[Title 14 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 1999 Edition]
[From the U.S. Government Printing Office]


          14



          Aeronautics and Space



[[Page i]]

          PARTS 200 TO 1199

                         Revised as of January 1, 1999

          CONTAINING
          A CODIFICATION OF DOCUMENTS
          OF GENERAL APPLICABILITY
          AND FUTURE EFFECT

          AS OF JANUARY 1, 1999
          With Ancillaries
          Published by
          the Office of the Federal Register
          National Archives and Records
          Administration

          as a Special Edition of
          the Federal Register



[[Page ii]]

                                      




                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 1999



               For sale by U.S. Government Printing Office
 Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328



[[Page iii]]




                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 14:

          Chapter II--Office of the Secretary, Department of 
          Transportation (Aviation Proceedings)...............       3

          Chapter III--Commercial Space Transportation, 
          Federal Aviation Administration, Department of 
          Transportation......................................     531

  Finding Aids:

      Table of CFR Titles and Chapters........................     559

      Alphabetical List of Agencies Appearing in the CFR......     577

      List of CFR Sections Affected...........................     587



[[Page iv]]





                     ----------------------------

                     Cite this Code:  CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus,  14 CFR 200.1 refers 
                       to title 14, part 200, 
                       section 1.

                     ----------------------------

[[Page v]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, January 1, 1999), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
exercised by the user in determining the actual effective date. In 
instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For 
the period beginning January 1, 1986, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
Authorities and Agency Rules (Table I), and Acts Requiring Publication 
in the Federal Register (Table II). A list of CFR titles, chapters, and 
parts and an alphabetical list of agencies publishing in the CFR are 
also included in this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-523-5227 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408 or e-mail 
info@fedreg.nara.gov.

SALES

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ELECTRONIC SERVICES

    The full text of the Code of Federal Regulations, the LSA (List of 
CFR Sections Affected), The United States Government Manual, the Federal 
Register, Public Laws, Weekly Compilation of Presidential Documents and 
the Privacy Act Compilation are available in electronic format at 
www.access.gpo.gov/nara (``GPO Access''). For more information, contact 
Electronic Information Dissemination Services, U.S. Government Printing 
Office. Phone 202-512-1530, or 888-293-6498 (toll-free). E-mail, 
gpoaccess@gpo.gov.

[[Page vii]]

    The Office of the Federal Register also offers a free service on the 
National Archives and Records Administration's (NARA) World Wide Web 
site for public law numbers, Federal Register finding aids, and related 
information. Connect to NARA's web site at www.nara.gov/fedreg. The NARA 
site also contains links to GPO Access.

                              Raymond A. Mosley,
                                    Director,
                          Office of the Federal Register.

January 1, 1999.



[[Page ix]]



                               THIS TITLE

    Title 14--Aeronautics and Space is composed of five volumes. The 
parts in these volumes are arranged in the following order: parts 1-59, 
60-139, 140-199, 200-1199, and part 1200-End. The first three volumes 
containing parts 1-199 are comprised of chapter I--Federal Aviation 
Administration, Department of Transportation (DOT). The fourth volume 
containing parts 200-1199 is comprised of chapter II--Office of the 
Secretary, DOT (Aviation Proceedings) and chapter III--Commercial Space 
Transportation, Federal Aviation Administration, DOT. The fifth volume 
containing part 1200-End is comprised of chapter V--National Aeronautics 
and Space Administration. The contents of these volumes represent all 
current regulations codified under this title of the CFR as of January 
1, 1999.

    Redesignation tables appear in the Finding Aids section of the 
volume containing parts 60-139.

    For this volume, Melanie L. Marcec was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

[[Page x]]





[[Page 1]]



                     TITLE 14--AERONAUTICS AND SPACE




                 (This book contains parts 200 to 1199)

  --------------------------------------------------------------------
                                                                    Part

Chapter II--Office of the Secretary, Department of 
  Transportation (Aviation Proceedings).....................         200

Chapter III--Commercial Space Transportation, Federal 
  Aviation Administration, Department of Transportation.....         400

[[Page 3]]



   CHAPTER II--OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION 
                         (AVIATION PROCEEDINGS)




  --------------------------------------------------------------------


  Editorial Note: Chapter II was transferred from the Civil Aeronautics 
Board to the Department of Transportation on January 1, 1985. For a 
document giving the disposition of CAB regulations once the Agency 
ceased to exist, see 50 FR 452, Jan. 4, 1985.

