[Federal Register Volume 85, Number 75 (Friday, April 17, 2020)]
[Notices]
[Pages 21500-21503]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08174]
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DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Orders Limiting Operations at John F. Kennedy International
Airport and New York LaGuardia Airport; High Density Traffic Airports
Rule at Ronald Reagan Washington National Airport
AGENCY: Department of Transportation, Federal Aviation Administration
(FAA).
ACTION: Notice of extension of limited waiver of the minimum slot usage
requirement.
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SUMMARY: The FAA has determined to extend through October 24, 2020, the
coronavirus (COVID-19)-related limited waiver of the minimum slot usage
requirement at John F. Kennedy International Airport (JFK), New York
LaGuardia Airport (LGA), and Ronald Reagan Washington National Airport
(DCA) that the FAA has already made available through May 31, 2020.
Similarly, the FAA has determined to extend through October 24, 2020,
its coronavirus-related policy for prioritizing flights canceled or
otherwise not operated as originally intended at designated
International Air Transport Association (IATA) Level 2 airports in the
United States, for purposes of establishing a carrier's operational
baseline in the next corresponding season. These IATA Level 2 airports
include Chicago O'Hare International Airport (ORD), Newark Liberty
International Airport (EWR), Los Angeles International Airport (LAX),
and San Francisco International Airport (SFO). These extensions through
October 24, 2020, are available on the same terms as the relief that
the FAA already has announced through May 31, 2020.
DATES: Effective upon publication.
FOR FURTHER INFORMATION CONTACT: Bonnie Dragotto, Office of the Chief
Counsel, Regulations Division, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
3808; email: bonnie.dragotto@faa.gov.
SUPPLEMENTARY INFORMATION:
Background
In a notice that the FAA issued on March 11, 2020, and published in
the Federal Register on March 16, 2020 (85 FR 15018), the FAA announced
certain relief through May 31, 2020, in light of impacts on air travel
demand related to the outbreak of novel 2019 coronavirus (also known as
``SARS-CoV-2,'' causing the disease COVID-19) (``coronavirus''). As
announced in that notice, through May 31, 2020, the FAA will waive the
minimum usage requirement as to any slot associated with a scheduled
nonstop flight between JFK, LGA, or DCA, respectively, and other points
that is canceled as a direct result of coronavirus-related impacts.\1\
In addition, that notice announced that the FAA will prioritize flights
canceled due to coronavirus at designated IATA Level 2 airports in the
United States--including ORD, EWR, LAX, and SFO--through May 31, 2020,
for purposes of establishing a carrier's operational baseline in the
next corresponding season.\2\
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\1\ Although DCA and LGA are not designated as IATA Level 3
slot-controlled airports given that these airports primarily serve
domestic destinations, the FAA limits operations at these airports
via rules at DCA and an Order at LGA that are equivalent to IATA
Level 3. The FAA clarifies that the relief provided in the March 11
notice and in this decision extends to all allocated slots,
including slots allocated by exemption.
\2\ The FAA notes that a minimum usage requirement does not
apply at designated IATA Level 2 airports in the United States.
Moreover, established procedures under the IATA Worldwide Slot
Guidelines allow for the prioritization of such cancelations in
subsequent corresponding seasons consistent with the FAA's policy
statement.
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In granting this relief, the FAA asserted its expectation that
foreign airport slot coordinators would accommodate U.S. carriers with
reciprocal relief. The FAA further stated that it would continue to
monitor the situation and might augment the waiver as circumstances
warrant.
On March 22, 2020, the FAA issued a notice inviting stakeholders to
show cause why the FAA should or should not extend the relief provided
in the March 11, 2020, notice through the Summer 2020 scheduling
season, which
[[Page 21501]]
ends on October 24, 2020. See 85 FR 16989 (Mar. 25, 2020). In the March
22, 2020 show cause notice, the FAA reviewed the increased disruption
to demand for air travel caused by the coronavirus since the March 11,
2020 notice, and summarized the petitions of many carriers and IATA
seeking additional relief from the 80 percent minimum slot usage
requirement at U.S. airports through the Summer 2020 scheduling season.
Since the March 22, 2020 show cause notice, the disruption from the
coronavirus public health emergency has continued to grow in the United
States and worldwide. On March 27, 2020, the Centers for Disease
Control and Prevention (CDC) issued a worldwide Level 3 Warning to
avoid nonessential international travel due to widespread ongoing
transmission of COVID-19. On March 29, 2020, the President announced an
extension through April 30, 2020, of the ``Slow the Spread'' campaign
that includes social distancing guidelines and a recommendation to
avoid discretionary travel. ``Stay-at-home'' orders have been
introduced or extended across much of the United States, including for
all locations of U.S. slot-controlled and designated IATA Level 2
airports, to varying degrees and durations. Many other countries are
also implementing travel restrictions and mandatory quarantines,
closing borders, and prohibiting non-citizens from entry.
