[Federal Register: August 2, 2004 (Volume 69, Number 147)]
[Notices]
[Page 46201-46204]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02au04-89]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration (FAA)
[Docket No. FAA-2004-16944]
Operating Limitations at Chicago O'Hare International Airport
ACTION: Notice of scheduling reduction meeting and request for
information.
-----------------------------------------------------------------------
SUMMARY: The FAA will conduct a meeting to discuss flight reductions at
Chicago's O'Hare International Airport (O'Hare) to reduce
overscheduling and flight delays during peak hours of operation at that
airport. This meeting is open to all scheduled carriers, regardless of
whether they currently provide scheduled service to O'Hare, and to the
airport operator of O'Hare. Registration in advance of the meeting is
requested. In addition, the FAA invites interested persons to submit
written information on such schedule reductions. The FAA plans to issue
its decision on delay reductions in a final order.
DATES: Scheduling reduction meeting. The FAA will hold the scheduling
reduction meeting on August 4, 2004, beginning at 9:30 a.m., and the
meeting will continue on August 5, 2004, if necessary.
Written information. Any written information on the subject of
schedule reductions at O'Hare, including data and views, must be
submitted by August 11, 2004. To the extent possible, the FAA will
consider late-filed submissions in making its determination in its
final order.
ADDRESSES: Scheduling reduction meeting. The meeting will be held in
the Bessie Coleman Conference Center, Federal Aviation Administration;
Orville Wright Building, Second Floor; 800 Independence Avenue, SW.;
Washington, DC.
Written information. You may submit written information, identified
by docket number FAA-2004-16944, by any of the following methods:
Web site: http://dms.dot.gov. Follow the instructions for
submitting information on the DOT electronic docket site.
Fax: 1-202-493-2251.
Mail: Docket Management System, U.S. Department of
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401,
Washington, DC 20590-001. If sent by mail, information is to be
submitted in two copies. Persons wishing to receive confirmation of
receipt of their written submission should include a self-addressed
stamped postcard.
Hand Delivery: Docket Management System, Room PL-401, on
the plaza level of the Nassif Building, 400 Seventh Street, SW.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.
Instructions: You must include the agency name and docket number
FAA-2004-16944 for this notice at the beginning of the information that
you submit. Note that the information received will be posted without
change to http://dms.dot.gov, including any personal information
provided. Submissions to the docket that include trade secrets,
confidential, commercial, or financial information, or sensitive
security information will not be posted in the public docket. Such
information will be placed in a separate file to which the public does
not have access, and a note will be placed in the public docket to
state that the agency has received such materials from the submitter.
FOR FURTHER INFORMATION CONTACT: Gerry Shakley, System Operations, Air
Traffic Organization; telephone--(202) 267-9424; facsimile--(202) 267-
7277; e-mail_gerry.shakley@faa.gov. Registration must occur on or
before Monday, August 2, 2004.
SUPPLEMENTARY INFORMATION: The Federal Aviation Act (the Act) at 49
U.S.C. 41722, authorizes the Secretary of Transportation to request air
carriers to attend a meeting with the FAA Administrator to discuss
flight schedule reductions at any severely congested airport during
peak operating hours. On January 8, 2004, following several months in
which delays at O'Hare and emanating from the airport through the
national airspace system had reached unacceptable levels, the
Administrator determined that such a meeting regarding severe
congestion at O'Hare was necessary. On January 16, 2004, the Secretary
then made a similar determination that a meeting was needed to meet a
serious transportation need or important public benefit.
Before the scheduling reduction meeting was to occur, the FAA
separately obtained the agreement of the two largest operators at
O'Hare, American Airlines and United Airlines, to reduce their
scheduled operations, and the FAA thereafter issued an order
implementing the reductions in their scheduled service during peak
hours. See FAA Orders issued in this Docket on January 21, 2004, and
amended on April 21, 2004. In these Orders, we made clear our intention
to conduct a scheduling reduction meeting if the consensual reductions
did not achieve their desired effect.
