Overview
Title
Updates to the Origin-Destination Survey of Airline Passengers
Agencies
ELI5 AI
The Department wants to change how they collect information about people flying on airplanes to make it better and quicker, but some smaller airlines are worried it might be hard and expensive for them. They also want to hear what people think about these changes.
Summary AI
The U.S. Department of Transportation is proposing changes to how airline passenger data is collected and processed in the Origin-Destination Survey. These changes aim to modernize data collection by aligning it with current airline business practices, increasing the sample size to enhance the accuracy of data on smaller markets, and reducing the time delay before data is released. The proposal also intends to reduce administrative burdens for airlines by moving data reporting to the airline that issues the ticket and improving data accuracy with additional details like dwell times and total tax amounts. The department is seeking public comment on these proposed changes.
Abstract
The Department is proposing to update the method of collecting and processing aviation traffic data in the Origin-Destination Survey of Airline Passenger Traffic (O&D Survey), as well as to expand the number of reporting air carriers, the sample size collected, and the scope of the data reported. These changes would align the current O&D Survey with modern industry business and accounting practices, enable cost savings, reduce burden through automation, and provide enhanced utility for users of the data. In addition, DOT is proposing to change the timing of the release of the Form 41, Schedule T-100(f) "Foreign Air Carrier Traffic Data by Nonstop Segment and On-flight Market" from a 6-month delay to a 3-month delay to match that of Form 41, Schedule T-100 "Air Carrier Traffic and Capacity Data by Non-Stop Segment and On-Flight Market."
Keywords AI
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AnalysisAI
The U.S. Department of Transportation is proposing updates to the Origin-Destination Survey of Airline Passengers, aiming to modernize the collection and processing of aviation data. The proposed changes intend to align with current airline business practices, expand the scope of data reported, and reduce the time delay for releasing certain aviation statistics. This proposal may bring about several impacts, both positive and negative, affecting various stakeholders differently.
General Summary
The proposed updates focus on modernizing how airline passenger data is collected, processed, and reported. Key changes include increasing the sample size for a more statistically valid analysis, reducing the delay in releasing data, and shifting the responsibility of data reporting to the issuing carrier. These changes also aim to enhance data by including additional elements such as dwell times and tax amounts. By restructuring the data collection processes, the proposal seeks to decrease administrative burdens for airlines and provide more accurate and useful data for industry stakeholders.
Significant Issues or Concerns
Several concerns arise from this substantial regulatory adjustment. One major issue is the potential increase in compliance costs for airlines, which could be particularly burdensome for smaller carriers with fewer resources. Another notable point is the vague language regarding the release of certain data on the basis of "specifically identified needs," potentially leading to inconsistent application. Additionally, the proposal discusses the involvement of third-party providers like ATPCO for data processing, raising concerns about transparency and potential favoritism. While the proposal claims minimal burden on smaller carriers, a thorough analysis is required to ensure all stakeholders are fairly treated.
Impact on the Public
For the general public, these changes could lead to more accurate and timely information about air travel, which in turn could influence consumer decisions and travel planning. However, the dense and technical language of the document might prevent smaller stakeholders, including consumer advocacy groups, from fully understanding or engaging with the proposed changes, thereby excluding them from meaningful participation in the feedback process.
Impact on Specific Stakeholders
Airlines: Larger carriers, with more robust data management capabilities, may find these updates manageable and even beneficial, potentially reducing regulatory burdens and easing compliance through automation. Smaller airlines, however, might face a disadvantage due to increased costs or logistical challenges.
Government and Regulatory Bodies: The enhanced data quality could significantly aid government agencies in analyzing the aviation market and crafting effective policies, especially in regards to smaller markets that were previously challenging to assess.
Third-party Providers: Companies like ATPCO, which provide data processing services, may gain in relevance and business due to these regulatory changes, although this may also lead to concerns over monopolistic practices if not regulated properly.
International Operators and Passengers: There are potential privacy concerns, especially surrounding the handling and sharing of international travel data. The document suggests that international data may not be shared with U.S. entities, which raises questions about how foreign ticket data must be managed responsibly.
In conclusion, while the proposed updates to the Origin-Destination Survey promise to modernize data collection methods and align reporting practices with current industry standards, they also bring to light several issues that require careful consideration to ensure fairness, transparency, and the protection of all stakeholders involved.
Financial Assessment
The proposed updates to the Origin-Destination Survey of Airline Passenger Traffic include several financial implications that warrant careful consideration.
Spending and Cost Implications
The document suggests a shift in how data is collected and processed, with an increase in the sample size from the current level to 40 percent. This change aims to create a statistically valid sample for more meaningful analysis, particularly of smaller markets. However, such an increase in sample size could imply higher operational costs for airlines required to submit more comprehensive data, potentially affecting smaller carriers disproportionately. While the proposal aims to simplify the process and reduce burdens through automation and the potential use of third-party services like ATPCO, these changes might still involve significant initial investment costs. The document anticipates that these changes will ultimately result in annual cost savings of approximately $1.5 million, considering reduced labor and operational expenses for both data producers and government operations involved in data validation.
Regulatory and Economic Impact
The proposed changes are not considered significant regulatory actions under Executive Order 12866, as they are not expected to have an annual effect on the economy of $100 million or more. Indeed, the document projects the economic impact to be below this threshold, suggesting that the changes would not materially affect the economy, jobs, or state and local government operations. This aligns with the anticipated cost savings, highlighting a potential positive financial impact despite the initial costs.
Concerns of Financial Equity
One of the identified issues relates to the potential burden these changes might place on smaller carriers. While the proposal purports a minimal increase in the reporting burden, smaller carriers may find it challenging to absorb the initial costs of adapting to new data submission processes, even if these lead to eventual savings. This necessitates a more thorough analysis to ensure equitable treatment across airlines of varying sizes.
Questions on Financial Discretion
The document also highlights the use of vague terms such as "specifically identified needs" in the context of data release, which could result in varied interpretations and financial implications, particularly if data access affects market competitiveness. Clear guidelines or definitions will be crucial to prevent inconsistent application or the perception of favoritism in how resources and data access are distributed.
In summary, while the proposed rule changes aim for cost efficiency and better data utility, they present potential financial challenges and disparities that need to be addressed to ensure fair implementation across the aviation industry. Transparency and clear guidelines will be key to managing these financial impacts effectively.
Issues
• The document proposes significant changes in data collection methods and increased sample sizes, which might result in increased costs for airlines to comply, potentially favoring larger carriers with more resources to absorb these costs.
• The use of the term 'specifically identified needs' for releasing certain data is vague and could lead to inconsistent application or abuse, suggesting a need for clearer guidelines or definitions.
• The document indicates that a 'third-party provider' such as ATPCO may be used to handle data processing, which could potentially lead to concerns about favoritism if not managed transparently.
• The proposed changes might impose an additional burden on smaller carriers despite the claim of minimal burden, and this impact needs a more thorough analysis to ensure equitable treatment.
• The language is dense and technical, making it challenging for non-experts to understand the implications, potentially excluding smaller stakeholders from providing informed feedback.
• The document lacks specific criteria or measures of success for the proposed changes, leaving it unclear how the effectiveness of these changes will be evaluated.
• There are potential privacy concerns with how foreign ticket data will be managed and shared, as the document states international data may not be available to U.S. carriers or interests.