                   SUBCHAPTER A--ECONOMIC REGULATIONS
Part                                                                Page
200             Definitions and instructions................           7
201             Air carrier authority under Subtitle VII of 
                    Title 49 of The United States Code--
                    [Amended]...............................           7
203             Waiver of Warsaw Convention liability limits 
                    and defenses............................           9
204             Data to support fitness determinations......          10
205             Aircraft accident liability insurance.......          17
206             Certificates of public convenience and 
                    necessity: Special authorizations and 
                    exemptions..............................          21
207             Charter trips by U.S. scheduled air carriers          22
208             Charter trips by U.S. charter air carriers..          23
211             Applications for permits to foreign air 
                    carriers................................          23
212             Charter rules for U.S. and foreign direct 
                    air carriers............................          29
213             Terms, conditions and limitations of foreign 
                    air carrier permits.....................          38
214             Terms, conditions, and limitations of 
                    foreign air carrier permits authorizing 
                    charter transportation only.............          40
215             Use and change of names of air carriers, 
                    foreign air carriers and commuter air 
                    carriers................................          41
216             Commingling of blind sector traffic by 
                    foreign air carriers....................          42
217             Reporting traffic statistics by foreign air 
                    carriers in civilian scheduled, charter, 
                    and nonscheduled services...............          44
218             Lease by foreign air carrier or other 
                    foreign person of aircraft with crew....          55

[[Page 4]]

221             Tariffs.....................................          56
222             Intermodal cargo services by foreign air 
                    carriers................................         149
223             Free and reduced-rate transportation........         153
232             Transportation of mail, review of orders of 
                    Postmaster General......................         156
234             Airline service quality performance reports.         158
240             Inspection of accounts and property.........         162
241             Uniform system of accounts and reports for 
                    large certificated air carriers.........         163
243             Passenger manifest information..............         269
247             Direct airport-to-airport mileage records...         272
248             Submission of audit reports.................         272
249             Preservation of air carrier records.........         273
250             Oversales...................................         278
252             Smoking aboard aircraft.....................         282
253             Notice of terms of contract of carriage.....         284
254             Domestic baggage liability..................         286
255             Carrier-owned computer reservations systems.         286
256             Display of joint operations in carrier-owned 
                    computer reservations systems...........         292
271             Guidelines for subsidizing air carriers 
                    providing essential air transportation..         292
272             Essential air service to the Freely 
                    Associated States.......................         295
291             Cargo operations in interstate air 
                    transportation..........................         299
292             International cargo transportation..........         302
294             Canadian charter air taxi operators.........         304
296             Indirect air transportation of property.....         312
297             Foreign air freight forwarders and foreign 
                    cooperative shippers associations.......         313
298             Exemptions for air taxi and commuter air 
                    carrier operations......................         317

                  SUBCHAPTER B--PROCEDURAL REGULATIONS

300             Rules of conduct in DOT proceedings under 
                    this chapter............................         330
302             Rules of practice in proceedings............         337
303             Review of air carrier agreements............         405
305             Rules of practice in informal nonpublic 
                    investigations..........................         410
313             Implementation of the Energy Policy and 
                    Conservation Act........................         412
314             Employee protection program.................         414
323             Terminations, suspensions, and reductions of 
                    service.................................         417

[[Page 5]]

325             Essential air service procedures............         423

                        SUBCHAPTER C  [RESERVED]

                    SUBCHAPTER D--SPECIAL REGULATIONS

372             Overseas military personnel charters........         426
374             Implementation of the Consumer Credit 
                    Protection Act with respect to air 
                    carriers and foreign air carriers.......         433
374a            Extension of credit by airlines to Federal 
                    political candidates....................         434
375             Navigation of foreign civil aircraft within 
                    the United States.......................         438
377             Continuance of expired authorizations by 
                    operation of law pending final 
                    determination of applications for 
                    renewal thereof.........................         449
380             Public charters.............................         451
381             Special event tours.........................         468
382             Nondiscrimination on the basis of disability 
                    in air travel...........................         470
383             Civil penalties.............................         487
                       SUBCHAPTER E--ORGANIZATION
385             Staff assignments and review of action under 
                    assignments.............................         488
389             Fees and charges for special services.......         501
                     SUBCHAPTER F--POLICY STATEMENTS
398             Guidelines for individual determinations of 
                    basic essential air service.............         507
399             Statements of general policy................         510

[[Page 7]]



                   SUBCHAPTER A--ECONOMIC REGULATIONS





PART 200--DEFINITIONS AND INSTRUCTIONS--Table of Contents




Sec.
200.1  Terms and definitions.
200.2  Instructions.

    Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417, 461.



Sec. 200.1  Terms and definitions.

    Unless otherwise specifically stated, words and phrases other than 
those listed in this section have the meaning defined in the Statute.
    (a) Board or CAB means the Civil Aeronautics Board.
    (b) Department or DOT means the Department of Transportation.
    (c) Act means the Federal Aviation Act of 1958, as amended.
    (d) Section refers to a section of the Statute or a section of the 
regulations in this chapter, as indicated by the context. The terms this 
section, pursuant to this section, in accordance with the provisions of 
this section, and words of similar import when used in this chapter 
refer to the section of this subchapter in which such terms appear.
    (e) Rule, regulation, and order refer to the rules, regulations, and 
orders prescribed by the Board or the Department pursuant to the 
Statute.
    (f) Statute when used in this chapter means Subtitle VII of Title 49 
of the United States Code (Transportation).
    (g) FAA means the Federal Aviation Administration, U.S. Department 
of Transportation.
    (h) BTS means the Bureau of Transportation Statistics, U.S. 
Department of Transportation.

