[Code of Federal Regulations]

[Title 14, Volume 4]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 14CFR271.5]



[Page 217]

 

                     TITLE 14--AERONAUTICS AND SPACE

 

   CHAPTER II--OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION 

                         (AVIATION PROCEEDINGS)

 

PART 271_GUIDELINES FOR SUBSIDIZING AIR CARRIERS PROVIDING ESSENTIAL 

AIR TRANSPORTATION--Table of Contents

 

Sec. 271.5  Carrier revenues.



    (a) The projected passenger revenue for a carrier providing 

essential air service at an eligible place will be calculated by 

multiplying the following:

    (1) A reasonable projected net fare, which is the standard fare 

expected to be charged for service between the eligible place and the 

designated hub less any dilution caused by joint fare arrangements, 

discount fares that it offers, or prorates of fares for through one-line 

passengers; and

    (2) The traffic (including both local and beyond traffic) projected 

to flow between the eligible place and the designated hub or hubs, which 

is based on the carrier's own estimates, Department estimates, and on 

traffic levels in the market at issue when such data are available.

    (b) The reasonableness of a carrier's passenger revenue projections 

will be evaluated by:

    (1) Comparing the carrier's proposed fare with the fare charged in 

other city-pair markets of similar distances and traffic densities; and

    (2) Comparing the carrier's proposed pricing structure with 

historical pricing practices in the market at issue, with the pricing 

practices of that carrier in other markets, and with any standard 

industry pricing guidelines that may be available.

    (c) An estimate of freight and other transport-related revenue will 

be included as a component of projected revenues and will be based on 

recent experience in the market involved and on the experience of the 

carrier involved in other markets.



[ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43524, Aug. 

22, 1995]