The Orders limiting scheduled operations during certain hours at
O'Hare by American Airlines and United Airlines will expire as of
October 30, 2004. Moreover, even with the reductions by those carriers,
the statistics for air traffic at O'Hare continue to show
overscheduling and excessive delays. Daily scheduled operations
published for August remain approximately 170 flights above the daily
August 2003 scheduled flights. Several of the busiest traffic days ever
recorded at O'Hare occurred since late June. On July 1, there were
2,968 operations, just 8 fewer than the previous record on August 31,
2001. In May 2004, a NAS monthly record of 14,495 total delays was also
established. Although the level of delays has fluctuated from month to
month, and weather has played a major factor, the overall trend of
delays remains unacceptably high when recent periods are compared to
the period before November 2003. The cumulative number of delays for
this calendar year
[[Page 46202]]
as of June 30 is 58,578; that figure is more than the respective full-
year totals for each of 2000, 2001, and 2002.
Based on these and other factors, the Administrator has again
determined, pursuant to the Act, that O'Hare is a severely congested
airport and that a scheduling reduction meeting is necessary in order
to discuss flight reductions in an effort to reduce overscheduling and
flight delays at O'Hare during peak operating hours. The Secretary of
Transportation has also determined, pursuant to the Act, that a
scheduling reduction meeting regarding flight reductions at O'Hare is
necessary to meet a serious transportation need or to achieve an
important public benefit. In light of these determinations, the FAA
will conduct a scheduling reduction meeting pursuant to the Act.
The FAA will hold the scheduling reduction meeting on August 4,
2004, beginning at 9:30 a.m. at the location indicated above. The
meeting will continue on August 5, 2004, if necessary. As provided in
the Act, no later than forty-eight hours before convening the meeting,
the FAA will identify on the FAA's Web site, http://www.faa.gov, the
peak periods of operation O'Hare and the FAA's targets for flight
operations during the peak periods of operation.
The FAA will transcribe the scheduling reduction meeting including
those sessions in which air carriers offer flight reductions to the
FAA, as provided for by the procedures outlined below. The transcript
and other documents related to the meeting will be available for
inspection in Department of Transportation Docket FAA-2004-16944. In
addition, any interested person may submit written information to the
public docket no later than August 11, 2004. The docket is accessible
through the Department of Transportation's Docket Management system and
may be accessed via the Internet at http://dms.dot.gov.
After conducting the scheduling reduction meeting and considering
all submitted information, the FAA will publish its final order on
delay reductions at O'Hare in the Federal Register. The order is
expected to be effective for no more than six months and may restrict
service during peak hours by all air carriers, including air carriers
that are not currently operating at O'Hare.
To ensure that proper accommodations are afforded to the meeting,
all scheduled carriers that wish to attend the scheduling reduction
meeting should register for the meeting on or before August 2, 2004.
Registration may be accomplished by contacting Gerry Shakley, System
Operations, Air Traffic Organization; telephone--(202) 267-9424;
facsimile--(202) 267-7277; e-mail_gerry.shakley@faa.gov, identifying
the air carrier and its intention to attend the meeting, and
identifying who will represent the air carrier at the meeting.
Because the scheduling reduction meeting and all preparations for
it are subject to the antitrust laws, the FAA has worked closely with
the Department of Justice, Antitrust Division on procedures for the
conduct of the meeting that should help ensure legal compliance. Copies
of the FAA letter to the Antitrust Division and their response are
incorporated below. As noted in this correspondence, communications
among carriers regarding competitively sensitive information could
result in a violation of the antitrust laws and lead to civil or
criminal liability. Thus, the procedures outlined in the notice provide
for a series of scheduling reduction sessions to be conducted
separately by FAA staff with each air carrier attending the meeting. We
will also meet with representatives of the airport operator. During
those sessions any scheduled air carrier or the airport operator, if in
attendance, may provide other supplemental information to the FAA
regarding the targeted schedule reductions at O'Hare. The FAA requests
the cooperation of all participants at the meeting in adhering to the
procedures outlined in the notice.
