{"data":{"id":"us/14-cfr-appendix-a-to-subpart-c-of-part-399","jurisdiction":"us","citation":"14 CFR Appendix A to Subpart C of Part 399","heading":"Appendix A to Subpart C of Part 399—Example of SIFL Adjustment","body":"[Methodology for determining change in operating expense per available seat-mile]\n[See footnotes at end of table]\nYear ended September 1979 Trunks Locals Trunks plus locals Total passenger/cargo 16\nTotal operating expense 1 (millions) $16,455 $2,522 $18,977 $19,384\nLess:\nAll-cargo expenses 2 269 269 269\nBelly offset 3 952 153 1,105 1,153\nNonscheduled 4 141 46 187 205\nTransport related 5 379 31 410 416\nPlus: Capitalized lease adjustment 10 119 2 121 121\nPassenger operating expense 14,833 2,294 17,127 17,462\nPassenger fuel cost 11 4,103 N.A.\nScheduled service ASM's (mils.) 281,671 33,051 314,722 318,459\nPassenger nonfuel operating expense per ASM (dollars) .04138 N.A.\nPassenger fuel expense per ASM (dollars) .01304 N.A.\nTotal passenger expense per ASM (dollars) .05442 .05483\nYear ended September 1978\nTotal operating expense 1 (millions) 14,081 2,033 16,114 16,448\nLess:\nAll-cargo expenses 2 282 282 282\nBelly offset 3 869 152 1,021 1,065\nNonscheduled 4 193 53 246 256\nTransport related 5 419 30 449 454\nPlus: Capitalized lease adjustment 10 78 1 79 79\nPassenger operating expense 12,396 1,799 14,195 14,470\nPassenger fuel cost 11 3,129 N.A.\nScheduled service ASM's (mils.) 262,068 27,067 289,135 292,255\nPassenger nonfuel operating expense per ASM (dollars) .03827 N.A.\nPassenger fuel expense per ASM (dollars) .01082 N.A.\nTotal passenger expense per ASM (dollars) .04909 .04951\nPercent change in nonfuel operating expense per ASM (percent) 8.13 N.A.\nProjected change in nonfuel expense from April 1, 1979 to April 1, 1980 6 8.13 N.A.\nEstimated change in fuel cost, year ended September 1979 average to April 1, 1980 14 73.06 N.A.\nNonfuel operating expense per ASM at April 1, 1980 7 (dollars) .04474 N.A.\nFuel expense per ASM at April 1, 1980 7 (dollars) .02257 N.A.\nTotal expense per ASM at April 1, 1980 7 (dollars) .06731 15 .06782\nYear ended March 1977\nTotal operating expense 1 (millions) $11,726 $1,520 $13,316 $13,601\nLess:\nAll-cargo expense 2 238 238 238\nBelly offset 3 729 96 825 865\nNonscheduled 4 220 35 225 266\nTransport related 5 427 111 538 554\nPassenger operating expense 10,112 1,348 11,460 11,678\nPassenger fuel cost 2,190 230 2,420 N.A.\nScheduled service ASM's (mils.) 239,593 23,428 263,021 265,837\nOperating expense per ASM (dollars) .04221 .05754 .04357 .04393\nProjected expense per ASM (dollars) as at July 1, 1977 13 .04593\nProjected operating expense per ASM as at April 1, 1980 (page 1) (dollars) .06782\nCeiling adjustment factor 8 (percent) 47.66\nD.P.F.I. formula effective July 15, 1977 12:\nTerminal charge $16.16\nPlus .0884/mile (0-500 miles).\nPlus .0674/mile (501-1,500 miles).\nPlus .0648/mile (over 1,500 miles).\nCeiling formula through April 30, 1980 9:\nTerminal charge $23.86\nPlus .1305/mile (0-500 miles).\nPlus .0995/mile (501-1,500 miles).\nPlus .0957/mile (over 1,500 miles).\n1 Total operating expense for all operations and service (in millions).\n2 Scheduled all-cargo operations expense.\n3 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.\n4 Total non-scheduled revenues times 0.95, assuming charter operations would only be conducted at a profit.\n5 Total transport-related expense, less any excess of expense over total transport-related revenues.\n6 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.\n7 Operating expense per ASM for year-ended September, 1979, times projected change.\n8 Projected operating expense per ASM on April 1, 1980 divided by the operating expense as at July 1, 1977.\n9 Adjustment results in a 2.5 percent increase in level over current January 1, 1980 factor.\n10 Additional rental expense that would have been incurred had leases not been capitalized under FASB-13, less actual amortization of capitalized lease expense.\n11 Total fuel cost, scheduled service, times complement of rate of All-Cargo expense to total Operating Expense.\n12 Order 77-7-26.\n13 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.\n14 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¢).\n15 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.\n16 Includes Alaskan, Hawaiian and other regional carriers.","path":["Title 14—Aeronautics and Space","CHAPTER II—OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION (AVIATION PROCEEDINGS)","SUBCHAPTER F—POLICY STATEMENTS","PART 399—STATEMENTS OF GENERAL POLICY","Subpart C—Policies Relating to Rates and Tariffs"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-14.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:20Z","sha256":"9ff84de1d5cc11223735a1bc0423b1c40f6e738aadddf1df1d3760fe823d8797","source_id":"us-cfr","stale":true,"prev":"us/14-cfr-399.39","next":"us/14-cfr-399.60"},"notice":"GroundRules: Original legal text. Not legal advice."}