[Doc. No. 47939, 57 FR 40100, Sept. 2, 1992, as amended by Amdt. No. 
OST-95-397, 60 FR 43523, Aug. 22, 1995; 60 FR 66722, Dec. 26, 1995]



Sec. 200.2  Instructions.

    The regulations of the Department may be cited by section numbers. 
For example, this regulation may be cited as ``Sec. 200.2 of the 
Aviation Economic Regulations.'' The sections contained in the Rules of 
Practice may also be cited by appropriate rule numbers. (See Sec. 302.2 
of this chapter.) For example, 14 CFR 302.10 may be cited as ``rule 10 
of the Rules of Practice.''

[Doc. No. 47939, 57 FR 40100, Sept. 2, 1992]



PART 201--AIR CARRIER AUTHORITY UNDER SUBTITLE VII OF TITLE 49 OF THE UNITED STATES CODE--[AMENDED]--Table of Contents




                    Subpart A--Application Procedures

Sec.
201.1  Formal requirements.
201.2  Amendments.
201.3  Incorporation by reference.
201.4  General provisions concerning contents.
201.5  Advertising and sales by applicants.

        Subpart B--Certificate Terms, Conditions, and Limitations

201.6  Applicability.
201.7  General certificate conditions.

    Authority: 5 U.S.C. 1008; 49 U.S.C. Chapters 401, 411, 413, 415, 
417.

    Source: Docket No. 47582, 57 FR 38765, Aug. 27, 1992, unless 
otherwise noted.



                    Subpart A--Application Procedures



Sec. 201.1  Formal requirements.

    (a) Applications for certificates of public convenience and 
necessity under section 41102 of the Statute and for interstate all-
cargo air transportation certificates under section 41103 of the Statute 
shall meet the requirements set forth in part 302 of this chapter as to 
general requirements, execution, number of copies, service, and formal 
specifications of papers.
    (b) Any person desiring to provide air transportation as a commuter 
air carrier must comply with the registration provisions of part 298 of 
this chapter and submit data to support a fitness determination in 
accordance with part 204 of this chapter. An executed original plus two 
(2) true copies of the registration form and fitness data shall be

[[Page 8]]

filed with the Chief, Air Carrier Fitness Division.

(Approved by the Office of Management and Budget under control number 
2106-0023)
[Docket No. 47582, 57 FR 38765, Aug. 27, 1992, as amended at 60 FR 
43523, Aug. 22, 1995]



Sec. 201.2  Amendments.

    If, after receipt of any application, the Department asks the 
applicant to supply additional information, such information shall be 
furnished in the form of a supplement to the original application.



Sec. 201.3  Incorporation by reference.

    Incorporation by reference shall be avoided. However, where two or 
more applications are filed by a single carrier, lengthy exhibits or 
other documents attached to one may be incorporated in the others by 
reference if that procedure will substantially reduce the cost to the 
applicant.



Sec. 201.4  General provisions concerning contents.

    (a) All pages of an application shall be consecutively numbered, and 
the application shall clearly describe and identify each exhibit by a 
separate number or symbol. All exhibits shall be deemed to constitute a 
part of the application to which they are attached.
    (b) All amendments to applications shall be consecutively numbered 
and shall comply with the requirements of this part.
    (c) Requests for authority to engage in interstate air 
transportation shall not be included in the same application with 
requests for authority to engage in foreign air transportation. 
Similarly, requests for authority to engage in scheduled air 
transportation under section 41102 of the Statute shall not be included 
in the same application with requests for authority to engage in charter 
air transportation under section 41102 of the Statute or with requests 
for authority to engage in interstate all-cargo air transportation under 
section 41103 of the Statute.
    (d) Each application shall specify the type or types of service 
(passengers, property or mail) to be rendered and whether such services 
are to be rendered on scheduled or charter operations.
    (e) Each application for foreign scheduled air transportation shall 
include an adequate identification of each route for which a certificate 
is desired, including the terminal and intermediate points to be 
included in the certificate for which application is made.
    (f) Each application shall give full and adequate information with 
respect to each of the relevant filing requirements set forth in part 
204 of this chapter. In addition, the application may contain such other 
information and data as the applicant shall deem necessary or 
appropriate in order to acquaint the Department fully with the 
particular circumstances of its case; however, the statements contained 
in an application shall be restricted to significant and relevant facts.

