in de- (b) This function shall not include ex-
mand or actions by public authority. It penses incurred in repairing, servicing
shall also include charges for the amor- or storing aircraft, expenses incurred
tization of capitalized developmental on the ground in protecting and con-
and preoperating costs, leased property trolling the in-flight movement of air-
under capital leases and other intan- craft, or compensation of ground per-
sonnel and other expenses incurred in
gible assets applicable to the perform-
scheduling or preparing aircraft or air-
ance of air transportation. (See sec-
craft operational personnel for flight
tions 6–1696, 1830 and 1890.)
assignment. Such expenses shall be in-
[Amdt. 241–58, 54 FR 5595, Feb. 6, 1989] cluded in function 5400 Maintenance, or

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5400 14 CFR Ch. II (1–1–00 Edition)

function 6400 Aircraft and Traffic Serv- orders or tickets covering repairs and peri-
icing. odic inspections except servicing. Where a
number of like items are maintained on a
5400 Maintenance. group basis, it will be necessary to maintain
only one job order for each group.
(a) This function shall include all ex- c. When supervisory personnel such as crew
penses, both direct and indirect, in- chiefs, inspectors and foremen are engaged
curred in the repair and upkeep of in direct labor in connection with equipment
property and equipment as may be re- maintenance, a proportionate part of their
quired to meet operating and safety salaries and wages shall be charged to the
standards; in inspecting or checking appropriate direct labor accounts. The cost
of transporting property to and from shops
property and equipment in accordance for repair and maintenance shall be included
with prescribed operational standards; as a part of the cost of the materials and
and in polishing or cleaning property supplies used in the repair or maintenance of
and equipment when such polishing or such property and equipment. Transpor-
cleaning is not an incidental routine in tation charges, customs and duties, etc.,
connection with the normal productive shall be included in the cost of repairs and
use of property and equipment. maintenance operations when made by out-
side parties.
(b) This function shall include the 5300 Maintenance Burden.
cost of direct labor, materials, and out- a. This subfunction shall include all over-
side services and maintenance over- head or general expenses used directly in the
head or other costs associated with activities involved in periodic maintenance
maintenance operations regardless of operations and the maintenance and repair
the location at which incurred. of property and equipment of all types and
(c) This function shall not include classes, including the cost of direct labor,
materials and outside services used in the
costs incurred in the construction, im- maintenance and repair of maintenance
provement, or modification of property property and equipment included in balance
and equipment even when necessitated sheet accounts 1630 Equipment, 1639 Im-
to meet new or changed operating or provements to Leased Buildings and Equip-
safety standards. Such costs shall be ment, and 1640.1 Maintenance Buildings and
charged to appropriate property and Improvements. It shall include expenses re-
equipment accounts. lated to the administration of maintenance
stocks and stores, the keeping of pertinent
(d) Costs incurred by aircraft han-
maintenance operation records, and the
dling personnel in visual inspection, scheduling, controlling, planning and super-
minor check and servicing of aircraft, vision of maintenance operations.
while in line service, shall not be in- b. This subfunction shall not include ex-
cluded in this function when performed penses related to financial accounting, pur-
as an incidental routine during the chasing or other overhead activities which
normal productive use of aircraft but are of general applicability to all operating
shall be included in function 6400 Air- functions. Such expenses shall be included in
function 6800 General and Administrative.
craft and Tariff Servicing. c. This subfunction shall include only
(e) Both Group II air carriers and those expenses attributable to the current
Group III air carriers shall maintain air transport operations of the air carrier.
the following subfunctions: Maintenance burden associated with capital
5200 Direct Maintenance. projects of the air carrier, other than over-
a. This subfunction shall include the costs hauls of airframes and aircraft engines, shall
of labor, materials and outside services con- be allocated to such projects. Maintenance
sumed directly in periodic maintenance op- burden incurred in common with services to
erations and the maintenance and repair of other companies and operating entities shall
property and equipment of all types and be allocated to such services on a pro rata
classes, regardless of the location at which basis unless the services are so infrequent in
incurred, exclusive of maintenance property performance or small in volume as to result
and equipment included in balance sheet ac- in no appreciable demands upon the air car-
counts 1630 Equipment, 1639 Improvements rier’s maintenance facilities. When over-
to Leased Buildings and Equipment, and hauls of airframes or aircraft engines are as
1640.1 Maintenance Buildings and Improve- a consistent practice accounted for on an ac-
ments, which shall be included in subfunc- crual basis instead of being expensed di-
tion 5300 Maintenance Burden. rectly, maintenance burden shall be allo-
b. The cost of direct labor, materials and cated to such overhauls on a pro rata basis.
supplies, as well as outside repairs, used in Standard burden rates may be employed for
the maintenance and repair of property and quarterly allocations of maintenance burden
equipment shall be recorded on running job provided the rates are reviewed at the close

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Office of the Secretary, DOT 6400
of each calendar year. When the actual bur- expenses which are incurred as an inci-
den rate for the year differs materially from dental routine during the normal pro-
the standard burden rate applied, adjustment ductive use of aircraft in line oper-
shall be made to reflect the actual costs in-
curred for the full accounting year. Alloca-
ations. It shall not include expenses in-
tions of maintenance burden to capital curred in the repair and maintenance
projects, and service sales to others shall be of property and equipment, or in
made through the individual maintenance checking or inspecting property and
burden objective accounts, except that the equipment in accordance with pre-
air carrier may make such allocations by scribed operational standards when
credits to profit and loss account 77 such activities are not an incidental
Uncleared Expense Credits under such cir-
routine during the normal productive
cumstances in which the use of that account
will not undermine the significance of the use of aircraft. Such expenses shall be
individual maintenance burden objective ac- included in function 5400 Maintenance.
counts in terms of the expense levels associ- (c) This function shall not include ex-
ated with the air carrier’s air transport serv- penses incurred in securing traffic, ar-
ices. Maintenance burden allocated to over- ranging aircraft space for traffic sold
hauls shall be credited to profit and loss sub- or in issuing documents confirming
accounts 5372.1 or 5372.6 Airworthiness Al-
lowance Provisions.
traffic sales and establishing the air
carrier’s responsibilities to provide air
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend- transportation. Such expenses shall be
ed by ER–980, 42 FR 36, Jan. 3, 1977; ER–1401, included in function 6700 Promotion
50 FR 244, Jan. 3, 1985; Amdt. 241–58, 54 FR
5595, Feb. 6, 1989] and Sales. However, for purposes of
this system of accounts, expenses at-
5500 Passenger Service. tributable to the operation of airport
traffic offices, excluding reservation
This function shall include all ex-
centers, shall be included in this func-
penses chargeable directly to activities
tion. Expenses attributable to the oper-
contributing to the comfort, safety and
ation of reservation or aircraft space
convenience of passengers while in
control centers shall be included in
flight and when flights are interrupted.
function 6700 Promotion and Sales re-
It shall not include expenses incurred
in enplaning or deplaning passengers, gardless of the location at which in-
or in securing and selling passenger curred.
transportation and caring for pas- (d) Group III air carriers shall further
sengers prior to entering a flight sta- subdivide this function as follows:
tus. Such expenses shall be included in 6100 Aircraft Servicing.
functions 6400 Aircraft and Traffic a. This subfunction shall include the com-
Servicing and 6700 Promotion and pensation of ground personnel and other ex-
penses incurred on the ground incident to
Sales, respectively. the protection and control of the in-flight
movement of aircraft; scheduling or pre-
6400 Aircraft and Traffic Servicing. paring aircraft operational crews for flight
(a) This function shall include the assignment; landing and parking aircraft;
compensation of ground personnel and visual inspection, routine checking, serv-
other expenses incurred on the ground icing and fueling of aircraft; and other ex-
incident to the protection and control penses incurred on the ground incident to
readying for arrival and takeoff of aircraft.
of the in-flight movement of aircraft,
6200 Traffic Servicing.
scheduling and preparing aircraft oper-
a. This subfunction shall include the com-
ational crews for flight assignment, pensation of ground personnel and other ex-
handling and servicing aircraft while in penses incurred on the ground incident to
line operation, servicing and handling handling traffic of all types and classes on
traffic on the ground, subsequent to the ground subsequent to the issuance of
the issuance of documents establishing documents establishing the air carrier’s re-
the air carrier’s responsibility to pro- sponsibility to provide air transportation.
vide air transportation, and in-flight Expenses attributable to the operation of
airport traffic offices shall also be included
expenses of handling and protecting all
in this subfunction; expenses attributable to
nonpassenger traffic including pas- reservations centers shall be excluded. It
senger baggage. shall include expenses incurred in both en-
(b) This function shall include only planing and deplaning traffic as well as ex-
those aircraft servicing and cleaning penses incurred in preparation for

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6700 14 CFR Ch. II (1–1–00 Edition)
enplanement and all expenses subsequent to eration of reservation or aircraft space
deplanement. control centers shall be included in
b. This subfunction shall also include costs function 6700 Promotion and Sales re-
incurred in handling and protecting all non-
passenger traffic while in flight. It shall not
gardless of the location at which in-
include expenses incurred in contributing to curred.
the comfort, safety and convenience of pas- (d) Group III air carriers shall sub-
sengers while in flight or when flights are in- divide this function as follows:
terrupted. Such expenses shall be included in 6500 Reservations and Sales.
function 5500 Passenger Service. This subfunction shall include expenses in-
6300 Servicing Administration. cident to direct sales solicitation, docu-
a. This subfunction shall include expenses menting sales, controlling and arranging or
of a general nature incurred in performing confirming aircraft space sold, and in devel-
supervisory or administrative activities re- oping tariffs and schedules for publication. It
lating solely and in common to subfunctions shall also include expenses attributable to
6100 Aircraft Servicing and 6200 Traffic Serv-
the operation of city traffic offices. Expenses
icing.
incurred in stimulating traffic and pro-
b. This subfunction shall not include super-
moting the air carrier or air transportation
visory or administrative expenses which can
generally shall not be included in this sub-
be charged directly to subfunction 6100 Air-
function but in subfunction 6600 Advertising
craft Servicing or subfunction 6200 Traffic
and Publicity.
Servicing. Nor shall this subfunction include
expenses of a general administrative char- 6600 Advertising and Publicity.
acter and of significant amount regularly a. This subfunction shall include expenses
contributing to operating functions gen- incurred in creating public preference for the
erally. Such expenses shall be included in air carrier and its services; stimulating de-
function 6800 General and Administrative. velopment of the air transport market; and
c. The expenses in this subfunction shall be promoting the air carrier or developing air
recorded separately for each geographic loca- transportation generally.
tion at which incurred. b. This subfunction shall not include ex-
penses incurred in direct sales solicitation
6700 Promotion and Sales. and selling of aircraft space. Such costs shall
be included in subfunction 6500 Reservations
(a) This function shall include ex- and Sales.
penses incurred in creating public pref-
erence for the air carrier and its serv- 6800 General and Administrative.
ices; stimulating the development of
the air transport market; and pro- (a) This function shall include ex-
moting the air carrier or developing air penses of a general corporate nature
transportation generally. and expenses incurred in performing
(b) It shall also include the com- activities which contribute to more
pensation of personnel and other ex- than a single operating function such
penses incident to documenting sales; as general financial accounting activi-
expenses incident to controlling and ties, purchasing activities, representa-
arranging or confirming aircraft space tion at law, and other general oper-
for traffic sold; expenses incurred in di- ational administration, which are not
rect sales solicitation and selling of directly applicable to a particular
aircraft space; and expenses incurred in function.
developing tariffs and schedules for (b) This function shall not include ex-
publication. penses incurred directly in promoting
(c) This function shall not include ex- traffic or in promoting relations of the
penses incurred in handling traffic sub- air carrier generally with the public
sequent to the issuance of documents which shall be included in function 6700
establishing the air carrier’s responsi- Promotion and Sales. Nor shall this
bility to provide air transportation function include expenses, regularly
which shall be included in functions applicable in large part to a specific
5500 Passenger Service and 6400 Air- function, which contribute only inci-
craft and Traffic Servicing. However, dentally, or in small amount, to var-
for purposes of this system of accounts, ious other functions. Such expenses
expenses attributable to the operation when of such size as will not distort
of airport traffic offices, excluding res- the function to which predominantly
ervation centers, shall be included in related, shall be included in the spe-
function 6400 Aircraft and Traffic Serv- cific function to which regularly re-
icing. Expenses attributable to the op- lated. However, expenses of a general

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Office of the Secretary, DOT 00

administrative character and of signifi- services if the transport-related serv-
cant amount regularly contributing to ices were terminated.
operating functions generally shall be [ER–841, 39 FR 11997, Apr. 2, 1974, as amended
included in this function. by ER–1401, 50 FR 244, Jan. 3, 1985]
7000 Depreciation and Amortization. SECTION 12—OBJECTIVE CLASSIFICA-
This function shall include all TION—OPERATING REVENUES AND EX-
charges to expense to record losses suf- PENSES
fered through current exhaustion of
00 General Instructions.
the serviceability of property and
equipment due to wear and tear from (a) Basic objective accounts, applica-
use and the action of time and the ele- ble to all air carrier groups, are estab-
ments, which are not replaced by cur- lished for recording all revenue and ex-
rent repairs, as well as losses in serv- pense elements. These basic accounts
iceability occasioned by obsolescence, are in certain areas subdivided to pro-
supersession, discoveries, change in vide greater detail for indicated air
popular demand or action by public au- carrier groups.
thority. It shall also include charges (b) Each air carrier shall credit the
for the amortization of capitalized de- gross revenues accruing from services
velopmental and preoperating costs, ordinarily associated with air transpor-
leased property under capital leases, tation and transportation-related serv-
and other intangible assets applicable ices to the appropriate account estab-
to the performance of air transpor- lished for each revenue source. Ex-
tation. (See sections 6–1696, 1830 and penses incident to transport and trans-
1890.) port-related services shall be charged
to the accounts established in this sec-
[Amdt. 241–58, 54 FR 5595, Feb. 6, 1989] tion in accordance with the objectives
served by each expenditure. However,
7100 Transport-Related Expenses.
direct costs of forwarding traffic as a
(a) This function shall include all ex- result of interrupted trips, and refunds
pense items applicable to the genera- of sales, shall be charged to the appli-
tion of transport-related revenues in- cable revenue account.
cluded in section 9, Function 4800. (c) To the end that the integrity of
(b) Such expense related to services the prescribed objective accounts shall
of a magnitude or scope beyond an inci- not be impaired, each air carrier shall:
dental adjunct to air transportation (1) Charge the appropriate account
services shall not be included in this prescribed for each service purchased
function (see section 1–6(b)). Expenses or expense element incurred expressly
applicable to the generation of such for the benefit of the air carrier regard-
revenues shall be included in profit and less of whether incurred directly by the
loss classification 8100, Nonoperating air carrier or through an agent or other
Income and Expense-Net, and the ac- intermediary, and (2) except as pro-
counting modified to conform with vided in objective account 77,
that of a nontransport division wheth- Uncleared Expense Credits, credit or
er or not the service is organized as a charge, as appropriate, the account
nontransport division. prescribed for each expense element
(c) This function shall also include which may be involved in distributions
expenses representing increases in of expenses between (i) separate oper-
costs incurred in common with the air ating entities of the air carrier, (ii)
transport service, to the extent such transport-related services and trans-
increases result from the added trans- port services, or transport functions,
port-related services, as well as a pro (iii) balance sheet and profit and loss
rata share of the costs incurred by the elements, and (iv) the air carrier and
air carrier in operating facilities which others, when the expenses are incurred
are used jointly with others. As a gen- initially by or for the benefit of the air
eral rule, this function shall not in- carrier. At the option of the air carrier,
clude those expenses, other than joint standard rates applicable to each ob-
facilities, costs, which would remain as jective account comprising a particular
an essential part of the air transport pool of expenses subject to assignment

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01 14 CFR Ch. II (1–1–00 Edition)

between two or more activities, may be (c) This account shall be subdivided
established for proration purposes, pro- as follows by all air carrier groups:
vided the rates established are predi- 05.1 Priority.
cated upon the experience of the air Record here revenue from United States
carrier and are reviewed and modified mail for which transportation by air is pro-
as appropriate at least once each year. vided on a priority basis.
05.2 Nonpriority.
TRANSPORT REVENUES Record here revenue from United States
mail for which transportation by air is pro-
01 Passenger. vided on a space available basis.
05.3 Foreign.
(a) Record here revenue from the Record here revenue from the transpor-
transportation of passengers by air, in- tation by air of mail other than United
cluding infants transported at reduced States mail.
fares, berth charges, surcharges for [ER–980, 42 FR 36, Jan. 3, 1977, as amended by
premium services and other similar Amdt. 241–58, 54 FR 5595, Feb. 6, 1989]
charges. Revenue from airline employ-
ees, officers and directors, or other per- 06 Property.
sons, except for ministers of religion, (a) Record here revenue from the
who are traveling under reduced-rate transportation by air of property in-
transportation authorized by 49 U.S.C. cluding excess passenger baggage.
41511(a) and 14 CFR part 223, as well as (b) Revenues resulting from services
revenue from travel agents, cargo incidental to the transportation serv-
agents and tour conductors traveling ices such as collection of shipper’s in-
at reduced fares, and revenues from terest insurance premiums and charges
service charges for passengers trav- and fees for service such as pick-up and
eling on a nonrevenue basis shall be re- delivery, assembly and distribution,
corded in objective account 19 Air storage and handling, and C.O.D. col-
Transport—Other. lection shall not be credited to this ac-
(b) This account shall be subdivided count but to profit and loss account 17
as follows by all air carrier groups: Air Cargo Services.
01.1 Passenger—First Class. (c) This account shall be subdivided
Record here revenue from the air transpor- as follows by all air carrier groups:
tation of passengers moving at either stand- 06.1 Freight.
ard fares or premium fares, or at reduced Record here revenue from the transpor-
fares not predicated upon the use of aircraft tation by air of property other than pas-
space specifically separated from first class, senger baggage.
and for whom standard or premium quality 06.2 Excess Passenger Baggage.
services are provided. Record here revenue from the transpor-
01.2 Passenger—Coach. tation by air of passener baggage in excess of
Record here revenue from the air transpor- fixed free allowance.
tation of passengers moving at special fares
reduced from the first class or premium fares [ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
which are predicated upon both the oper- ed by ER–1401, 50 FR 244, Jan. 3, 1985]
ation of specifically designated aircraft
space and a reduction in the quality of serv- 07 Charter.
ice regularly and ordinarily provided. (a) Record here the revenue from
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend- nonscheduled air transport services
ed by ER–980, 42 FR 36, Jan. 3, 1977; 60 FR (except as otherwise required by profit
66723, Dec. 26, 1995] and loss Account 86 Income from Non-
transport Ventures) where the party
05 Mail. receiving the transportation obtains
(a) Record here revenue from the exclusive use of an aircraft at either
transportation by air of both United published tariff or other contractual
States and foreign mail. rates and the remuneration paid by the
(b) Fines and penalties imposed by party receiving transportation accrues
the United States Government and for- directly to, and the responsibility for
eign governments in connection with providing transportation is that of, the
the carriage of mail shall not be accounting air carrier. This account
charged to this account but to profit shall also include revenues from air
and loss account 89.9 Other Miscella- transport services other than inter-air-
neous Nonoperating Debits. port services, whether scheduled or

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Office of the Secretary, DOT 13

nonscheduled, where each passenger or 10 Restaurant and Food Service
shipment receiving transportation is (Ground).
individually documented and does not (a) Record here revenues from and ex-
obtain exclusive use of an aircraft. penses related to the operation of res-
(b) This account shall not include taurants and similar facilities, and
revenues or fees received from other from sales of food. (See section 12–51.)
air carriers for flight facilities fur- (b) This account shall be subdivided
nished or operated by the accounting as follows by all air carrier groups.
air carrier where the remuneration
10.1 Gross revenues.
paid by the party receiving transpor- 10.2 Depreciation expense.
tation accrues directly to, and the re- 10.3 Other expense.
sponsibility for providing transpor-
tation is that of other air carriers. 11 Rents.
Such revenues and related expenses
shall be included in profit and loss ac- (a) Record here revenues from and ex-
counts 11, Rents; 13, Interchange Sales; penses related to property and equip-
or 18, Other Transport-Related Reve- ment owned or leased which has been
nues and Expenses. rented or subleased to others exclusive
(c) This account shall be subdivided of associated companies. This account
as follows by all air carrier groups: shall not include fees from the use by
07.1 Passenger.
others of air carrier aircraft under air-
Record here revenue from the transpor- craft interchange agreements.
tation of passengers and their personal bag- (b) This account shall be subdivided
gage. as follows by all air carrier groups:
07.2 Property. 11.1 Gross Revenues.
Record here revenue from the transpor- 11.2 Depreciation Expense.
tation of property. 11.3 Other Expenses.
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
ed by ER–980, 42 FR 37, Jan. 3, 1977; ER–1401, 12 Limousine Service.
50 FR 244, Jan. 3, 1985] (a) Record here revenues from and ex-
penses related to the operation of pas-
TRANSPORT RELATED REVENUES AND
senger limousine surface transpor-
EXPENSES
tation services.
08 Public Service Revenues (Subsidy). (b) This account shall be subdivided
as follows by all air carrier groups:
Record here amounts of compensa- 12.1 Gross Revenues.
tion received pursuant to the provi- 12.2 Depreciation Expense.
sions of 49 U.S.C. 41733 under rates es- 12.3 Other Expenses.
tablished by the Department of Trans-
portation for the provision of essential 13 Interchange Sales.
air service to small communities.
(a) Record here the revenues or fees
[Amdt. 241–58, 54 FR 5595, Feb. 6, 1989, as from and the expenses related to serv-
amended at 60 FR 66723, Dec. 26, 1995] ices provided associated companies and
other than associated companies by the
09 In-Flight Sales. air carrier under aircraft interchange
(a) Record here revenues from and ex- agreements. This account shall be
penses related to transport-related charged and the applicable operating
services performed while in flight. expense objective accounts shall be
(b) This account shall be subdivided credited, except as provided in oper-
as follows by all air carrier groups: ating expense objective account 77,
09.1 Liquor and food—gross revenues. Uncleared Expense Credits, with the
09.2 Movies and stereo—gross revenues. expenses attaching to services provided
09.3 Other—gross revenues. all companies under aircraft inter-
09.4 Liquor and food—depreciation expense. change agreements.
09.5 Liquor and food—other expense.
09.6 Movies and stereo—depreciation ex-
(b) This account shall not include
pense. revenues or expenses related to air
09.7 Movies and stereo—other expense. transportation services performed in
09.8 Other—depreciation expense. the name of and for the account of the
09.9 Other—expense. accounting air carrier. Such revenues

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14 14 CFR Ch. II (1–1–00 Edition)

shall be included in applicable trans- 16 Substitute (replacement) Service.
port revenue and operating expense ob- (a) Record here revenues from and ex-
jective accounts. penses related to substitute service.
(c) This account shall be subdivided This account shall include as revenues
as follows by all air carrier groups: all monies received from substitute
13.1 Associated companies—gross revenues. carriers and as expense all monies paid
13.2 Outside—gross revenues. to substitute carriers.
13.3 Associated companies—depreciation ex-
(b) This account shall be subdivided
pense.
13.4 Associated companies—other expense.
as follows by all air carrier groups:
13.5 Outside—depreciation expense. 16.1 Gross revenue.
16.2 Expense.
13.6 Outside—other expense.
17 Air Cargo Services.
14 General Service Sales.
(a) Record here fees and other reve-
(a) Record here the revenues, com- nues from and expenses related to inci-
missions or fees from and expenses re- dental services performed in connec-
lated to other than air transportation tion with cargo shipments such as
and aircraft interchange services pro- pickup and delivery fees, shipper’s in-
vided to associated and outside compa- terest insurance charges, storage and
nies by the air carrier. This account handling fees, etc.
shall include the contractual fees or (b) This account shall be subdivided
other revenues from and expenses re- as follows by all air carrier groups:
lated to services provided to associated 17.1 Gross Revenues.
and other companies in the operation 17.2 Depreciation Expense.
of facilities which are used jointly with 17.3 Other Expenses.
associated and other companies as well
as revenues from and the costs related 18 Other Transport-Related Revenues
to the sale of supplies, parts and re- and Expenses.
pairs sold directly or furnished as a (a) Record here revenues from and ex-
part of services to associated and other penses related to transport-related
companies. services not provided for in profit and
(b) This account shall not include loss accounts 10 through 17, inclusive,
consideration received from sales of such as revenues and expenses incident
property, equipment, materials or sup- to the operation of flight facilities by
plies when disposed of as a part of a the accounting air carrier, except those
program involving retirement of prop- operated under aircraft interchange
erty and equipment as opposed to rou- agreements, where the remuneration
tine sales and services to associated paid by the party receiving transpor-
and other companies unless such dis- tation accrues directly to, and the re-
position is conducted as a normal part sponsibility for providing transpor-
of the incidental sales activity. Such tation is that of, other air carriers; and
retirement gain or loss shall be in- the revenues and expenses incident to
cluded in capital gains and losses ac- vending machines, parcel rooms, stor-
counts. Maintenance parts, materials age facilities, etc.
or supplies sold as a service to others (b) [Reserved]
shall be charged to this account at cost (c) Revenues from the renting or
without adjustment of related obsoles- leasing of property and equipment to
cence or depreciation allowances. others shall not be included in this ac-
(c) This account shall be subdivided count but in profit and loss account 11
as follows by all air carrier groups: Rents.
14.1 Associated companies—gross revenues. (d) This account shall be subdivided
14.2 Outside—gross revenues. as follows by all air carrier groups:
14.3 Associated companies—depreciation ex- 18.1 Gross Revenues.
pense. 18.2 Depreciation Expense.
14.4 Associated companies—other expense. 18.3 Other Expenses.
14.5 Outside—depreciation expense.
14.6 Outside—other expense. 19 Air Transport—Other.
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend- (a) Record here revenues associated
ed by ER–980, 42 FR 37, Jan. 3, 1977] with air transportation conducted by