Consistent with the FAA's tentative determination, on March 31,
2020, the Council of the European Union (EU) enacted a measure to
extend relief from the minimum slot usage requirements applicable at
slot-controlled airports in the EU through the Summer 2020 scheduling
season. In addition, several other foreign coordinators have likewise
extended, or announced the intent to extend, relief from minimum slot
usage rules through the end of the Summer 2020 season.
The FAA continues to receive cancelation notices at slot-controlled
airports in the United States, which include JFK, LGA, and DCA, as well
as U.S. airports designated as IATA Level 2, for flights to and from
areas with significant coronavirus outbreaks. Nearly every carrier at
the U.S. slot-controlled and IATA level 2 airports has experienced
significant COVID-19 related schedule impacts, with many carriers
indicating that they expect to operate 20% or less of their previously
planned and published schedules over the coming months.
Summary of Comments and Information Submitted
The FAA received comments from 31 stakeholders, including IATA,
Airlines for America (A4A), the Cargo Airline Association (CAA),
SkyTeam Airline Alliance, numerous U.S. and foreign carriers,\3\
Airports Council International--North America (ACI-NA), the City of
Chicago Department of Aviation (CDA), the Metropolitan Washington
Airports Authority (MWAA), and the Port Authority of New York and New
Jersey (PANYNJ). One additional comment was received from the Hong Kong
Schedule Coordination Office regarding the FAA's stated policy
concerning reciprocity, noting Hong Kong's provision of relief from the
minimum usage requirement for carriers impacted by COVID-19 through the
end of the Summer 2020 scheduling season.
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\3\ Individual carriers from whom comments were received include
Air New Zealand, LOT Polish Airlines, Kuwait Airways, Royal
Jordanian, Scandinavian Airlines, Cathay Pacific, Emirates, Delta
Air Lines, KLM Royal Dutch Airlines, American Airlines, Avianca,
Xiamen, Viva Aerobus, Iberia, JetBlue, Air France, Alitalia,
Finnair, Aer Lingus, Southwest Airlines, Etihad, British Airways,
United Airlines, and Lufthansa Group.
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All of the airlines and airline industry advocates expressed
support for an extension through the end of the Summer 2020 scheduling
season. IATA submits that it forecasts negative impacts from
coronavirus on airline revenue amounting to a 259 billion USD loss in
passenger revenues worldwide and a 50 billion USD loss in the North
American market due to a -27% change in passenger demand. IATA asserts
that ``[t]he ability for the airline industry to survive depends on
government support and accommodation'' as ``airlines are being forced
to ground entire fleets and halt international flying entirely in an
effort to survive the devastating impact of this crisis.'' IATA notes
that the minimum usage rule is ``well suited to normal operations, but
its implementation under such exceptional circumstances is unnecessary
and only forces flying that is neither economically or environmentally
responsible or sustainable.'' Analysis provided by IATA in support of
its position demonstrates that a deep economic recession would be
expected to further delay recovery of the airline industry beyond the
Summer 2020 season.
Several airlines provided data demonstrating the dramatic decrease
in passenger demand for travel through 2020 compared to the same
periods in 2019, the details of which they have deemed proprietary.\4\
The FAA finds that this data is consistent with the aggregate data
provided by IATA and in some cases individual carriers have reported
demand at even lower levels than reflected in IATA's report. U.S.
carriers have also asserted that the impacts on air travel demand from
the COVID-19 crisis are expected to persist well into the summer and an
extension of the waiver will allow airlines to create plans to protect
jobs, ensure continued air service to the communities served, and
position the airline industry for a robust economic recovery. Several
foreign carriers also noted that, due to current travel restrictions,
they have had to cancel all flights for certain periods. Most carriers
point to the uncertainty associated with the public health emergency
and indicate that providing relief from the usage requirement will
enable carriers to resume flights as quickly as possible in the
aftermath of this public health emergency. Some carriers noted plans to
increase frequencies at U.S. slot-controlled airports, which will now
be postponed as recovery from ``these life-changing events'' is
expected to take a significant period of time. Airlines assert that the
temporary suspension of minimum slot usage rules will provide necessary
flexibility to tailor operating plans to the evolving situation and
adjust resources in preparation for the future recovery of demand.
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\4\ Five carriers, including U.S. and foreign carriers,
submitted detailed information on the reduction in passenger demand
related to COVID-19. Each of these carriers marked portions of
comments, or entire comments, as proprietary and confidential, and
the FAA will maintain the confidentiality of this information to the
extent permitted by law.
