14 CFR 271.4 - Carrier costs.
(a) The reasonable costs projected for a carrier providing essential air service at an eligible place will be evaluated:
(1) For costs attributable to the carrier's flying operations (direct expenses), by comparing the projected costs submitted by the carrier with the following:
(i) By direct assignment where the indirect costs are attributable to the carrier's operations at the eligible place;
(ii) By comparing the carrier's systemwide indirect operating expenses to those submitted by the carrier for the eligible place; or
(iii) By comparing the indirect operating expenses submitted by the carrier with the ratio of indirect to direct costs that have been experienced by the carrier in other markets or to costs that are representative of the industry.
(3) By considering the unique circumstances of the carrier or the community being served that justify deviations from the costs that would otherwise be established for that carrier under this paragraph.
(4) By determining whether the aircraft to be used by the carrier at the eligible place, and on which its costs are derived, are appropriate for providing essential air service there. The appropriateness of the aircraft to be used is based on the following characteristics of the eligible place:
(b) When the essential air service would be made part of the carrier's linear system, the Department might, instead of the factors in paragraph (a) of this section, consider only the incremental costs that the carrier will incur in adding that service to its system.
[ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43524, 43525, Aug. 22, 1995]
Title 14 published on 2014-01-01
no entries appear in the Federal Register after this date.