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Office of the Secretary, DOT 25

the air carrier, not provided for in prof- volved in distributions of expenses be-
it and loss accounts 01 through 09, in- tween (i) separate operating entities of
clusive, such as revenue from (1) air- the air carrier, (ii) incidental and
line employees, officers and directors, transport services or transport func-
or other persons, except for ministers tions, (iii) balance sheet and profit and
of religion, who are traveling under re- loss elements and (iv) the air carrier
duced-rate transportation authorized and others, when the expenses are in-
by 49 U.S.C. 41511(a) and 14 CFR part curred initially by or for the benefit of
223, as well as travel agents, cargo the air carrier. At the option of the air
agents and tour conductors traveling carrier, standard rates applicable to
at reduced fares, (2) service charges for each objective account comprising a
failure to cancel or for late cancella- particular pool of expenses subject to
tion of air transportation reservations, assignment between two or more ac-
and (3) nontransportation service tivities, may be established for prora-
charges collected on both revenue and tion purposes, provided the rates estab-
nonrevenue flights. lished are predicated upon the experi-
(b) Revenues derived from sight- ence of the air carrier and are reviewed
seeing, aerial photography, adver- and modified as appropriate at least
tising, or other special flights shall not once each year.
be included in this account but in ac-
21 General Management Personnel.
count 07 Charter.
(c) This account shall be subdivided Record here the compensation, in-
as follows by all air carrier groups: cluding vacation and sick leave pay, of
19.1 Reservations Cancellation Fees. general officers and supervisors, and
19.9 Miscellaneous Operating Revenue. immediate assistants regardless of lo-
cality at which based, responsible for
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
ed by ER–820, 38 FR 24352, Sept. 7, 1973; ER–
an activity not provided for in profit
841, 39 FR 11997, Apr. 2, 1974; ER–980, 42 FR 37, and loss accounts 25 through 35, inclu-
Jan. 3, 1977; 60 FR 66723, Dec. 26, 1995] sive, or an activity involving two or
more such accounts.
TRANSPORT EXPENSES
23 Pilots and Copilots.
20 General Instructions. Record here the compensation, in-
(a) Each element of expense ordi- cluding vacation and sick leave pay, of
narily associated with air transpor- pilots and copilots assigned or held in-
tation services shall be charged to the active awaiting assignment to flight
accounts established in this section in duty.
accordance with the objectives served
by each expenditure. Basic objective 24 Other Flight Personnel.
accounts, applicable to all air carrier Record here the compensation, in-
groups, are established for recording cluding vacation and sick leave pay, of
all expense elements. These basic ac- other flight personnel assigned or held
counts are in certain areas subdivided inactive awaiting assignment to flight
to provide greater detail for indicated status, not responsible for the in-flight
air carrier groups. management of aircraft, such as engi-
(b) To the end that the integrity of neers, navigation officers and cabin at-
the prescribed objective accounts shall tendants.
not be impaired, each air carrier shall:
(1) Charge the appropriate account 25 Maintenance Labor.
prescribed for each service purchased (a) Record here the compensation for
or expense element incurred expressly time of personnel spent directly on spe-
for the benefit of the air carrier regard- cific property and equipment mainte-
less of whether incurred directly by the nance projects. (See sections 10 and 11–
air carrier or through an agent or other 5200.) Vacation and sick leave pay shall
intermediary, and (2) except as pro- be charged to profit and loss account 28
vided in objective account 77 Uncleared Trainees, Instructors and Unallocated
Expense Credits, credit or charge, as Shop Labor.
appropriate, the account prescribed for (b) This account shall be subdivided
each expense element which may be in- as follows:

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26 14 CFR Ch. II (1–1–00 Edition)
GROUP II AND GROUP III AIR CARRIERS provided for in subaccounts 26.2, 26.3, or 26.4,
inclusive.
25.1 Labor—Airframes and Other Flight Equip-
26.2 Aircraft Control Personnel.
ment.
Record here compensation of personnel
Record here the direct labor expended upon
whose activities are identifiable with the
airframes, spare parts related to airframes,
protection and control of aircraft in flight
and other flight equipment (Other than air-
and in scheduling or preparing flight crews
craft engines and spare parts related to air-
for flight assignment.
craft engines). Other flight equipment shall
26.3 Passenger Handling Personnel.
include instruments, which encompass all
Record here compensation of personnel
gauges, meters, measuring devices, and indi-
whose activities are identifiable with the
cators, together with appurtenances thereto
handling of passengers.
for installation in aircraft and aircraft en- 26.4 Cargo Handling Personnel.
gines which are maintaned separately from Record here compensation of personnel
airframes and aircraft engines. whose activities are identifiable with the
25.2 Labor—Aircraft Engines. handling of passenger baggage, mail, express,
Record here the direct labor expended upon
or freight.
aircraft engines and spare parts related to
aircraft engines. 28 Trainees, Instructors, and
GROUP I AIR CARRIERS Unallocated Shop Labor.
25.6 Labor—Flight Equipment. (a) Record here the compensation, in-
Record here the direct labor expended upon cluding vacation and sick leave pay, of
flight equipment of all types and classes. instructors and personnel in an off-the-
job training status; direct maintenance
ALL AIR CARRIER GROUPS personnel compensation not assigned
25.9 Labor—Ground Property and Equipment. to specific projects; and vacation or
Record here the direct labor expended upon sick leave pay of direct maintenance
ground property and equipment of all types personnel.
and classes. Direct labor expended upon gen- (b) This account shall be subdivided
eral ground properties shall be charged to as follows by all air carrier groups:
subfunction 5200 Direct Maintenance; and di- 28.1 Trainees and Instructors.
rect labor expended upon maintenance build- Record here the compensation of instruc-
ings and equipment shall be charged to sub- tors and personnel in a training status.
function 5300 Maintenance Burden. 28.2 Unallocated Shop Labor.
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend- Record here the pay of direct maintenance
ed by ER–1401, 50 FR 244, Jan. 3, 1985] personnel which has not been assigned to
profit and loss account 25 Maintenance
26 Aircraft and Traffic Handling Per- Labor for time spent on specific mainte-
sonnel. nance projects, and vacation or sick leave
pay of direct maintenance personnel.
(a) Record here the compensation, in-
cluding vacation and sick leave pay, of 30 Communications Personnel.
personnel of all types and classes, in- Record here the compensation, in-
cluding direct supervisory personnel, cluding vacation and sick leave pay, of
assigned to ground activities, engaged personnel of all types and classes, in-
directly in protecting and controlling cluding direct supervisory personnel,
aircraft in flight, scheduling and pre- engaged in local, interstation, or
paring flight crews for flight assign- groundair communication activities.
ment, parking and servicing aircraft This account shall include compensa-
incidental to line operations, and of tion of personnel such as radio opera-
personnel of all types and classes en- tors, telephone operators, switchboard
gaged in servicing and handling traffic operators, teletype operators, mes-
of all types and classes on the ground. sengers, etc.
(b) This account shall be subdivided
as follows by Group II and Group III air 31 Recordkeeping and Statistical Per-
carriers: sonnel.
26.1 General Aircraft and Traffic Handling Record here the compensation, in-
Personnel.
cluding vacation and sick leave pay, of
Record here compensation of personnel
handling or controlling aircraft and gen- personnel including supervisory per-
erally servicing or handling traffic of all sonnel, whose primary duties relate to
types and classes whose activities are not maintaining records or conducting eco-
identifiable with the particular activities nomic or other analyses required for

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Office of the Secretary, DOT 38

general management controls, such as identifiable with activities provided for
accountants, economists, statisticians, in profit and loss accounts 21 through
maintenance record clerks, stores 34, inclusive.
record clerks, stores receiving and
issuing clerks and file clerks. The ac- 36 Personnel Expenses.
count shall not include personnel en- (a) Record here expenses incurred by
gaged in documentation or other ac- officers, executives, directors and other
tivities constituting an integral part of
personnel, whether for the benefit of
activities encompassed by other objec-
the air carrier or for the private ben-
tive accounts.
efit of such persons, which are directly
32 Lawyers and Law Clerks. or indirectly borne by the air carrier.
(b) This account shall include allow-
Record here the compensation, in-
cluding vacation and sick leave pay, of ances in lieu of expenses as well as ex-
air carrier personnel engaged in law re- penses incurred for travel, lodgings,
search or representing the air carrier meals, entertainment of individuals or
in matters of law. groups of individuals, and membership
fees and dues in professional or social
33 Traffic Solicitors. clubs and associations.
Record here the compensation, in- (c) Records shall be maintained in a
cluding vacation and sick leave pay, of conveniently accessible form which
personnel engaged directly in solicita- will separately and clearly document
tion of traffic of all types and classes. each charge to this account in terms of
This account shall not include com- its natural characteristics and con-
pensation of traffic office personel en- tribution to the performance of the air
gaged in soliciting activities incidental carrier’s transport operations. The rec-
to the documenting of sales and assign- ords shall be maintained in such man-
ing aircraft space which shall be in- ner as will identify specifically the per-
cluded in profit and loss account 26 sons incurring the cost. Costs for
Aircraft and Traffic Handling Per- standby hotel or other facilities main-
sonnel. tained for the air carrier’s personnel
generally need not be allocated among
34 Purchasing Personnel.
the individuals using such facilities;
(a) Record here the compensation, in- however, sufficiently detailed records
cluding vacation and sick leave pay, of are required to identify the use made of
personnel, including direct supervisory such facilities by each individual.
personnel, engaged in purchasing ac-
tivities. [ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
(b) This account shall include com- ed by ER–948, 41 FR 12295, Mar. 25, 1976]
pensation of personnel engaged in
maintaining purchasing records but 37 Communications Purchased.
shall not include compensation of per- Record here expenses, including re-
sonnel responsible for the control of in- lated taxes, incurred for rental of com-
ventories or stores which shall be in- munication services and for commu-
cluded in objective account 31 Record nication services of all types and class-
Keeping and Statistical Personnel. In es not provided by personnel of the air
cases where the responsibility for carrier, such as telegraph, telephone,
maintaining purchasing and stores rec- teletype, private line services, and
ords are inseparable, the related com- charges for communication services
pensation may be accounted for in ac- from organizations operated jointly
cordance with dominant responsibil- with associated companies or others.
ities.
38 Light, Heat, Power and Water.
35 Other Personnel.
Record here the compensation, in- Record here charges related to the
cluding vacation and sick leave pay, of provision of light, heat, power and
personnel whose activities are not water including related taxes.

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39 14 CFR Ch. II (1–1–00 Edition)

39 Traffic Commissions. propriate, in profit and loss account
(a) Record here charges by others, in- 89.9 Other Miscellaneous Nonoperating
cluding associated companies, for com- Debits or balance sheet account 1830
missions arising from sales of transpor- Unamortized Developmental and
tation. Commissions, fees or other Preoperating Costs.
charges incurred for general agency [ER–980, 42 FR 37, Jan. 3, 1977]
services, as opposed to commissions
arising from sales of transportation, 43 General Services Purchased.
shall not be included in this account (a) Record here charges for services
but in profit and loss account 43 Gen- performed for the air carrier by outside
eral Services Purchased. and associated companies which are
(b) This account shall be subdivided not identifiable with services provided
as follows by Group II and Group III air for in profit and loss accounts 37
carriers. through 41, inclusive, or which are not
39.1 Commissions—Passenger. expressly identified with other objec-
Record here charges for commissions aris- tive expense accounts.
ing from sales of passenger transportation. (b) Charges from outside and associ-
39.2 Commissions—Property.
ated companies for services provided
Record here charges for commissions aris-
ing from sales of nonpassenger transpor- the air carrier under aircraft inter-
tation. change agreements or other agree-
ments embracing a complete activity
40 Legal Fees and Expenses. or service, such as the operating of
Record here expenditures incurred jointly used ground facilities, shall be
for legal services by counsel retained included in this account for each oper-
on a fee basis and related expenses re- ating function to which the services
imbursed or borne directly by the air contribute. Charges for providing air-
carrier and other expenses incurred di- craft capacity, including charges for
rectly by the air carrier for legal sup- depreciation and interest on the cap-
plies not obtainable from the air car- ital related to the flight equipment
rier’s general stationery stock. This provided, shall be included in function
account shall not be charged with legal 5100 Flying Operations.
(c) This account shall be subdivided
fees or expenses incurred in connection
by each air carrier group, as follows:
with claims occasioned by accidents or
other casualties. Such charges shall be GROUP II AND GROUP III AIR CARRIERS
accumulated in balance sheet account
43.1 Airframe and Other Flight Equipment
1890 Other Assets and cleared to profit
Repairs.
and loss account 58 Injuries, Loss and
Damage upon settlement of insurance Record here charges for maintenance or re-
claims. Nor should this account include pair of airframes and spare parts related to
airframes owned or leased by the air carrier.
fees or expenses related to develop- Charges for maintenance or repair of other
mental projects. Such expenses shall be flight equipment (including instruments)
included, as appropriate, in profit and owned or leased by the air carrier, excluding
loss account 89.9 Other Miscellaneous aircraft engines and spare parts related to
Nonoperating Debits or balance sheet aircraft engines, shall also be recorded here.
account 1830 Unamortized Develop- Instruments shall include all gauges, meters,
mental and Preoperating Costs. measuring devices, and indicators, together
with appurtenances thereto for installation
[ER–980, 42 FR 37, Jan. 3, 1977] in aircraft and aircraft engines, which are
maintained separately from airframes and
41 Professional and Technical Fees aircraft engines. Charges by outside and as-
and Expenses. sociated companies for maintenance of flight
Record here fees and expenses, other equipment provided under aircraft inter-
change agreements shall not be included in
than legal fees and expenses, incurred
this subaccount but in subaccount 43.7 Air-
for outside professional and technical craft Interchange Charges.
services which are reimbursed or borne
directly by the air carrier. This ac- 43.2 Aircraft Engine Repairs.
count shall not include fees or expenses Record here charges for maintenance of re-
related to developmental projects. pair or aircraft engines, including spare
Such expenses shall be included, as ap- parts related to aircraft engines owned or

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leased by the air carrier. Charges by outside or other objective expense accounts. The
and associated companies for maintenance of cost of services received in the repair of gen-
aircraft engines provided under aircraft eral ground properties shall be charged to
interchange agreements shall not be in- subfunction 5200 Direct Maintenance; and
cluded in this subaccount but in subaccount services received in the repair of mainte-
43.7 Aircraft Interchange Charges. nance buildings and equipment shall be
charged to subfunction 5300 Maintenance
GROUP I AIR CARRIERS Burden.
43.6 Flight Equipment Repairs. [Amdt. 241–56, 52 FR 9129, Mar. 23, 1987]
Record here charges for maintenance or re- 44 Landing Fees.
pair of flight equipment of all types and
classes owned or leased by the air carrier. Record here the charges and fees in-
Charges by outside and associated companies curred for landing of aircraft while in
for maintenance of flight equipment pro- line operation.
vided under aircraft interchange agreements
shall not be included in this subaccount but 45 Aircraft Fuels and Oils.
in subaccount 43.7 Aircraft Interchange
Charges.
(a) Record here the cost of fuels and
oils issued from stocks of the air car-
ALL AIR CARRIER GROUPS rier, or delivery directly by others, to
aircraft for use in flight operations.
43.7 Aircraft Interchange Charges.
Adjustments of inventories of aircraft
Record here charges by outside and associ- fuel and oil shall also be entered in this
ated companies for providing aircraft capac- account. The cost of fuels and oils used
ity or services related to the direct operation in repairs and maintenance services
or maintenance of flight equipment under
and nonrefundable fuel and oil taxes
aircraft interchange agreements.
shall not be included in this account
43.8 General Interchange Service Charges. but in profit and loss accounts 49 Shop
Record here charges by outside and associ- and Servicing Supplies and 69 Taxes—
ated companies for services provided the air Other than Payroll, respectively.
carrier under aircraft interchange agree- (b) This account shall be subdivided
ments, other than charges related to the di- as follows by Group II and Group III air
rect operation or maintenance of flight carriers:
equipment, including all charges for mainte- 45.1 Aircraft Fuels.
nance and repair of group properties, as well Record here the cost of fuels used in flight
as fees or charges for traffic solicitation and operations.
sales, or supervision and administration cov- 45.2 Aircraft Oils.
ered by the aircraft interchange agreements. Record here the cost of oils used in flight
Charges for depreciation or interest on cap- operations.
ital related to flight equipment provided
under interchange agreements shall not be 46 Maintenance Materials.
included in this subaccount but in sub-
(a) Record here the cost of materials
account 43.7 Aircraft Interchange Charges.
and supplies consumed directly in spe-
43.9 Other Services. cific property and equipment mainte-
Record here charges for maintenance and nance projects.
repair of ground property and equipment of (b) This account shall be subdivided
all types and classes and other charges for as follows:
services performed by outside and associated
GROUP II AND GROUP III AIR CARRIERS
companies not provided for elsewhere. This
subaccount shall include only those charges 46.1 Materials—Airframes and Other Flight
for services not provided for elsewhere in Equipment.
profit and loss accounts 37 to 41, inclusive, Record here the cost of materials and sup-
and subaccounts 43.1 to 43.8, inclusive, em- plies consumed directly in maintenance of
bracing a complete activity or service pro- airframes and spare parts related to air-
vided by outside and associated companies frames. Other flight equipment (including in-
such as the operation of traffic offices or struments), excluding aircraft engines and
other facilities used jointly with the air car- spare parts related to aircraft engines, shall
rier which do not represent reimbursement also be recorded here. Instruments shall in-
of specific expense elements incurred ex- clude all gauges, meters, measuring devices,
pressly for the benefit of the air carrier. Re- and indicators, together with appurtenances
imbursement of expenses incurred expressly thereto for installation in aircraft and air-
for the benefit of the air carrier shall be en- craft engines, which are maintained sepa-
tered in appropriate personnel compensation rately from airframes and aircraft engines.

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47 14 CFR Ch. II (1–1–00 Edition)
46.2 Materials—Aircraft Engines. (b) If the air carrier prepares its own
Record here the cost of materials and sup- food, the initial cost and expenses in-
plies consumed directly in maintenance of curred in the preparation thereof shall
aircraft engines and spare parts related to
aircraft engines.
be accumulated in a clearly identified
clearing account through which the
GROUP I AIR CARRIERS cost of food shall be cleared to this ac-
46.6 Materials—Flight Equipment. count, to profit and loss account 36
Record here the cost of materials and sup- Personnel Expenses, and to profit and
plies consumed directly in the maintenance loss account 10 Hotel, Restaurant and
of flight equipment of all types and classes. Food Service on bases which appro-
priately allocate the cost of food
ALL AIR CARRIER GROUPS served passengers, the cost of food pro-
46.9 Materials—Ground Property and Equip- vided employees without charge and
ment. the cost of food sold.
Record here the cost of materials and sup-
plies consumed directly in the maintenance 53 Other Supplies.
of ground property and equipment of all
types and classes. The cost of materials and
Record here the cost of supplies con-
supplies consumed in the repair of general sumed and not provided for otherwise.
ground properties shall be charged to sub-
function 5200 Direct Maintenance and mate- 54 Inventory Adjustments.
rials and supplies consumed in the repair of Record here adjustments for overage,
maintenance buildings and equipment shall shortage or shrinkage of inventories
be charged to subfunction 5300 Maintenance
Burden.
carried in balance sheet account 1300
Spare Parts and Supplies. Adjustment
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend- of aircraft fuel and oil inventories due
ed by ER–1401, 50 FR 245, Jan. 3, 1985]
to retroactive price increases and de-
47 Rentals. creases shall not be included in this ac-
count but in profit and loss account 45
Record here rentals, fee, or charges Aircraft Fuels and Oils. Gains or losses
incurred in the use of property and from retirements of materials and sup-
equipment provided by others. When a plies shall not be recorded in this ac-
lease arrangement provides that the count but in profit and loss account
amounts paid include charges for main- 88.5 Capital Gains and Losses—Oper-
tenance, insurance, or taxes, the ating Property.
amounts related thereto shall not be
recorded in this account but in the ap- [ER–980, 42 FR 37, Jan. 3, 1977]
propriate expense account to which re-
lated. 55 Insurance—General.
Record here the cost of public liabil-
49 Shop and Servicing Supplies. ity and property damage insurance and
Record here the cost of supplies and all other general insurance except in-
expendable small tools and equipment surance covering liability for injuries,
used in maintaining, servicing and loss, and damage to passengers and
cleaning property or equipment the cargo, and insurance carried for the
cost of which cannot be directly as- protection or welfare of employees.
signed to a specific job or type of work. [ER–948, 41 FR 12295, Mar. 25, 1976]
50 Stationery, Printing and Office 56 Insurance—Traffic Liability.
Supplies.
Record here the cost of purchased in-
Record here the cost of stationery
surance covering liability for injuries,
and forms used by the air carrier in-
loss and damage to passengers and
cluding the cost of engineering and
cargo.
shipping supplies.
[ER–980, 42 FR 37, Jan. 3, 1977]
51 Passenger Food Expense.
(a) Record here the cost of food and 57 Employee Benefits and Pensions.
refreshments served passengers except (a) Record here all costs for the ben-
food costs arising from interrupted efit or protection of employees includ-
trips. ing all pension expenses whether for

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Office of the Secretary, DOT 66

payments to or on behalf of retired em- exchange. Gains or losses of a nonrou-
ployees or for accruals or annuity pay- tine abnormal character and gains or
ments to provide for pensions; and all losses which arise from long-term debt
expenses for accident, sickness, hos- principal and interest transactions
pital, and death benefits to employees shall not be entered in this account but
or the cost of insurance to provide in profit and loss account 85, Foreign
these benefits. Include, also, expenses Exchange Gains and Losses.
incurred in medical, educational, or
[Amdt. 241–58, 54 FR 5596, Feb. 6, 1989]
recreational activities for the benefit
of employees. Do not include vacation 62 Other Promotional and Publicity
and sick leave pay, or salaries of doc- Expenses.
tors, nurses, trainees, or instructors,
which shall be recorded in the regular Record here the costs, excluding
salary accounts. compensation of air carrier personnel,
(b) [Reserved] of producing and distributing publicity
releases and other expenses, not
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend- chargeable to profit and loss accounts
ed by ER–980, 42 FR 37, Jan. 3, 1977; ER–1188,
45 FR 48871, July 22, 1980]
59 and 60, incurred for the purpose of
publicizing or improving the public re-
58 Injuries, Loss and Damage. lations of the air carrier generally.
Record here the remainder of gains, 63 Interrupted Trips Expense.
losses or costs resulting from acci-
dents, casualties or mishandlings, after Record here expenses allowed or paid
offsetting insurance recoveries, as ac- for the care and serving of passengers
cumulated until finally determined in because of unscheduled interruptions
balance sheet account 1890 Other As- in passenger journeys. Transportation
sets and Deferred Charges. This ac- refunds and the cost of forwarding traf-
count shall not include gains or losses fic by surface common carrier or other-
from retirement of property and equip- wise as a result of such interruptions
ment resulting from casualties. Such shall not be charged to this account
gains or losses shall be recorded in ap- but to the appropriate operating rev-
propriate capital gains or losses ac- enue account.
counts.
64 Memberships.
[Amdt. 241–58, 54 FR 5596, Feb. 6, 1989]
Record here the cost of membership
59 Schedules and Timetables. dues in trade associations, chambers of
commerce, or other business associa-
Record here the production and dis-
tions and organizations together with
tribution cost, excluding compensation
special assessments related thereto.
of air carrier personnel, of all oper-
ating schedules, timetables, circulars 65 Corporate and Fiscal Expenses.
and related quick reference charts.
Record here corporate and fiscal fees
[ER–1401, 50 FR 245, Jan. 3, 1985] and expenses of the air carrier and all
expenses in connection with exchange
60 Advertising.
and transfer of capital stock excluding
Record here the cost, excluding com- expenses in connection with original
pensation of air carrier personnel, of issuance of capital stock.
all space, direct mail, spot and other
advertising for the purpose of increas- 66 Uncollectible Accounts.
ing air travel, disseminating air travel
Record here losses from uncollectible
information and publicizing services
accounts and allowance provisions and
offered by the air carrier.
adjustments thereto, for such losses.
61 Foreign Exchange Gains and When allowances for uncollectible ac-
Losses. counts are established, losses as real-
ized shall be charged against such al-
Record here gains or losses from
lowances and shall not be charged to
transactions involving currency trans-
this account.
lations resulting from normal, routine,
current fluctuations in rates of foreign [ER–980, 42 FR 37, Jan. 3, 1977]

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67 14 CFR Ch. II (1–1–00 Edition)

67 Clearance, Customs and Duties. overhaul costs incurred in the current period
which have been charged against related air-
Record here clearance, customs, du- worthiness allowances.
ties and brokerage fees and charges ap- 72.3 Airframe Overhauls Deferred.
plicable to clearing aircraft and traffic. Record here airframe overhauls of the cur-
rent period transferred to subaccount 1601.2,
68 Taxes—Payroll. Unamortized Airframe Overhauls, and the
Record here all taxes levied against amount of deferred airframe overhaul costs
amortized for the current period.
the air carrier based upon or directly 72.6 Airworthiness Allowance Provisions—Air-
relating to compensation of personnel. craft Engines.
Record here current provisions for effect-
69 Taxes—Other Than Payroll. ing an equitable distribution of aircraft en-
(a) Record here all taxes levied gine overhauls costs between different ac-
against the air carrier not otherwise counting periods. Record here also credits
provided for including nonrefundable for aircraft engine overhaul costs incurred in
aircraft fuel and oil taxes. Interest and the current period which have been charged
against related airworthiness allowances.
penalties on delinquent taxes shall not 72.8 Aircraft Engine Overhauls Deferred.
be charged to this account but to profit Record here airframe overhauls of the cur-
and loss accounts 82 Other Interest and rent period transferred to subaccount 1602.2,
89.9 Other Miscellaneous Nonoperating Unamortized Aircraft Engine Overhauls, and
Debits, respectively. the amount of deferred aircraft engine over-
(b) Entries to this account shall haul costs amortized for the current period.
clearly reveal each kind of tax and the [ER–948, 41 FR 12295, Mar. 25, 1976, as amend-
governmental agency to which paid or ed by ER–1401, 50 FR 245, Jan. 3, 1985]
payable.
73 Provisions for Obsolescence and
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
Deterioration—Expendable Parts.
ed by ER–980, 42 FR 37, Jan. 3, 1977]
(a) Where allowances for loss in value
71 Other Expenses. of flight equipment expendable parts
Record here all expenses ordinarily are established, provisions for accruals
associated with air transportation and to such allowances shall be charged to
its incidental services not provided for this account and credited to balance
otherwise. sheet account 1311 Allowance for Obso-
lescence in accordance with the provi-
72 Aircraft Overhauls. sions of that account.
(a) Record here airframe and aircraft (b) This account shall be subdivided
engine overhauls of the current period as follows by all air carrier groups:
which are transferred to balance sheet 73.1 Current provisions. Record here provi-
subaccounts 1601.2 Unamortized Air- sions during the current period for losses
frame Overhauls or 1602.2 Unamortized in value of expendable parts.
73.2 Inventory decline credits. Record here
Aircraft Engine Overhauls. This ac- credits applicable to the current period
count shall also include the amount of for any adjustments for excess inventory
deferred overhauls costs being amor- allowance levels determined pursuant to
tized for the current period. For car- section 6–1311.
riers which elect to continue accruing
[ER–980, 42 FR 37, Jan. 3, 1977]
for aircraft overhauls for aircraft types
acquired before January 1, 1976, as well 74 Amortization.
as for other aircraft of the same type
acquired after January 1, 1976, the re- (a) Record here amortization of de-
lated provisions and charges shall be ferred changes attaching to the air
recorded in the appropriate sub- transportation services conducted by
accounts of this account. the air carrier which are not prepay-
(b) This account shall be subdivided ments of recurrent expenses ordinarily
as follows by all carrier groups: requiring expenditures of working cap-
72.1 Airworthiness Allowance Provisions—Air- ital within one year.
frames. (b) This account shall be subdivided
Record here current provisions for effect- as follows by all air carrier groups:
ing an equitable distribution of airframe 74.1 Developmental and Preoperating Expenses
overhaul costs between different accounting Record here amortization of the cost of
periods. Record here also credits for airframe projects carried in balance sheet account

