14 C.F.R. § 399 app A to Subpart C of Part 399

Current through September 30, 2024

Appendix A to Subpart C of Part 399 - Example of SIFL Adjustment

[Methodology for determining change in operating expense per available seat-mile]

Year ended September 1979	Trunks	Locals	Trunks plus locals	Total passenger/cargo16
Total operating expense1 (millions)	$16,455	$2,522	$18,977	$19,384
Less:
All-cargo expenses2	269		269	269
Belly offset3	952	153	1,105	1,153
Nonscheduled4	141	46	187	205
Transport related5	379	31	410	416
Plus: Capitalized lease adjustment10	119	2	121	121
Passenger operating expense	14,833	2,294	17,127	17,462
Passenger fuel cost11			4,103	N.A.
Scheduled service ASM's (mils.)	281,671	33,051	314,722	318,459
Passenger nonfuel operating expense per ASM (dollars)			.04138	N.A.
Passenger fuel expense per ASM (dollars)			.01304	N.A.
Total passenger expense per ASM (dollars)			.05442	.05483
Year ended September 1978
Total operating expense1 (millions)	14,081	2,033	16,114	16,448
Less:
All-cargo expenses2	282		282	282
Belly offset3	869	152	1,021	1,065
Nonscheduled4	193	53	246	256
Transport related5	419	30	449	454
Plus: Capitalized lease adjustment10	78	1	79	79
Passenger operating expense	12,396	1,799	14,195	14,470
Passenger fuel cost11			3,129	N.A.
Scheduled service ASM's (mils.)	262,068	27,067	289,135	292,255
Passenger nonfuel operating expense per ASM (dollars)			.03827	N.A.
Passenger fuel expense per ASM (dollars)			.01082	N.A.
Total passenger expense per ASM (dollars)			.04909	.04951
Percent change in nonfuel operating expense per ASM (percent)			8.13	N.A.
Projected change in nonfuel expense from April 1, 1979 to April 1, 19806			8.13	N.A.
Estimated change in fuel cost, year ended September 1979 average to April 1, 198014			73.06	N.A.
Nonfuel operating expense per ASM at April 1, 19807 (dollars)			.04474	N.A.
Fuel expense per ASM at April 1, 19807 (dollars)			.02257	N.A.
Total expense per ASM at April 1, 19807 (dollars)			.06731	15 .06782
Year ended March 1977
Total operating expense1 (millions)	$11,726	$1,520	$13,316	$13,601
Less:
All-cargo expense2	238		238	238
Belly offset3	729	96	825	865
Nonscheduled4	220	35	225	266
Transport related5	427	111	538	554
Passenger operating expense	10,112	1,348	11,460	11,678
Passenger fuel cost	2,190	230	2,420	N.A.
Scheduled service ASM's (mils.)	239,593	23,428	263,021	265,837
Operating expense per ASM (dollars)	.04221	.05754	.04357	.04393
Projected expense per ASM (dollars) as at July 1, 197713				.04593
Projected operating expense per ASM as at April 1, 1980 (page 1) (dollars)				.06782
Ceiling adjustment factor8 (percent)				47.66

D.P.F.I. formula effective July 15, 197712:
Terminal charge	$16.16
Plus	.0884/mile (0-500 miles).
Plus	.0674/mile (501-1,500 miles).
Plus	.0648/mile (over 1,500 miles).
Ceiling formula through April 30, 19809:
Terminal charge	$23.86
Plus	.1305/mile (0-500 miles).
Plus	.0995/mile (501-1,500 miles).
Plus	.0957/mile (over 1,500 miles).

¹ Total operating expense for all operations and service (in millions).

² Scheduled all-cargo operations expense.

³ Total scheduled-service cargo revenue, less scheduled all-cargo operations revenue, carried as a by-product in aircraft belly compartments. Includes freight, express, priority and non-priority U.S. mail, and excess baggage.

⁴ Total non-scheduled revenues times 0.95, assuming charter operations would only be conducted at a profit.

⁵ Total transport-related expense, less any excess of expense over total transport-related revenues.

⁶ We here project costs from April 1, 1979 (the midpoint of the data year ended September 1979) to April 1, 1980 the resultant increase factor effective through April 30, 1980.

⁷ Operating expense per ASM for year-ended September, 1979, times projected change.

⁸ Projected operating expense per ASM on April 1, 1980 divided by the operating expense as at July 1, 1977.

⁹ Adjustment results in a 2.5 percent increase in level over current January 1, 1980 factor.

¹⁰ Additional rental expense that would have been incurred had leases not been capitalized under FASB-13, less actual amortization of capitalized lease expense.

¹¹ Total fuel cost, scheduled service, times complement of rate of All-Cargo expense to total Operating Expense.

¹² Order 77-7-26.

¹³ Year ended March, 1977 cost per ASM, times cost escalation factor of 1.04543 (to July 5, 1977). See DPFI workpapers, Y.E. March, 1977.

¹⁴ Estimated average cost per gallon for the trunk plus local service carriers at April 1, 1980, divided by the average for the year ended September, 1979 (48.33¢).

¹⁵ Change in Trunks plus Locals cost per ASM as at April 1, 1980, to year ended September, 1979 times total Psgr/Cargo cost for the year ended September, 1979.

¹⁶ Includes Alaskan, Hawaiian and other regional carriers.

14 C.F.R. § 399 app A to Subpart C of Part 399

PS-92, 45 FR 24119, Apr. 9, 1980, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15947, Apr. 16, 2019