773 

Federal Aviation Administration, DOT 

§ 158.49 

holds neither legal nor equitable inter-
est in the PFC revenues except for any 
handling fee or interest collected on 
unremitted proceeds as authorized in 
§ 158.53. 

(c)(1) A covered air carrier must seg-

regate PFC revenue in a designated 
separate PFC account. Regardless of 
the amount of PFC revenue in the cov-
ered air carrier’s account at the time 
the bankruptcy petition is filed, the 
covered air carrier must deposit into 
the separate PFC account an amount 
equal to the average monthly liability 
for PFCs collected under this section 
by such air carrier or any of its agents. 

(i) The covered air carrier is required 

to create one PFC account to cover all 
PFC revenue it collects. The des-
ignated PFC account is solely for PFC 
transactions and the covered air car-
rier must make all PFC transactions 
from that PFC account. The covered 
air carrier is not required to create 
separate PFC accounts for each airport 
where a PFC is imposed. 

(ii) The covered air carrier must 

transfer PFCs from its general ac-
counts into the separate PFC account 
in an amount equal to the average 
monthly liability for PFCs as the ‘‘PFC 
reserve.’’ The PFC reserve must equal 
a one-month average of the sum of the 
total PFCs collected by the covered air 
carrier, net of any credits or handling 
fees allowed by law, during the past 12- 
month period of PFC collections imme-
diately before entering bankruptcy. 

(iii) The minimum PFC reserve bal-

ance must never fall below the fixed 
amount defined in paragraph (c)(1)(ii) 
of this section. 

(iv) A covered air carrier may con-

tinue to deposit the PFCs it collects 
into its general operating accounts 
combined with ticket sales revenue. 
However, at least once every business 
day, the covered air carrier must re-
move all PFC revenue (Daily PFC 
amount) from those accounts and 
transfer it to the new PFC account. An 
estimate based on 

1

⁄

30

of the PFC re-

serve balance is permitted in substi-
tution of the Daily PFC amount. 

(A) In the event a covered air carrier 

ceases operations while still owing PFC 
remittances, the PFC reserve fund may 
be used to make those remittances. If 
there is any balance in the PFC reserve 

fund after all PFC remittances are 
made, that balance will be returned to 
the covered air carrier’s general ac-
count. 

(B) In the event a covered air carrier 

emerges from bankruptcy protection 
and ceases to be a covered air carrier, 
any balance remaining in the PFC re-
serve fund after any outstanding PFC 
obligations are met will be returned to 
the air carrier’s general account. 

(v) If the covered air carrier uses an 

estimate rather than the daily PFC 
amount, the covered air carrier shall 
reconcile the estimated amount with 
the actual amount of PFCs collected 
for the prior month (Actual Monthly 
PFCs). This reconciliation must take 
place no later than the 20th day of the 
month (or the next business day if the 
date is not a business day). In the 
event the Actual Monthly PFCs are 
greater than the aggregate estimated 
PFC amount, the covered air carrier 
will, within one business day of the 
reconciliation, deposit the difference 
into the PFC account. If the Actual 
Monthly PFCs are less than the aggre-
gate estimated PFC amount, the cov-
ered air carrier will be entitled to a 
credit in the amount of the difference 
to be applied to the daily PFC amount 
due. 

(vi) The covered air carrier is per-

mitted to recalculate and reset the 
PFC reserve and daily PFC amount on 
each successive anniversary date of its 
bankruptcy petition using the method-
ology described above. 

(2) If a covered air carrier or its 

agent fails to segregate PFC revenue in 
violation of paragraph (c)(1) of this sec-
tion, the trust fund status of such rev-
enue shall not be defeated by an inabil-
ity of any party to identify and trace 
the precise funds in the accounts of the 
air carrier. 

(3) A covered air carrier and its 

agents may not grant to any third 
party any security or other interest in 
PFC revenue. 

(4) A covered air carrier that fails to 

comply with any requirement of para-
graph (c) of this section, or causes an 
eligible public agency to spend funds to 
recover or retain payment of PFC rev-
enue, must compensate that public 
agency for those cost incurred to re-
cover the PFCs owed. 

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08:20 May 17, 2019

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