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Office of the Secretary, DOT 77
1830 Unamortized Developmental and ment, 1639 Improvements to Leased Build-
Preoperating Costs. ings and Equipment, and 1640.1 Maintenance
74.2 Other Intangibles. Buildings and Improvements.
Record here mortization of the cost of in- 75.9 Depreciation—General Ground Property.
tangibles not provided for otherwise. Record here provisions for depreciation of
property and equipment included in balance
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
of property and equipment included in bal-
ed by ER–980, 42 FR 38, Jan. 3, 1977; Amdt.
ance sheet accounts 1630 through 1640, exclu-
241–58, 54 FR 5596, Feb. 6, 1989]
sive of provision for depreciation of mainte-
75 Depreciation. nance property and equipment included in
account 75.8.
(a) Record here provisions for depre-
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
ciation of property and equipment car- ed by ER–948, 41 FR 12296, Mar. 25, 1976; ER–
ried in balance sheet accounts 1601 980, 42 FR 38, Jan. 3, 1977; 60 FR 66723, Dec. 26,
through 1640, inclusive. 1995]
(b) This account shall be subdivided
as follows: 76 Amortization Expense—Capital
Leases.
ALL AIR CARRIER GROUPS
(a) Record here amortization charges
75.1 Depreciation—Airframes. applicable to assets recorded under
Record here provisions for depreciation of
property and equipment carried in balance
capital leases in Account 1695 — Leased
subaccount 1601.1 Airframes. Property under Capital Leases.
75.2 Depreciation—Aircraft Engines. (b) This account shall be subdivided
Record here provisions for depreciation of as follows by all air carrier groups:
property and equipment carried in balance 76.1 Amortization—Capitalized Flight Equip-
sheet subaccount 1602.1 Aircraft Engines. ment.
Record here amortization charges applica-
GROUP II AND GROUP III AIR CARRIERS ble to flight equipment acquired under cap-
75.3 Depreciation—Airframe Parts. ital leases.
Record here provisions for depreciation of 76.2 Amortization—Capitalized Other Property
spare airframe instruments and parts carried and Equipment.
in balance sheet subaccount 1608.1 Airframe Record here the amortization charges ap-
Parts and Assemblies. plicable to property and equipment, other
75.4 Depreciation—Aircraft Engine Parts. than flight equipment, acquired under cap-
Record here provisions for depreciation of ital leases.
spare aircraft engine instruments and parts [ER–1401, 50 FR 245, Jan. 3, 1985]
carried in balance sheet subaccount 1608.5
Aircraft Engine Parts and Assemblies. 77 Uncleared Expense Credits.
ALL AIR CARRIER GROUPS (a) Record here credits to operating
75.5 Depreciation—Other Flight Equipment. expenses, which have not been cleared
to the objective accounts to which ap-
Record here provisions for depreciation of
property and equipment carried in balance plicable.
sheet account 1607 Improvements to Leased (b) Each air carrier shall credit, or
Flight Equipment (exclusive of capitalized charge as appropriate, the objective ac-
overhauls accounted for on a deferral and count prescribed for each expense ele-
amortization basis) and balance sheet sub- ment which may be involved in dis-
account 1608.9 Other Parts and Assemblies. tribution of expenses between separate
Group I air carriers shall also include in this reporting entities or nontransport divi-
subaccount provisions for depreciation of
sions of the air carrier. At the option
property carried in balance sheet account
1608 Flight Equipment Rotable Parts and As- of the air carrier, either the individual
semblies. applicable objective accounts or this
75.6 Depreciation—Flight Equipment. account may be credited with amounts
This classification is established only for capitalized, charged against incidental
purposes of control by the BTS and shall in- services, or otherwise assigned to other
clude all charges to operating expenses for than separate operating entities of the
depreciation of flight equipment of all types air carrier provided the aggregate cred-
and classes.
its to this account in each function do
75.8 Depreciation—Maintenance Equipment
and Hangars. not, for any accounting year, distort
Record here provisions for depreciation of the individual objective accounts of
maintenance property and equipment in- the function to which related and all
cluded in balance sheet accounts 1630 Equip- expense credits applicable to complete

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78 14 CFR Ch. II (1–1–00 Edition)

individual transactions are consist- 79.8 Applied Burden—General Ground Prop-
ently credited either to this account or erty.
the individual objective accounts to [ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
which related. Each air carrier using ed by ER–979, 38 FR 10926, May 3, 1973; 60 FR
this account shall establish such stand- 66723, Dec. 26, 1995]
ard practices as may be prescribed by
the BTS or, in the absence of such ac- SECTION 14—OBJECTIVE CLASSIFICA-
tion by the Civil Aeronautics Board, TION—NONOPERATING INCOME AND EX-
such standard practices as will prevent PENSE
credits to this account from signifi-
80 Interest Income.
cantly distorting the individual objec-
tive accounts of each function to which Included under account 89 Other Non-
related. operating Income and Expense—Net.
(c) This account shall not be credited [ER–1401, 50 FR 245, Jan. 3, 1985]
with amounts applicable to objective
accounts of the Flying Operations, De- 81 Interest on Long-term Debt and
preciation, and Direct Maintenance Capital Leases.
functions. Credits applicable to such (a) Record here interest expense ap-
functions shall be carried to the indi- plicable to long-term debt and capital-
vidual objective accounts to which ap- ized leases.
plicable. (b) This account shall be subdivided
(d) This account shall be subdivided as follows by all air carrier groups:
as follows by all air carrier groups: 81.1 Interest expense—long-term debt.
77.8 Uncleared Interchange Expense Credits. Record here interest on all classes of long-
Record here credits to operating expenses, term debt. This includes interest expense ap-
from operations performed for others under plicable to all portions of long-term debt
aircraft interchange agreements, which have which are classified as either current (Ac-
not been cleared to the objective accounts to count 2000) or long-term (Account 2210) for
which applicable. balance sheet classification purposes.
77.9 Other Uncleared Expense Credits. 81.2 Interest expense—capital leases.
Record here credits to operating expenses, Record here for all capitalized leases, that
from other than operations under aircraft portion of each lease payment which rep-
interchange agreements, which have not resents interest expense.
been cleared to the objective accounts to
which applicable. [ER–1013, 42 FR 37516, July 21, 1977]
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend- 82 Other Interest.
ed at 60 FR 66723, Dec. 26, 1995]
(a) This account shall be subdivided
78 Direct Maintenance—Flight Equip- as follows by all air carrier groups:
ment. 82.1 Interest Expense—Short-Term Debt.
Record here interest on all classes of short-
This classification is established for
term debt.
purposes of control by the BTS and 83.1 Imputed Interest Capitalized—Credit.
shall include all charges to operating Record here credits related to imputed in-
expenses for maintenance of flight terest capitalized and recorded in asset ac-
equipment of all types and classes. counts.
83.2 Imputed Interest Deferred—Debit.
[ER–755, 37 FR 19726, Sept. 21, 1972, as amend- Record here debits related to imputed in-
ed at 60 FR 66723, Dec. 26, 1995] terest deferred in balance sheet account 2390,
Other deferred credits.
79 Applied Burden Debit/Credit. 83.3 Imputed Interest Deferred—Credit.
(a) This classification is established Record here periodic credits for imputed
only for purposes of control by the BTS interest, cleared to this account as the
and reporting on Form 41 by air car- amount of such interest in the asset ac-
riers, and shall reflect all maintenance counts is amortized.
83.4 Interest Capitalized—Credit.
burden applied in accordance with the Record here interest which is capitalized
provisions of section 24, schedule P–5 of and recorded in asset accounts.
this system of accounts and reports. 84.1 Amortization of discount and expense on
(b) This classification shall be sub- debt.
divided as follows by all air carrier Record here for all classes of debt the am-
groups: ortizations of discount and expense on short-
79.6 Applied Burden—Flight Equipment. term and long-term obligations.

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Office of the Secretary, DOT 89
84.2 Amortization of premium on debt. (b) This account shall not include interest
Record here for all classes of debt the am- on securities issued or assumed by the air
ortizations of premium on short-term and carrier and subsequently reacquired.
long-term obligations. 86.0 Income from Nontransport Ventures.
(b) [Reserved] (a) Record here the gross revenues and ex-
penses applicable to operations not reason-
[ER–1401, 50 FR 245, Jan. 3, 1985, as amended ably considered as incidental to the commer-
by Amdt. 241–58, 54 FR 5596, Feb. 6, 1989] cial air transport services of the accounting
entity; rents from nonoperating properties
83 Capitalized Interest. used by others; income or loss from non-
transport divisions; and other income or loss
Included under account 82 Other In- from activities of the air carrier which are
terest. extraneous to the air transport and inci-
[ER–1401, 50 FR 245, Jan. 3, 1985] dental services of the accounting entity.
(b) This account shall include revenues and
expenses applicable to nonscheduled trans-
84 Amortization of Debt Discount, Pre-
port services performed for the defense es-
mium and Expense.
tablishment when separate reports for such
Included under account 82 Other In- services are required in accordance with sec-
terest. tion 21 ‘‘Introduction to System of Reports.’’
Where the foregoing transport services are
[ER–1401, 50 FR 245, Jan. 3, 1985] not required to be separately reported, gross
revenues from such services shall be included
85 Foreign exchange gains and losses. in profit and loss account 07 Charter, or
other appropriate revenue account, and gross
Record here gains and losses from
expenses shall be included in the appropriate
transactions involving currency trans- operating expense functions.
lations resulting from nonroutine ab- 87.0 Equity in Income of Investor Controlled
normal changes in rates of foreign ex- Companies.
change and gains or losses which arise Record here the equity in the current earn-
from translations of long-term debt ings or losses of investor controlled compa-
principal and interest transactions. nies. Dividends declared on the stock of such
companies shall not be included in this ac-
[Amdt. 241–58, 54 FR 5596, Feb. 6, 1989] count as income but shall be entered in bal-
ance sheet subaccount 1510.1 Investments in
86 Income from Nontransport Ven- Investor Controlled Companies as a return
tures. on investment.
88.1 Intercompany Transaction Adjustment—
Included under account 89 Other Non-
Credit.
Operating Income and Expense—Net. Record here all intercompany credits for
[ER–980, 42 FR 38, Jan. 3, 1977] any differences between amounts at which
transactions between the air carrier and its
87 Equity in Income of Investor Con- nontransport divisions or associated compa-
trolled Companies. nies are initially recorded and are to be set-
tled.
Included under account 89 Other Non- 88.2 Dividend income.
operating Income and Expense—Net. Record here income from dividends de-
clared on stocks of other than investor con-
[ER–1401, 50 FR 245, Jan. 3, 1985] trolled companies. Dividends declared on
stock of investor controlled companies shall
89 Other Nonoperating Income and not be included in this account but shall be
Expense—Net. entered in balance sheet subaccount 1510.1
(a) Record here all debits and credits Investments in Investor Controlled Compa-
nies.
of a nonoperating character which are
88.3 Net Unrealized Gain or Loss on Market-
not otherwise provided for in this sec- able Equity Securities.
tion. Record here the net unrealized gain or loss
(b) This account shall be subdivided on the valuation of marketable equity secu-
as follows by all air carrier groups: rities.
80.0 Interest Income. 88.4 Net Realized Gain or Loss on Marketable
(a) Record here interest income from all Equity Securities.
sources. This account shall include as an in- Record here the net realized gain or loss on
crease or reduction of interest received the the valuation of marketable equity securi-
proportionate amortization of any discount ties.
or premium on the purchase price of securi- 88.5 Capital gains and losses—operating prop-
ties of others held by the air carrier. erty.

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91 14 CFR Ch. II (1–1–00 Edition)
Record here gains or losses on retirements that were the subject of a compromise settle-
of operating property and equipment, flight ment or consent decree where the amounts
equipment expendable parts, or miscella- attributable to discrimination are reason-
neous materials and supplies sold or other- ably identifiable.
wise retired in connection with a general re- (c) Amortization expense attributable to
tirement program as opposed to incidental capital leases recorded in balance sheet Ac-
sales performed as a service to others. count 1795, Leased Property under Capital
88.6 Capital gains and losses—other. Leases;
Record here gains or losses not required to (d) Costs related to property held for fu-
be reported in accounts 88.3, 88.4 and 88.5 ture use;
such as gains or losses on retirement of non- (e) Donations for charitable, social or com-
operating property and equipment, invest- munity welfare purposes;
ments in other than marketable equity secu- (f) Losses on reacquired and retired or re-
rities, and the transfer of assets in a trou-
sold debt securities of the air carrier;
bled debt restructuring.
(g) Losses resulting from troubled debt
88.7 Unapplied cash discounts.
Record here cash discounts on routine pur- restructurings;
chases of materials, repair parts or supplies. (h) Losses on uncollectible nonoperating
Cash discounts on classes of assets included receivables; or
in property and equipment accounts shall (i) Accruals to allowance for uncollectible
not be recorded in this account but shall be nonoperating receivables.P=’02’≤
applied as a reduction of the cost of such ac- (Secs. 204, 404, 407, and 1002 of the Federal
counts. Aviation Act of 1958, as amended, 72 Stat.
88.9 Other miscellaneous nonoperating credits. 743, 760, 766, 788, (49 U.S.C. 1324, 1374, 1377,
Record here all credits of a nonoperating 1482))
character not provided for otherwise, such as
royalties from patents, gains from reacquisi- [ER–980, 42 FR 38, Jan. 3, 1977, as amended by
tion and retirement or resale of debt securi- ER–1013, 42 FR 37516, July 21, 1977; ER–1027,
ties issued by the air carrier, and gains re- 42 FR 60128, Nov. 25, 1977; ER–1076, 43 FR
sulting from troubled debt restructurings. 46296, Oct. 6, 1978; ER–1401, 50 FR 245, Jan. 3,
89.1 Intercompany Transaction Adjustment— 1985; Amdt. 241–58, 54 FR 5596, Feb. 6, 1989]
Debit.
Record here all intercompany debits for SECTION 15—OBJECTIVE CLASSIFICA-
any differences between amounts at which TION—INCOME TAXES FOR CURRENT
transactions between the air carrier and its PERIOD
nontransport divisions or associated compa-
nies are initially recorded and are to be set- 91 Provision for Income Taxes.
tled.
89.9 Other Miscellaneous Nonoperating Debits. (a) Record here quarterly provisions
Record here all debits of a nonoperating for accruals of Federal, State, local,
character not provided for otherwise, such as and foreign taxes based upon net in-
the following: come, computed at the normal tax and
(a) Fines or penalties imposes by govern- surtax rates in effect during the cur-
mental authorities; rent accounting year. In general, this
(b) Costs associated with employment dis-
account shall reflect provisions within
crimination that include the following:
(1) Fines or penalties paid by the carrier as each period for currently accruing tax
a result of a judicial or administrative de- liabilities as actually or constructively
cree; or the amount paid to the complainant computed on tax returns, and any sub-
in settling or securing a consent decree; sequent adjustments. This account
(2) Back pay awards as a result of a judi- shall include credits for refund claims
cial or administrative decree or a com- arising from the carryback of losses in
promise settlement regardless of admission the year in which the loss occurs, cred-
of guilt;
(3) Attorneys’ fees or court costs awarded
its for the carry-forward of losses in
to the complainant by a judicial or adminis- the year to which the loss is carried,
trative decree or as a result of a compromise and investment tax credits in the year
settlement regardless of admission of guilt; in which each credit is utilized to re-
(4) The fees of outside legal counsel or of duce the liability for income taxes.
experts retained in the unsuccessful defense (b) Income taxes shall be allocated
of a discrimination suit or in securing a com- among the transport entities of the air
promise settlement or consent decree, unless
carrier, its nontransport divisions, and
the amounts attributable to the discrimina-
tion are not reasonably identifiable; or members of an affiliated group. Under
(5) Any other expenses, such as employee circumstances in which income taxes
salaries, resulting from employment prac- are determined on a consolidated basis
tices that were found to be discriminatory or by an air carrier and other members of

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Office of the Secretary, DOT 97

an affiliated group, the income tax ex- (b) This account shall be subdivided
pense to be recorded by the air carrier as follows by all carrier groups:
shall be the same as would result if de- 93.1 Investment Tax Credits Deferred.
termined for the air carrier separately 93.2 Amortization of Deferred Investment Tax
for all time periods, except that the tax Credits.
effect of carryback and carryforward [ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
operating losses, investment tax cred- ed by ER–980, 42 FR 39, Jan. 3, 1977]
its, or other tax credits generated by
operations of the air carrier shall be re- SECTION 16—OBJECTIVE CLASSIFICA-
corded by the air carrier during the pe- TION—DISCONTINUED OPERATIONS
riod in which applied in settlement of 95 Discontinued Operations.
the taxes otherwise attributable to any
member, or combination of members, (a) Record here the earnings (losses)
of the affiliated group. Any difference of discontinued nontransport oper-
between the income tax so recorded ations. For the purposes of this system
and the amount at which settlement is of accounts and reports discontinued
to be made shall be recorded in sub- operations shall refer to the disposal of
account 88.1 Intercompany Transaction investor controlled companies and non-
Adjustment—Credit or in subaccount transport ventures whether sold, aban-
89.1 Intercompany Transaction Adjust- doned, spun off, or otherwise disposed
ment—Debit, as is appropriate. of. This account shall not include earn-
(c) This account shall be subdivided ings or losses from discontinued trans-
as follows by all carrier groups: port or transport-related operations.
91.1 Income Taxes Before Investment Tax (b) This account shall be subdivided
Credits. as follows by all air carrier groups:
Record here accruals of income taxes based 95.1 Income from Discontinued Operations.
upon taxable income of the period. Record here the results of operations of the
91.2 Investment Tax Credits Utilized. discontinued operations.
Record here investment tax credits utilized 95.2 Loss of Disposal of Discontinued Oper-
to reduce the accrued liability for income ations.
taxes. Record here the gain or loss on the dis-
posal of an operation. If loss is anticipated it
[Amdt. 241–58, 54 FR 5596, Feb. 6, 1989] should be provided for at the measurement
date. If gain is anticipated it should be rec-
92 Provisions for Deferred Income ognized when realized.
Taxes.
[ER–948, 41 FR 12296, Mar. 25, 1976]
(a) Record here income tax debits and
credits deferred in accordance with the SECTION 17—OBJECTIVE
provisions of balance sheet account CLASSIFICATION—EXTRAORDINARY ITEMS
2340 Deferred Income Taxes for all ma-
terial timing differences. 96 Extraordinary Items.
(b) This account shall be subdivided Record here material items charac-
as follows by all air carrier groups: terized by their unusual nature and in-
92.1 Current Provisions for Deferred Taxes. frequent occurrence. Events or trans-
92.2 Application of Taxes Deferred. actions which are material and either
92.3 Adjustments of Deferred Taxes. unusual or nonrecurring, but not both,
[ER–948, 41 FR 12296, Mar. 25, 1976] shall be recorded in the profit and loss
accounts to which they relate and dis-
93 Investment Tax Credits Deferred closed on BTS Form 41 Schedule P–2
and Amortized. with identification as to their nature
(a) Record here investment tax cred- and financial effects.
its of the current period which are [Amdt. 241–58, 54 FR 5596, Feb. 6, 1989, as
transferred to balance sheet account amended at 60 FR 66723, Dec. 26, 1995]
2345 Deferred Investment Tax Credits
in accordance with the provisions of 97 Income Taxes Applicable to Ex-
balance sheet account 2130 Accrued traordinary Items.
Taxes. This account shall also include Record here income taxes allocable
amounts for previously deferred invest- to items of income included in profit
ment tax credits amortized during the and loss account 96 Extraordinary
current period. Items and income tax assessments that

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98 14 CFR Ch. II (1–1–00 Edition)

do not constitute ordinary adjustments On-flight Market.’’ The ‘‘Instructions
of a recurrent nature. Records sup- to Foreign Air Carriers for Reporting
porting entries to this account shall be Traffic Data on Form 41 Schedule T–
maintained with sufficient particu- 100(f),’’ (Instructions-Foreign Air Car-
larity to identify the nature and gross riers) are included in the Appendix to
amount of each extraordinary credit § 217.10 of this chapter.
and each extraordinary debit. (c) Each U.S. air carrier shall use
magnetic computer tape or ‘‘floppy
[ER–948, 41 FR 12296, Mar. 25, 1976]
disc’’ for transmitting the prescribed
SECTION 18—OBJECTIVE CLASSIFICA- data to the Department. Upon good
TION—CUMULATIVE EFFECT OF cause shown, OAI may approve the re-
CHANGES IN ACCOUNTING PRINCIPLES quest of a U.S. air carrier, under sec-
tion 1–2 of this part, to use hardcopy
98 Cumulative Effect of Changes in data input forms.
Accounting Principles. (d) On-flight market and nonstop seg-
Record here the difference between ment detail data by carrier shall be
the amount of retained earnings at the made public only as provided in section
beginning of the period of a change in 19–6.
accounting principle and the amount of [53 FR 46305, Nov. 16, 1988; 53 FR 52404, Dec.
retained earnings that would have been 28, 1988, as amended at 60 FR 66723, Dec. 26,
reported at that date if the new ac- 1995]
counting principle had been applied
retroactively for all periods which Sec. 19–2 Maintenance of data.
would have been affected and by recog- (a) Each air carrier required to file
nizing only the direct effects of a Form 41 Schedule T–100 data shall
change and the related income tax ef- maintain its operating statistics, cov-
fect. ering the movement of traffic in ac-
[ER–948, 41 FR 12296, Mar. 25, 1976] cordance with the uniform classifica-
tions prescribed. Codes are prescribed
OPERATING STATISTICS for each operating element and service
CLASSIFICATIONS class. All traffic statistics shall be
compiled in terms of each flight stage
SECTION 19—UNIFORM CLASSIFICATION as actually performed.
OF OPERATING STATISTICS (b) Each carrier shall maintain data
applicable to the specified traffic and
Sec. 19–1 Applicability. capacity elements prescribed in section
(a) United States air carrier: Each 19–5 and section 25, and by general
large certificated U.S. air carrier shall service classes prescribed in section 19–
file with the Department, on a monthly 4 of this part.
basis, Form 41 Schedule T–100 ‘‘U.S. (c) Operating statistics shall be
Air Carrier Traffic and Capacity Data maintained in accordance with the
By Nonstop Segment and On-flight type of record, either nonstop segment
Market,’’ and summary data as pre- or on-flight market.
scribed in this section and in sections
22 and 25 of this part. A carrier con- Sec. 19–3 Accessibility and transmittal
ducting only domestic all-cargo oper- of data.
ations under 49 U.S.C. 41103 is not re- (a) Each reporting air carrier shall
quired to file Schedule T–100. The ‘‘In- maintain its prescribed operating sta-
structions to U.S. Air Carriers for Re- tistics in a manner and at such loca-
porting Traffic and Capacity Data on tions as will permit ready accessability
Form 41 Schedules T–100, T–1, T–2 and for examination by representatives of
T–3’’ (Instructions-U.S. Air Carriers) the Department. The record retention
are contained in the Appendix to sec- requirements are prescribed in part 249
tion 25 of this part. of this chapter.
(b) Foreign (non-U.S.) air carrier: Each (b) Individual nonstop segment and
foreign air carrier as required by part on-flight market data for section 418
217 of this chapter shall file Form 41 domestic all-cargo, domestic charter
Schedule T–100(f) ‘‘Foreign Air Carrier and military charter operations are not
Traffic Data by Nonstop Segment and required to be reported on the Schedule

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Office of the Secretary, DOT Sec. 19–5

T–100, but summary data for such oper- F—Scheduled Passenger/Cargo
ations shall be included in the T–1, T– G—Scheduled All-Cargo
2 and T–3 schedules that each U.S. air (b) Nonscheduled services. Non-
carrier shall transmit to the Depart- scheduled services shall include all
ment on a monthly or quarterly basis traffic and capacity elements applica-
as prescribed in sections 22 and 25. For ble to the performance of nonscheduled
international military charters, only aircraft charters, and other air trans-
the U.S. airports are reported on portation services not constituting an
Schedule T–3, and the foreign airports integral part of services performed pur-
are combined and reported on a single suant to published flight schedules.
line, as Airport ‘‘NON.’’ International The following classifications shall be
civilian charter and civilian all-cargo
reported, as applicable:
operations shall be reported in the T–
100 data format, by nonstop segment U.S. Air Carriers:
and on-flight market. V—Nonscheduled Services
(c) Form 41 Schedule T–100 reports (L+N+P+R)
shall be transmitted in accordance L—Nonscheduled Civilian Passenger/
with the standard practices established Cargo
by the Department, and must be re- P—Nonscheduled Civilian Cargo
ceived by the Department within 30 N—Nonscheduled Military Passenger/
days following the end of each report- Cargo
ing month. R—Nonscheduled Military Cargo
Foreign Air Carriers:
Sec. 19–4 Service classes.
L—Nonscheduled Civilian Passenger
The statistical classifications are de- Cargo
signed to reflect the operating ele- P—Nonscheduled Civilian All-Cargo
ments attributable to each distinctive Charters
class of service offered. The operating Q—Nonscheduled Services (Other
elements shall be grouped in accord- than Charter)
ance with their inherent characteris-
tics as follows: (c) All Services. This classification
(a) Scheduled services. Scheduled serv- shall reflect, for the applicable ele-
ices shall include traffic and capacity ments, the aggregate amounts for all
elements applicable to air transpor- services performed by the operating en-
tation provided pursuant to published tity:
schedules and extra sections to sched- U.S. Air Carriers:
uled flights. Scheduled Passenger/ Z—All Services (V+K)
Cargo (Service Class F) is a composite
of first class, coach, and mixed pas- Sec. 19–5 Air transport traffic and ca-
senger/cargo service. The following pacity elements.
classifications shall be reported, as ap- (a) Within each of the service classi-
plicable: fications prescribed in section 19–4,
U.S. Air Carriers: data shall be reported as applicable to
K—Scheduled Services (F+G) specified air transport traffic and ca-
F—Scheduled Passenger/Cargo pacity elements.
G—Scheduled All-Cargo (b) These reported items are as fol-
Foreign Air Carriers: lows:
Type of Record Applicable Form 41
Code Description Schedule Number
Segment Market

Carrier, carrier entity code .................................................................... S M T–100(f)1,2,3
Reporting period date ........................................................................... S M T–100(f)1,2,3
Origin airport code ................................................................................ S M T–100(f)3
Destination airport code ........................................................................ S M T–100(f)
Service class code ................................................................................ S M T–100(f)1,2,3
Aircraft type code .................................................................................. S T–100(f)1,2,3
110 Revenue passengers enplaned ............................................................ M T–100(f)1,3
111 Total psgrs. in market—first cabin ................................................. M T–100
113 Total psgrs. in market—middle cabin ............................................ M T–100
112 Total psgrs. in market—coach cabin ............................................. M T–100
130 Revenue passengers transported ......................................................... S T–100(f)

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Sec. 19–5 14 CFR Ch. II (1–1–00 Edition)

Type of Record Applicable Form 41
Code Description Schedule Number
Segment Market

131 Passengers transported—first cabin ............................................. S T–100
133 Passengers transported—middle cabin ......................................... S T–100
132 Passengers transported—coach cabin .......................................... S T–100
140 Revenue passenger-miles .................................................................... CFD* 1,2
210 Revenue cargo tons enplaned ............................................................. CFD*
217 Enplaned freight ............................................................................ M T–100(f),3
219 Enplaned mail ................................................................................ M T–100 3
230 Revenue tons transported .................................................................... CFD*
237 Transported freight ........................................................................ S T–100(f)
239 Transported mail ............................................................................ S T–100
240 Revenue ton-miles ................................................................................ CFD* 1,2
241 Revenue ton-miles passenger ....................................................... CFD* 1
247 Revenue ton-miles freight .............................................................. CFD* 1,2
249 Revenue ton-miles mail ................................................................. CFD* 1,2
270 Available capacity payload ................................................................... S T–100
280 Available ton-miles ................................................................................ CFD* 1,2
310 Available seats, total ............................................................................. S T–100
311 Available seats—first cabin ........................................................... S T–100
313 Available seats—middle cabin ....................................................... S T–100
312 Available seats—coach cabin ........................................................ S T–100
320 Available seat-miles .............................................................................. CFD* 1,2
410 Revenue aircraft miles flown ................................................................ CFD* 1,2
430 Revenue aircraft miles scheduled ........................................................ CFD* 1
501 Interairport distance .............................................................................. CFD* 2
510 Revenue aircraft departures performed ................................................ S T–100(f)1,2,3
520 Revenue aircraft departures scheduled ................................................ S T–100 3
610 Revenue aircraft hours (airborne) ......................................................... S T–100 1,2
630 Aircraft hours (ramp-to-ramp) ............................................................... S T–100 1,2
650 Total aircraft hours (airborne) ............................................................... 2
810 Aircraft days assigned to service-equip. ............................................... 2
820 Aircraft days assigned to service-routes .............................................. 2
921 Aircraft fuels issued (U.S. gallons) ....................................................... 2
*CFD = Computed by DOT from detail Schedule T–100 and T–100(f) data.
T–100 = Form 41 Schedule T–100 for U.S. air carriers
(f) = Form 41 Schedule T–100(f) for foreign air carriers
1– = Form 41 Schedule T–1; 2 = Schedule T–2; 3 = Schedule T–3
NOTE: Cabin data are reported only in Group III international operations; in all other instances, totals are reported in items 110,
130 and 310.

