PRA - 2106 0023 Emergency - SS - Update 040820 - FINAL

DEPARTMENT OF TRANSPORTATION
SUPPORTING STATEMENT
Procedures and Evidence Rules for Air Carrier Authority Applications
OMB Control Number: 2106-0023
1. Explain the circumstances that make the collection of information necessary. Include
identification of any legal or administrative requirements that necessitate the collection.
The Department of Transportation (DOT) is responsible for ensuring that air carriers
requesting economic authority are fit, willing, and able to provide air transportation as a U.S.
air carrier. Collection of this data provides DOT with a sufficient basis upon which to
determine whether an applicant or operating U.S. air carrier is a U.S. citizen and has or
continues to have the managerial competence necessary, the financial wherewithal, and the
compliance disposition to conduct its proposed, current, or expanded operations.
Statutory requirements for this information collection are identified in 49 U.S.C. sections
41102, 41103, and 41738. The relevant sections of 49 U.S.C. require DOT to determine the
initial fitness of all applicants for authority to provide certificated passenger and cargo air
service, and commuter air service. 49 U.S.C. 41110(e) states that the fitness requirement for
these air carriers is a continuous one and provides the DOT with the ability to modify, suspend,
or revoke an air carrier’s authority if it is no longer fit to operate, or if it fails to file the reports
needed to monitor its continuing fitness.
14 CFR Parts 201, 204, and 291 contain evidentiary rules that set forth specific information
that needs to be filed in fitness cases. Specifically, 14 CFR sections 201.1, 204.3, 204.4, 204.5,
204.6, and 291.10 set forth the application procedures and specific information filing
requirements for air carriers seeking certificate or commuter authority or the information
required to be filed by existing airlines demonstrating their continuing fitness. In addition,
section 204.7 provides for revocation/termination of certificate or commuter authority if an air
carrier does not operate for one year under any authority for which it was found fit.
Furthermore, if an air carrier ceases operations, it must re-establish its fitness to operate before
resuming operations.
CARES Act
Sections 4005 and 4114(b) of the Coronavirus Aid, Relief, and Economic Security (CARES)
Act authorizes the Secretary to require, “to the extent reasonable and practicable,” an air carrier
receiving financial assistance under the Act to maintain scheduled air transportation service as
the Secretary deems necessary to ensure services to any point served by that air carrier before
March 1, 2020 (Service Obligation). This Order introduces two new collection instruments,
monthly certification, applicable to all carriers who receive monies under the CARES Act, and
requests for exemptions from the service obligation.
DOT Strategic Goal:
This information collection supports the Department’s infrastructure strategic goal, with the
objectives to stimulate growth, productivity and economic competitiveness and to expand
market opportunities of U.S. airlines.