(Approved by the Office of Management and Budget under control number 
2106-0023)
[Docket No. 47582, 57 FR 38765, Aug. 27, 1992, as amended at 60 FR 
43523, Aug. 22, 1995]



Sec. 201.5  Advertising and sales by applicants.

    (a) An applicant for new or amended certificate or commuter air 
carrier authority shall not:
    (1) Advertise, list schedules, or accept reservations for the air 
transportation covered by its application until the application has been 
approved by the Department; or
    (2) Accept payment or issue tickets for the air transportation 
covered by its application until the authority or amended authority has 
become effective or the Department issues a notice authorizing sales.
    (b) An applicant for new or amended certificate or commuter air 
carrier authority may not advertise or publish schedule listings for the 
air transportation covered by its application after the application has 
been approved by the Department (but before all authority issued by DOT, 
including the FAA, becomes effective) unless such advertising or 
schedule listings prominently state: ``This service is subject to 
receipt of government operating authority.''

[[Page 9]]



        Subpart B--Certificate Terms, Conditions, and Limitations



Sec. 201.6  Applicability.

    Unless the certificate or the order authorizing its issuance shall 
otherwise provide, such terms, conditions and limitations as are set 
forth in this part, and as may from time to time be prescribed by the 
Department, shall apply to the exercise of the privileges granted by 
each certificate issued under section 41102 or section 41103 of the 
Statute.

[Docket No. 47582, 57 FR 38765, Aug. 27, 1992, as amended at 60 FR 
43523, Aug. 22, 1995]



Sec. 201.7  General certificate conditions.

    (a) It shall be a condition upon the holding of a certificate that 
any intentional failure by the holder to comply with any provision of 
Statute or any order, rule, or regulation issued thereunder or any term, 
condition, or limitation of such certificate shall be a failure to 
comply with the terms, conditions, and limitations of the certificate 
within the meaning of section 41110 of the Statute even though the 
failure to comply occurred outside the territorial limits of the United 
States, except to the extent that such failure shall be necessitated by 
an obligation, duty, or liability imposed by a foreign country.
    (b) Failure to file the reports required by part 241, 291, or 298 of 
this chapter shall be sufficient grounds to revoke a certificate.
    (c) The authority to transport U.S. mail under a certificate is 
permissive, unless the Department, by order or rule, directs a carrier 
or class of carriers to transport mail on demand of the U.S. Postal 
Service; such certificate confers no right to receive subsidy, for the 
carriage of mail or otherwise.
    (d) An all-cargo air transportation certificate shall confer no 
right to carry passengers, other than cargo attendants accompanying a 
shipment, or to engage in any air transportation outside the 
geographical scope of interstate cargo transportation. Such certificate 
shall not, however, restrict the right of the holder to provide 
scheduled, charter, contract, or other transportation of cargo, by air, 
within that geographical scope.
    (e) It shall be a condition upon the holding of a certificate that 
the holder have and maintain in effect and on file with the Department a 
signed counterpart of Agreement 18900 (OST Form 4523), and a tariff (for 
those carriers otherwise generally required to file tariffs) that 
includes its terms, and that the holder comply with all other 
requirements of part 203. OST Form 4523 may be obtained from the Office 
of Aviation Analysis, Special Authorities Division.

[Docket No. 47582, 57 FR 38765, Aug. 27, 1992, as amended at 60 FR 
43523, Aug. 22, 1995]



PART 203--WAIVER OF WARSAW CONVENTION LIABILITY LIMITS AND DEFENSES--Table of Contents




Sec.
203.1  Scope.
203.2  Applicability.
203.3  Filing requirements for adherence to Montreal Agreement.
203.4  Montreal Agreement as part of airline-passenger contract and 
          conditions of carriage.
203.5  Compliance as condition on operations in air transportation.

    Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417.

    Source: ER-1324, 48 FR 8044, Feb. 25, 1983, unless otherwise noted.



Sec. 203.1  Scope.

    This part requires that certain U.S. and foreign direct air carriers 
waive the passenger liability limits and certain carrier defenses in the 
Warsaw Convention in accordance with the provisions of Agreement 18900, 
dated May 13, 1966, and provides that acceptance of authority for, or 
operations by the carrier in, air transportation shall be considered to 
act as such a waiver by that carrier.

[ER-1324, 48 FR 8044, Feb. 25, 1983, as amended by Docket No. 47939, 57 
FR 40100, Sept. 2, 1992]



Sec. 203.2  Applicability.

    This part applies to all direct U.S. and foreign direct air 
carriers, except for air taxi operators as defined in part

[[Page 10]]

298 of this chapter that (a) are not commuter air carriers, (b) do not 
participate in interline agreements, and (c) do not engage in foreign 
air transportation.



Sec. 203.3  Filing requirements for adherence to Montreal Agreement.