(c) These reported items are further comprises L+P and Q for foreign air
described as follows: carriers. Refer to section 19–4 for the
(1) Reporting period date. The year and more information on service class
month or quarter to which the reported codes F, G, L, N, P, R and Q.
data are applicable. (4) Record type code. This code indi-
(2) Carrier, Carrier entity code. Each cates whether the data pertain to non-
foreign air carrier shall report its name stop segment (record type S) or on-
and code (assigned by DOT). Each U.S. flight market (record type M).
air carrier shall report its name and (5) Aircraft type code. This code rep-
entity code (a five digit code assigned resents the aircraft types, as described
by DOT that identifies both the carrier in the Appendix to section 25 of this
and its entity) for its particular oper- part.
ations. The Office of Airline Informa- (6) Origin, Destination airport code(s).
tion (OAI) will assign or confirm codes These codes represent the industry des-
upon request; OAI’s address is in the ignators described in the Appendix to
Appendix to section 25 of this part and section 25 of this part. A common pri-
the Appendix to § 217.10 of this chapter. vate industry source of these industry
(3) Service class code. The service class designator codes is the Official Airline
codes are prescribed in section 19–4 of Guides (OAG). OAI will assign codes
this part. In general, classes are di- upon request if not listed in the OAG.
vided into two broad categories, either (7) 110 Revenue passengers enplaned.
K (scheduled) or V (nonscheduled), The total number of revenue pas-
where K=F+G for all carriers and sengers enplaned at the origin point of
V=L+N+P+R for U.S. air carriers and a flight, boarding the flight for the

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Office of the Secretary, DOT Sec. 19–5

first time; an unduplicated count of pounds per passenger, including bag-
passengers in a market. Under the T– gage, is used for all operations and
100 system of reporting, these enplaned service classes.
passengers are the sum of the pas- (14) 247 Revenue ton-miles—freight.
sengers in the individual on-flight mar- Equals the volume of freight in whole
kets. Report only the total revenue tons times the interairport distance.
passengers enplaned in item 110. For all (15) 249 Revenue ton-miles—mail.
air carriers and all entities, item 110 Equals the volume of mail in whole
revenue passengers enplaned is re- tons times the interairport distance.
ported on Form 41 Schedule T–100 in (16) 270 Available capacity-payload.
column C–1, as follows: The available capacity is collected in
Col. All carrier groups and entities pounds. This figure shall reflect the
payload or total available capacity for
C–1 ........... 110 Revenue passengers enplaned. passengers, mail and freight applicable
to the aircraft with which each flight
(8) 130 Revenue passengers transported. stage is performed.
The total number of revenue pas- (17) 280 Available ton-miles. The air-
sengers transported over single flight craft miles flown on each flight stage
stage, including those already on board multiplied by the available capacity on
the aircraft from a previous flight the aircraft in tons.
stage. Report only the total revenue
(18) 310 Available seats. The number of
passengers transported in item 130. For
seats available for sale. This figure re-
all air carriers and all entities, item
flects the actual number of seats avail-
130 revenue passengers transported is
able, excluding those blocked for safety
reported on Form 41 Schedule T–100 in
or operational reasons. Report the
Column B–7, as follows:
total available seats in item 310. For
Col. All carrier groups and entities all air carriers and all entities, item
310 available seats, total is reported on
B–7 ........... 130 Revenue passengers transported.
Form 41 Schedule T–100 in column B–4,
as follows.
(9) 140 Revenue passenger-miles. Com-
puted by multiplying the interairport Col. All carrier groups and entities
distance of each flight stage by the
number of passengers transported on B–4 ........... 310 Available seats, total.
that flight stage.
(10) 210 Revenue cargo tons enplaned. (19) 320 Available seat-miles. The air-
The total number of cargo tons en- craft miles flown on each flight stage
planed. This data element is a sum of multiplied by the seat capacity avail-
the individual on-flight market figures able for sale.
for each of the following categories: 217 (20) 410 Revenue aircraft miles flown.
Freight and 219 mail. This element rep- Revenue aircraft miles flown are com-
resents an unduplicated count of the puted in accordance with the airport
revenue traffic in a market. pairs between which service is actually
(11) 230 Revenue tons transported. The performed; miles are generated from
number of tons of revenue traffic trans- the data for scheduled aircraft depar-
ported. This element is the sum of the tures (Code 520) times the interairport
following elements: 231 Passengers distances (Code 501).
transported-total, 237 Freight, and 239 (21) 430 Revenue aircraft miles sched-
Mail. uled. The number of revenue aircraft
(12) 240 Revenue ton-miles—total. Ton- miles scheduled. All such data shall be
miles are computed by multiplying the maintained in conformity with the air-
revenue aircraft miles flown (410) on port pairs between which service is
each flight stage by the number of tons scheduled, whether or not in accord-
transported on that stage. This ele- ance with actual performance.
ment is the sum of 241 through 249. (22) 501 Interairport distance. The
(13) 241 Revenue ton-miles—passenger. great circle distance, in official statute
Equals the number of passengers times miles as prescribed in part 247 of this
200, times interairport distance, di- chapter, between airports served by
vided by 2000. A standard weight of 200 each flight stage. Official interairport

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Section 19–6 14 CFR Ch. II (1–1–00 Edition)

mileage may be obtained from the Of- (30) 921 Aircraft fuels issued (gallons).
fice of Airline Information at the ad- The amount of aircraft fuels issued, in
dress included in section 25 of this part. U.S. gallons, during the reporting pe-
(23) Revenue aircraft departures per- riod for both revenue and nonrevenue
formed. The number of revenue aircraft flights.
departures performed. [ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
(24) 520 Revenue aircraft departures ed by Amdt. 241–58, 54 FR 7184, Feb. 17, 1989;
scheduled. The number of revenue air- 60 FR 66723, Dec. 26, 1995; 62 FR 6718, Feb. 13,
craft departures scheduled, whether or 1997]
not actually performed.
(25) 610 Revenue aircraft hours (air- Section 19–6 Public disclosure of traf-
borne). The elapsed time, computed fic data.
from the moment the aircraft leaves (a) Detailed domestic on-flight mar-
the ground until its next landing. ket and nonstop segment data in
(26) 630 Aircraft hours (ramp-to-ramp). Schedule T–100 shall be made publicly
The elapsed time, computed from the available after processing. Domestic
moment the aircraft first moves under data are defined as data from air trans-
its own power from the boarding ramp portation operations from a place in
at one airport to the time it comes to any State of the United States, the
rest at the ramp for the next point of District of Columbia, the Common-
landing. This data element is also re- wealth of Puerto Rico and the Virgin
ferred to as ‘‘block’’ and block-to-block Islands, or a U.S. territory or posses-
aircraft hours. sion to a place in any State of the
(27) 650 Total aircraft hours (airborne). United States, the District of Colum-
The elapsed time, computed from the bia, the Commonwealth of Puerto Rico
moment the aircraft leaves the ground and the Virgin Islands, or a U.S. terri-
until it touches down at the next land- tory or possession.
ing. This includes flight training, test- (b) Detailed international on-flight
ing, and ferry flights. market and nonstop segment data in
(28) 810 Aircraft days assigned to serv- Schedule T–100 and Schedule T–100(f)
ice—carrier’s equipment. The number of reports shall be publicly available im-
days that aircraft owned or acquired mediately following the Department’s
through rental or lease (but not inter- determination that the database is
change) are in the possession of the re- complete, but no earlier than six
porting air carrier and are available for months after the date of the data. Data
service on the reporting carrier’s for on-flight markets and nonstop seg-
routes plus the number of days such ments involving no U.S. points shall
aircraft are in service on routes of oth- not be made publicly available for
ers under interchange agreements. In- three years. Industry and carrier sum-
cludes days in overhaul, or temporarily mary data may be made public before
out of service due to schedule cancella- the end of six months or the end of
tions. Excludes days that newly ac- three years, as applicable, provided
quired aircraft are on hand, but not there are three or more carriers in the
available for productive use, days summary data disclosed. The Depart-
rented or leased to others (for other ment may, at any time, publish inter-
than interchange) and days in posses- national summary statistics without
sion but formally withdrawn from air carrier detail. Further, the Department
transportation service. may release nonstop segment and on-
(29) 820 Aircraft days assigned to serv- flight market detail data by carrier be-
ice—carrier’s routes. The same as ‘‘air- fore the end of the confidentiality peri-
craft days assigned to service—car- ods as follows:
rier’s equipment,’’ but excluding the (1) To foreign governments as pro-
number of days that the reporting car- vided in reciprocal arrangements be-
rier’s owned or rented equipment are in tween the foreign country and U.S.
the possession of others under inter- Government for exchange of on-flight
change agreements and including the market and/or nonstop segment data
number of days aircraft of others are in submitted by air carriers of that for-
the possession of the reporting air car- eign country and U.S. carriers serving
rier under interchange agreements. that foreign country;

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Office of the Secretary, DOT Sec. 19–7

(2) To parties to any proceeding be- domestic markets listed in the Instruc-
fore the Department under Title IV of tions and 10 percent for all others—in-
the Federal Aviation Act of 1958, as cluding domestic and international
amended, as required by the Adminis- markets. The sample shall be selected
trative Law Judge or other decision- and reported in accordance with the re-
maker of the Department. Parties may quirements of paragraph (a) of their
designate agents or consultants to re- section, except that the participating O
ceive the data in their behalf, provided & D carriers with nonstandard
the agents or consultants agree to ticketing procedures, or other special
abide by the disclosure restrictions. operating characteristics, may propose
Any data to which access is granted alternative procedures. Such depar-
pursuant to this provision may be in- tures from standard O & D Survey
troduced into evidence, subject to the practices shall not be authorized unless
normal rules of admissibility of evi- approved in writing by the Director,
dence. Office of Airline Information under the
(3) To agencies and other components procedures in Sec. 1–2 of 14 CFR part
of the U.S. Government for their inter- 241. The data to be recorded and re-
nal use only. ported from selected lifted ticket flight
[Amdt. 241–59, 56 FR 2845, Jan 25, 1991, as coupons, as stipulated in the Instruc-
amended at 62 FR 6719, Feb. 13, 1997] tions and Directives shall include the
following data elements: Point of ori-
Sec. 19–7 Passenger origin-destination gin, carrier on each flight-coupon
survey. stage, fare-basis code for each flight-
(a) All U.S. large certificated air car- coupon stage, points of stopover or
riers conducting scheduled passenger connection (interline and intraline),
operations (except helicopter carriers) point of destination, number of pas-
shall participate in a Passenger Origin- sengers, and total dollar value of ticket
Destination ( O & D) Survey covering (fare plus tax).
domestic and international operations, (d) Data covering the operations of
as described in the instructions manual foreign air carriers that are similar to
entitled, Instructions to Air Carriers for the information collected in the Pas-
Collecting and Reporting Passenger Ori- senger Origin-Destination Survey are
gin-Destination Survey Statistics (Appen- generally not available to the Depart-
dix A to this section), and in Passenger ment, the U.S. carriers, or U.S. inter-
Origin-Destination Directives issued by ests. Therefore, because of the dam-
the Department’s Bureau of Transpor- aging competitive impact on U.S. car-
tation Statistics (BTS), Office of Air- riers and the adverse effect upon the
line Information (OAI). Copies of these public interest that would result from
Instructions and Directives are provided unilateral disclosure of the U.S. survey
to each large carrier participating in data, the Department has determined
the Survey. Copies are also available its policy to be that the international
from the Office of Airline Information, data in the Passenger Origin-Destina-
K–25, Room 4125, U.S. Department of tion Survey shall be disclosed only as
Transportation, 400 Seventh St., SW., follows:
Washington, DC 20590. (1) To an air carrier directly partici-
(b) Those participating air carriers pating in and contributing input data
that have access to automatic data to the Survey or to a legal or con-
processing (ADP) services shall utilize sulting firm designated by an air car-
magnetic tape, cartridge, floppy disk- rier to use on its behalf O & D data in
ette or other ADP media for transmit- connection with a specific assignment
ting the prescribed data. Those carriers by such carrier.
without ADP capability should contact (2) To parties to any proceeding be-
the Office of Airline Information for fore the Department to the extent that
further instructions ((202) 366–4373). such data are relevant and material to
(c) A statistically valid sample of the issues in the proceeding upon a de-
light coupons shall be selected for re- termination to this effect by the Ad-
porting purposes. The sample shall con- ministrative Law Judge or by the De-
sist of at least 1 percent of the total partment’s decision-maker. Any data
lifted ticket flight coupons for all large to which access is granted pursuant to

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Sec. 19–7 14 CFR Ch. II (1–1–00 Edition)

this section may be introduced into (e) The Department reserves the
evidence subject to the normal rules of right to make such other disclosures of
admissability of evidence. the O & D data as is consistent with its
(3) To agencies and other components regulatory functions and responsibil-
of the U.S. Government. ities.
(4) To other persons upon a showing
APPENDIX A TO SEC. 19–7—INSTRUCTIONS
that the release of the data will serve TO AIR CARRIERS FOR COLLECTING
specifically identified needs of U.S. AND REPORTING PASSENGER ORIGIN-
users which are consistent with U.S. DESTINATION SURVEY STATISTICS
interests.
(5) To foreign governments and for- All questions, comments, extension and
waiver requests should be addressed to:P=’02’≤
eign users as provided in formal recip-
rocal arrangements between the for- Office of Airline Information, K–25, Room
4125, U.S. Department of Transportation,
eign and U.S. governments for the ex- 400 Seventh St., SW., Washington, DC
change of comparable O & D data. 20590, Telephone (202) 366–9059.

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Office of the Secretary, DOT Sec. 19–7
B. Narrative Description in all international city-pair markets. The
Survey data are taken from the selected
A single O&D Survey is conducted continu-
ously by the large U.S. certificated air car- flight coupons of the tickets sampled: single-
riers. Foreign air carriers do not directly coupon or double-coupon round trips in do-
participate in the Survey, although some of mestic major markets where the ticket se-
their data are captured in the Survey, since rial number ends in double zero (00) and all
passengers who share a ticketed itinerary be- other ticket coupons ending in zero (0). This
tween a U.S. carrier and a foreign carrier procedure yields a ‘‘two-tiered’’ stratified
may be sampled by the U.S. carrier. The au- sample.
thority for these instructions is found in 14 Group tickets are included on the basis of
CFR part 241, section 19–7, and in the CAB a 10-percent sample when the number of pas-
Sunset Act of 1984 (Pub. L. 94–443). sengers on such a group ticket is 10 or less.
The Survey samples revenue passenger Group tickets with more than 10 passengers
trips moving in whole or in part on domestic on each ticket are included on the basis of a
and/or international scheduled services of 100 percent census, i.e., all such tickets are
the carriers participating in the Survey. In sampled, regardless of serial number, and the
general, these requirements do not apply to total data listed are conformed to a 10 per-
small certificated, all-cargo and all charter cent sample for inclusion in the O&D Survey.
carriers. Following the selection of reportable flight
The source documents for the Survey data coupons and the recording of data, each par-
are passenger tickets. These data are col- ticipating carrier shall edit and summarize 2
lected from the ‘‘lifted’’ flight coupons of the data into a quarterly report to the De-
tickets (a portion of a multi-part ticket partment.
booklet of three 1 or more coupons, including
one for each stage of the passenger’s trip II. EFFECTIVE DATE OF INSTRUCTIONS
itinerary which is lifted by the carrier as the
passenger boards a particular flight seg- These data collection and reporting in-
ment). structions are effective on and after July 1,
The Survey data are taken from the cou- 1987 and apply to all flight coupons lifted on
pon that is lifted by a participating carrier, or after July 1, 1987.
unless it is apparent from the lifted coupon
III. CARRIERS PARTICIPATING IN SURVEY
that another participating carrier has al-
ready recorded and reported the data, in A. Participating carriers. As defined in sec-
which instance the ticket coupon is non-re- tion 19–7 of the Department’s Economic Reg-
portable for the second honoring/partici- ulations (14 CFR part 241), the participants
pating carrier. The complete passenger in the O&D Survey include all large certifi-
itinerary, and related data on type of fare cated air carriers conducting scheduled pas-
and dollar value of the ticket, is recorded as senger services (except helicopter carriers).
one entry from the sampled, reportable These participating carriers collect and re-
flight coupon. port data in accordance with these Instruc-
The recording of data from the sampled tions, and supplemental Passenger Origin-Des-
flight coupon normally consists of tran- tination Directives that may be issued periodi-
scribing the information exactly as indicated cally. The list of participating carriers will
on the ticket. The detail recorded for each be issued by reporting directive under the
trip shows the complete routing from the or- authority in 14 CFR 385.27(b).
igin city (airport code) to the destination B. Amendments to list of participating car-
city (airport code) including, in sequence riers. As new carriers begin service, they will
from the origin, each point of transfer and be required to file O&D Survey Data. These
stopover (intraline and interline), the sum- carriers will not be added to the partici-
marized fare-basis code shown for each flight pating carrier list automatically, but will be
coupon stage of the itinerary, and the total added when the next annual review is made.
dollar value of the fare and tax for the entire
ticket. IV. SUBMISSION OF REPORTS
Prior to 1987, the Survey was generally
based on a 10-percent sample of passenger A. Period covered by reports. Reports are to
tickets. Beginning July 1, 1987, the Survey is be filed for each calendar quarter of the year
collected primarily on the basis of a strati- as shown below:
fied, scientific sample of at least 1 percent of
tickets in domestic major markets and 10 2 These summarization procedures include
percent of tickets in all other domestic and showing two or more passengers with the
same itinerary as one O&D record and com-
1 Each ticket booklet is comprised of one or pressing extremely lengthy itineraries (such
more flight coupons for passenger travel in a as around-the-world tickets) into a standard
city-pair market, plus a passenger coupon trip stage length limit (which may be either
(the traveler’s receipt) and the auditor cou- seven or twenty-three stages, at the carrier’s
pon (for the carrier’s internal controls). option), as explained in Section V.D.

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Sec. 19–7 14 CFR Ch. II (1–1–00 Edition)

Report Time period covered A. Sampling Basis. Each participating car
rier in this O&D Survey shall search all list-
1st quarter ............................... Jan. 1 through Mar. 31. ed flight coupons, whether the coupons are
2nd quarter ............................. Apr. 1 through June 30.
its own ticket stock or on the ticket stock of
3rd quarter .............................. July 1 through Sept. 30.
4th quarter .............................. Oct. 1 through Dec. 31. another U.S. or foreign carrier (either stand-
ard IATA and ARC ticket stock or non-
B. Filing date for reports. Reports are to be standard ticket stock), and is to select for re-
filed with the Department on or before the porting purposes the following flight coupons:
dates listed below. The mailing address is on (1) Major domestic markets. All single-pas-
the inside cover to these instructions. senger flight coupons that are either a single
flight coupon ticket or part of a round trip,
Report Due date 1 two coupon ticket where the ticket serial
number ends in the digits double-zero (00).
1st quarter ............................................... May 15
NOTE.—The list of major domestic markets
2nd quarter .............................................. Aug. 15
3rd quarter ............................................... Nov. 15 will be issued by reporting directive under
4th quarter ............................................... Feb. 15 the authority in 14 CFR 385.27(b).
1 Due dates falling on Saturday, Sunday or national holiday
(2) International markets and all other domes-
will become effective the first following work day. tic markets. (a) All single-passenger flight
coupons with ticket serial numbers ending
C. Format of report. The report may be sub- with the digit zero (0);
mitted in any one of the following formats: (b) Those group-ticket flight coupons with
(1) ADP media including magnetic tapes 10 or fewer passengers with ticket serial
and floppy discs.3 numbers ending with the digit zero (0);
(2) Hard copy BTS Form 2787, in type-
(c) Those group-ticket flight coupons with
written form, for carriers that lack com-
11 or more passengers without regard to se-
puter capability. Sample formats of the re-
rial number; and
quired data appear in Sections IX and XII.
Supplies of blank Form 2787 are available, (d) Itineraries in major domestic markets
upon request, from the Director, Office of that comprise more than two coupons are
Airline Information (address on inside sampled on a uniform 10 percent basis, by se-
cover). Any reasonable facsimile of Form lecting all ticket serial numbers ending with
2787 will be acceptable in lieu of Form 2787, the digit zero (0).
if approved in advance by the Director. B. Selection of Reportable Flight Coupons.
D. Number of copies of report to be filed. A The flight coupons identified above are to be
participating carrier shall file with the De- examined to isolate the reportable flight
partment a single copy of its quarterly O&D coupons, i.e. coupons from which data are to
data report. When ADP submissions are be recorded. Flight coupon data are reported
transmitted, the package is to contain a only by the first honoring and participating
transmittal letter describing the contents, carrier (operating carrier). Such carriers
and stating the overall record and passenger shall report the required data for the entire
counts included in the submission. Each sub- ticketed itinerary.
mission is to be labeled externally as to sub- If a participating carrier has preceded an
mitting carrier and time period of the O&D examining carrier on any stage in the trip
Survey data. itinerary, including any stage in a conjunc-
E. Address for filing reports. Reports should tion itinerary and any stage in a reissued
be submitted to the Director, Office of Air- ticket (either before or after reissue) that
line Information (address on inside cover). coupon is not reportable.
For conjunction tickets, the ticket number
V. SELECTION OF SAMPLE AND RECORDING OF for the first ticket booklet determines if the
DATA.4 conjunction tickets should be reported in the
Survey. Otherwise, conjunction tickets do
not require special treatment and are gov-
erned by the rules for regular tickets.
3 Magnetic tapes, floppy discs and similar
No adjustment is made in the Survey for
media will be returned to the carriers, upon alterations or changes in the trip itinerary
request, following completion of the proc- subsequent to the stage covered by the re-
essing cycle by the Department. portable coupon.
4 Upon approval of the Director, Office of
C. Optional Use of Other Sampling Proce-
Airline Information, carriers may continue dures.
current reporting procedures (up to twenty-
three stages of a passenger flight) and may
report a uniform 10 percent sample of tickets the prior 12 months O&D data, and the list
lifted (each zero ending lifted coupon) with- amended as necessary. The list could remain
out reducing the sample size from 10 percent static for more than a year, although it will
to 1 percent for domestic major markets. be reviewed annually. Necessary amend-
Note that the domestic major markets will ments will be effective on January 1 of the
be reviewed each year at June 30, based on following year.

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Office of the Secretary, DOT Sec. 19–7
(1) Alternative sampling procedures or al- (a) All entries for points (airport codes 5) in
ternative O&D data systems may be pro- an itinerary are to be recorded in three-let-
posed by participating carriers with non- ter airport code data to fit into the stage-
standard ticketing procedures, or other spe- length limitation (seven or twenty-three
cial operating characteristics. Data reported stages at the carrier’s option), all airport
under proposed alternative procedures must codes are to be reported, including data on
approximate the usefulness and statistical commuter, foreign, intra-state and other
validity of the O&D Survey. carriers’ portions of itineraries. Normally
(2) Such departures from the prescribed codes are recorded as they appear on the
ticket. However, if a code is obviously incor-
O&D Survey practices shall not be author-
rect, record the correct code. For instance, if a
ized unless approved in writing by the Direc-
ticket is coded DCA–NYC or Washington/Na-
tor, Office of Airline Information (address in-
tional to New York when the flight stage ac-
side front cover). The proposed alternative tually operated from Washington, Dulles to
O&D Survey procedures must be described in Newark (EWR), record the correct airport
detail in the letter requesting the waiver. code. When only name spellings of a city ap-
D. Recording of Data from Reportable Flight pear on the ticket for multi-airport cities
Coupons. (1) The following items are to be re- (such as Washington, New York, San Fran-
ported from the reportable flight coupons: cisco, or Los Angeles), record the specific
(a) Point of origin, three letter airport code. In cases where two
(b) Operating carrier on each flight stage airport codes are shown on the ticket for a
(if unknown, identify ticketed carrier), point, such as when the passenger arrives at
(c) Ticketed carrier on each flight stage, an airport such as San Francisco and departs
(d) Fare-basis on each flight coupon, C, D, from another local airport such as Oakland,
F, G, X or Y, record the code for the arrival airport, enter
a surface segment indicator (—) to the depar-
(e) Points of stopover or connection (inter-
ture airport, and record the departure air-
line and intraline),
port code. (When the surface portion is at
(f) Point of destination, the beginning or end of an itinerary, the sur-
(g) Number of passengers, and face indicator is to be omitted). For exam-
(h) Total dollar value of ticket (fare plus ple:
tax and other charges, such as Passenger Fa-
cility Charges). 5 Codes to be used are those appearing in
(2) The individual items are to be recorded the Official Airline Guide at the time the data
in the sequence of occurrence in the are being recorded. If a code is not found in
itinerary as follows: the OAG, contact the Director, Office of Air-
line Information (address inside front cover).