The text of the FAA letter describing the planned procedures and
the text of the Department of Justice letter assessing those procedures
are as follows:
July 14, 2004, R. Hewitt Pate, Assistant Attorney General, Antitrust
Division, Room 3109, U.S. Department of Justice, 950 Pennsylvania
Avenue, NW., Washington, DC 20530-0001.
Dear Mr. Pate:
We anticipate that the Secretary of Transportation will soon
determine, pursuant to 49 U.S.C. 41722,\1\ that it is necessary to
convene a meeting of air carriers with the Administrator of the
Federal Aviation Administration (FAA) to discuss flight reductions
at Chicago O'Hare International Airport (O'Hare) in an effort to
reduce overscheduling and flight delays during peak hours of
operation. Because of severe congestion at that airport and the
resulting delays and inconvenience to the traveling public, the
Administrator intends to convene such a meeting in the immediate
future. The purpose of this letter is to describe the format and
procedures for the meeting and to ensure that, provided the meeting
is conducted in accordance with this memorandum, the Department of
Justice would not seek to challenge as a violation of the U.S.
antitrust laws any air carrier's attendance at or participation in
the meeting or an air carrier's actions taken to comply with an
Order of the Administrator issued as a result of the meeting.
---------------------------------------------------------------------------
\1\ [The text of a footnote quoting 49 U.S.C. 41722 is omitted
here.]
---------------------------------------------------------------------------
Meeting Procedures
1. Notice to Air Carriers and Other Interested Parties
To assist the Administrator in formulating flight reduction
targets, as contemplated by 49 U.S.C. 41722, and to identify the air
carriers that will attend the meeting, the Administrator will send a
letter notifying the O'Hare airport operator and each scheduled air
carrier serving O'Hare of the meeting. The letter will describe the
necessity for the meeting and will identify the periods during a
representative business day that the Administrator considers
severely congested. The letter will establish the date and time for
the meeting and will designate Washington, DC, as the meeting's
location. The letter will advise that the meeting and all
preparations for it are subject to the antitrust laws and that
communications among air carriers regarding competitively sensitive
information, such as markets served, prices charged, and marketing
plans, could result in a violation of the antitrust laws. Copies of
the letter will be sent to the Antitrust Division, as well as to the
Air Transport Association, Regional Airline Association, and Air
Carrier Association of America.
The FAA Air Traffic Organization will separately provide the
O'Hare airport operator and each air carrier serving O'Hare with a
summary showing the FAA's current information as to scheduled
arrivals and departures at O'Hare (including code-share flights) for
each air carrier during each 15 minute period from 6 a.m. to 11 p.m.
on a representative business day. A letter enclosed with this
summary will request that each air carrier confirm the FAA's current
information as to that air carrier's scheduled operations at O'Hare,
respond as to whether the air carrier will attend the schedule
reduction meeting, and if the air carrier will attend, identify whom
its representative will be.
The FAA also will publish in the Federal Register a notice of
the meeting that identifies the basis for the meeting, when and
where the meeting will take place, and the manner in which the
meeting will be conducted. The Federal Register notice will invite
all scheduled air carriers to attend and will specify that a
transcript of the meeting will be available for inspection in a
public docket opened within three business days after the
Administrator formally adjourns the flight reduction meeting.
2. Establishment and Notice of Flight Reduction Targets
The Administrator shall establish flight reduction targets,
based on the number of flight operations scheduled for a
representative business day. As required by the statute, at least 48
hours prior to the meeting, the Administrator will publish notice of
these targets on the FAA's Web site. The notice will specify the
total number of
[[Page 46203]]
reductions sought from the total number of flight operations
conducted. The notice will not include carrier-specific limitations,
targets, or suggested reductions.