    All direct U.S. and foreign air carriers shall have and maintain in 
effect and on file in the Department's Documentary Services Division 
(Docket 17325) on OST Form 4523 a signed counterpart to Agreement 18900, 
an agreement relating to liability limitations of the Warsaw Convention 
and Hague Protocol approved by CAB Order E-23680, dated May 13, 1966 
(the Montreal Agreement), and a signed counterpart of any amendment or 
amendments to such Agreement that may be approved by the Department and 
to which the air carrier or foreign air carrier becomes a party. U.S. 
air taxi operators registering under part 298 of this chapter and 
Canadian charter air taxi operators registering under part 294 of this 
chapter may comply with this requirement by filing completed OST Forms 
4507 and 4523, respectively, with the Department's Office of Aviation 
Analysis. Copies of these forms can be obtained from the Office of 
Aviation Analysis, Special Authorities Division.

[Docket No. 47939, 57 FR 40100, Sept. 2, 1992, as amended at 60 FR 
43523, Aug. 22, 1995]



Sec. 203.4  Montreal Agreement as part of airline-passenger contract and conditions of carriage.

    (a) As required by the Montreal Agreement, carriers that are 
otherwise generally required to file tariffs shall file with the 
Department's Tariffs Division a tariff that includes the provisions of 
the counterpart to Agreement 18900.
    (b) As further required by that Agreement, each participating 
carrier shall include the Agreement's terms as part of its conditions of 
carriage. The participating carrier shall give each of its passengers 
the notice required by the Montreal Agreement as provided in 
Sec. 221.175 of this chapter.
    (c) Participation in the Montreal Agreement, whether by signing the 
Agreement, filing a signed counterpart to it under Sec. 203.3, or by 
operation of law under Sec. 203.5, shall constitute a special agreement 
between the carrier and its passengers as a condition of carriage that a 
liability limit of not less than $75,000 (U.S.) shall apply under 
Article 22(1) of the Warsaw Convention for passenger injury and death. 
Such participation also constitutes a waiver of the defense under 
Article 20(1) of the Convention that the carrier was not negligent.

(The reporting provisions contained in paragraph (a) were approved by 
the Office of Management and Budget under control number 3024-0064.)

[ER-1324, 48 FR 8044, Feb. 25, 1983, as amended by ER-1338, 48 FR 31013, 
July 6, 1983; Docket No. 47939, 57 FR 40100, Sept. 2, 1992]



Sec. 203.5  Compliance as condition on operations in air transportation.

    It shall be a condition on the authority of all direct U.S. and 
foreign carriers to operate in air transportation that they have and 
maintain in effect and on file with the Department a signed counterpart 
of Agreement 18900, and a tariff (for those carriers otherwise generally 
required to file tariffs) that includes its provisions, as required by 
this subpart. Notwithstanding any failure to file that counterpart and 
such tariff, any such air carrier or foreign air carrier issued license 
authority (including exemptions) by the Department or operating in air 
transportation shall be deemed to have agreed to the provisions of 
Agreement 18900 as fully as if that air carrier or foreign air carrier 
had in fact filed a properly executed counterpart to that Agreement and 
tariff.

[ER-1324, 48 FR 8044, Feb. 25, 1983, as amended by Docket No. 47939, 57 
FR 40100, Sept. 2, 1992]



PART 204--DATA TO SUPPORT FITNESS DETERMINATIONS--Table of Contents




                      Subpart A--General Provisions

Sec.
204.1  Purpose.
204.2  Definitions.

                     Subpart B--Filing Requirements

204.3  Applicants for new certificate or commuter air carrier authority.

[[Page 11]]

204.4  Carriers proposing to provide essential air service.
204.5  Certificated and commuter air carriers undergoing or proposing to 
          undergo substantial change in operations, ownership, or 
          management.
204.6  Certificated and commuter air carriers proposing a change in 
          operations, ownership, or management which is not substantial.
204.7  Revocation for dormancy.

    Authority: 49 U.S.C. Chapters 401, 411, 417.

    Source: Docket No. 47582, 57 FR 38766, Aug. 27, 1992, unless 
otherwise noted.



                      Subpart A--General Provisions



Sec. 204.1  Purpose.

    This part sets forth the fitness data that must be submitted by 
applicants for certificate authority, by applicants for authority to 
provide service as a commuter air carrier to an eligible place, by 
carriers proposing to provide essential air transportation, and by 
certificated air carriers and commuter air carriers proposing a 
substantial change in operations, ownership, or management. This part 
also contains the procedures and filing requirements applicable to 
carriers that hold dormant authority.

[Docket No. 47582, 57 FR 38766, Aug. 27, 1992, as amended at 60 FR 
43523, Aug. 22, 1995]



Sec. 204.2  Definitions.