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VerDate 27<JAN>2000
000001 UCA YV UA Y JFK TW TW X

Passenger(s) Utica Mesa United Fare Code New York TWA TWA Fare Code
Operating Ticketed Kennedy Operating Ticketed
Carrier Carrier Airport Carrier Carrier Sec. 19–7

21:08 Feb 16, 2000
SURFACE TRANSPORTATION
SFO (Blank space)

San Francisco Operating Carrier Ticketed Carrier Fare Code

Jkt 190042
OAK UA UA G LAX DL DL F

Oakland United United Fare Los Angeles Delta Delta Fare Code
Operating Ticketed Operating Operating

PO 00000
Carrier Carrier Carrier Carrier

SLC NW NW D PHX AA AA C LAX

Salt Lake City Northwest Northwest Fare Code Phoenix American American Fare Code Los Angeles

Frm 00166
Operating Ticketed Operating Ticketed

166
Carrier Carrier Carrier Carrier

JL JL C NRT 04596

Fmt 8010
Japan Air Lines Japan Air Lines Fare Code Tokyo Narita Dollars of Fare + Tax
Operating Ticketed
Carrier Carrier

Sfmt 8002
Y:\SGML\190042T.XXX
pfrm02
14 CFR Ch. II (1–1–00 Edition)

PsN: 190042T
Office of the Secretary, DOT Sec. 19–7
In the above example, the passenger trip codes are compressed into a single stage
stages or segments are compressed into the of a passenger trip).
maximum of 7 stages so that several inter- (d) In recording the number of pas-
mediate city-pairs (Los Angeles to Seattle to sengers, each single-passenger ticket is
Anchorage, or LAX—SEA—Anc) and the re-
lated carriers have not been recorded, as pre- to be recorded as one passenger. Tick-
scribed below in this Section V.D.(3)(e). In ets for infants under two years of age
addition, after the fourth city-pair (Los An- not occupying a seat are not to be
geles-Salt Lake City), the passenger trip counted. A revenue passenger is defined
itinerary moves from the initial four-part in Section X.
ticket booklet onto another ‘‘conjunction’’
ticket, and the summary fare code data are
For group tickets of 10 or fewer pas-
not recorded beyond the initial four-part sengers per ticket record the actual
ticket. number of passengers on each ticket,
(b) All entries for operating and ticketed i.e., either 2, 3, 4, 5, 6, 7, 8, 9 or 10. For
carriers for a coupon stage of an itinerary group tickets with 11 or more pas-
are to be recorded using two character IATA- sengers (those sampled at a 100-percent
assigned or DOT codes, as in the above exam-
ple. Note that the fare code summary was
rate) record the actual number of pas-
properly inserted after the ticketed carrier’s sengers traveling on each ticket, but
code, i.e., UA for United Air Lines and Y for keep these entries separate from the
unrestricted coach class service. When a two- group ticket records with 10 or fewer
character carrier code is shown on the tick- passengers and from the single-pas-
et, record that code for the ticketed carrier. senger ticket records. Group tickets
However, if a code is obviously incorrect,
with 11 or more passengers are to be
record the correct carrier code. If the report-
ing carrier does not know the operating car- sorted and summarized to combine all
rier on a downline code-share segment, it passengers for all itineraries which are
would use the ticketed carrier’s code for identical in every respect, i.e., points,
both the operating and ticketed carriers. The carriers, fare basis codes, and average
reporting carrier is not responsible for know- dollar value (as defined in paragraph
ing the operating carrier of a downline code-
(e), below). The total number of pas-
share where it is not a party to the code-
share segment. Except for the infrequent sengers on each summarized record is
compression of data to fit into the stage- to be divided by 10, rounding to the
length limitation (7 or 23 stages at the car- nearest whole passenger. If the
rier’s option), all carrier codes are to be re- quotient ends in 0.5 or more, raise to
corded, including data on air taxis, com- the next whole passenger. If the
muters, intra-state, and other carrier por- quotient ends in less than 0.5, drop the
tions of itineraries. On tickets involving
fraction. These large group-ticket
interchange service or other cooperative car-
rier arrangements, the juncture point(s) records, after division by 10 for com-
where the passenger moves from one carrier patibility with the other data, are to
system to another is to be recorded as an in- be merged with the single-passenger
termediate point in the itinerary, even when records and with the group-ticket en-
not shown on the ticket and even though the tries from tickets of 10 or fewer pas-
flight may overfly the juncture point. sengers for the quarterly O&D Survey
(c) Entries for fare-basis codes are to be
report.
taken from the ‘‘fare basis’’ and ‘‘fare de-
scription’’ portions of the ticket and sim- (e) The total dollar value shall be
plified into the appropriate category, as taken from the ‘‘Total’’ box on each
shown below. No attempt shall be made to ticket and shall be the sum of the fare
determine and record fare-basis codes for plus tax for the entire ticket. Record
that portion of a conjunction ticket appear- this amount in whole U.S. dollars, with
ing in the ticket. Fare-basis codes are to be the cents dropped. Do not round cents
recorded in one-character alphabetic codes.
to nearest whole dollar.
The fare-basis codes are recorded as follows:
C—Unrestricted Business Class Amounts on tickets stated in foreign
D—Restricted Business Class currency are to be converted to U.S.
F—Unrestricted First Class dollar equivalents. For all group tickets,
G—Restricted First Class the dollar value to be recorded shall be
X—Restricted Coach/Economy Class the average amount per passenger, de-
Y—Unrestricted Coach/Economy Class
U—Unknown (This fare category is used termined by dividing the total dollar
when none is shown on a ticket coupon, value for the entire group by the num-
or when a fare category is not discern- ber of passengers on the group ticket,
ible, or when two or more carrier fare dropping cents in the average amount.

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Sec. 19–7 14 CFR Ch. II (1–1–00 Edition)

(3) The length of the itineraries to be re- vey results. The granting of such waiv-
corded is limited to a maximum of seven ers will depend upon the availability of
stages or twenty-three stages, at the resources for the Department to as-
carrier’s option. This recognizes that sume this additional burden, which can
the vast majority of tickets sampled only be determined on a case by case
have seven stages or fewer and that the basis, after evaluating each carrier’s
rare occurrences of extremely lengthy need.
itineraries do not impact the overall B. Rules for Summarization. Sort the
Survey results enough to justify their recorded entries into sequence by the
reporting burden. Therefore, trips
entire record (excluding the passenger
longer than these limits are compressed
field), i.e., by origin, complete routing
to fall within the stated maximums.
The ticketed origin and destination are (including fare-basis codes), tickets
retained, but the intermediate routing is destination, and dollars value of ticket.
compressed by applying the following All identical records are then to be com-
rules, in sequence: bined into one summary record. The num-
(a) Combine any contiguous open, un- ber of passengers on the summary
known carrier, or surface stages elimi- record is to be the sum of the passenger
nating the connecting point, and ignor- amounts of all the individual records
ing the fare-basis codes, if different: combined. Passengers are only summa-
(b) Combine any contiguous stages rized where records are identical in all
via the same non-U.S. carrier, elimi- respects except in number of pas-
nating the connecting point, and ignor- sengers including dollar value of tick-
ing the fare-basis codes, if different; et. NOTE: DO NOT SUMMARIZE DOL-
(c) Combine any contiguous stages LARS OVER IDENTICAL RECORDS.
via different non-U.S. carrier, making This summarization is to include the
the carrier ‘‘UK’’, eliminating the con- entries from group tickets, but only
necting point, and ignoring fare-basis after the entries for group tickets with
codes, if different: 11 or more passengers have been summa-
(d) Combine any contiguous stages rized and divided by 10, as stated in Sec-
via the same U.S. carrier, eliminating tion V.D.(2)(d). Carriers submitting
the connecting point, and ignoring the quarterly O&D Survey reports on mag-
fare-basis codes, if different, and; netic tapes or similar formats such as
(e) If the trip, after applying the four ‘‘floppy discs’’ will follow the ADP IN-
steps above, is still too long, record the
STRUCTIONS in Section IX. Carriers
compressed routing through to the
filing reports on hardcopy BTS Forms
stage length limitation city (seventh
2787 are to enter, on the last page of
or twenty-third city), enter UK as the
the report, the overall total of the
final carrier, and then record the
ticketed destination as the next (the number of passengers in the report.
8th or 24th) city. C. Waiver Requests. Requests for per-
mission to depart from the required
VI. SUMMARIZATION OF RECORDED DATA O&D Survey procedures should include
a procedural statement describing the
A. General. Prior to the submission of
process the carrier proposed to employ
each quarterly report to the Depart-
in examining, selecting and editing the
ment, each carrier is to summarize the
data in accordance with the rules in data from reportable flight coupons for
Section VI.B. In special hardship cases, the O&D Survey, as well as a flow
carriers may submit a waiver request chart diagramming the proposed proce-
(with justification under Section 1–2 of dures.
14 CFR part 241) requesting permission D. Quantity and Quality Controls. Car-
to report their flight coupon records riers are expected to establish and
exactly as represented on their lifted maintain continuous quantity and qual-
tickets. Waiver requests must provide ity controls on the flow of all lifted
the documentation described in Sec- flight coupons through their system
tion VI.C. so that the Department can processes to determine the total num-
develop the necessary procedures and ber of coupons handled and the number
edit routines to ensure the accuracy of reportable coupons selected. Such
and reliability of the overall O&D Sur- data controls and tests have not been

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Office of the Secretary, DOT Sec. 19–7

specified by the Department, and nec- VIII. CONTROL OF SAMPLE SELECTION
essarily must be developed by each car- AND DATA RECORDING
rier. Each participating carrier shall A. Sample Accuracy and Reliability. In
develop and use on a continuous basis order to maximize the accuracy and re-
such control tests as are necessary to liability of the sample selection and
ensure that all reportable coupons are data recording, each carrier is to:
being selected, recorded and reported (1) Develop a written statement de-
as intended by these O&D Survey In- scribing the procedures it will employ
structions. Such controls should ex- in examining and selecting reportable
tend over all ADP processing, both in- flight coupons and in recording, sum-
house and that from external service marizing, editing, and testing the Sur-
bureaus. vey data.
(2) Submit any proposed changes in
VII. EDITING OF RECORDED DATA the above procedures to the Depart-
ment’s Office of Airline Information,
A. City and Airport Codes. Prior to
prior to implementation of such
submission of O&D Survey reports, changes.
each carrier is to edit the recorded (3) Establish continuous quantity
data to validate city and airport codes. controls on the flow of all lifted flight
This edit is to verify that the codes re- coupons through the carrier’s account-
corded are valid official codes, and it is ing processing to determine the total
independent of whether or not the car- number of coupons handled, and the
riers shown actually operated into or number of reportable coupons selected.
out of the airport shown. Any ques- Tests are to be made continuously to
tions about airport codes should be ad- assure that all reportable coupons are
dressed to the Director, Office of Air- being selected and the data recorded.
line Information (see inside of cover). Such tests should be completed while
B. Edit Responsibility of Carriers. Each the ‘‘lifted’’ flight coupons (rep-
carrier is responsible for developing resenting earned passenger revenues
edit procedures and internal controls for flight segments operated) remain in
over its data entry and processing pro- the possession of the carrier. Establish
cedures so that valid and reliable data such other internal control procedures
are captured in the O&D Survey inputs as are necessary for supervising and
and are properly summarized in the monitoring the accuracy of the record-
ing of data from reportable flight cou-
outputs. Since the carriers have many
pons.
different statistical systems, it is not
B. Staff Review. The OAI staff will re-
practicable for the Department of view the carrier procedures and prac-
Transportation to prescribe specific tices and may request modifications or
controls in this area, and each carrier the use of special procedures necessary
is responsible for developing the appro- to improve the sample or to bolster the
priate internal control procedures to controls for accuracy and reliability.
edit the O&D Survey data and ensure
the integrity of these data. The De- IX. ADP INSTRUCTIONS
partment will control the accuracy of Each carrier electing to submit its
its processing of the sampled data upon Survey reports in machine listing form
receipt from the carriers. or magnetic media in lieu of hardcopy
C. System Documentation of Edits. Car- BTS Form 2787 is to be governed by the
riers are required to maintain written following instructions:
O&D Survey procedural statements and
flow charts. As provided in Section A. Instructions for Submitting Records on
VIII, these must be established, or re- Magnetic Media
certified as of July 1, 1987, and there- (1) Identification record. This identi-
after when significant procedural revi- fication record is to include the report-
sions occur. ing carrier and the reporting period. It

6 Each reel of tape will be returned to the

individual carrier upon request.
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Sec. 19–7 14 CFR Ch. II (1–1–00 Edition)

is designed to fall at the beginning of through 200. The record is to be in the
each file when sorted on columns 7 format shown as follows:6
Tape posi-
Field tions Tape record layout
(from-to)

Passenger Count ............................................................ 1–6 1. Passenger field must contain leading zeros, and no
blanks.
1st City Code .................................................................. 7–9
1ST Operating Carrier .................................................... 10–11
1ST Ticketed Carrier ...................................................... 12–13 2. City field contains the 3-letter alpha code for the air-
port in the first 3 positions.
Fare Basis Code ............................................................. 14
2ND City Code ............................................................... 15–17
2nd Operating Carrier ..................................................... 18–19
2nd Ticketed Carrier ....................................................... 20–21
Fare Basis Code ............................................................. 22
3rd City Code ................................................................. 23–25
3rd Operating Carrier ..................................................... 26–27
3rd Ticketed Carrier ........................................................ 28–29
Fare Basis Code ............................................................. 30
4th City Code .................................................................. 31–33 3. Ticketed and operating carrier fields are to contain
the 2 character air carrier code. An unknown carrier
is to be coded ‘‘UK’’ and surface carrier is to be
coded ‘‘— —’’ (dash dash).
4th Operating Carrier ...................................................... 34–35
4th Ticketed Carrier ........................................................ 36–37
Fare Basis Code ............................................................. 38
5th City Code .................................................................. 39–41
5th Operating Carrier ...................................................... 42–43
5th Ticketed Carrier ........................................................ 44–45
Fare Basis Code ............................................................. 46
6th City Code .................................................................. 47–49 4. Fare basis code is a one position alpha code.
6th Operating Carrier ...................................................... 50–51
6th Ticketed Carrier ........................................................ 52–53
Fare Basis Code ............................................................. 54 5. Portion of record for sorting, summarizing, and se-
quencing includes columns 7 through 200.
7th City Code .................................................................. 55–57
7th Operating Carrier ...................................................... 58–59
7th Ticketed Carrier ........................................................ 60–61
Fare Basis Code ............................................................. 62
8th City Code .................................................................. 63–65 6. Dollar amount in positions 196–200 is right justified.
8th Operating Carrier ...................................................... 66–67
8th Ticketed Carrier ........................................................ 68–69
Fare Basis Code ............................................................. 70 7. Positions 66–193 are used only by those carriers
who want to report more data, and are not com-
pressing to 7 stages (see Sec. V.D. (3) for com-
pressing rules.
9th City Code .................................................................. 71–73
9th Operating Carrier ...................................................... 74–75
9th Ticketed Carrier ........................................................ 76–77
Fare Basis Code ............................................................. 78
10th City Code ................................................................ 79–81
10th Operating Carrier .................................................... 82–83
10th Ticketed Carrier ...................................................... 84–85
Fare Basis Code ............................................................. 86
11th City Code ................................................................ 87–89
11th Operating Carrier .................................................... 90–91
11th Ticketed Carrier ...................................................... 92–93
Fare Basis Code ............................................................. 94
12th City Code ................................................................ 95–97
12th Operating Carrier .................................................... 98–99
12th Ticketed Carrier ...................................................... 100–101
Fare Basis Code ............................................................. 102
13th City Code ................................................................ 103–105
13th Operating Carrier .................................................... 106–107
13th Ticketed Carrier ...................................................... 108–109
Fare Basis Code ............................................................. 110
14th City Code ................................................................ 111–113
14th Operating Carrier .................................................... 114–115
14th Ticketed Carrier ...................................................... 116–117

6 Each reel of tape will be returned to the

individual carrier upon request.
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Office of the Secretary, DOT Sec. 19–7

Tape posi-
Field tions Tape record layout
(from-to)

Fare Basis Code ............................................................. 118
15th City Code ................................................................ 119–121
15th Operating Carrier .................................................... 122–123
15TH Ticketed Carrier .................................................... 124–125
Fare Basis Code ............................................................. 126
16th City Code ................................................................ 127–129
16th Operating Carrier .................................................... 130–131
16th Ticketed Carrier ...................................................... 132–133
Fare Basis Code ............................................................. 134
17th City Code ................................................................ 135–137
17th Operating Carrier .................................................... 138–139
17th Ticketed Carrier ...................................................... 140–141
Fare Basis Code ............................................................. 142
18th City Code ................................................................ 143–145
18th Operating Carrier .................................................... 146–147
18th Ticketed Carrier ...................................................... 148–149
Fare Basis Code ............................................................. 150
19th City Code ................................................................ 151–153
19th Operating Carrier .................................................... 154–155
19th Ticketed Carrier ...................................................... 156–157
Fare Basis Code ............................................................. 158
20th City Code ................................................................ 159–161
20th Operating Carrier .................................................... 162–163
20th Ticketed Carrier ...................................................... 164–165
Fare Basis Code ............................................................. 166
21st City Code ................................................................ 167–169
21st Operating Carrier .................................................... 170–171
21st Ticketed Carrier ...................................................... 172–173
Fare Basis Code ............................................................. 174
22nd City Code ............................................................... 175–177
22nd Operating Carrier ................................................... 178–179
22nd Ticketed Carrier ..................................................... 180–181
Fare Basis Code ............................................................. 182
23rd City Code ............................................................... 183–185
23rd Operating Carrier ................................................... 186–187
23rd Ticketed Carrier ...................................................... 188–189
Fare Basis Code ............................................................. 190
24th City Code ................................................................ 191–193
Blank ............................................................................... 194–195
US Value of Ticket in $ .................................................. 196–200

Field Columns Remarks standard IBM extended binary coded
decimal interchange code (EBCDIC).
Reporting carrier ... 1–2 Alpha code. (b) The recording density can be ei-
Reporting period: ther 6250 or 1600 B.P.I.
Year .................. 3–4 Tens and units po-
sition. (c) All tape will contain standard
Quarter .............. 5 1, 2, 3, or 4. IBM volume header, and trailer
Blanks ................... 6–200 records.
(d) External labels will contain the
(2) Detail record. (a) All records are to carrier, name, the report date, file
be summarized on the complete identification, and an address for re-
itinerary 7 (columns 7 through 200) and turning the tapes.
the summary record only for each (4) Transmittal letter. The tape shall
itinerary is to be submitted. The tape be accompanied by a transmittal letter
file, including the identification which shows the number of records re-
record, is to be in sequence by com- ported and the total number of pas-
plete itinerary. sengers contained in the report.
(b) The tape record layout is shown B. Editing of Tape Records. Prior to
on the following page. submission of data, each carrier is re-
(3) Magnetic Tape Instructions: (a) quested to edit and correct its data so
All tapes are to be written using the that its O&D Survey report may be as
error-free as is reasonably practicable.
7 Itinerary includes total dollar value of The methods to be used in editing are
ticket. left to the carriers’ discretion, but with

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Sec. 19–7 14 CFR Ch. II (1–1–00 Edition)

assistance available upon request from pletion of the journey. (In roundtrip
the Department’s Office of Airline In- itineraries, the destination and the ori-
formation (OAI). To aid the carriers in gin are the same.)
maintaining a current file of editing Dollar value of ticket. (See total dollar
criteria, OAI will re-issue, as needed, value of ticket.)
the city/airport-carrier file to each par- Domestic. Itineraries within or be-
ticipating carrier. There will be a five- tween the 50 U.S. States and the Dis-
position field to denote the city/air- trict of Columbia are considered do-
port-carrier. The first three positions mestic for this Survey.
denotes the airport and the last two Fare basis code. The alphabetic
positions denotes the air carrier. code(s) or combination of alphabetic
C. Standard Formats for Floppy Disk and numeric codes appearing in the
or Cartridge Submissions. Carriers ‘‘Fare basis’’ box on the flight coupon
should use the 200 position format with which describe the applicable service
the standard length fields prescribed and discount to which the passenger is
for magnetic media submissions. The entitled. All fare basis codes are sum-
record layout is detailed in subsection marized into basic categories; namely
A(1) of this section. However, to sim- C—Unrestricted Business Class, D—Re-
plify the PC submissions, the sub- stricted Business Class, F—Unre-
mitter may report the dollar value of stricted First Class, G—Restricted
the ticket in the field immediately First Class, X—Restricted Coach/Econ-
after the last reported city code, rather omy Class, Y—Unrestricted Coach/
than in positions 196–200. Submitters Economy Class, and U—Unknown (This
may separate fields by using commas fare category is used when none is
or tabs (comma delimited ASCII or tab shown on a ticket coupon, or when a
delimited ASCII format). fare category is not discernible, or
when two or more carrier fare codes
X. GLOSSARY OF TERMS are compressed into a single stage of a
Selected terms used in the foregoing passenger trip).
instructions are here defined and ex- Fare ladder. The ‘‘For-issuing-office-
plained in the context of the O&D Sur- only’’ box of a ticket.
vey. Flight-coupon stage. The portion of an
ADP. An abbreviation for automated itinerary which lies between two con-
data processing, which is the term ap- tiguous points in the itinerary and be-
plied to all forms of machine processed tween which points the passenger is to
data. travel on a single flight.
Carrier. Any scheduled air carrier, Group ticket. A single ticket valid for
U.S. or foreign, that appears on a cou- the transportation of two or more pas-
pon stage in a ticketed itinerary, in- sengers over the same itinerary.
cluding helicopter, air taxi, commuter, Interline transfer. An occurrence at an
intra-Alaska carriers, and intra-state intermediate point in an itinerary
carriers. where a passenger changes from one
City or origin. (See origin.) carrier to another carrier, with or
Conjunction ticket. Two or more tick- without a stopover.
ets concurrently issued to a passenger Intermediate point. Any point in an
and which together constitute a single itinerary, other than the origin or des-
contract of carriage. tination, at which the passenger makes
Connecting point. An intermediate an interline or intraline connection or
point in an itinerary at which the pas- stopover.
senger deplanes from one flight and International. The world area outside
boards another flight, either on the the 50 U.S. States and the District of
same carrier or from the flight of one Columbia. Itineraries between points
carrier to a flight of another carrier, outside the 50 States are considered as
for continuation of the journey. international for this Survey, as well
Coupon stage. (See flight-coupon as itineraries between the 50 States
stage.) and U.S. possessions, and between or
Destination. The last point in the within U.S. possessions.
itinerary and the last point at which Intraline transfer. An occurrence at an
the passenger is to deplane at the com- intermediate point in an itinerary

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Office of the Secretary, DOT Pt. 241

where a passenger changes from a the Survey data for that itinerary for
flight of one carrier to another flight of the report to the Department.
that same carrier, with or without Revenue passenger. A passenger trans-
stopover, or where the passenger ported for which more than a service
changes from one class of service to an- charge or nominal remuneration is re-
other class of service on the same ceived by the air carrier. Passengers
flight. traveling for a zero fare, because of the
Itinerary. All points in the passenger frequent flyer or mileage programs are
journey, beginning with the origin, fol- considered revenue passengers, since
lowed by the routing, and ending with the revenue considerations for pas-
the destination, in the sequence shown senger travel were included in their
on the ticket. previously purchased tickets.
Operating air carrier. Under a code- Routing. The carrier on each flight-
share arrangement, the air carrier coupon stage in an itinerary and the
whose aircraft and flight crew are used intermediate points of routing stopover
to perform a flight segment. or connection (interline or intraline) in
Origin. The first point in the the sequence of occurrence in the
itinerary and the point where the pas- movement of the passenger from origin
senger first boards a carrier at the be- to destination. The routing also in-
ginning of the itinerary. cludes fare-basis summary codes on
each flight-coupon stage, to the extent
Participating carrier. A carrier which
these are available from the ticket.
is governed by the Survey data collec-
Scheduled service. Transport service
tion and reporting instructions con-
operated on a certificated large air car-
tained herein and which is required to rier’s routes pursuant to published
file Survey reports with the Depart- flight schedules, including extra sec-
ment of Transportation. tions of scheduled flights.
Point. A city or airport (always iden- Stage. (See flight-coupon stage.)
tified by its airport code). Ticketed air carrier. Under a code-
Reissued ticket. A ticket issued in ex- share arrangement, the air carrier
change for all or part of the unused whose two-character air carrier code is
portion of a previously issued ticket. used for a flight segment, whether or
Reportable flight coupon. A flight cou- not it actually operates the flight seg-
pon in an itinerary in which the carrier ment.
examining the coupon is the first par- Total dollar value of ticket. The sum of
ticipating carrier to lift a flight cou- the fare plus tax for the entire ticketed
pon in the itinerary and from which itinerary, in whole U.S. dollars with
coupon the examining carrier records cents dropped. For a group ticket, the
the Survey data. amount is the average per passenger.
Reporting carrier. The carrier in a For fares stated in foreign currency, it
given itinerary which has lifted the re- is the equivalent in U.S. dollars.
portable flight coupon in that itinerary Transfer. (See interline transfer and
and which carrier is required to record intraline transfer.)

