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Atlas / eCFR / Part 399 / Appendix

Appendix

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

Part 399 — STATEMENTS OF GENERAL POLICY Amended: 2026-04-24 View on eCFR ↗

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

[See footnotes at end of table]
Year ended September 1979 Trunks Locals Trunks plus locals Total passenger/cargo 16
Total operating expense 1 (millions) $16,455 $2,522 $18,977 $19,384
Less:
All-cargo expenses 2 269 269 269
Belly offset 3 952 153 1,105 1,153
Nonscheduled 4 141 46 187 205
Transport related 5 379 31 410 416
Plus: Capitalized lease adjustment 10 119 2 121 121
Passenger operating expense 14,833 2,294 17,127 17,462
Passenger fuel cost 11 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 expense 1 (millions) 14,081 2,033 16,114 16,448
Less:
All-cargo expenses 2 282 282 282
Belly offset 3 869 152 1,021 1,065
Nonscheduled 4 193 53 246 256
Transport related 5 419 30 449 454
Plus: Capitalized lease adjustment 10 78 1 79 79
Passenger operating expense 12,396 1,799 14,195 14,470
Passenger fuel cost 11 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, 1980 6 8.13 N.A.
Estimated change in fuel cost, year ended September 1979 average to April 1, 1980 14 73.06 N.A.
Nonfuel operating expense per ASM at April 1, 1980 7 (dollars) .04474 N.A.
Fuel expense per ASM at April 1, 1980 7 (dollars) .02257 N.A.
Total expense per ASM at April 1, 1980 7 (dollars) .06731 15 .06782
Year ended March 1977
Total operating expense 1 (millions) $11,726 $1,520 $13,316 $13,601
Less:
All-cargo expense 2 238 238 238
Belly offset 3 729 96 825 865
Nonscheduled 4 220 35 225 266
Transport related 5 427 111 538 554
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, 1977 13 .04593
Projected operating expense per ASM as at April 1, 1980 (page 1) (dollars) .06782
Ceiling adjustment factor 8 (percent) 47.66
D.P.F.I. formula effective July 15, 1977 12:
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, 1980 9:
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.

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