[Federal Register: September 22, 2004 (Volume 69, Number 183)]
[Rules and Regulations]
[Page 56692-56693]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22se04-11]
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DEPARTMENT OF TRANSPORTATION
Office of the Secretary
14 CFR Part 254
RIN 2105-AD42
Passenger Baggage Liability
AGENCY: Department of Transportation (DOT), Office of the Secretary
(OST)
ACTION: Final rule.
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SUMMARY: In accordance with the provisions of 14 CFR 254.6, this final
rule revises the minimum limit on domestic baggage liability applicable
to air carriers to reflect inflation since December 1999, the date of
the most recent revision to the rule. Section 254.6 requires that the
Department revise periodically the limit to reflect any changes in the
Consumer Price Index during the interim. The rule adjusts the minimum
limit of liability from the current amount of $2,500 to $2,800, taking
into account the changes in price level over a period of approximately
four years.
DATES: Effective Date: This rule is effective on October 22, 2004.
FOR FURTHER INFORMATION CONTACT: Nicholas Lowry, Senior Attorney,
Office of Aviation Enforcement and Proceedings (C-70), Department of
Transportation, 400 Seventh St., SW., Washington, DC 20590; (202) 366-
9351.
SUPPLEMENTARY INFORMATION:
I. Background
Part 254 of the Department's rules, 14 CFR part 254, establishes
minimum baggage liability limits applicable to domestic air service,
currently $2,500 per passenger. Provisions of 14 CFR 254.6 require that
the Department periodically review the minimum limit of liability
prescribed in part 254 in light of changes in the Consumer Price Index
for Urban Consumers and directs the Department to revise the limit of
liability to reflect changes in the price index that have occurred in
the interim. Section 254.6 prescribes the use of a specific formula to
calculate the revised minimum liability amount when making these
periodic adjustments. Applying the formula to changes occurring between
December 1999 and July 2004, the appropriate inflation adjustment is
$2,500 x 189.4/168.3, or $2,813.42. The provision requires us to round
the adjustment to the nearest $100, or to $2,800.
II. Waiver of Rulemaking Procedural Requirements
With this final rule, we are waiving the usual notice of proposed
rulemaking and public comment procedures set forth in the
Administrative Procedure Act (APA) (5 U.S.C. 553). The APA allows
agencies to dispense with such procedures on finding of good cause when
they are impracticable, unnecessary or contrary to the public interest.
We have determined that under 5 U.S.C. 553(b)(3)(B) good cause exists
for dispensing with the notice of proposed rulemaking and public
comment procedures for this rule. This rulemaking is required by the
terms of 14 CFR 254.6, as most recently amended in December 1999 (64 FR
70575, December 17, 1999). Accordingly, we believe prior comment is
unnecessary and contrary to the public interest, and we are issuing
this revision as a final rule.
Although this final rule will become effective in 30 days, the
Department will defer enforcement of the notice provision in the
revised rule, as it pertains to written notice of the new limit, for a
reasonable period to allow carriers to replace or correct their current
paper ticket stock and envelopes so as to provide proper written notice
of the increased minimum liability limit without imposing an undue
burden. Carriers are, however, subject to enforcement action from the
date of issuance of this final rule if they otherwise fail to provide
proper notice of the $2,800 liability limit or fail to apply the new
limit, as appropriate.
[[Page 56693]]
III. Regulatory Impact Statement
Executive Order 12866
This final rule has been evaluated in accordance with the existing
policies and procedures and is considered not significant under both
Executive Order 12866 and DOT Regulatory Policies and Procedures. The
rule is exempt from review by the Office of Management and Budget (OMB)
in accordance with the provisions of Executive Order 12866, because its
provisions are required by current regulatory language, without
interpretation.
Regulatory Flexibility Act
The Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612) requires
an assessment of the impact of the proposed and final rule on small
entities unless the agency certifies that the proposed regulation will
have no significant economic impact on small entities. This revision of
14 CFR part 254 provides for a minimal increase in the amount of the
minimum baggage liability limit that air carriers may incur in cases of
lost or damaged baggage. It will pose minor additional costs only in
those instances in which carriers lose or damage baggage, or delay
delivering baggage to the traveler, and it affects only carriers
operating large aircraft or those small carriers interlining with such
carriers. As a result, many operations of small entities, such as air
taxis and commuter air carriers, are not covered by the rule.
Accordingly, we certify that this action will not have a significant
economic impact on a substantial number of small entities.
Paperwork Reduction Act
This final rule imposes no new reporting or recordkeeping
requirements necessitating clearance by OMB.
List of Subjects in 14 CFR Part 254
Administrative practice and procedure, Air carriers, Consumer
protection, Department of Transportation.
0
Accordingly, the Department of Transportation revises 14 CFR part 254,
Domestic Baggage Liability, to read as follows:
0
1. The authority citation continues to read as follows:
Authority: 49 U.S.C. 40113, 41501, 41501, 41504, 41510, 41702
and 41707.
0
2. Section 254.4 is revised to read as follows:
Sec. 254.4 Carrier liability.
On any flight segment using large aircraft, or on any flight
segment that is included on the same ticket as another flight segment
that uses large aircraft, an air carrier shall not limit its liability
for provable direct or consequential damages resulting from the
disappearance of, damage to, or delay in delivery of a passenger's
personal property, including baggage, in its custody to an amount less
than $2,800 for each passenger.
0
3. Section 254.5 is revised to read as follows:
Sec. 254.5 Notice requirement.
In any flight segment using large aircraft, or on any flight
segment that is included on the same ticket as another flight segment
that uses large aircraft, an air carrier shall provide to passengers,
by conspicuous written material included on or with its ticket, either:
(a) Notice of any monetary limitation on its baggage liability to
passengers; or
(b) The following notice: ``Federal rules require any limit on an
airline's baggage liability to be at least $2,800 per passenger.''
Issued in Washington, DC on September 8, 2004.
Norman Y. Mineta,
Secretary of Transportation.
[FR Doc. 04-21247 Filed 9-21-04; 8:45 am]
BILLING CODE 4910-62-P