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Pt. 241 14 CFR Ch. II (1–1–00 Edition)

[Amdt. No. 241–55, 52 FR 6529, Mar. 5, 1987, as amended at 60 FR 66723, 66724, Dec. 26, 1995; 62
FR 43280, Aug. 13, 1997]

GENERAL REPORTING PROVI- (b) The system prescribed provides for the
submission by each air carrier of four classes
SIONS—LARGE CERTIFICATED of financial and operating statistics, on indi-
AIR CARRIERS vidual schedules of the BTS Form 41 Report,
grouped as follows:
SECTION 21—INTRODUCTION TO SYSTEM
A. Certification.
OF REPORTS
B. Balance Sheet Elements.
(a) Each large certificated air carrier sub- P. Profit and Loss Elements.
ject to the Federal Aviation Act of 1958, as T. Traffic and Capacity Elements.
amended, shall file with the BTS, monthly,
quarterly, semiannually, and annually BTS
(c) The prescribed system of reports
Form 41 Reports of financial and operating provides that the frequency of report-
statistics as prescribed herein unless waiver ing shall be monthly for some sched-
has been made by the Civil Aeronautics ules, quarterly for some, semiannually
Board. for some and annually for others. It

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Office of the Secretary, DOT Pt. 241

also provides in some areas for the comparable to those required of a dis-
classification of large certificated air tinct legal entity whether the report-
carriers into Group I, Group II, and ing entity constitutes such an entity, a
Group III with the form and content semiautonomous physically separated
differentiated as between groups. operating division of the carrier, or an
(d) Each schedule of the prescribed entity established for reporting pur-
BTS Form 41 Report has been assigned poses only.
a specific code. The prefix alphabetical (h) Two separate entities shall be es-
codes A, B, P and T, respectively, have tablished for large certificated air car-
been employed to denote certification, riers predominantly engaged in con-
balance sheet, profit and loss, and traf- ducting charter activities for the pur-
fic and capacity. The digits imme- pose of submitting the prescribed re-
diately following the alphabetical pre- ports: (1) Domestic operations; and (2)
fix designate the particular schedule. international operations. The domestic
(e) Upon approval by the Director, entity includes all operations within
Office of Airline Information, a carrier and between the 50 States of the United
may: States, the District of Columbia, the
(1) Supply its own computer prepared Commonwealth of Puerto Rico, and the
formats provided each schedule con- U.S. Virgin Islands. All other oper-
forms with the size and format of the ations will be in the international enti-
forms prescribed in this part. ty.
(2) Use telefacsmile, or fax, equip- (i) The entities for which separate re-
ment to submit the forms prescribed by ports shall be made by the different
this part; however, forms transmitted route and charter air carriers will be
by fax must conform to an 81⁄2 x 14 inch set semiannually by the Office of Air-
size. With prior approval, larger forms line Information.
may be reduced in size of 81⁄2 x 14 for (j) As a general rule separate reports
transmission to the Department. shall be filed for the air carrier and for
(f) In submitting each schedule pre- each associated company air carriers
scribed by this part to the Department, as defined in section 03 which is an air
each reporting air carrier shall adhere carrier. However, transactions of asso-
to the following guidelines: ciated companies in which 100 percent
(1) A good quality black ribbon shall equity control resides in the reporting
be used in preparing the original copy air carrier shall be consolidated with
of each schedule. transactions of the reporting air car-
(2) In no event shall any information rier when such associated companies
be typed on the reverse side of copies perform services related to the trans-
submitted to the Department. port operations of the reporting air
(3) Except as provided for in para- carrier almost exclusively and are not
graph (e) of this section, no photocopy engaged in air transportation for their
or similar process shall be used. own account.
(g) Four separate air carrier entities (k) Generally, route air carriers’ non-
shall be established for large certifi- scheduled services shall be treated as
cated air carriers conducting scheduled an integral part of the reporting entity
service for the purpose of submitting to which most closely related without
the prescribed reports. They are as fol- regard to the geographic area in which
lows: (1) Domestic operations; (2) oper- such nonscheduled services may actu-
ations via the Atlantic Ocean; (3) oper- ally be performed. However, supple-
ations via the Pacific Ocean; and (4) op- mental reports shall be made of non-
erations in Latin American areas. With scheduled services (including service
respect to the first classification, the for the Department of Defense) in areas
domestic entity shall embrace all oper- not encompassed by the prescribed re-
ations within and between the 50 porting entity in any month in which
States of the United States, the Dis- the available ton-miles of such non-
trict of Columbia, the Commonwealth scheduled services exceed 5 percent of
of Puerto Rico and the U.S. Virgin Is- the available ton-miles of the reporting
lands, and shall also include Canadian entity. Such supplemental reports
transborder operations. The reports to shall continue until waived by the BTS
be submitted by each entity shall be upon a showing that such nonscheduled

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Pt. 241 14 CFR Ch. II (1–1–00 Edition)

operations will not in the subsequent each P and T schedule. When a carrier
12-month period exceed the 5-percent has more than one reporting entity,
limit. The supplemental reports to be nonscheduled transport and non-
filed each month or calendar quarter, scheduled Defense services shall be as-
as applicable, shall be comprised of re- signed to the reporting entity to which
port Schedules P–5, T–1, and T–2. more closely related.
Transport and nontransport revenues [ER–1027, 42 FR 60128, Nov. 25, 1977, as amend-
pertaining to such separately reported ed by ER–1073, 43 FR 40453, Sept. 12, 1978; ER–
nonscheduled services shall be reported 1073, 44 FR 1970, Jan. 9, 1979; ER–1188, 45 FR
on Schedule P–2 each quarter. 48871, July 22, 1980; ER–1297, 47 FR 32919, July
(l) When and as required in the na- 30, 1982; ER–1400, 50 FR 12, Jan. 2, 1985; ER–
1401, 50 FR 247, Jan. 3, 1985; Amdt. No. 241–56,
tional interest, any air carrier which
52 FR 9130, Mar. 23, 1987; Amdt. 241–60, 56 FR
performs nonscheduled transport serv- 12658, Mar. 27, 1991; 60 FR 66724, Dec. 26, 1995]
ices for the Department of Defense
shall, when directed by the Depart- SECTION 22—GENERAL REPORTING
ment, make separate reports for such INSTRUCTIONS
services as if they were conducted by a
(a) One copy of each schedule in the BTS
physically separate transport entity,
Form 41 report shall be filed with the BTS
such reports shall consist of Schedules and shall be received on or before the due
P–1 through P–7, T–1, and T–2. The let- date indicated for each such schedule in the
ter ‘‘D’’ shall be inserted on such re- list titled ‘‘Due Dates of Schedules in BTS
ports, following the schedule number of Form 41 Report.’’
LIST OF SCHEDULES IN BTS FORM 41 REPORT
[See footnotes at end of table]

Applicability by carrier
Filing fre- group
Schedule No. Title quency
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 RSPA Form 41 report ............................................................ Q (1) X X
P–5.1 ............... Aircraft operating expenses .................................................................. Q(1), X NA NA
SA(2)
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- M X X X
flight market.
T–100(f) ........... Foreign air carrier traffic data by nonstop segment and on-flight mar- M
ket.
(see 14 CFR 217)
T–1 .................. U.S. air carrier traffic and capacity summary by service class ............ M X X X
T–2 .................. U.S. air carrier traffic and capacity by aircraft type .............................. Q X X X
T–3 .................. U.S. air carrier airport activity statistics ................................................ Q X X X
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.

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Office of the Secretary, DOT Pt. 241

DUE DATES OF SCHEDULES IN BTS FORM 41 (1) The time for filing B and P report
REPORT schedules for the final quarter or semi-
annual period of each calendar year
Financial Traffic and capacity data may be extended to the following
Due dates 1 data on on schedule No.
schedule No. March 30 if the preliminary Schedules
January 20 ........ P–12(a) B–1 or B–1.1 and P–1.1 or P–1.2 are sub-
January 30 ........ P–1(a) T–100, T–100(f), T–1, T–2, mitted, as applicable, and are received
T–3 on or before their respective due dates.
February 10 2 .... A, B–1, B–
1.1, B–7, (2) For the third month of any cal-
B–12, P– endar quarter, Schedule P–1(a) need
1.1, P–1.2, not be filed if Schedule P–1.1 or P–1.2
P–2, P–
5.1, P–5.2, for the quarter or semiannual period,
P–6, P–7, as applicable, is received on the due
P–10. date prescribed for Schedule P–1(a).
February 20 ...... P–12(a)
March 1 ............ P–1(a) T–100, T–100(f), T–1 (3) Income and expense data on
March 20 .......... P–12(a) Schedule P–1(a) for each month will be
March 30 .......... B–43, P– T–100, T–100(f), T–1, T–8 withheld by the BTS from public dis-
1(a).
April 20 ............. P–12(a) closure, until such time as (i) the semi-
April 30 ............. P–1(a) T–100, T–100(f), T–1, T–2, annual or quarterly financial reports
T–3 are due, (ii) the semiannual or quar-
May 10 .............. A, B–1, B–7,
B–12, P–
terly financial reports are filed, or (iii)
1.2, P–2, information covered by monthly re-
P–5.1, P– ports is publicly released by the carrier
5.2, P–6,
P–7.
concerned, whichever occurs first. Be-
May 20 .............. P–12(a) fore that time, income and expense
May 30 .............. P–1(a) T–100, T–100(f), T–1 data reported on Schedule P–1(a) will
June 20 ............. P–12(a)
June 30 ............. P–1(a) T–100, T–100(f), T–1
be disclosed to parties to any pro-
July 20 .............. P–12(a) ceeding before the DOT to the extent
July 30 .............. P–1(a) T–100, T–100(f), T–1, T–2, that such data are relevant and mate-
T–3 rial to the issues in the proceeding
August 10 ......... A, B–1, B–
1.1, B–7, upon a determination to this effect by
B–12, P– the administrative law judge assigned
1.1, P–1.2, to the case or by the DOT. Any data to
P–2, P–
5.1, P–5.2, which access is granted may be intro-
P–6, P–7. duced into evidence, subject to the nor-
August 20 ......... P–12(a) mal rules of admissibility of evidence.
August 30 ......... P–1(a) T–100, T–100(f), T–1
September 20 ... P–12(a) The DOT will make other disclosure of
September 30 ... P–1(a) T–100, T–100(f), T–1 these data upon its own motion or upon
October 20 ........ P–12(a) application of any interested person,
October 30 ........ P–1(a) T–100, T–100(f), T–1, T–2,
T–3 when the DOT finds the public interest
November 10 .... A, B–1, B–7, so requires. The BTS may, from time
B–12, P– to time, publish summary information
1.2, P–2,
P–5.1, P–
compiled from Schedule P–1(a) in a
5.2, P–6, form which will not identify the indi-
P–7. vidual carrier. At the request of an air
November 20 .... P–12(a)
November 30 .... P–1(a) T–100, T–100(f), T–1
carrier, and upon a showing by such air
December 20 .... P–12(a) carriers that public disclosure of its
December 30 .... P–1(a) T–100, T–100(f), T–1 preliminary year-end report would ad-
1 Due dates falling on a Saturday, Sunday or national holi- versely affect its interests and would
day will become effective the first following work day. not be in the public interest, the BTS
2 Reporting due dates on Form 41 Schedules B and P are
extended to March 30 if preliminary schedules are filed at the will withhold such preliminary year-
Department by February 10 end report from public disclosure until
(b) Each large certificated air carrier such time as (i) the final report is filed,
shall file the applicable schedules of (ii) the final report is due, or (iii) infor-
the BTS Form 41 Report with the BTS mation covered by the preliminary re-
in accordance with the above instruc- port is publicly released by the carrier
tions with the following exceptions: concerned, whichever occurs first.

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Pt. 241 14 CFR Ch. II (1–1–00 Edition)

(c) If circumstances prevent the fil- by submission of corrected schedules
ing of a report on or before the pre- for the period to which applicable or, if
scribed due date, consideration will be only a few items are involved, by writ-
given to the granting of an extension ten notice and authorization to the
upon receipt of a written request there- BTS to correct previously filed reports
for. To provide ample time for consid- except that any correction which
eration and communication to the air amounts to less than one-half of one
carrier of the action taken, such a re- percent (0.5%) of the corrected amount
quest must be delivered to the Board in for the month to which related may be
writing at least three (3) days in ad-
included in the report for the current
vance of the due date, setting forth
good and sufficient reason to justify month provided the amount of the cor-
the granting of the extension and the rection is clearly noted on the Form 41
date when the report can be filed. Ex- Report.
cept in cases of emergency, no such re- (h) All letters and statements of cor-
quest will be entertained which is not rection or revision of reported data
in writing and received by the BTS at shall be a part of the BTS Form 41 re-
least three (3) days before the pre- ports.
scribed due date. If a request is denied, (i) All changes in accounting meth-
the air carrier remains subject to the ods having a material impact upon the
filing requirements to the same extent particular financial elements involved,
as if no request for extension of time and all changes in methods of com-
had been made. puting and reporting traffic and capac-
(d) [Reserved] ity statistics having a material impact
(e) All financial data reported on B, P upon the particular statistic involved
and G schedules shall reflect the status
shall be adequately explained and iden-
of the air carrier’s books of account for
tified in the report first reflecting such
the period for which the report is being
made and shall conform to the instruc- changes. Such explanations related to
tions contained in this Uniform Sys- financial position or financial results
tem of Accounts and Reports. At the shall be made on BTS Form 41 Sched-
option of the air carrier, Group III air ule P–2. Changes in methods for com-
carriers may round reported financial puting or reporting traffic and capacity
data to the nearest thousands of dol- statistics shall be identified and ex-
lars by typing ‘‘($000)’’ at the top of plained on a separate sheet attached to
each amount column. All Group I and the first report affected. (See sec. 2–16.)
Group II air carriers may, at their op- The reporting requirements shall not
tion, round reported financial data to be construed, in any sense, as relieving
the nearest whole dollars by dropping the air carrier of the responsibility for
the cents. All rounded amounts must conforming its procedures to those oth-
be balanced within and between sched- erwise prescribed in this system of ac-
ules. This option applies only to the counts and reports.
submission of hardcopy reports. In- (j) All financial statements released
structions for the submission of data in
by carriers to the public reflecting a fi-
ADP format are contained in the Ac-
nancial position or operating results
counting and Reporting Directives,
which are available from OAI. for dates or reporting periods not cov-
(f) Traffic and other operational sta- ered by reports on file with the Board
tistics included in schedules of the BTS shall be filed with the Board simulta-
Form 41 reports shall reflect data per- neously with their public release.
taining to the month, quarter or 12- (Approved by the Office of Management and
months-to-date period for which the re- Budget under control number 2138–0013)
port is being made. [ER–755, 37 FR 19726, Sept. 21, 1972]
(g) Adjustments correcting errors in
previously reported traffic and other EDITORIAL NOTE: For Federal Register cita-
tions affecting part 241, section 22, see the
operational statistics shall not be in-
List of CFR Sections Affected in the Finding
cluded in data reported in schedules for
Aids section of this volume.
the current period but shall be effected

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Office of the Secretary, DOT Pt. 241

FINANCIAL REPORTING (c) Individual proprietors or partners shall
report the aggregate capital contributed by
REQUIREMENTS the proprietor or partners in account 2890
Additional Capital Invested.
SECTION 23—CERTIFICATION AND
BALANCE SHEET ELEMENTS Schedule B–1.1—Balance Sheet
Schedule A—Certification (a) This schedule shall be filed semiannu-
ally by Group I air carriers with annual op-
(a) The certification of the BTS Form 41 erating revenues below $20 million.
Report shall be signed by an elective cor- (b) Each carrier shall insert in the space
porate officer, executive, or director. Other provided for ‘‘OAG Code’’ its carrier code as
persons may be authorized by the carrier to contained in the Official Airlines Guide
sign the certification provided a written au-
(OAG). If the OAG does not contain a carrier
thorization disclosing the individual’s name
code for the reporting carrier, a code will be
and title is forwarded to the Department of
provided by the Office of Airline Information
Transportation. Since corrections or revi-
upon request. This code will then be inserted
sions of reported data are a part of the BTS
in the space provided for ‘‘carrier code.’’
Form 41 Report, all correspondence relating
(c) This schedule shall show the account
to such matters shall be signed only by the
balances at the close of business on June 30
person(s) authorized to sign the certifi-
or December 31, as applicable, of each semi-
cation.
(b) The certification of the Form 41 re- annual reporting period.
ports, embodied in Schedule A thereof, shall (d) ‘‘Current Assets’’ shall include all re-
read as follows: sources that may reasonably be expected to
I, the undersigned (Title of officer in be realized in cash or sold or consumed with-
charge of accounts) llll of the (Full in one year. This group of assets is classified
name of the reporting company) lll do into three basic accounts:
certify that this report and all schedules, (1) ‘‘Cash and Equivalents’’ shall include
ADP-media submissions, Passenger Origin- cash on hand and on deposit, U.S. Govern-
Destination Survey submissions and sup- ment securities, and other temporary cash
porting documents which are submitted investments.
herewith or have been submitted heretofore (2) ‘‘Notes and Accounts Receivable-Net’’
as parts of this report filed for the above in- shall include general traffic accounts receiv-
dicated period have been prepared under my able, government receivables, notes and re-
direction; that I have carefully examined ceivables from associated companies, offi-
them and declare that they correctly reflect cers, employees and others, and a deduction
the accounts and records of the company, for a reasonable allowance for bad debts.
and to the best of my knowledge and belief (3) ‘‘Other Current Assets’’ shall contain
are a complete and accurate statement, after all other current assets not provided for in
adjustments to reflect full accruals, of the the above classifications. This account shall
operating revenues and expenses, income include, but is not limited to, short-term
items, assets, liabilities, capital, retained prepayments, expendable spare parts, sup-
earnings, and operating statistics for the pe- plies and other inventories of flight equip-
riods reported in the several schedules, the ment replacement parts that are usually re-
Schedule T–100 ADP-media submissions, and placed rather than repaired, and materials
the Passenger Origin-Destination Survey; and supplies held in stock, such as fuel and
that the various items herein reported were oil, expendable tools, office supplies and food
determined in accordance with the Uniform service supplies. Spare parts may be reduced
System of Accounts and Reports for Large by an allowance for obsolescence to provide
Certificated Air Carriers prescribed by the for losses in value.
Department of Transportation; and that the (e) ‘‘Property and Equipment’’ shall be seg-
data contained herein are reported on a basis regated into that which is owned and that
consistent with that of the preceding report which is leased under capital leases. All
except as specifically noted in the financial property and equipment, with the deception
and statistical statements. of land, shall be reported net of accumulated
depreciation or amortization.
Schedule B–1 Balance Sheet (f) ‘‘Other Assets’’ shall included all assets
(a) This schedule shall be filed by all Group not included in the above categories, such as
II and Group III air carriers and Group I air long-term investments, long-term prepay-
carriers that have annual operating revenues ments, long-term receivables, deferred
of $20 million or more. charges, intangible assets, equipment pur-
(b) This schedule shall reflect the balances chase deposits, and construction work in
at the close of business on the last day of progress.
each calendar quarter for the overall or sys- (g) ‘‘Current Liabilities’’ shall include all
tem operations of each air carrier in con- obligations, the liquidation of which is rea-
formance with the provisions of sections 4, 5 sonably expected to require the use of exist-
and 6. ing resources within one year. This group of

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Pt. 241 14 CFR Ch. II (1–1–00 Edition)
liabilities is classified into three basic ac- Schedule B–7 Airframe and Aircraft Engine
counts: Acquisitions and Retirements
(1) ‘‘Notes and Accounts Payable’’ shall in-
(a) This schedule shall be filed by all Group
clude any payments on long-term debt,
II and Group III air carriers.
short-term notes and accounts payable, and
(b) Data applicable to acquisitions and
accrued expenses that are payable within one
data applicable to retirements shall be
year.
grouped and reported separately. The data
(2) ‘‘Accrued Taxes’’ shall include tax li-
reported within each group (acquisitions; re-
abilities, such as those imposed on income,
property and payroll, which are reasonably tirements) shall be further subgrouped and
expected to be liquidated within one year. reported as follows:
(3) ‘‘Other Current Liabilities’’ shall in- (1) Acquisitions: the indicated data shall be
clude all current liabilities which are not reported for each individual airframe, identi-
provided for elsewhere, such as air traffic li- fied by type, model, and design of cabin as to
abilities for unused transportation sold (in- use for passengers exclusively, cargo exclu-
cludes sales of transportation on both the re- sively, or both passengers and cargo in com-
porting carrier and other carriers). bination. Data pertaining to aircraft engines
(h) ‘‘Long-Term Debt’’ shall include all ob- shall be reported in aggregate for each type
ligations which are not reasonably expected or model; however, leased aircraft engines
to be liquidated within one year. Typical ex- shall be separately reported under captions
amples include bonds payable, long-term entitled: Capital Leases—Aircraft Engines;
notes payable, lease obligations, and pension and Operating Leases—Aircraft Engines. Air-
obligations. frame units leased from others for a period of
(i) ‘‘Other Liabilities’’ shall include any more than 90 days shall be reported in a sep-
debts or obligations which are not properly arate subsection of this schedule, captioned
listed in the ‘‘Current Liabilities’’ or ‘‘Long- as follows: Capital Leases—Airframe Units;
Term Debt’’ sections. and Operating Leases—Airframe Units. In
(j) ‘‘Deferred Credits’’ shall include all addition, a notation shall be made by license
credit balances of a general clearing nature, number of airframe units of the air carrier
including credits held in suspense pending returned after lease to others for a period of
receipt of further information necessary for more than 90 days. Airframe units obtained
final disposition. Included in this account through interchange lease arrangements
are deferred income taxes and deferred in- shall not be so reported.
vestment tax credits. (2) Retirements: The indicated data shall
(k) ‘‘Stockholder’s Equity’’ shall be re- be reported for the sale or retirement of each
ported as follows: airframe, each type of aircraft engine (stat-
(1) ‘‘Capital Stock’’ shall be segregated as ing the number of units retired) and, to the
between common and preferred. The number extent retired along with airframes and en-
of shares outstanding, along with the par or gines, in aggregates by accounts, operating
stated value of the stock, shall be reported. property and equipment included in accounts
In the case of no-par stock without stated 1607 and 1608 and nonoperating property and
value, the full consideration received shall equipment included in accounts 1707 and
be reported. 1708. Disposition of properties in accounts
(2) ‘‘Other Paid-In Capital’’ shall include 1608 and 1708 not related to airframe and air-
the difference between the price at which the craft engine retirements shall be reported in
capital stock is sold and the par or stated a separate group for each account. Airframe
value of the stock. units leased from others for a period of more
(3) ‘‘Retained Earnings’’ shall represent than 90 days shall be reported, upon return
the net income or loss from all operations of to the lessor, in a separate subsection of this
the corporate entity less dividends. schedule and captioned as follows: Capital
(4) ‘‘Treasury Stock’’ shall represent the Leases—Airframe Units; and Operating
cost of stock issued by the carrier and reac- Leases—Airframe Units. In addition, a nota-
quired by it but not retired or cancelled. tion shall be made by license number and
(l) The statement of certification shall be name of lessee of airframe units leased to
signed by the carrier’s chief accounting offi- others for a period of more than 90 days;
cer. moreover, airframe units leased to others
(m) All substantive matters that may ma- under sales-type or direct financing leases
terially influence interpretations or conclu- shall be separately captioned and reported
sions in regard to the financial condition or on this schedule. Airframe units leased under
the earnings position of the air carrier which interchange arrangements shall not be so re-
are not clearly identified in the body of the ported. Aircraft engines leased from others
schedule or which represent information for a period of more than 90 days shall be re-
that cannot be expressed adequately in mon- ported, upon return to the lessor, in a sepa-
etary terms shall be completely and clearly rate subsection of this schedule and cap-
stated in a note attached to this schedule tioned as follows: Capital Leases—Aircraft
and cross-referenced to the affected account Engines; and Operating Leases—Aircraft En-
or accounts. gines. In addition, a notation shall be made

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Office of the Secretary, DOT Pt. 241
by model number, number of units, and name ported in a separate group in aggregate for
of lessee of aircraft engines leased to others each property account affected.
for a period of more than 90 days; moreover,
aircraft engines leased to others under sales- Schedule B–12—Statement of Cash Flows
type or direct financing leases shall be sepa- (a) This Schedule shall be filed quarterly
rately captioned and reported on this sched- by all Group II and Group III air carriers and
ule. Aircraft engines leased under inter- Group I air carriers that have annual oper-
change arrangements shall not be so re- ating revenues of $20 million or more.
ported. (b) This schedule shall be filed for the over-
(c) All dates shall indicate the day, the all or system operations of the air carrier.
month and the year; shall be provided on a (c) The statement of cash flows shall sepa-
unit basis for airframes only, and, shall be rately disclose the amount of net cash pro-
reported for each aircraft engine group by vided or used during the reporting period
date of transaction. from the carrier’s operating activities, in-
(d) Column 1, ‘‘Year of First Delivery—Air- vesting activities and financing activities.
frame,’’ shall reflect, for each reported air- The effect on cash and cash equivalents of
frame, the year that the airframe was first the total amount of net cash provided or
delivered by its manufacturer. used during the quarter from each of the
(e) Column 2, ‘‘Airframe Manufacturer’s above activities shall be clearly disclosed so
Serial Number,’’ shall reflect the serial num- as to reconcile beginning and ending cash
ber assigned to each reported airframe by its and cash equivalents.
manufacturer. (d) Carriers may use either the direct or in-
(f) Column 4, ‘‘Acquisitions or Retire- direct method of reporting cash flows. Under
ments,’’ shall be used to indicate, for each either method, the reporting of cash flows
item entered, whether it represents an acqui- from investing and financing activities will
sition or retirement. This shall be indicated remain the same. However, the reporting of
by inserting in Column 4 an ‘‘A’’ for acquisi- cash flows from operating activities does dif-
tion or an ‘‘R’’ for retirement. fer between the two methods.
(g) Column 8, ‘‘Maximum Seating Capac- (e) For carriers electing to use the direct
ity,’’ shall reflect the number of passenger method, cash flows from operating activities
seats installed in each airframe acquired. are reported as gross amounts of the prin-
When airframes are designed for multiple ad- cipal components of cash receipts and cash
justable seating configurations, the max- payments from operating activities, such as
imum number of seats for which designed cash received from passengers and shippers,
shall be reported. When the seating configu- cash paid to suppliers, and cash paid to em-
ration of airframes is modified subsequent to ployees. Each carrier using the direct meth-
original acquisition, the revised passenger od shall provide as part of its statement of
capacity of each airfame shall be reported in cash flows, a separate schedule that rec-
the quarter in which modified and referenced onciles net income (as reported on Schedule
to identify original capacity reported. P–1.2 in Account 9899) to cash flow from op-
(h) Column 9, ‘‘Cost,’’ shall reflect the erating activities.
book cost of reported airframe and aircraft (f) For carriers electing to use the indirect
engine acquisitions and retirements. method, cash flows from operating activities
(i) Column 10, ‘‘Amortization/Depreciated shall reflect net income (as reported on
Cost,’’ shall reflect the book cost, less amor- Schedule P–1.2 in Account 9899) along with
tization or depreciation expense, for air- the adjustments necessary to reconcile net
frames and aircraft engines that have been income (Account 9899) to net cash for the pe-
retired. riod (Net Cash Provided or Used By Oper-
(j) Column 11, ‘‘Realization,’’ shall reflect ating Activities).
the proceeds from the disposition of air- (g) Regardless of the method used, the
frames and aircraft engines, including any statement of cash flows shall reflect the
insurance proceeds. amount of net cash flow provided or used by
(k) Column 12, ‘‘Acquired From/Disposi- operating activities during the reporting pe-
tion,’’ shall reflect: (1) for acquisitions: the riod.
name of the person or organization from (h) The balance of ‘‘Cash and Cash Equiva-
which airframes and aircraft engines are ac- lents,’’ at the beginning and ending of the
quired and (2) for dispositions (retirements): quarterly period covered by the report,
the name of the person or organization to should equal the sum of Accounts 1010,
which airframes and aircraft engines are sold ‘‘Cash,’’ and 1100, ‘‘Short-term Investments,’’
or a notation as to the nature of the retire- as reported on the immediately preceding
ment and the account to which any depre- and current quarterly Schedule B–1, ‘‘Bal-
ciated cost has been charged, if not sold. ance Sheet.’’ If the sum of these two ac-
Items included in accounts 1607, 1608, 1707, counts does not equal the total ‘‘Cash and
and 1708, sold as a part of an airframe or air- Cash Equivalents’’ reported on the state-
craft sales transaction, shall also be identi- ment of cash flows, then a footnote explain-
fied by the name of the buyer. Other sales of ing the difference shall be provided as part of
items included in these accounts shall be re- the statement of cash flows.