2. Indicate how, by whom, and for what purposes the information is to be used.
Sections 201.1, 201.4, 291.10 contain the formal procedures to be followed by applicants in
filing applications for certificate or commuter authority. Sections 204.3, 204.4, 204.5, and
204.6 identify the information that is required to be submitted by applicants in support of their
fitness to hold Department authority to provide air transportation services to the public. Fitness
information includes data on the company’s owners, officers, management, and other key
personnel, including their citizenship, background and qualifications for their positions; the
applicant’s operating plan and source of funds to provide its proposed services; and the
applicant’s safety and compliance history.
The Department uses the information collected to perform a unique and important function in
its review of the fitness of air carriers. The existence of minimum standards for fitness is a
primary deterrent for unsophisticated and potentially unfit companies that might otherwise
commence operations to the detriment of the traveling public. As a result of the Department’s
efforts in establishing and monitoring the fitness of air carriers, a number of applicants for
initial certificate or commuter authority have been found unfit and have withdrawn their
applications in anticipation of an unfavorable finding, and previously certificated air carriers
have made changes designed to strengthen their ability to provide air carrier services without
posing an undue risk to the traveling and shipping public. If the collection of information was
proscribed, it could create serious consumer problems by, for instance, permitting financially
marginal air carriers or those with questionable compliance attitudes or inadequate managerial
capabilities to institute and/or continue airline services.
In addition, section 204.7 requires air carriers that cease operations often do so because of
extreme financial difficulties or safety problems establish that they are fit before
recommencing operations. The requirements of section 204.7 that such air carriers establish
that they continue to be fit before recommencing operations enables the Department to ensure
that such air carriers will not provide unwarranted risk to the public.
CARES Act
The Department uses the monthly reporting information collected in accordance with Order
2020-4-2 to ensure that covered carriers accepting financial assistance under the CARES Act,
and therefore obligated to provide certain air services, operate service in accordance with their
obligations. This report assists the Department in determining air carriers’ continued fitness
to hold Department economic authority.
For those covered carriers requesting an exemption from their service obligations, the
information collected includes the particular points or flight service levels for which an
exemption is requested and the reasons the applicant covered carrier believes its request is
warranted under the provisions of Sections 4005 and 4114(b) of the CARES Act.
3. Describe whether, and to what extent, the collection of information involves the use of
automated, electronic, mechanical, or other technological collection techniques or other
forms of information technology, e.g., permitting electronic submission of responses, and
the basis for the decision for adopting this means of collection.
14 CFR Part 302, which became effective on October 1, 1997, authorizes the filing of
documents by electronic means. Applicants submit applications for new economic authority or
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the information required to be filed by existing airlines demonstrating their continuing fitness
electronically through http://www.regulations.gov, or through email directly to our office.
Approximately 90 percent of the responses are sent electronically. For the remaining 10
percent that submit paper responses, those are scanned and submitted electronically to the
Federal government-wide docket management system at http://www.regulations.gov.
Electronic submission helps reduces the costs associated with printing and mailing the
information through the postal service. All of these documents may be accessed by the public
at http://www.regulations.gov.
4. Describe efforts to identify duplication.
On occasion, an air carrier holding authority may have filed fitness-related information with
the Department in the recent past or in connection with another proceeding. The Office of the
Secretary, the Federal Aviation Administration, and the National Transportation Safety Board
maintain databases containing information on the type and status of an air carrier’s authority,
aircraft operated consumer complaints, enforcement history, and accident and incident reports.
By making use of these information sources, we are able to reduce the information required to
be supplied by applicants.
When such information still accurately reflects its fitness, it may cite the date and place of such
filings and thus avoid having to file duplicate information. If material previously filed by an
air carrier is no longer accurate because, for example, its financial, managerial, ownership, or
compliance situation has changed, we must require the air carrier to file updated information.
In most cases, however, applicants for new authority have not previously filed information
similar to that required in Part 204 with the Department of any other agency.
5. If the collection of information involves small business or other small entities, describe the
methods used to minimize burden.
We have tried to simplify and assist small companies in the preparation of fitness application
through the development and distribution of explanatory booklets which contain copies of the
applicable regulations, sample application forms, and a narrative discussion of the type of
information we look for in making fitness determinations and the form in which such
information may be submitted. These booklets can save air carriers many hours in preparing
applications and are available online at http://www.transportation.gov/aviation.
6. Describe the consequence to federal program or policy activities if the collection is not
conducted or is conducted less frequently, as well as any technical or legal obstacles to
reducing burden.
The Department is required by statute to determine the fitness of anyone seeking to hold a
license to provide air transportation. The collection of evidence of air carrier fitness is done on
an occasional basis, in connection with applications from companies seeking new air carrier
authority or supporting their continuing fitness to hold such authority. 14 CFR Parts 201, 204,
and 291 contain evidentiary rules that set forth specific information that needs to be filed in
fitness cases. Without these rules, the burden of submitting an application would be
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substantially greater to the federal government and to the respondents since there would be no
uniform rule detailing the information requirements. New applicants unfamiliar with past
fitness cases would be at a loss to determine what to file and would likely file too little material,
necessitating requests for further information from the Department’s staff, resulting in delays
in processing the application. In order to avoid these problems, potential applicants would seek
personal assistance from Department staff on how to set up an application. This would be a
tremendous drain on staff time, increasing the government’s burden substantially.
7. Explain any special circumstances that would cause an information collection to be
conducted in a manner inconsistent with guidelines.
These collections are consistent with 5 CFR 1320.6.
8. Describe efforts to consult with persons outside the agency to obtain their views on the
availability of data, frequency of collection, the clarity of instructions and recordkeeping,
disclosure, or reporting format (if any), and on the data elements to be recorded, disclosed,
or reported.
A notice, pursuant to 5 CFR 1320.8(d), soliciting comments on the proposed extension of the
information collections was published in the Federal Register on October 1, 2019, (84 FR
52173). No comments were received. A 30-day notice was published on December 16, 2019,
(84 FR 68542). Comments go directly to OMB.
CARES Act
The Department tentatively determined in Order 2020-3-10 published in Docket DOT-OST2020-0037 on www.regulations.gov that covered carriers accepting financial assistance under
the CARES Act, and therefore obligated to provide certain air services, must certify to the
Department, on a monthly basis, that they operated service in accordance with their service
obligations. In addition, the Department also provided for covered carriers to file exemptions
to remove particular points from their service obligations or to relax the flight service level
requirement for particular points in their Service Obligation. The Department invited and
received comments to its order. By Order 2020-4-2, the Department finalized its reporting
proposal unchanged and thus the monthly reporting condition is only applicable until
September 30, 2020, at which time the service obligation is terminated. Also by that Order,
the Department was persuaded by commenting parties that an expedient exemption process
was necessary and incorporated the procedures into the exemption process outlined in detail in
the order.
9. Describe any decision to provide any payment or gift to respondents, other than
remuneration of contractors or grantees.
No payments or gifts are provided to respondents.