    As used in this part:
    (a) All-cargo air carrier or section 41103 carrier means an air 
carrier holding an all-cargo air transportation certificate issued under 
section 41103 of the Statute authorizing the transportation by aircraft 
in interstate air transportation of only property or only mail, or both.
    (b) Certificate authority means authority to provide air 
transportation granted by the Department of Transportation or Civil 
Aeronautics Board in the form of a certificate of public convenience and 
necessity under section 41102 of the Statute or an all-cargo air 
transportation certificate to perform all-cargo air transportation under 
section 41103 of the Statute. Certificated carriers are those that hold 
certificate authority.
    (c) Citizen of the United States means:
    (1) An individual who is a citizen of the United States;
    (2) A partnership each of whose partners is an individual who is a 
citizen of the United States; or
    (3) A corporation or association organized under the laws of the 
United States or a State, the District of Columbia, or a territory or 
possession of the United States, of which the president and at least 
two-thirds of the board of directors and other managing officers are 
citizens of the United States, and in which at least 75 percent of the 
voting interest is owned or controlled by persons that are citizens of 
the United States.
    (d) Commuter air carrier means an air carrier holding or seeking 
authority under part 298 of this Chapter that carries passengers on at 
least five round trips per week on at least one route between two or 
more points according to its published flight schedules that specify the 
times, days of the week, and places between which those flights are 
performed.
    (e) Eligible place means a place in the United States that--
    (1) Was an eligible point under section 419 of the Federal Aviation 
Act of 1958 as in effect before October 1, 1988;
    (2) Received scheduled air transportation at any time between 
January 1, 1990, and November 4, 1990; and
    (3) Is not listed in Department of Transportation Orders 89-9-37 and 
89-12-52 as a place ineligible for compensation under Subchapter II of 
Chapter 417 of the Statute.
    (f) Essential air service is that air transportation which the 
Department has found to be essential under Subchapter II of Chapter 417 
of the Statute.
    (g) Fit means fit, willing, and able to perform the air 
transportation in question properly and to conform to the provisions of 
the Statute and the rules, regulations and requirements issued under the 
Statute.
    (h) Interstate air transportation means the transportation of 
passengers or property by aircraft as a common carrier for compensation, 
or the transportation of mail by aircraft--
    (1) Between a place in--
    (i) A State, territory, or possession of the United States and a 
place in the

[[Page 12]]

District of Columbia or another State, territory, or possession of the 
United States;
    (ii) Hawaii and another place in Hawaii through the airspace over a 
place outside Hawaii;
    (iii) The District of Columbia and another place in the District of 
Columbia; or
    (iv) A territory or possession of the United States and another 
place in the same territory or possession; and
    (2) When any part of the transportation is by aircraft.
    (i) Key personnel include the directors, president, chief executive 
officer, chief operating officer, all vice presidents, the directors or 
supervisors of operations, maintenance, and finance, and the chief pilot 
of the applicant or air carrier, as well as any part-time or full-time 
advisors or consultants to the management of the applicant or air 
carrier.
    (j) Normalized operations are those which are relatively free of 
start-up costs and temporary barriers to full-scale operations posed by 
the carrier's limited experience.
    (k) Relevant corporations are the applicant or air carrier, any 
subsidiary thereof, any predecessor thereof (i.e., any air carrier in 
which any directors, principal officers or persons having a substantial 
interest have or once had a substantial interest), and any company 
(including a sole proprietorship or partnership) which has a significant 
financial or managerial influence on the applicant or air carrier. The 
latter includes:
    (1) Any company (including a sole proprietorship or partnership) 
holding more than 50 percent of the outstanding voting stock of the 
applicant or air carrier; and
    (2) Any company (including a sole proprietorship or partnership) 
holding between 20 percent and 50 percent of the outstanding voting 
stock of the applicant or air carrier as indicated, for example, by 25 
percent representation on the board of directors, participation in 
policy-making processes, substantial inter-company transactions, or 
managerial personnel with common responsibilities in both companies.
    (l) Substantial change in operations, ownership, or management 
includes, but is not limited to, the following events:
    (1) Changes in operations from charter to scheduled service, cargo 
to passenger service, short-haul to long-haul service, or (for a 
certificated air carrier) small-aircraft to large-aircraft operations;
    (2) The filing of a petition for reorganization or a plan of 
reorganization under Chapter 11 of the federal bankruptcy laws;
    (3) The acquisition by a new shareholder or the accumulation by an 
existing shareholder of beneficial control of 10 percent or more of the 
outstanding voting stock in the corporation; and
    (4) A change in the president, chief executive officer or chief 
operating officer, and/or a change in at least half of the other key 
personnel within any 12-month period or since its latest fitness review, 
whichever is the more recent period.
    (m) Substantial interest means beneficial control of 10 percent or 
more of the outstanding voting stock.

[Docket No. 47582, 57 FR 38766, Aug. 27, 1992, as amended at 60 FR 
43523, Aug. 22, 1995]



                     Subpart B--Filing Requirements



Sec. 204.3  Applicants for new certificate or commuter air carrier authority.