3. Conduct of the Meeting
The meeting will be conducted under the following procedures:
a. The meeting will be chaired by the Administrator or by a
delegate of the Administrator.
b. The meeting will be open to attendance by the O'Hare airport
operator and all scheduled air carriers, and the FAA will transcribe
the meeting.
c. Representatives of the Department of Justice will be invited
to attend.
d. At the beginning of the meeting, the FAA will announce that,
pursuant to advice from the Department of Justice, no communications
will be permitted by any air carrier representative in the presence
of any representative of another air carrier regarding the subject
of flight reductions at O'Hare or regarding any other competitively
sensitive information, including but not limited to markets served,
prices charged, and marketing plans.
e. The Administrator will then distribute to the meeting's
attendees a list of the number of flights, not specific as to air
carrier, during each 15-minute period from 6 a.m. until 1 p.m. on a
representative business day, and she will identify any periods that
she considers severely congested, as well as general targets for
flight reductions during those periods.
f. Each air carrier serving O'Hare and attending the meeting
will then be invited into a separate and confidential session with
representatives of the FAA Air Traffic Organization, at which the
air carrier will be asked to offer flight reductions or schedule
modifications. Only representatives of that air carrier and the U.S.
government will be permitted to attend the offer sessions; however,
the sessions will be transcribed.
g. Any offer of flight reductions should specify the precise
number of arrivals and departures, if any, the submitting air
carrier is willing to remove from each of the severely congested
periods identified by the Administrator, indicating whether the
flight operation(s) would be cancelled or moved to another time
period. The offer may not be explicitly contingent on specific
flight reductions by other air carriers but may be conditioned on
the Administrator's implementation of an overall reduction of
specified numbers of flight operations toward the target during the
periods in question. The offer may not contain information from the
air carrier on markets served, prices charged, marketing plans or
other competitively sensitive matters.
h. After the completion of all such sessions, the FAA Air
Traffic Organization: will review the offers made; will revise, in
light of the offers made, the list of the number flights, not
specific as to air carrier, during each 15-minute period from 6 a.m.
until 11 p.m. on a representative business day; and will consult
with the Administrator. The Administrator will distribute to the
meeting's attendees the carrier non-specific list of the number of
flights on a representative business day, and she will identify any
periods that she continues to consider severely congested and
identify targets for flight reductions during those periods.
i. At her discretion, the Administrator or her delegate may
repeat steps (f) through (h), and she may continue the schedule
reduction meeting as she deems necessary.
j. If the Administrator determines that identifying carrier-
specific targets would facilitate voluntary flight reductions and
schedule modifications, the Administrator may advise each air
carrier separately and confidentially of flight reduction targets
specific to that air carrier. No carrier-specific information will
be provided to any air carrier other than information regarding that
air carrier; however, the Administrator may make general assurances
with respect to the overall proportionality of the flight reductions
among the air carriers serving O'Hare.
k. Following the Administrator's identification of further
flight reduction targets, each air carrier attending the meeting
that serves O'Hare will be invited to a separate and confidential
session with representatives of the FAA Air Traffic Organization, at
which the air carrier will be given the opportunity to submit a new
or revised offer of flight reductions or schedule modifications.
l. At her discretion, the Administrator or her delegate may
repeat steps (j) and (k), and she may continue the schedule
reduction meeting as she deems necessary.
The Administrator may terminate the schedule reduction meeting
at her discretion.
4. Order of the Administrator Concerning Delays at O'Hare
The FAA Air Traffic Organization will review the final offers
of each air carrier attendee of the meeting and recommend a proposed
flight reduction plan to the Administrator. After the
Administrator's review and approval of the plan, the resulting
schedule reductions, including carrier-specific limitations, will be
published in the Federal Register as a final order of the
Administrator. The final order of the Administrator will be in
effect for no more than twelve months and will specify a method by
which air carriers adversely affected by the order may be relieved
of its effect. The order will also be subject to modifications by
the Administrator.
Please inform me if these procedures are acceptable to you.
Sincerely,
Andrew B. Steinberg,
Chief Counsel.
July 15, 2004, Andrew B. Steinberg, Esq., Chief Counsel, U.S.
Department of Transportation, Federal Aviation Administration, 800
Independence Ave., SW., Washington, DC 20591.
