### Question
How is the term significantly increased costs defined?


### Answer
The term **significantly increased costs** is defined in *49 U.S.C. § 41737* as the following:

> a total unit cost increase (but not increases in individual unit costs) of 10 percent or more in relation to the total unit cost reflected in the compensation rate, based on the carrier's internal audit of its financial statements if such cost increase is incurred for a period of at least 2 consecutive months

#### Citation:
  - *49 U.S.C. § 41737*
  - Heading: **SUBTITLE VII-AVIATION PROGRAMS > PART A-AIR COMMERCE AND SAFETY > subpart ii-economic regulation > CHAPTER 417-OPERATIONS OF CARRIERS > SUBCHAPTER II-SMALL COMMUNITY AIR SERVICE**