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10. Describe any assurance of confidentiality provided to respondents and the basis for
assurance in statute, regulation, or agency policy.
A motion requesting confidential treatment may be filed by respondents to these collections
under section 302.12 of the Department’s Procedural Regulations (14 CFR 302.12). Such
motions are handled in accordance with the Freedom of Information Act and the Department’s
past practices.
CARES Act
Certifications are to be submitted to Docket DOT-OST-2020-0037 and entitled, “Monthly Air
Service Certification of [AIRLINE NAME].” Each certification must include the verification
statement at 14 CFR Part 302.4(b). As such these Certifications are public.
Applications for exemptions are to be submitted to Docket DOT-OST-2020-0037 and entitled,
“Request for Exemption from Service Obligation.” The request for exemption should set forth
the particular points or flight service levels for which an exemption is requested and the reasons
the applicant covered carrier believes its request is warranted under the provisions of Sections
4005 and 4114(b) of the CARES Act. All applications are public.
11. Provide additional justification for any questions of a sensitive nature, such as sexual
behavior and attitude, religious beliefs, and other matters that are commonly considered
private.
There are no sensitive questions.
12. Provide estimates of the hour burden of the collection of information. The statements
should: indicate the number of respondents, frequency of response, annual hour burden
and an explanation of how the burden was established.
Number of respondents: 186
Number of responses: 1,218
Frequency of response: on occasion; for CARES Act, from April to September 30, 2020.
Annual hour burden: 16,170
Annualized cost to respondents: $1,617,000
Explanation of how the burden was estimated:
We have estimated the number of annual respondents and responses based on the average of
the level of activity experienced during the period from June 1, 2018, to May 31, 2019.
Applicants file the required information only when applying for new air carrier authority or
supporting their continuing fitness to hold such authority.
To calculate the total number of annual respondents, we summed the number of respondents
for (1) initial/additional certificate or commuter authority which includes fitness evidence, (2)
additional certificate authority with no fitness evidence required, and (3) review of continuing
fitness in which evidence requirements vary.