Re: O'Hare Delay Reduction Meeting
Dear Mr. Steinberg:
This letter is written in response to your July 14, 2004 letter
describing the planned format of a meeting of air carriers with the
Administrator of the Federal Aviation Administration (``FAA'') to
discuss flight reductions at Chicago's O'Hare International Airport
(``O'Hare''). The meeting is being called in light of a
determination by the Secretary of Transportation, pursuant to 49
U.S.C. 41722, that the meeting is necessary to reduce flight delays
during peak hours of operation. You anticipate that such a meeting
would be followed by an Order of the Administrator limiting flight
operations at O'Hare. You seek assurances that, provided the meeting
and related activities are conducted as described in your letter,
the Department of Justice would not seek to challenge as a violation
of the antitrust laws any air carrier's attendance at or
participation in the meeting or any carrier's unilateral actions
taken to comply with an Order of the Administrator issued as a
result of the meeting.
According to your letter, all carriers participating in the
meeting will be advised that the meeting and all preparations for it
are subject to the antitrust laws and that communications among
carriers regarding competitively sensitive information, such as
markets served, prices charged, and marketing plans, could result in
a violation of the antitrust laws and lead to civil or criminal
liability. At the beginning of the meeting, the Administrator (or
her delegee) will announce that, pursuant to advice from the
Department of Justice, no communication will be permitted by any air
carrier representative in the presence of any representative of
another air carrier regarding flight reductions at O'Hare or any
other competitively sensitive subject, including but not limited to
markets served, prices charged, and marketing plans.
At the meeting, the Administrator will distribute a list of the
number of flights, not specific as to air carrier, currently
scheduled each 15-minute period from 6 a.m. to 11 p.m., indicate any
periods that she considers to be severely congested, and provide
general targets for flight reductions during those periods, which
will not identify which carriers' flights are targeted to be moved
or eliminated. Each carrier will then be invited into a separate,
confidential discussion with the Administrator during which the
carrier will be asked to offer specific flight reductions or
schedule changes, which shall not be made explicitly contingent on
specific reductions offered by another carrier or carriers. During
such discussions the Administrator may provide general assurances
with respect to the overall proportionality of the flight reductions
being sought by the FAA from carriers serving O'Hare.
After completion of the individual carrier sessions, the
Administrator will revise the list of flights to reflect the
individual discussions with the carriers. The carriers will again be
given this list, which will not identify flights by carrier. If the
Administrator believes that severely congested time periods still
exist, she may set revised targets and repeat the individual
sessions with carriers.
If the Administrator determines that identifying carrier-
specific targets is necessary to facilitate voluntary flight
reductions and schedule modifications, she may advise each carrier
separately and
[[Page 46204]]
confidentially or flight reduction targets specific to that carrier,
which information will not be given to any other carrier or
carriers.
The Administrator will develop and approve a proposed flight
reduction plan and schedule reduction, which will be published in
the Federal Register as a final order. A transcript of the meeting
will not be available until three business days after the
Administrator formally adjourns the flight reduction meeting.
Importantly, the procedures do not provide for any meetings
among the carriers without the FAA present. The procedures will not
allow any discussion or negotiation among carriers about flight
reductions, prices charged, or markets served. During the course of
the meetings, carriers will not be told schedule reductions or
modifications other carriers are offering or being asked to offer.
For these reasons, the Department has no current intention to
initiate antitrust enforcement action against any carrier that
participates in the FAA's flight reduction meeting and conducts
itself in the manner described in your letter. This expresses the
Department's current enforcement intention regarding the carriers'
participation in the flight reduction meeting. The Department
reserves the right to bring an enforcement action against any
conduct that violates the antitrust laws.
Yours sincerely,
R. Hewitt Pate>
Issued in Washington, DC, on July 28, 2004.
Marion C. Blakey,
Administrator.
[FR Doc. 04-17525 Filed 7-28-04; 3:47 pm]
BILLING CODE 4910-13-M