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

Example of SIFL Adjustment

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  3. Title 14
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  5. Chapter II
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  7. Part 399
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  9. Subpart C
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  11. Appendix Appendix A to Subpart C of Part 399
CorpusDaily eCFR
Displayed edition2026-04-15
Last updated2026-04-15

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

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

[See footnotes at end of table]

Year ended September 1979TrunksLocalsTrunks plus localsTotal passenger/cargo 16
Total operating expense 1 (millions)$16,455$2,522$18,977$19,384
Less:
All-cargo expenses 2269269269
Belly offset 39521531,1051,153
Nonscheduled 414146187205
Transport related 537931410416
Plus: Capitalized lease adjustment 101192121121
Passenger operating expense14,8332,29417,12717,462
Passenger fuel cost 114,103N.A.
Scheduled service ASM's (mils.)281,67133,051314,722318,459
Passenger nonfuel operating expense per ASM (dollars).04138N.A.
Passenger fuel expense per ASM (dollars).01304N.A.
Total passenger expense per ASM (dollars).05442.05483
Year ended September 1978
Total operating expense 1 (millions)14,0812,03316,11416,448
Less:
All-cargo expenses 2282282282
Belly offset 38691521,0211,065
Nonscheduled 419353246256
Transport related 541930449454
Plus: Capitalized lease adjustment 107817979
Passenger operating expense12,3961,79914,19514,470
Passenger fuel cost 113,129N.A.
Scheduled service ASM's (mils.)262,06827,067289,135292,255
Passenger nonfuel operating expense per ASM (dollars).03827N.A.
Passenger fuel expense per ASM (dollars).01082N.A.
Total passenger expense per ASM (dollars).04909.04951
Percent change in nonfuel operating expense per ASM (percent)8.13N.A.
Projected change in nonfuel expense from April 1, 1979 to April 1, 1980 68.13N.A.
Estimated change in fuel cost, year ended September 1979 average to April 1, 1980 1473.06N.A.
Nonfuel operating expense per ASM at April 1, 1980 7 (dollars).04474N.A.
Fuel expense per ASM at April 1, 1980 7 (dollars).02257N.A.
Total expense per ASM at April 1, 1980 7 (dollars).0673115 .06782
Year ended March 1977
Total operating expense 1 (millions)$11,726$1,520$13,316$13,601
Less:
All-cargo expense 2238238238
Belly offset 372996825865
Nonscheduled 422035225266
Transport related 5427111538554
Passenger operating expense10,1121,34811,46011,678
Passenger fuel cost2,1902302,420N.A.
Scheduled service ASM's (mils.)239,59323,428263,021265,837
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]