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The annual burden on the applicant estimate is based on our acquired knowledge of the
industry’s experience in preparing the various types of applications under 14 CFR Parts 201,
204, and 291. Assumptions made in arriving at these estimates include the following: (1) Not
all applications require the filing of comparable amounts of, or even any, fitness data; and (2)
the burden on the applicants is the minimum that a reasonable person would expect to supply
only the information required; that is, optional expenses an applicant might incur for outside
consultants or attorneys to assist in preparing an application are not considered.
The estimated total annual burden on 76 applicants of preparing and submitting filings for
initial certificate and commuter authority, additional certificate authority and continuing
fitness reviews is 8,250 hours. To calculate the number of hours, we multiplied the total number
of filings per category by the number of hours it takes an applicant to prepare a filing. We then
summed the totals for each category. These burden estimates are based on an average burden
ranging between 20 person-hours and $2,000 for an application requiring no fitness evidence,
and 65 person-hours and $6,500 for an application requiring such evidence at an average cost
per hour of $100, which includes the cost of analytical, legal, and clerical participation in the
preparation of these applications (see attached chart for a breakdown of burden estimate).
CARES Act
Covered carriers accepting financial assistance under the CARES Act, and therefore obligated
to provide certain air services, must certify to the Department, on a monthly basis, that they
operated service in accordance with their obligations. Certifications are be submitted to
Docket DOT-OST-2020-0037 and entitled, “Monthly Air Service Certification of [AIRLINE
NAME].” The estimated total annual burden on 55 carriers preparing and submitting monthly
CARES Act certifications from April to September 30, 2020, is 1,320 hours based on an
estimate of 4 hours per report. The cost for each certification is $400, equivalent to a total
annual cost of $132,000.
The Department anticipates all of the covered carriers will request exemptions from the
obligations in the Order. The time required to prepare each waiver application is 10 hours, for
an annual total of 6,600 hours. The total annual cost for exemption applications is $660,000.
13. Provide an estimate of the total annual cost burden to respondents or recordkeepers
resulting from the collection.
a. Total capital and start-up cost component – none
b. Total operation and maintenance and purchase of services component – none
The fitness information to be provided by respondents, if not already available in the
company’s own records, would need to be developed anyway as tools for monitoring its
operations or for the requirements of suppliers, lessors, and lenders. Therefore, the burden
should extend no further than collecting already existing material and putting in a form
appropriate for filing with the Department.
14. Provide estimates of annualized cost to the Federal Government. Also, provide a description
of the method used to estimate cost, which should include qualification of hours, operational

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expense, and any other expense that would not have been incurred without this collection of
information.
The total annual estimated cost to the federal government for processing the estimated 228
responses, requiring an average of 72 hours to process, is $949,200. The average cost per hour
for processing an application is $70, regardless of the type of application filed. However, the
average cost per filing ranges from $2,800 to $7,000 based on the average number of hours it
takes to process the type of filing (see attached chart for a breakdown of burden estimate).
CARES Act
Each monthly reporting certification takes an average of 4 hour to process. 330 certifications
will cost $92,400 to review.
Each exemption application takes an average of 20 hours to process. 660 exemptions will cost
$924,000 to review.
15. Explain reasons for any program changes or adjustments.
There are adjustment changes due to the increase in the number of applications/filings
submitted during the period from June 1, 2018, to May 31, 2019, plus the increase in costs
associated with the analytical, legal, and clerical participation in the preparation of these
applications.
CARES Act
Other adjustments result from the required monthly reports and exemption applications
authorized to air carriers receiving financial assistance in accordance with the CARES Act and
pursuant to Final Order 2020-4-2. The reporting period for the monthly reports and the period
to request an exemption is from April to September 30, 2020.
16. For collection of information whose results will be published, outline plans for tabulation
and publication.
Not applicable.
17. If seeking approval to not display the expiration date for OMB approval of the information
collection, explain the reasons that display would be inappropriate.
Not applicable.
18. Explain each exception to the certification statement identified in "Certification for
Paperwork Reduction Act Submissions," of OMB Form 83-I.
Not applicable.

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Attachment
Estimated Annual Burden on Applicants and Government

Applicants
Filings each
Total filings

Avg. number of hours
to prepare filing
Avg. cost per hour
Avg. cost per filing
Total hours
Total cost to
Applicants

Initial/additional cert. or
commuter authority (incl.
fitness evidence)

Additional certificate
authority (no evidence
required)

Review of continuing
fitness (evidence
requirements vary)

CARES Act Monthly
reports

CARES Act Exemption

TOTAL

6
3
18

38
3
114

32
3
96

55
6
330

55
12
660

186
27
1218

Burden on Respondents
65

20

50

4

10

29.8

$100
$6,500
1,170

$100
$2,000
2,280

$100
$5,000
4,800

$100
$400
1,320

$100
$1,000
6,600

$100
$2,980
16,170

$117,000

$228,000

$480,000

$132,000

$660,000

$1,617,000

Burden on Government

Avg. number of hours
to process filing

100

40

75

4

20

47.8

Average cost per hour

$70

$70

$70

$70

$70

$70

$7,000

$2,800

$5,250

$280

$1,400

$3,346

1,800

4,560

7,200

1,320

13,200

28,080

$126,000

$319,200

$504,000

$92,400

$924,000

$1,965,600

Average cost per
filing
Total hours
Total cost to
Government

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