    An applicant for a type of certificate authority it does not 
currently hold or for commuter air carrier authority shall file the data 
set forth in paragraphs (a) through (v) of this section. In addition, 
the Department may require an applicant to provide additional data if 
necessary to reach an informed judgment about its fitness. If the 
applicant has previously formally filed any of the required data with 
the Department or with another Federal agency and they are available to 
the Department, and those data continue to reflect the current state of 
the carrier's fitness, the applicant may instead identify the data and 
provide a citation for the date(s) and place(s) of filing. Prior to 
filing any data, the applicant may contact the Air Carrier Fitness 
Division to ascertain what data required by this section are already 
available to the Department and need not be included in the filing.

[[Page 13]]

    Note: If the applicant intends to use as evidence data it has 
previously filed pursuant to part 241 reporting requirements and those 
data contain errors, the applicant must first file corrected reports in 
accordance with Sec. 241.22(g).
    (a) The name, address, and telephone number of the applicant.
    (b) The form of the applicant's organization.
    (c) The State law(s) under which the applicant is organized.
    (d) If the applicant is a corporation, a statement provided by the 
Office of the Secretary of State, or other agent of the State in which 
the applicant is incorporated, certifying that the applicant corporation 
is in good standing.
    (e) A sworn affidavit stating that the applicant is a citizen of the 
United States.
    (f) The identity of the key personnel who would be employed by the 
applicant, including:
    (1) Their names and addresses;
    (2) The experience, expertise, and responsibilities of each;
    (3) The number of shares of the applicant's voting stock held by 
each and the percentage of the total number of such shares issued and 
outstanding, and the citizenship and principal business of any person 
for whose account, if other than the holder, such interest is held;
    (4) The citizenship of each; and
    (5) A description of the officerships, directorships, shares of 
stock (if 10 percent or more of total voting stock outstanding), and 
other interests each holds or has held in any air carrier, foreign air 
carrier, common carrier, person substantially engaged in the business of 
aeronautics or persons whose principal business (in purpose or fact) is 
the holding of stock in or control of any air carrier, common carrier or 
person substantially engaged in the business of aeronautics.
    (g) A list of all persons having a substantial interest in the 
applicant. Such list shall include:
    (1) Each person's name, address and citizenship;
    (2) The number of shares of the applicant's voting stock held by 
each such person and the corresponding percentage of the total number of 
such shares issued and outstanding, and the citizenship and principal 
business of any person for whose account, if other than the holder, such 
interest is held;
    (3) If any two or more persons holding a substantial interest in the 
applicant are related by blood or marriage, such relationship(s) shall 
be included in the list; and
    (4) If any person or subsidiary of a person having a substantial 
interest in the applicant is or has ever been
    (i) An air carrier, a foreign air carrier, a common carrier, or
    (ii) Substantially engaged in the business of aeronautics, or
    (iii) An officer or director of any such entity, or
    (iv) A holder of 10 percent or more of total outstanding voting 
stock of any such entity, the list shall describe such relationship(s).
    (h) A list of the applicant's subsidiaries, if any, including a 
description of each subsidiary's principal business and relationship to 
the applicant.
    (i) A list of the applicant's shares of stock in, or control of, any 
air carrier, foreign air carrier, common carrier, or person 
substantially engaged in the business of aeronautics.
    (j) To the extent any relevant corporation has been engaged in any 
business prior to the filing of the application, each applicant shall 
provide:
    (1) Copies of the 10K Annual Reports filed in the past 3 years by 
any relevant corporation required to file such reports with the 
Securities and Exchange Commission, and
    (2) Copies of recently filed 10Q Quarterly Reports, as necessary, in 
order to show the financial condition and results of operations of the 
enterprise current to within 3 months of the date of the filing of the 
application.
    (k) If 10K Reports are not filed with the Securities and Exchange 
Commission, the following, for the 3 most recent calendar or fiscal 
years, reflecting the financial condition and results of operations of 
the enterprise current to within 3 months of the date of the filing of 
the application:
    (1) The Balance Sheet of each relevant corporation;
    (2) The Income Statement of each relevant corporation;
    (3) All footnotes applicable to the financial statements, including:

[[Page 14]]