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In addition, the CAA and others specifically note that in this time
of emergency it would be in the public interest for the FAA to
temporarily reallocate to cargo airlines the slots not used for
passenger operations during this time period. CAA elaborates that
``[a]s the nation copes with the pandemic and implements `shelter-in-
place' policies, supply chain continuity (including consumer staples,
medical and health-related supplies) has become a key element of the
private sector's response to the pandemic, and many of these goods
travel by air.''
While mindful of industry impacts, the airport authorities and
their advocates, including ACI-NA, CDA, MWAA, and PANYNJ, collectively
oppose an extension for the full duration of the Summer 2020 season at
this time. The PANYNJ and MWAA expressed support for an extension
through June 30, 2020, with the
[[Page 21502]]
possibility of further relief per ongoing review as the situation
evolves. MWAA explains that this more limited action would provide
justifiable relief to the air carriers operating at DCA, and does not
preclude the FAA from extending such relief beyond June 30, 2020,
should it continue to be necessary. MWAA further asserts that ``waiver
decisions should be tailored to address the unusual and unpredictable
condition at issue, with the goal to facilitate the swift restoration
of the connectivity and economic benefits of air travel as soon as
practicable.'' ACI-NA and the CDA similarly comment that ``uncertainty
around the evolving pandemic and recovery supports the FAA taking a
more precise and targeted approach to slot waivers, as opposed to a
broad general waiver, particularly given that most of the slot-
controlled facilities covered under this waiver are at predominantly
domestic airports.'' ACI-NA further notes that ``some air carriers may
be in a diminished financial condition when the recovery begins and
therefore may be further incentivized to add capacity more slowly than
demand warrants in order to bolster their market pricing power and
enhanced yields.''
The PANYNJ commented that it seeks to ensure that valuable
infrastructure is put to use as soon as demand warrants. In support of
its position, PANYNJ asserts that based on published schedule data, a
majority of carriers have made ``sweeping near-term schedule
adjustments, though none extending beyond May or June.'' Thus,
according to PANYNJ, a waiver of slot requirements extending through
October 24, 2020 is not justified by current scheduling behavior.
Discussion
The FAA agrees with the position of the airport authorities that
waiver decisions should be tailored to address the unusual and
unpredictable condition at issue, with a goal of facilitating the swift
restoration of the connectivity and economic benefits of air travel as
soon as practicable. The FAA finds that this threshold has been met
under the exceptional circumstances surrounding the coronavirus public
health emergency, including with respect to the situation domestically.
Ample evidence supports a conclusion that the airline industry is
likely to need flexible relief for the duration of the Summer 2020
scheduling season.
The FAA is unpersuaded by comments opposing an extension through
the end of the Summer 2020 season based on the uncertainty of the
recovery timeline. The FAA finds that the proposed alternative
extension of one additional month of relief through June 30, with
ongoing review for further relief, would unduly burden airlines with
added uncertainty. The FAA recognizes that demand is unlikely to
immediately return to historic levels as soon as travel restrictions
and stay at home orders are lifted. Therefore, the FAA concludes that,
beyond the pendency of the coronavirus public health emergency, further
accommodating a reasonable buffer period thereafter is appropriate to
allow airlines the ability to recall employees, inspect aircraft,
market flights, and take other actions necessary to resume normal
operations.
Indeed, as noted by the PANYNJ, global air carriers have
collectively grounded thousands of aircraft and laid-off or furloughed
up to 90% of their workforce. The FAA notes that some airports have
also experienced operational changes to adjust to temporary flight
reductions such as closing terminals or gates to manage remaining
flights more efficiently. These factors will have a significant impact
on the speed with which air service can be re-mobilized. Airlines will
need flexibility in the recovery period expected to follow this
unprecedented disruption. As commenters noted, extending relief through
the Summer 2020 season is prudent, with the information presently
available and under the circumstances that are reasonably foreseeable
at this time, to allow carriers to continue to provide service at a
level that reflects depressed demand trends until it is feasible to
return to previous levels of flying. Further, providing prospective
relief through the end of the Summer 2020 season is expected to
incentivize the continued advance return of slots, making them
available for temporary reallocation to carriers that are in a position
to offer critical public services until slot holders are able to resume
normal pre-coronavirus operating levels.\5\
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\5\ Consistent with usual practice, the Slot Office has been
granting non-historic approval for additional cargo, passenger,
repatriation, and other flights based on flight cancelations
responsive to the March 11, 2020, usage waiver.
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Finally, the FAA notes that published schedule data is preliminary
and subject to change; it is therefore not a reliable marker of future
airline behavior as the industry awaits the FAA's final decision
following the March 22 show cause notice. FAA weekly Cirium schedule
information confirms considerable volatility as airlines change and
update schedules frequently. Absent an extended grant of relief,
airlines would not have the certainty necessary to adjust their
schedules beyond May 31, 2020, especially for domestic flights.