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Pt. 241 14 CFR Ch. II (1–1–00 Edition)
Schedule B–43—Inventory of Airframes and (j) Column 11, ‘‘Allowance for Depreciation
Aircraft Engines or Amortization,’’ shall include (1) the accu-
mulations of all provisions for losses due to
(a) This schedule shall be filed by all Group
use and obsolescence that are applicable to
I, Group II and Group III air carriers.
owned airframes and aircraft engines, (2) the
(b) The indicated data shall be reported for
amount of amortization recorded for amor-
each individual airframe, identified by type,
tizing the value of airframes and engines ob-
model and design of cabin (main deck) as to
tained under capital leases, and (3) the
use for passengers exclusively, cargo exclu-
amount of amortization recorded for amor-
sively, or both passengers and cargo in com-
tizing the value of improvements to air-
bination. Type and model refers to aircraft
frames and aircraft engines obtained under
models such as B–707–100, B–707–200, DC–10–40,
operating leases.
Beech–18, Piper PA–32, etc. Aircraft type des-
ignations are prescribed in Accounting and (k) Column 12, ‘‘Depreciated Cost or Amor-
Reporting Directive No. 178, ‘‘List of Aircraft tized Value,’’ shall be calculated as either (1)
Type Numeric Codes.’’ Copies of this direc- Acquired Cost (Column 10) less the Allow-
tive and subsequent updates to the list of ance for Depreciation (Column 11) or (2) Cap-
aircraft type codes are available from the italized Value (Column 10) less Amortization
Department’s Office of Airline Information. (Column 11).
Airframes that are authorized for operation (l) Column 13, ‘‘Estimated Residual
over water under FAA regulation FAR 121 Value,’’ shall state, in dollars, the residual
shall be so indicated by asterisk. value assigned to owned and capital-leased
(c) Data pertaining to aircraft engines airframes and aircraft engines, including any
shall be reported on a group basis by type of overhaul value not subject to depreciation.
engine and by type of aircraft to which re- (m) Column 14, ‘‘Estimated Depreciable or
lated. Amortizable Life (Months),’’ shall state the
(d) Data in this schedule shall be grouped estimated depreciable or amortizable life
and subtotaled as data pertaining to air- from the date of acquisition of each airframe
frames and data pertaining to aircraft en- and each group of aircraft engines.
gines. Data pertaining to nonoperating air- [ER–755, 37 FR 19726, Sept. 21, 1972]
frames and aircraft engines shall be reported
in a group below the data for operating EDITORIAL NOTE: For Federal Register cita-
equipment. Data pertaining to airframes and tions affecting part 241, section 23, see the
aircraft engines obtained under operating List of CFR Sections Affected in the Finding
and capital leases shall be reported, by type Aids section of this volume.
of lease, in a separately captioned grouping
below nonoperating airframes and aircraft SECTION 24—PROFIT AND LOSS
engines and subgrouped within those groups ELEMENTS
according to operating and nonoperating
equipment. Schedule P–1.1—Statement of Operations
(e) Column 1, ‘‘Year of First Delivery—Air-
frame,’’ shall reflect, for each reported air- (a) This schedule shall be filed semiannu-
frame, the year that the airframe was first ally by Group I air carriers with annual op-
delivered by its manufacturer. erating revenues below $20 million. Data re-
(f) Column 2, ‘‘Airframe Manufacturer’s Se- ported on this schedule shall be for the over-
rial Number,’’ shall reflect the serial number all or system operations of the air carrier.
assigned to each reported airframe by its (b) This schedule shall show the results of
manufacturer. operations for six-month periods ending June
(g) Data pertaining to airframes and air- 30 and December 31. Data reported in the ‘‘12
craft engines obtained under operating leases Months-to-Date’’ column shall represent for
shall be listed in Columns 1 through 9; the each individual item the sum of the amount
cost of improvements to equipment under reported in the ‘‘Current Period’’ column and
operating leases shall be reported in Col- the next previous six-month period.
umns 10 through 12. (c) Each carrier shall insert in the space
(h) Column 9, ‘‘Available Capacity provided for ‘‘OAG Code’’ its carrier code as
(Weight),’’ shall reflect, for each reported contained in the Official Airlines Guide
aircraft type, the available capacity (stated (OAG). If the OAG does not contain a carrier
in pounds) that is used in computing the code for the reporting carrier, a code will be
available ton-miles reported on Schedules T– provided by the Office of Airline Information
100, T–1, and T–2. upon request. This code will then be placed
(i) Column 10, ‘‘Acquired Cost or Capital- in the space provided for ‘‘carrier code.’’
ized Value,’’ shall include (1) the acquisition (d) ‘‘Operating Revenue’’ shall be put in
cost of owned airframes and aircraft engines; categories as follows:
(2) the total capitalized cost of obtaining air- (1) ‘‘Transport Revenue’’ shall include the
frames and engines under capital leases; and revenue generated by the performance of air
(3) the cost of improvements to airframes transportation services. This category shall
and engines obtained under operating leases. be subdivided as follows:

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Office of the Secretary, DOT Pt. 241
(i) ‘‘Scheduled Service’’ shall include all (g) ‘‘Nonoperating Income and Expense’’
transport revenue derived from operations shall include all revenues and expenses re-
between pairs of points which are served on sulting from commercial ventures which are
a regularly scheduled basis. Transport rev- not inherently related to the performance of
enue received from scheduled service oper- air transport services. For example, the reve-
ations shall be subdivided as follows: nues and expenses related to operating a
(A) Passengers. Revenue generated from the hotel or motel would be reported under this
transportation of passengers shall be in- category. This category shall also include
cluded in this category. the total interest expense incurred from all
(B) Other. Revenue generated by the trans- sources and shall be subdivided as follows:
portation of property and mail shall be in- (1) Interest Expense.
cluded in this category. (2) Other Nonoperating (Net).
(ii) ‘‘Nonscheduled Service’’ shall include (h) ‘‘Income Tax’’ shall reflect the provi-
all transport revenue derived from oper- sions for accruals of Federal, State, local,
ations between pairs of points which are not and foreign taxes based upon taxable income,
served on a regularly scheduled basis. and computed at the normal and surtax rates
(2) ‘‘Transport-Related Revenue’’ shall in- in effect during the current accounting year.
clude monies received for providing air (i) ‘‘Discontinued Operations, Extraor-
transportation facilities associated with the dinary Items or Accounting Changes’’ shall
performance of services which flow from and reflect any earnings or losses from discon-
are incidental to air transportation services tinued operations, the net of the tax amount
performed by the air carrier. This category of extraordinary items, and the cumulative
shall be subdivided as follows: effect of any changes in accounting prin-
(i) Public Service Revenue. This category ciples.
shall include amounts of compensation paid (j) Any air carrier that does not file Sched-
to the carrier under 49 U.S.C 41733. ule P–1(a) in accordance with the filing op-
(ii) Other. This category shall include other tion described in section 22—General Report-
transport-related revenue such as in-flight ing Instructions shall, for the sixth month of
sales, restaurant and food service (ground), any semi-annual period during which the op-
rental of property or equipment, limousine tion is exercised, type in the bottom margin
service, interchange sales, and cargo pick-up of this statement of operations the total
and delivery charges. number of full-time and part-time employees
(e) ‘‘Operating Expense’’ shall be seg- to be labeled as such and calculated in ac-
regated as follows: cordance with paragraph (d) of the reporting
(1) ‘‘Flying Operations’’ shall include ex- instructions for Schedule P–1(a).
penses incurred directly in the in-flight oper-
ation of aircraft and expenses incurred in the Schedule P–1.2—Statement of Operations
holding of aircraft and aircraft operation (a) This schedule shall be filed quarterly by
personnel in readiness for assignment to an all Group II and Group III air carriers and
in-flight status. Group I air carriers that have annual oper-
(2) ‘‘Maintenance’’ shall include all ex- ating revenues of $20 million or more.
penses which are specifically identifiable (b) Route and charter carriers shall file
with the repair and upkeep of property and separate statements of operations for each
equipment used in the performance of air separate operating entity and for the overall,
transportation. or system operations.
(3) ‘‘General and Administrative’’ shall in- (c) Data reported on this schedule shall
clude that portion of all expenses of a gen- conform with the instructions pertaining to
eral corporate nature and all other expenses profit and loss classifications within this
not provided for elsewhere which are related Uniform System of Accounts and Reports.
to air transport operations either directly or (d) Data reported in the ‘‘12 Months-to-
indirectly. Date’’ column shall represent for each item
(4) ‘‘Depreciation and Amortization’’ shall the sum of amounts reported in the ‘‘Quar-
include all depreciation and amortization ex- ter’’ column for the current and next pre-
penses applicable to property and equipment vious three quarters.
used in providing air transportation services. (e) Group III air carriers shall subdivide
These expenses shall be segregated between total Transport Revenues-Passenger (Ac-
those applicable to owned property and count 3901) between Accounts 3901.1, Pas-
equipment and those applicable to property senger-Flight Class and Account 3901.2 Pas-
and equipment which is leased. senger-Coach, only for operations that are
(5) ‘‘Transport-Related Expense’’ shall in- reported in the international entity (Atlan-
clude all expenses associated with the trans- tic, Pacific and Latin American). First class
port-related revenues reported on line 5 of and coach passenger revenues associated
this schedule. with transport operations reported in the do-
(f) ‘‘Operating Profit (Loss)’’ shall be com- mestic entity shall be reported as a com-
puted by subtracting the total operating ex- bined total in Account 3901 Transport Reve-
penses from the total operating revenues. nues-Passenger.

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Pt. 241 14 CFR Ch. II (1–1–00 Edition)
(f) All Group I and Group II air carriers employment because of a strike (i.e., the
shall report first class and coach passenger number of full-time employees who, but for a
revenues as a combined total in Account 3901 strike, would have been included in the num-
Transport Revenues-Passenger, for both do- ber reported in accordance with paragraph
mestic and international entity operations. (d)(7)).
However, U.S. air carriers in any carrier
group that elect to do so may continue to re- Schedule P–2—Notes to BTS Form 41 Report
port first class and coach revenue data, if (a) This schedule shall be filed quarterly by
they consider such voluntary reporting to be all Group II and Group III air carriers and
less burdensome than changing their exist- Group I air carriers that have annual oper-
ing financial reporting system. ating revenues of $20 million or more.
(g) Any air carrier that does not file Sched- (b) Route and charter air carriers shall file
ule P–1(a) in accordance with the filing op- this schedule for each separate operating en-
tion described in section 22—General Report- tity and for the overall, or system operations
ing Instructions shall, for the third month of of the carrier.
any calendar quarter during which the op- (c) All substantive matters which may in-
tion is exercised, type in the bottom margin fluence materially interpretations or conclu-
of the system statement of operations the sions in regard to the financial condition or
total number of full-time and part-time em- the earnings position of the air carrier which
ployees to be labeled as such and calculated are not clearly identified in the body of the
in accordance with paragraph (d) of the re- Form 41 report or which represent informa-
porting instructions for Schedule P–1(a). tion that cannot be expressed adequately in
monetary terms shall be completely and
Schedule P–1(a) Interim Income Statement
clearly stated in this schedule and cross-ref-
(a) This schedule shall be filed by all air erenced to the affected account or accounts.
carriers. The informative disclosure on this schedule
(b) This schedule shall be filed for the over- for the system operations of the air carrier
all or system operations of the air carrier. shall conform, at the end of each carrier’s
(c) Data reported on this schedule shall re- fiscal or calendar year, with the footnotes
flect the results of operations for the month prepared for audited financial statements.
covered by the report and shall conform to (d) The amounts and estimated delivery
the instructions pertaining to profit and loss dates of any purchase commitments of mate-
classifications within this Uniform System rial size and not of a recurrent routine char-
of Accounts and Reports. acter shall be explained on this schedule. In
(d) Air carriers shall report on this sched- the case of commitments involving flight
ule: equipment, the amount for each equipment
(1) Total operating revenues, type may be given in total, including any en-
(2) Total operating expenses, gines, airframes and spares; but the number
(3) Operating profit or loss, of airframes and the number of engines by
(4) Net income, type shall be given, as well as the estimated
(5) Passenger revenues—scheduled service, delivery date for each complete aircraft. Re-
(6) Public service revenues (subsidy) and ports on commitments other than for flight
other information on equipment are required only in the Decem-
(7) The total number of full-time and ber 31 report of each calendar year.
(8) Part-time employees. Total number of (e) Each scheduled air carrier shall include
full-time employees and total number of on this schedule a description of each inter-
part-time employees shall reflect for the ruption in air transport operations, the ag-
overall or system operations of the air car- gregate effect of which is ten (10) percent or
rier the total number of full-time and part- more of the scheduled revenue plane-miles
time employees, respectively, who worked or which, except for the interruption, would
received pay for any part of the pay period(s) have been operated during the month or ei-
ending nearest the 15th day of the month. ther of 2 consecutive months affected. The
For the purposes of this part, ‘‘part-time em- information to be reported for each such
ployees’’ means those employees hired to interruption in operations shall consist of:
work less than the number of hours that is (1) For the report period in which partial
customary or standard for their occupational or complete interruption first occurs, the na-
specialty. ture of the interruption and dates of partial
(e) In the event of a labor strike, the and/or complete cessation of operations, as
‘‘number of employees’’ to be reported on applicable;
this schedule shall be determined on and ac- (2) For each report period until full re-
tual payroll basis. Actual payroll shall be de- sumption of operations, an estimate of the
termined in accordance with paragraph (d) of revenue plane-miles canceled in each month
these reporting instructions. An air carrier of the quarter because of the interruption;
that on October 24, 1978, held a certificate and
issued under 49 U.S.C. 41102 shall also report (3) For the report period in which sched-
in a footnote on this schedule the number of uled operations are resumed, dates of partial
full-time employees who were deprived of and/or complete resumption, as applicable.

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Office of the Secretary, DOT Pt. 241
Schedule P–5.1—Aircraft Operating Expenses ment to an in-flight status that are not pro-
vided for otherwise on this schedule.
(a) This schedule shall be filed by all Group
(2) Line 6 ‘‘Total Flying Operations (Less
I air carriers. Group I air carriers that have
Rentals)’’ shall equal the sum of lines 3, 4
annual operating revenues of $20 million or
and 5.
more shall file this schedule quarterly and (3) Line 7 ‘‘Maintenance-Flight Equip-
only report direct operating expense data ment’’ shall include the cost of labor, mate-
(lines 1 thru 9). Group I air carriers with an- rial and related overhead expended by the
nual operating revenues below $20 million carrier to maintain flight equipment, gen-
shall file this schedule semiannually and re- eral services purchased for flight equipment
port both direct and indirect operating ex- maintenance from associated or other out-
pense data (lines 1 thru 16). side companies, and provisions for flight
(b) Subject to the provisions of Section equipment overhauls.
22(a), quarterly reports are due on May 10, (4) Line 8 ‘‘Depreciation and Rental-Flight
August 10, November 10 and February 10 for Equipment’’ expense shall include deprecia-
the first, second, third and fourth calendar tion of flight equipment, amortization of
quarters, respectively. Semiannual reports capitalized leases for flight equipment, pro-
are due on August 10 and February 10. vision for obsolescence and deterioration of
(c) Each carrier shall indicate in the space spare parts, and rental expense of flight
provided its full corporate name and an ‘‘X’’ equipment.
shall be inserted in the appropriate box to (5) Line 9 ‘‘Total Direct Expense’’ shall
indicate whether the data being reported are equal the sum of lines 6, 7 and 8.
quarterly or six months data. The period- (g) Line 10 Indirect aircraft operating ex-
ending data shall be indicated in the space penses shall be reported only in total for all
provided. aircraft types and shall be segregated ac-
(d) Route and charter air carriers subject cording to the following categories:
to the quarterly filing requirement shall file (1) Line 11 ‘‘Flight Attendant Expense’’
this schedule for each operating entity of the shall include flight attendants’ salaries, and
air carrier. Air carriers subject to the semi- related employee benefits, pensions, payroll
annual filing requirement shall file this taxes and personnel expenses.
schedule for the overall or system operations (2) Line 12 ‘‘Traffic Related Expense’’ shall
of the air carrier. include traffic solicitor salaries, traffic com-
(e) This schedule shall show the direct and missions, passenger food expense, traffic li-
indirect expenses incurred in aircraft oper- ability insurance, advertising and other pro-
ations. Direct expense data applicable to motion and publicity expenses, and the
each aircraft type operated by the carrier fringe benefit expenses related to all salaries
shall be reported in separate colums of this in this classification.
schedule. Each aircraft type reported shall (3) Line 13 ‘‘Departure Related (Station)
be identified at the head of each column in Expense’’ shall include aircraft and traffic
the space provided. ‘‘Aircraft Type’’ refers to handling salaries, landing fees, clearance,
aircraft models such as B–707–100, B–707–200, customs and duties, related fringe benefit ex-
DC–10–40, Beech–18, Piper PA–32, etc, Air- penses and maintenance and depreciation on
craft Type designations are prescribed in the ground property and equipment.
Accounting and Reporting Directives, which (4) Line 14 ‘‘Capacity Related Expense’’
is available from the Board’s Information shall include salaries and fringe benefits for
Management Division. In the space provided general management personnel, record-
for ‘‘Aircraft Code’’ carriers shall insert the keeping and statistical personnel, lawyers,
four digit code which is prescribed in the Ac- and law clerks, and purchasing personnel;
counting and Reporting Directives for the re- legal fees and expenses; stationery; printing;
ported aircraft type. uncollectable accounts; insurance purchased-
(f) Direct aircraft operating expenses shall general; memberships; corporate and fiscal
be reported in the following categories: expenses; and all other expenses which can-
(1) Line 2 ‘‘Flying Operations (Less Rent- not be identified or allocated to some other
al)’’ shall be subdivided as follows: specifically identified indirect cost category.
(i) Line 3 ‘‘Pilot and Copilot’’ expense shall (h) Line 15 ‘‘Total Indirect Expense’’ shall
include pilots’ and copilots’ salaries, and re- equal the sum of lines 11, 12, 13 and 14.
lated employee benefits, pensions, payroll (i) Line 16 ‘‘Total Operating Expense’’ shall
taxes and personnel expenses. equal the sum of lines 9 and 15.
(ii) Line 4 ‘‘Aircraft Fuel and Oil’’ expense
shall include the cost of fuel and oil used in Schedule P–5.2—Aircraft Operating Expenses
flight operations and nonrefundable aircraft (a) This schedule shall be filed by all Group
fuel and oil taxes. II and Group III air carriers.
(iii) Line 5 ‘‘Other’’ expenses shall include (b) Route and charter air carriers shall file
general (hull) insurance, and all other ex- this schedule for each operating entity of the
penses incurred in the in-flight operation of air carrier.
aircraft and holding of aircraft and aircraft (c) Data applicable to each aircraft type
operational personnel in readiness for assign- operated by the air carrier shall be reported

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Pt. 241 14 CFR Ch. II (1–1–00 Edition)
in separate columns of this schedule. ‘‘Air- with corresponding amounts reported on
craft Type’’ refers to aircraft models (such as Schedule P–1.2.
B–707–100, B–707–300, DC–9–30, etc.) that are
prescribed in the Accounting and Reporting Schedule P–6—Operating Expenses by
Directives, which is available from the Office Objective Groupings
of Airline Information. In the space provided (a) This schedule shall be filed quarterly by
for ‘‘Aircraft Code’’ carriers shall insert the all Group II and Group III air carriers and
four digit code which is prescribed in the Ac- Group I air carriers that have annual oper-
counting and Reporting Directives for the re- ating revenues of $20 million or more.
ported aircraft type. For route air carriers, (b) Route and charter air carriers shall file
expenses of operating aircraft provided by this schedule for each separate operating en-
other carriers under interchange agreements tity.
shall be separately reported in total for all (c) Line 36 ‘‘Total Operating Expenses’’
such aircraft as if for a distinct aircraft shall agree with the corresponding amount
type. Interchange expenses applicable to air- reported on Schedule P–1.
craft of the same type as those owned or op-
erated by the air carrier shall be distributed Schedule P–7—Operating Expenses by Func-
in summary memo form as item 98.1 and 98.2 tional Groupings—Group III Air Carriers
to each aircraft type owned or operated by (a) This schedule shall be filed by all Group
that air carrier. Aircraft types not generally III air carriers.
used in revenue service shall be separately (b) Route and charter air carriers shall file
reported. If more than one type of aircraft is this schedule for each operating entity of the
involved, a separation of data relating to air carrier.
each type of aircraft shall not be required. (c) Line 38 ‘‘Total Operating Expenses’’
(d) Each aircraft type for which a report is shall agree with the corresponding amount
being made shall be identified at the head of reported on Schedule P–1.2.
each column in the space provided. Data ap-
plicable to aircraft designed primarily for Schedule P–10—Employment Statistics by
cargo services and only incidentally used for Labor Category
passenger services shall be reported in sepa- (a) This schedule shall be filed annually by
rate columns, and the word ‘‘cargo’’ shall be all Group II and Group III air carriers and
inserted after the aircraft type at the head of Group I air carriers that have annual oper-
the column. The prescribed reporting by air- ating revenues of $20 million or more.
craft types may be reviewed from time to (b) Separate sets of this schedule shall be
time upon request by individual air carriers, filed for each operating entity of the air car-
or upon the initiative of the BTS, and rier. Employees will be allocated to the re-
groupings of aircraft types for reporting pur- porting entities on a basis consistent with
poses may be prescribed or amended in spe- that used in the allocation of salaries for
cific instances. Form 41 financial reporting purposes.
(e) Italicized codes and item titles do not (c) Column 3, ‘‘Number of Employees,’’
constitute accounts or account numbers pre- shall reflect, for each category in column 1,
scribed for air carrier accounting, but shall the weighted average number of full-time
be used for reporting purposes only. employees who received pay for any part of
(f) Item 79.6 ‘‘Applied Maintenance Bur- the calendar year. In determining the
den’’ shall reflect a memorandum allocation weighted average, all temporary or part-
by each air carrier of the total expenses in- time employees shall be restated, based on
cluded in subfunction 5300 ‘‘Maintenance their hours paid, as an equivalent number of
Burden’’ between maintenance of flight full-time employees. The calculation shall be
equipment, by aircraft type, and mainte- based on a standard full-time 2,080/hour year
nance of ground property and equipment. with overtime hours excluded from the com-
The allocation of subfunction 5300 (mainte- putation.
nance burden) shall include the net effect of (d) Labor category description—‘‘Other
charges and credits to profit and loss ac- personnel’’ shall include all employees whose
count 5272 Flight Equiment Airworthiness salary is chargeable to accounts 30, 32, 34 and
Provisions. 35 in this Uniform System of Accounts and
(g) Item 73 ‘‘Obsolescence and Deteriora- Reports.
tion—Expendable Parts’’ shall reflect (for (e) Labor category description—‘‘Trans-
obsolescence and deterioration of flight port-related’’ shall include all employees
equipment expandable parts) the gross provi- whose salary is not chargeable to one of the
sions for losses in value of expendable parts various salary accounts contained in the
during the current accounting period offset Uniform System of Accounts and Reports.
by any credits applicable to the current pe- For example, this category would include
riod for adjustments for excess inventory those employees who work in transport-re-
levels determined pursuant to section 6–1311. lated operations and other activities for
(h) The total of function 5100 ‘‘Flying Oper- which a separate payroll account is not pre-
ations’’ reported on this schedule shall agree scribed. The number of employees reported

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Office of the Secretary, DOT Pt. 241
as transport-related shall be calculated in chases) by the total gallons available. The
accordance with paragraph (c) of these re- resulting unit cost shall then be used to de-
porting instructions. termine the ending inventory and the total
consumption costs to be reported on this
Schedule P–12(a)—Fuel Consumption by
schedule.
Type of Service and Entity
(i) Where amounts reported for a specific
(a) This schedule shall be filed monthly by entity include other than Jet A fuel, a foot-
all Group II and Group III air carriers and note shall be added indicating the number of
Group I air carriers that have annual oper- gallons and applicable costs of such other
ating revenues of $20 million or more. fuel included in amounts reported for that
(b) A single copy (original only) of this entity.
schedule shall be filed to report monthly fuel
(j) Where any adjustment(s) recorded on
consumption data by type of service and en-
the books of the carrier results in a material
tity.
(c) For the purposes of this schedule, type distortion of the current month’s schedule,
of service shall be either scheduled service or carriers shall file a revised schedule P–12(a)
nonscheduled service as those terms are de- for the month(s) affected.
fined in section 03 of part 241. (k) Data reported on this schedule shall be
(d) For the purpose of this schedule, sched- withheld from public release until the quar-
uled service shall be reported separately for: terly Form 41 P schedules for the calendar
(1) Intra-Alaskan operations; (2) domestic quarter to which the monthly schedules re-
operations, which shall include all oper- late are due at the BTS. However, aggregate
ations within and between the 50 States of data may be released before that time with-
the United States (except Intra-Alaska), the out identifying individual carriers. Provi-
District of Columbia, the Commonwealth of sions governing the due dates for submitting
Puerto Rico and the United States Virgin Is- the quarterly P schedules are contained in
lands and Canadian transborder operations; paragraphs (a) and (b) of section 22 of this
(3) Atlantic operations (excluding Bermuda); part. Individual carrier fuel data withheld
(4) Pacific operations which shall include the from public disclosure may be disclosed by
North/Central Pacific, South Pacific (includ- the BTS to:
ing Australia) and the Trust Territories; and
(1) Parties to any proceeding before the
(5) Latin American operations which shall
include the Caribbean (including Bermuda DOT to the extent such material is relevant
and the Guianas), Mexico and South/Central and material to the issues in the proceeding
America. upon a determination to this effect by the
(e) For the purpose of this schedule, non- administrative law judge assigned to the
scheduled service shall be reported sepa- case or by the DOT;
rately for domestic operations and inter- (2) Agencies and other components of the
national operations as defined in paragraph Federal Government for their internal use
(d) above, except that domestic and inter- only; and
national MAC operations shall be reported (3) Such persons and in such circumstances
on separate lines. as the BTS determines to be in the public in-
(f) The cost data reported on each line terest or consistent with its regulatory func-
shall represent the average cost of fuel, as tions and responsibilities.
determined at the station level, consumed in
that entity. (Approved by the Office of Management and
(g) The cost of fuel shall include shrinkage Budget under control number 2138–0013)
but exclude (1) ‘‘through-put’’ and ‘‘in to [ER–755, 37 FR 19726, Sept. 21, 1972, as amend-
plane’’ fees, i.e., service charges or gallonage ed by 241–58, 54 FR 5597, Feb. 6, 1989]
levies assessed by or against the fuel vendor
or concessionaire and passed on to the car- EDITORIAL NOTE: For Federal Register cita-
rier in a separately identifiable form and (2) tions affecting part 241 section 24, see the
nonrefundable Federal and State excise List of CFR Sections Affected in the Finding
taxes. However, ‘‘through-put’’ and ‘‘in to Aids section of this volume.
plane’’ charges that cannot be identified or
segregated from the cost of fuel shall remain TRAFFIC REPORTING
a part of the cost of fuel as reported on this
schedule. REQUIREMENTS
(h) Each air carrier shall maintain records
for each station showing the computation of SECTION 25—TRAFFIC AND CAPACITY
fuel inventories and consumption for each ELEMENTS
fuel type. The periodic average cost method
shall be used in computing fuel inventories General Instructions. (a) All prescribed re-
and consumption. Under this method, an av- porting for traffic and capacity elements
erage unit cost for each fuel type shall be shall conform with the data compilation
computed by dividing the total cost of fuel standards set forth in section 19—Uniform
available (Beginning Inventory plus Pur- Classification of Operating Statistics.

