[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]


-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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


