Federal Aviation Administration, DOT

Section 161.305

(B) At the applicant-s discretion, information may also be submitted as
follows:
(1) Evidence not submitted under
paragraph (e)(2)(ii)(A) of this section
(Condition 2) that there is a reasonable
chance that expected benefits will
equal or exceed expected cost; for example, comparative economic analyses
of the costs and benefits of the proposed restriction and aircraft and nonaircraft alternative measures. For detailed elements of analysis, see paragraph (e)(2)(ii)(A) of this section.
(2) Evidence not submitted under
paragraph (e)(2)(ii)(A) of this section
that the level of any noise-based fees
that may be imposed reflects the cost
of mitigating noise impacts produced
by the aircraft, or that the fees are reasonably related to the intended level of
noise impact mitigation.
(ii) Condition 2: The restriction does not
create an undue burden on interstate or
foreign commerce. (A) Essential information needed to demonstrate this statutory condition includes:
(1) Evidence, based on a cost-benefit
analysis, that the estimated potential
benefits of the restriction have a reasonable chance to exceed the estimated
potential cost of the adverse effects on
interstate and foreign commerce. In
preparing the economic analysis required by this section, the applicant
shall use currently accepted economic
methodology, specify the methods used
and assumptions underlying the analysis, and consider:
(i) The effect of the proposed restriction on operations of aircraft by aviation user class (and for air carriers, the
number of operations of aircraft by
carrier), and on the volume of passengers and cargo for the year the restriction is expected to be implemented
and for the forecast timeframe.
(ii) The estimated costs of the proposed restriction and alternative nonaircraft restrictions including the following, as appropriate:
(A) Any additional cost of continuing
aircraft operations under the restriction, including reasonably available information concerning any net capital
costs of acquiring or retrofitting aircraft (net of salvage value and operating efficiencies) by aviation user

class; and any incremental recurring
costs;
(B) Costs associated with altered or
discontinued aircraft operations, such
as reasonably available information
concerning loss to carriers of operating
profits; decreases in passenger and
shipper consumer surplus by aviation
user class; loss in profits associated
with other airport services or other entities: and/or any significant economic
effect on parties other than aviation
users.
(C) Costs associated with implementing nonaircraft restrictions or
nonaircraft components of restrictions,
such as reasonably available information concerning estimates of capital
costs for real property, including redevelopment, soundproofing, noise easements, and purchase of property interests; and estimates of associated incremental recurring costs; or an explanation of the legal or other impediments to implementing such restrictions.
(D) Estimated benefits of the proposed restriction and alternative restrictions that consider, as appropriate, anticipated increase in real estate values and future construction
cost (such as sound insulation) savings;
anticipated increase in airport revenues; quantification of the noise benefits, such as number of people removed
from noise contours and improved
work force and/or educational productivity, if any; valuation of positive
safety effects, if any; and/or other qualitative benefits, including improvements in quality of life.
(B) At the applicant-s discretion, information may also be submitted as
follows:
(1) Evidence that the affected carriers have a reasonable chance to continue service at the airport or at other
points in the national airport system.
(2) Evidence that other air carriers
are able to provide adequate service to
the airport and other points in the system without diminishing competition.
(3) Evidence that comparable services
or facilities are available at another
airport controlled by the airport operator in the market area, including
services available at other airports.

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