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Pt. 241 14 CFR Ch. II (1–1–00 Edition)
(b) Schedules T–1, T–2, T–3 and T–100 for Schedule T–2 U.S. Air Carrier Traffic and
U.S. air carriers shall be submitted in mag- Capacity Statistics-By Aircraft Type
netic computer tape or floppy disc as pro-
(a) Schedule T–2 collects summary statis-
vided in section 19–1(c) of this part. As pre-
tics to supplement the detail Schedule T–100
scribed in section 1–02 of this part, air car-
data. This schedule shall be filed for each
riers may request a waiver from the Direc-
calendar quarter by each large certificated
tor, Office of Airline Information, BTS, to
U.S. air carrier.
allow the submission of hardcopy reports.
(b) Separate schedules shall be filed for
Schedule T–1 U.S. Air Carrier Traffic and each operating entity of the air carrier.
Capacity Summary-By Service Class (c) Detailed instructions for preparing
Schedule T–2 are included in the Appendix to
(a) Schedule T–1 collects summary statis- this section.
tics to supplement the detail Schedule T–100 (d) The reported data shall be compiled as
data. This schedule shall be filed monthly by aggregates of the data prescribed in section
each large certificated U.S. air carrier con- 19, Uniform Classification of Operating Sta-
ducting domestic charter, or domestic cargo tistics.
operations, or military charters in each ap- (e) This schedule shall include the fol-
plicable entity. Traffic and capacity data are lowing items:
reported on this schedule for the following
service classes. Code Service Elements
(1) G—Scheduled All-Cargo. class
(2) L—Nonscheduled Civilian Passenger/ ............ .................. Air carrier.
Cargo. ............ .................. Operating entity.
(3) P—Nonscheduled Civilian Cargo. ............ .................. Report date (quarter ended).
(4) N—Nonscheduled Military Passenger/ ............ G,Z ........... Aircraft type code.
Cargo. ............ G,Z ........... Service class code.
(5) R—Nonscheduled Military Cargo. 140 ..... Z .............. Revenue passenger-miles (000).
240 ..... G,Z ........... Revenue ton-miles.
(b) Separate schedules shall be filed for
247 ..... Z .............. Revenue ton-miles freight.
each operating entity. 249 ..... Z .............. Revenue ton-miles mail.
(c) Detailed instructions for preparing 280 ..... G,Z ........... Available ton-miles.
Schedule T–1 are included in the Appendix to 320 ..... Z .............. Available seat-miles.
this section. 410 ..... G,Z ........... Revenue aircraft miles flown.
(d) The reported data shall be compiled as 510 ..... V,G,Z ....... Revenue aircraft departures per-
aggregates of the basic data prescribed in formed.
section 19, Uniform Classification of Oper- 610 ..... Z .............. Revenue aircraft hours (airborne).
630 ..... Z .............. Revenue aircraft hours (ramp-to-
ating Statistics.
ramp).
(e) The schedule shall include the following 650 ..... Z .............. Total aircraft hours airborne.
items: 810 ..... Z .............. Aircraft days assigned to service—car-
rier’s equipment.
Code Service/class Elements 820 ..... Z .............. Aircraft days assigned to service—car-
rier’s routes.
............ .................................... Air carrier. 921 ..... Z .............. Aircraft fuels issued (gallons).
............ .................................... Operating entity.
............ .................................... Report date (month
ended). Schedule T–3 U.S. Air Carrier Airport
............ G,L,N,P,R .................. Service class code. Activity Statistics
............ N, R ........................... Aircraft type code.
(a) This schedule supplements the detail
110 ..... L,N ............................. Revenue passengers en-
planed.
Schedule T–100 data. Schedule T–3 collects
140 ..... L,N ............................. Revenue passenger-miles supplementary airport activity statistics as
(000). follows: The domestic entity report covers
240 ..... G,L,N,P,R .................. Revenue ton-miles. summary statistics on domestic all-cargo op-
241 ..... L,N ............................. Revenue ton-miles pas- erations and both civilian and military char-
senger. ters. The international entity report covers
247 ..... G,L,N,P,R .................. Revenue ton-miles freight. summary information on military charter
249 ..... G.L, P ........................ Revenue ton-miles mail. operations only. Further, only the U.S. air-
280 ..... G,L,N,P,R .................. Available ton-miles. port is identified for international military
320 ..... L,N ............................. Available seat-miles.
charter operations, and airports outside the
410 ..... G,L,N,P,R .................. Revenue aircraft miles
flown. U.S. are summarized as a one-line total,
430 ..... G ................................ Revenue aircraft miles coded ‘‘NON’’ in lieu of the airport code;
scheduled. these data are collected only on this sched-
510 ..... G,L,N,P,R .................. Revenue aircraft depar- ule, not in the detail Schedule T–100.
tures performed. (b) Separate schedules shall be filed for
610 ..... G,L,N,P,R .................. Revenue aircraft hours (air- each air carrier entity, as prescribed under
borne). section 19–5(c)(2) of this part.
630 ..... G,L,N,P,R .................. Revenue aircraft hours
(c) In addition to the following general in-
(ramp-to-ramp).
formation, more detailed instructions for

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Office of the Secretary, DOT Pt. 241
completing schedule T–3 are included in the (3) Available ton-miles, reflecting the total
Appendix to this section. revenue ton-miles available for all-cargo
(d) The data shall be compiled as aggre- service during the annual period, and com-
gates of the basic data prescribed in section puted by multiplying aircraft miles flown on
19, Uniform Classification of Operating Sta- each flight stage by the number of tons of
tistics. aircraft capacity available for that stage;
(e) This schedule shall include the fol- (4) Aircraft miles flown, reflecting the
lowing items: total number of aircraft miles flown in cargo
service during the annual period;
Service
Code class Elements (5) Aircraft departures performed, reflect-
ing the total number of take-offs performed
............ .................. Air carrier. in cargo service during the annual period;
............ .................. Operating entity. and
............ .................. Report date (quarter ended). (6) Aircraft hours airborne, reflecting the
............ G,V .......... Aircraft type code.
............ G,V .......... Service class code (G or V).
aircraft hours of flight (from take-off to
............ G,V .......... Airport code. landing) performed in cargo service during
110 ..... V .............. Revenue passengers enplaned. the annual period.
217 ..... G,V .......... Revenue cargo tons enplaned—
freight. Schedule T–100 U.S. Air Carrier Traffic and
219 ..... G,V .......... Revenue cargo tons enplaned—mail. Capacity Data By Nonstop Segment and
510 ..... G,V .......... Revenue departures performed, by On-Flight Market
aircraft type.
520 ..... G .............. Revenue aircraft departures, sched- (a) This Schedule T–100 collects detail on-
uled, by aircraft type. flight market and nonstop segment data.
This schedule shall be filed monthly by each
Schedule T–8—Report of all-cargo large certificated U.S. air carrier except for
operations. a charter air carrier or an all-cargo carrier
with only domestic operations. Separate
(a) This schedule shall be filed annually by data shall be reported on Schedule T–100 for
all air carriers that conduct all-cargo oper- each operating entity (Latin America, Atlan-
ations under certificates issued under 49 tic, Pacific, International or Domestic) of
U.S.C. 41103. the air carrier in the five digit entity code
(b) Data reported on this schedule shall in- prescribed under section 19–5(c)(2) of this
clude only results of operations conducted in part. Domestic scheduled passenger/cargo op-
all-cargo aircraft. Data shall be segregated erations and all international operations of
between domestic all-cargo operations con- scheduled and nonscheduled passenger/cargo
ducted within the geographic limitations of and all cargo services shall be reported on
section 418 certificates and all other all- Schedule T–100, except that international
cargo operations. military charters shall not be reported on
(c) Statement of operations. This statement Schedule T–100.
shall include the following elements:
(b) Guidelines for reporting the automated
(1) Total operating revenue, categorized as
monthly Schedule T–100 are included in the
follows:
Appendix to this section.
(i) Transport revenues from the carriage of
(c) Reported data shall be compiled as ag-
property in scheduled and nonscheduled serv-
gregates of the basic data elements and serv-
ice;
ice classes contained in sections 19–4 and 19–
(ii) Transport revenues from the carriage
5 of this part.
of mail in scheduled and nonscheduled serv-
ice; and Schedule T–100(f) Foreign Air Carrier Traffic
(iii) Transport-related revenues. Data by Nonstop Segment and On-Flight
(2) Total operating expenses; and Market
(3) Operating profit or loss, computed by
subtracting the total operating expenses (a) This Schedule T–100(f) collects detail
from the total operating revenues. on-flight market and nonstop segment data.
(d) Summary of traffic and capacity statis- This schedule shall be filed monthly by each
tics. This summary shall include the fol- foreign (non-U.S.) air carrier conducting op-
lowing elements: erations to or from the United States with
(1) Total revenue ton-miles, which are the large aircraft pursuant to Section 41302 per-
aircraft miles flown on each flight stage mits or exemption authority. Reported traf-
times the number of tons of revenue traffic fic data shall include all services affecting
carried on that stage. They shall be cat- the United States, as prescribed in this part.
egorized as follows: (b) Guidelines for reporting the monthly
(i) Property; and Schedule T–100(f) are included in the Appen-
(ii) Mail. dix to § 217.10 of this chapter. Copies of these
(2) Revenue tons enplaned, reflecting the instructions are provided to each foreign air
total revenue tons of cargo loaded on air- carrier submitting the traffic data. Copies
craft during the annual period; are also available from the Office of Airline

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Pt. 241 14 CFR Ch. II (1–1–00 Edition)
Information, K–25, Room 4125, U.S. Depart- ported in the detail international Schedule
ment of Transportation, 400 Seventh St., T–100 data.
SW., Washington, DC 20590. (c) Format of reports:
(c) The reported data shall be compiled as (1) Automatic Data Processing (ADP) mag-
aggregates of the basic data elements and netic tape. Refer to paragraph (f) below for
service classes prescribed in sections 19–4 and instructions pertaining to mainframe and
19–5 of this part. minicomputer reporting. The Department
will issue ‘‘Reporting Directives’’ to make
APPENDIX TO SECTION 241.25 OF CFR necessary technical changes to these T–100
PART 241—INSTRUCTIONS TO U.S. AIR instructions, where no policy issues are in-
CARRIERS FOR REPORTING TRAFFIC volved that would require a new rulemaking,
AND CAPACITY DATA ON FORM 41 or where only a few air carriers are affected.
(2) Microcomputer diskette.
SCHEDULES T–100, T–1, T–2, AND T–3 (i) Optional specification. If an air carrier
(a) Applicability. Each large U.S. air car- desires to use its personal computers (PC’s),
rier that holds a 49 U.S.C. 41102 certificate rather than mainframe or minicomputers to
and operates aircraft designed with a max- prepare its data submissions, the following
imum capacity of more than 60 seats or a specifications for filing data on diskette
maximum payload capacity of more than media apply:
18,000 pounds must file these schedules. A (ii) Reporting medium. Microcomputer
carrier that conducts all of its operations ADP data submission of T–100 information
under 49 U.S.C. 41103 (all-cargo certificates) must be on IBM compatible floppy disk, in-
does not file. Each air carrier will be advised cluding diskettes, floppy disks, or flexible
of its reporting requirements by letters of in- disks. The particular type of acceptable
struction from the Office of Airline Informa- minidisk is on 51⁄4 inch, double-sided/double-
tion (OAI). density, with a capacity of approximately
(b) Schedules, frequency, and entity: 360,000 characters of data (360K). Carriers
(1) Schedule T–100, Monthly. Schedule T– wishing to use a different ADP procedure
100 collects summarized flight stage data by must obtain written approval to do so from
reporting entity as follows: International en- the Director, OAI, under the waiver provi-
tity reports cover scheduled and non- sions in section 1–2 of this part. Requests for
scheduled passenger/cargo and all cargo serv- approval to use alternate methods must dis-
ices. Domestic entity reports cover pas- close the proposed data transmission meth-
senger/cargo operations in scheduled services odology. Refer to paragraph (k) for micro-
only. The term entity refers to the geo- computer record layouts.
graphic location designator prescribed by the (iii) Microcomputer file characteristics.
Department in section 19–5(c)(2) of this part, The files will be created in ASCII delimited
such as, for instance, domestic entity air format, sometimes called Data Interchange
transport operations as distinguished from Format (DIF). This form of recording data
international entity air transport oper- provides for variable length fields (data ele-
ations. ments) which, in the case of alphabetic data,
(2) Schedule T–1, Monthly. For the domes- are enclosed by quotation marks (‘‘ ’’) and
tic entity, Schedule T–1 collects summary separated by a comma (,) and numeric data
statistics on domestic all-cargo operations, elements that are recorded without editing
and on both civilian and military charters. symbols are also separated by a comma. The
For international entities, it collects sum- data is identified by its juxtaposition within
mary information on military charter oper- a given record. Therefore, each record must
ations only. contain the exact number of data elements,
(3) Schedule T–2, Quarterly. Schedule T–2 all of which must be juxtapositionally cor-
collects summary information for all report- rect. Personal computer software including
ing entities. It contains data elements for most spreadsheets, data base management
which there are no corresponding details in programs, and BASIC are capable of pro-
T–100 reports. It is submitted for each oper- ducing files in this format.
ating entity prescribed by the Department (d) Filing data for reports. The reports
for each air carrier. must be received at DOT within 30 days fol-
(4) Schedule T–3, Quarterly. For the domes- lowing the end of each reporting period.
tic entity, Schedule T–3 collects summary Refer to § 241.22 of this part for more infor-
statistics on all-cargo operations and on mation on date requirements.
both civilian and military charters; and for (e) Address for filing: Office of Airline In-
international entities, it collects summary formation, K–25, Room 4125, U.S. Department
information on military charter operations of Transportation, 400 Seventh St., SW.,
only. Further, only the U.S. airport must be Washington, DC 20590.
identified for international military charter (f) ADP format for magnetic tape:
operations, and airports outside the U.S. are (1) Magnetic tape specifications. IBM com-
summarized as a one-line total, coded patible 9-track EBCDIC recording. Recording
‘‘NON’’ in lieu of the airport code, since density of 6250 or 1600 bpi. The order of re-
international military charters are not re- corded information is:

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Office of the Secretary, DOT Pt. 241
Volume label. and telecommunications matters. It is our
Header label. intention that all specifications in this ap-
Data records. plication are in compliance with standards
Trailer label. promulgated by these organizations.
(g) External tape label information. (i) Volume, header, and trailer label for-
Carrier name. mats:
Report date.
File identification. (1) Use standard IBM label formats. The
Carrier address for return of tape reel. file identifier field of the header labels
(h) Standards. It is the policy of the De- should be ‘‘T–100.SYSTEM’’.
partment to be consistent with the American (j) Magnetic tape record layouts for T–100,
National Standards Institute and the Fed- T–1, T–2, and T–3.
eral Standards activity in all data processing (1) Nonstop segment record layout:

Field No. Positions Mode Description

1 ............... 1 1A ............ Record type code (S=nonstop segment).
2 ............... 2–6 5A/N ......... Carrier entity code.
3 ............... 7–10 4N ............ Report date (YYMM).
4 ............... 11–13 3A ............ Origin airport code.
5 ............... 14–16 3A ............ Destination airport code.
6 ............... 17 1A ............ Service class code (F,G,L, or P).
7 ............... 18–21 4N ............ Aircraft type code.
8 ............... 22–26 5N ............ Revenue aircraft departures performed (F,G,L,P510).
9 ............... 27–36 10N .......... Available capacity payload (pounds) (F,G,L,P270).
10 1 .......... 37–43 7N ............ Available seats—first cabin (F310, F311, L310).
11 1 .......... 44–50 7N ............ Available seats—middle cabin (F313).
12 1 .......... 51–57 7N ............ Available seats—coach cabin (F312).
13 1 .......... 58–64 7N ............ Passengers transported—first cabin (F130, F131, L130).
14 1 .......... 65–71 7N ............ Passengers transported—middle cabin (F133).
15 1 .......... 72–78 7N ............ Passengers transported—coach cabin (F132).
16 ............. 79–88 10N .......... Revenue freight transported (F,G,L,P237) (in pounds).
17 ............. 89–98 10N .......... Revenue mail transported (F,G,L,P239) (in pounds).
18 ............. 99–103 5N ............ Revenue aircraft departures scheduled (F,G520).
19 ............. 104–113 10N .......... Revenue aircraft ramp hours, ramp-to-ramp (F,G,L,P630) (in minutes).
20 ............. 114–123 10N .......... Revenue aircraft hours, airborne (F,G,L,P610) (in minutes).
1 Cabin data (First, Coach and Middle) are not reported by any carrier group in the domestic entity, where total available seats
are reported in 310 and total passengers transported are included in 130; these totals are also used for the international oper-
ations of Group I and II carriers; cabin data are reported only for Group III international operations. All carrier groups will report
total nonscheduled passengers in the summary data item L130, and nonscheduled available seats in L310.

(2) On-flight market record layout:

Field No. Positions Mode Description

1 ............... 1 1A ............ Record type indicator: M = on-flight market record.
2 ............... 2–6 5A ............ Carrier entity code.
3 ............... 7–10 4N ............ Report data (YYMM).
4 ............... 11–13 3A ............ Origin airport code.
5 ............... 14–16 3A ............ Destination airport code.
6 ............... 17 1A ............ Service class code (F,G,L or P).
7 1 ............ 18–24 7N ............ Total passengers in market—first cabin (F110, F111, L110).
8 1 ............ 25–31 7N ............ Total passengers in market—middle cabin (F113).
9 1 ............ 32–38 7N ............ Total passengers in market—coach cabin (F112).
10 ............. 39–48 10N .......... Revenue freight in market (F,G,L, P217) (in pounds).
11 ............. 49–58 10N .......... Revenue mail in market (F,G,L, P219) (in pounds).
1 Cabin data (First, Coach and Middle) are not reported by any carrier Group in the domestic entity, where total passengers
enplaned in a market are included in F110; cabin data are reported only for international operations of Group III air carriers; in
international entity operations of Group I and Group II air carriers, total passengers enplaned are included in 110. All carrier
groups will include nonscheduled passengers enplaned in L110.

(3) T–1, T–2, and T–3 Summary record layout:
Field No. Positions Mode Description

1 ............... 1 1A ............ Record Type Code:
1 = T–1 data
2 = T–2 data
3 = T–3 data.
2 ............... 2–6 5A ............ Air Carrier Entity Code.
3 ............... 7–10 4N ............ Report Date (YYMM).
4 ............... 11–14 4A ............ Data Element Code (T–1, T–2, and T–3).
5 ............... 15–18 4A ............ Aircraft Type Code (T–1, T–2, and T–3).

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Field No. Positions Mode Description

6 ............... 19–21 3A ............ Airport Code (T–3).
7 ............... 22–31 10N .......... Data Value—Right justified with leading zeros.

(4) T–1 data elements:

1. Revenue passengers enplaned ................................................................................. L110 N110
2. Revenue passenger-miles (000) ............................................................................... L140 N140
3. Revenue ton-miles total ............................................................................................. G240 L240 P240 N240 R240
4. Revenue ton-miles passenger ................................................................................... L241 N241
5. Revenue ton-miles mail ............................................................................................. G249 L249 P249
6. Revenue ton-miles freight .......................................................................................... G249 L247 P247 N247 R247
7. Available ton-miles ..................................................................................................... G280 L280 P280 N280 R280
8. Available seat-miles (000) ......................................................................................... L320 N320
9. Revenue aircraft miles flown ..................................................................................... G410 L410 P410 N410 R410
10. Revenue departures performed ................................................................................. G510 L510 P510 N510 R510
11. Revenue aircraft miles scheduled ............................................................................. G430
12. Revenue aircraft hours airborne ................................................................................ G610 L610 P610 N610 R610
13. Revenue aircraft hours ramp-to-ramp ....................................................................... G630 L30 P630 N630 R630
14. Revenue aircraft miles scheduled ............................................................................. G430
15. Carrier code ............................................................................................................... ..........
16. Report date ................................................................................................................ ..........
17. Operating entity ......................................................................................................... ..........
18. Aircraft type code (Military charters) ......................................................................... .......... ..........

(5) T–2 Data elements (by aircraft type):
8. Carrier code ............................................. ..........
9. Report date .............................................. ..........
1. Revenue ton-miles ..................... G240 10. Operating entity ....................................... ..........
2. Available ton-miles ..................... G280
3. Revenue aircraft miles flown ..... G410 (k) Record layouts for microcomputer
4. Revenue aircraft departures per- diskettes. The record layouts for diskette
formed .......................................... G510 are generally identical to those shown for
5. Revenue aircraft departures per- magnetic tape, with the exception that
formed .......................................... V510 delimiters (quotation marks and commas)
6. Revenue passenger-miles (000) Z140
7. Available seat-miles (000) ......... Z320
are used to separate fields. It is necessary
8. Revenue ton-miles total ............. Z240 that the order of fields be maintained in all
9. Revenue ton-miles mail ............. Z249 records.
10. Revenue ton-miles freight .......... Z247 (1) File characteristics. The files will be
11. Available ton-miles ..................... Z280 created in ASCII delimited format, some-
12. Revenue aircraft miles flown ..... Z410 times called Data Interchange Format (DIF).
13. Revenue aircraft departures per- This form of recording data provides for vari-
formed .......................................... Z510
14. Revenue aircraft hours airborne Z610
able length fields (data elements) which, in
15. Revenue aircraft hours ramp-to- the case of alphabetic data, are enclosed by
ramp ............................................. Z630 quotation marks (‘‘) and separated by a
16. Total aircraft hours (airborne) .... Z650 comma (,) and numeric data elements that
17. Aircraft days assigned to service are recorded without editing symbols are
equipment ..................................... Z810 also separated by a comma. The data is iden-
18. Aircraft days assigned to service
tified by its juxtaposition within a given
routes ............................................ Z820
19. Aircraft fuels issued ................... Z921 record. Therefore it is critical that each
20. Aircraft type code ....................... .......... record contain the exact number of data ele-
21. Carrier code ............................... .......... ments, all of which data must be
22. Report date ................................ .......... juxtapositionally correct. PC software in-
23. Operating entity ......................... .......... cluding most spreadsheets, data base man-
(6) T–3 Data elements (by origin airport): agement programs, and BASIC produce
minidisks files in this format.
(2) File naming conventions for diskettes.
For microcomputer reports, each record type
1. Airport code ............................................. .......... should be contained in a separate DOS file on
2. Revenue passengers enplaned ............... V110
3. Revenue tons enplaned mail ................... G219 V219
the same physical diskette. The following
4. Revenue tons enplaned freight ............... G217 V217 DOS naming conventions should be followed:
5. Revenue aircraft departures performed .. G510 V510 Record type S = SEGMENT.DAT
6. Revenue aircraft departures scheduled .. G520 Record type M =MARKET.DAT
7. Aircraft type code .................................... .......... Record type 1 = T–1.DAT

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Office of the Secretary, DOT Pt. 241
Record type 2 = T–2.DAT legs. When preparing on-flight market
Record type 3 = T–3.DAT records applicable to this situation, the car-
(l) Discussion of reporting concept. rier should consider passengers transported
(1) The detail T–100 data shall be main- as though the entire trip was configured as
tained in such a manner as to permit month- the first segment. The passenger cabin where
ly summarization and organization into two the passenger is seated at the beginning of
basic groupings. First, the nonstop segment the flight determines the classification for
information which is to be summarized by the whole trip.
equipment type, within class of service, (m) Joint Service.
within pair-of-points, without regard to indi- (1) The Department may authorize joint
vidual flight number. The second grouping service operations between two direct air
requires that the enplanement/deplanement carriers. Examples of these joint service op-
information be broken out into separate erations are: blocked-space agreements;
units called on-flight market records, which part-character agreements; code-sharing
shall be summarized by class of service, agreements; wet-lease agreements, and simi-
within pair-of-points, without regard for lar arrangements.
equipment type of flight number. (2) Joint service operations shall be re-
(2) The Schedules T–1 and T–3 information ported in Form 41 Schedule T–100 and T–
is applicable only to operations that are not 100(f) within the following guidelines:
required in the detail T–100 report. The De- (i) Blocked space, part-charters and code-
partment will derive other necessary sum- sharing arrangements shall be reported by
mary data directly from the detail T–100. the carrier in operational control of the
The T–1 and T–3 data pertaining to domestic flight. The traffic moving under those agree-
entities is for scheduled all-cargo service and ments is reported the same as any other traf-
charter operations. The T–1 for international fic on board the aircraft.
entities contains data on military charter (ii) Wet lease agreements shall be reported
operations only. by the lessee as though the leased aircraft
(3) The Schedule T–2 information is re- and crew were a part of the lessee’s own
quired from each carrier and for each report- fleet.
ing entity. It contains some data elements (iii) If there are questions about reporting
for which there is no corresponding detail in a joint service operation, contact the Direc-
T–100. tor, Office of Airline Information at the ad-
(4) A single tape file shall be submitted dress in paragraph (d) of this Appendix.
containing nonstop segment and on-flight (iv) The Department may require informa-
market records for all applicable entities. tion pertaining to joint service operations in
The summary data pertaining to schedules addition to that reported by in Schedules T–
T–1, T–2, and T–3 should be submitted on a 100 and T–100(f) by U.S. and foreign air car-
second tape reel. A carrier reporting on disk- riers. If additional information is needed, ad
ette should create separate files for each hoc reporting will be used by the Director,
record type, using DOS file naming conven- Office of Airline Information (OAI), under
tions to identify them. authority delegated in §§ 385.27 (b) and (d) of
(5) An air carrier who submits middle cabin this chapter. Ad hoc reporting requirements
data may be confronted by a situation re- will be communicated to the applicable car-
sulting from a change of gauge or other con- riers by letter.
siderations wherein a given leg of a flight (m) Glossary of data elements. Sections 19–
may not offer the same classes of service 5 and 03 of 14 CFR part 241.
that is available on the remainder of the (n) Schedules.

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Office of the Secretary, DOT Pt. 243

(Approved by the Office of Management and 243.9 Procedures for collecting and main-
Budget under control number 2138–0013) taining the information.
[ER–755, 37 FR 19726, Sept. 21, 1972] 243.11 Transmission of information after an
aviation disaster.
EDITORIAL NOTE: For Federal Register cita-
243.13 Filing requirements.
tions affecting part 241, section 25, see the
243.15 Conflicts with foreign laws.
List of CFR Sections Affected in the Finding
Aids section of this volume. 243.17 Enforcement.
AUTHORITY: 49 U.S.C. 40101, 40101nt., 40105,
PART 243—PASSENGER MANIFEST 40113, 40114, 41708, 41709, 41711, 41501, 41702,
41712, 44909, 46301, 46310, 46316; section 203 of
INFORMATION Pub. L. 101–604, 104 Stat. 3066 (22 U.S.C. 5501–
5513), Title VII of Pub. L. 104–264, 110 Stat.
Sec. 3213 (22 U.S.C. 5501–5513) and Pub. L. 105–148,
243.1 Purpose. 111 Stat. 2681 (49 U.S.C. 41313.)
243.3 Definitions.
SOURCE: Docket No. OST–95–950, 63 FR 8280,
243.5 Applicability.
Feb. 18, 1998, unless otherwise noted.
243.7 Information collection requirements.

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