The FAA finds that the benefits to the airline industry of
providing relief through the end of the Summer 2020 scheduling season
significantly outweigh the risks identified in comments opposing that
relief. Therefore, the FAA will not penalize airlines for flights
canceled or otherwise not operated as originally intended at slot-
controlled airports or designated IATA Level 2 airports, stemming from
drastically reduced passenger demand caused by the extraordinary and
unforeseen coronavirus public health emergency.\6\ This decision does
not preclude carriers from resuming operations during the Summer 2020
scheduling season should circumstances shift toward recovery more
rapidly than currently anticipated.
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\6\ The FAA notes that some flights may not yet be published for
sale during the full Summer 2020 scheduling season; the FAA
therefore, clarifies in this notice that the reference to
``cancelations'' is used to refer to any scheduled flight or slot
approved by the FAA that will not be operated as a direct result of
COVID-19 impacts.
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The FAA agrees with comments from CAA and others that, consistent
with established rules in effect at slot-controlled airports in the
United States and the FAA's usual practices, it is in the public
interest to make unused slots available on a temporary basis to
carriers that are providing important public services during this
public health emergency. The FAA has already approved additional
flights on a non-historic basis at JFK given the number of flight
cancelations. The FAA therefore encourages carriers to return any slots
that may not be used during the Summer 2020 scheduling season to the
FAA as soon as possible for temporary reallocation.
Decision
In consideration of the foregoing information, the comments that
the FAA has received, and absent a showing of good cause to take
alternative action, the FAA has determined to extend through October
24, 2020, the coronavirus-related limited waiver of the minimum slot
usage requirement at JFK, LGA, and DCA that the FAA has already made
available through May 31, 2020, on the same terms as the FAA announced
in granting that relief.\7\ Similarly, the FAA
[[Page 21503]]
has determined to extend through October 24, 2020, its coronavirus-
related policy for prioritizing flights canceled or otherwise not
operated as originally intended at designated IATA Level 2 airports in
the United States, for purposes of establishing a carrier's operational
baseline in the next corresponding season.
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\7\ The FAA is responsible to develop plans and policy for the
use of the navigable airspace and assign by regulation or order the
use of the airspace necessary to ensure the safety of aircraft and
the efficient use of airspace. See 49 U.S.C. 40103(b)(1). The FAA
manages slot usage requirements under the authority of 14 CFR 93.227
at DCA and under the authority of Orders at JFK and LGA. See
Operating Limitations at John F. Kennedy International Airport, 83
FR 46865 (Sep. 17, 2018); Operating Limitations at New York
LaGuardia Airport, 83 FR 47065 at 47066 (Sep. 18, 2018).
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The coronavirus continues to present a highly unusual and
unpredictable condition that is beyond the control of carriers.
Passenger demand continues to decrease dramatically as a result of the
coronavirus. The ultimate duration and severity of coronavirus impacts
on passenger demand in the United States and internationally remain
unclear. Even after the outbreak is contained, impacts on passenger
demand are likely to continue for some time. The FAA has therefore
concluded that an extension of relief through October 24, 2020, is
appropriate to provide carriers with maximum flexibility during this
unprecedented situation and to support the long-term viability of
carrier operations at slot-controlled and IATA Level 2 airports in the
United States.\8\ Continuing relief for this additional period is
reasonable to mitigate the impacts on demand for air travel resulting
from the spread of the coronavirus worldwide.
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\8\ Nothing in this decision relieves carriers of any minimum
air service obligations arising under DOT Order 2020-4-2, posted in
Docket DOT-OST-2020-0037.
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The FAA reiterates its expectation that foreign slot coordinators
will provide reciprocal relief to U.S. carriers. To the extent that
U.S. carriers fly to a foreign carrier's home jurisdiction and that
home jurisdiction does not offer reciprocal relief to U.S. carriers,
the FAA may determine not to grant a waiver to that foreign carrier. A
foreign carrier seeking a waiver may wish to ensure that the
responsible authority of the foreign carrier's home jurisdiction
submits a statement by email to ScheduleFiling@dot.gov confirming
reciprocal treatment of the slot holdings of U.S. carriers.
Carriers should advise the FAA Slot Administration Office of
coronavirus-related cancelations as soon as possible and return the
slots to the FAA by email to 7-awaslotadmin@faa.gov to obtain relief.
The information provided must include the dates for which relief is
requested, the flight number, origin/destination airport, scheduled
time of operation, the slot identification number, as applicable, and
supporting information demonstrating that flight cancelations directly
relate to the coronavirus outbreak.
Issued in Washington, DC, on April 9, 2020.
Lorelei Peter,
Assistant Chief Counsel for Regulations.
[FR Doc. 2020-08174 Filed 4-16-20; 8:45 am]
BILLING CODE 4910-13-P