    (i) A statement as to whether the documents were prepared in 
accordance with Generally Accepted Accounting Principles, and
    (ii) A description of the significant accounting policies of each 
relevant corporation, such as for depreciation, amortization of 
intangibles, overhauls, unearned revenues, and cost capitalization;
    (4) A statement of significant events occurring subsequent to the 
most recent Balance Sheet date for each relevant corporation; and
    (5) A statement identifying the person who has prepared the 
financial statements, his or her accounting qualifications, and any 
affiliation he or she has with the applicant.
    (l) A list of all actions and outstanding judgments for more than 
$5,000 against any relevant corporation, key personnel employed (or to 
be employed) by any relevant corporation, or person having a substantial 
interest in any relevant corporation, including the amount of each 
judgment, the party to whom it is payable, and how long it has been 
outstanding.
    (m) The number of actions and outstanding judgments of less than 
$5,000 against each relevant corporation, key personnel employed (or to 
be employed) by any relevant corporation, or person having a substantial 
interest in any relevant corporation, and the total amount owed by each 
on such judgments.
    (n) A description of the applicant's fleet of aircraft, including:
    (1) The number of each type of aircraft owned, leased and to be 
purchased or leased;
    (2) Applicant's plans, including financing plans, for the purchase 
or lease of additional aircraft; and
    (3) A sworn affidavit stating that each aircraft owned or leased has 
been certified by the FAA and currently complies with all FAA safety 
standards.
    (o) A description of the current status of all pending 
investigations, enforcement actions, and formal complaints filed by the 
Department, including the FAA, involving the applicant or any relevant 
corporation, any personnel employed (or to be employed) by any relevant 
corporation or person having a substantial interest in any relevant 
corporation, regarding compliance with the Statute or orders, rules, 
regulations, or requirements issued pursuant to the Statute, and any 
corrective actions taken. (If an applicant has a compliance history that 
warrants it, additional information may be required.)
    (p) A description of all charges of unfair or deceptive or 
anticompetitive business practices, or of fraud, felony or antitrust 
violation, brought against any relevant corporation or person having a 
substantial interest in any relevant corporation, or member of the key 
personnel employed (or to be employed) by any relevant corporation in 
the past 10 years. Such descriptions shall include the disposition or 
current status of each such proceeding.
    (q) A description of any aircraft accidents or incidents (as defined 
in the National Transportation Safety Board Regulations, 49 CFR 830.2) 
experienced by the applicant, its personnel, or any relevant 
corporation, which occurred either during the year preceding the date of 
application or at any time in the past and which remain under 
investigation by the FAA, the NTSB, or by the company itself, including:
    (1) The date of the occurrence;
    (2) The type of flight;
    (3) The number of passengers and crew on board and an enumeration of 
any injuries or fatalities;
    (4) A description of any damage to the aircraft;
    (5) The FAA and NTSB file numbers and the status of the 
investigations, including any enforcement actions initiated against the 
carrier or any of its personnel; and
    (6) Positive actions taken to prevent recurrence. (If an applicant's 
history of accidents or incidents warrants it, additional information 
may be required.)
    (r) A brief narrative history of the applicant.
    (s) A description of all Federal, State and foreign authority under 
which the applicant has conducted or is conducting transportation 
operations, and the identify of the local FAA office and personnel 
responsible for processing an application for any additional FAA 
authority needed to conduct the proposed operations.

[[Page 15]]

    (t) A description of the service to be operated if the application 
is granted, including:
    (1) A forecast Balance Sheet for the first normal year ending after 
the initially proposed operations have been incorporated, along with the 
assumptions underlying the accounts and amounts shown; and
    (2) A forecast Income Statement, broken down by quarters, for the 
first year ending after the initially proposed operations are 
normalized, and an itemization of all pre-operating and start-up costs 
associated with the initiation of the proposed service. Such Income 
Statement shall include estimated revenue block hours (or airborne 
hours, for charter operators) and revenue miles by type of aircraft, 
number of passengers and number of tons of mail and cargo to be carried, 
transport revenues and an estimate of the traffic which would be 
generated in each market receiving the proposed service. Such statements 
shall also include a statement as to whether the statements were 
prepared on the accrual or cash basis, an explanation of how the 
estimated costs and revenues were developed, a description of the manner 
in which costs and revenues are allocated, how the underlying traffic 
forecasts were made, and what load factor has been assumed for the 
average and peak month. Pre-operating and start-up costs should include, 
but are not limited to, the following: Obtaining necessary government 
approval; establishing stations; introductory advertising; aircraft, 
equipment and space facility deposits and rent; training; and salaries 
earned prior to start-up.
    (u) A signed counterpart of Agreement 18900 (OST Form 4523) as 
required by part 203 of this chapter.
    (v) The following certification, which shall accompany the 
application and all subsequent written submissions filed by the 
applicant in connection with its application:
    Pursuant to title 18 United States Code section 1001, I [the 
individual signing the application, who shall be a principal owner, 
senior officer, or internal counsel of the applicant], in my individual 
capacity and as the authorized representative of the applicant, have not 
in any manner knowingly and willfully falsified, concealed or covered up 
any material fact or made any false, fictitious, or fraudulent statement 
or knowingly used any documents which contain such statements in 
connection with the preparation, filing or prosecution of the 
application. I understand that an individual who is found to have 
violated the provisions of 18 U.S.C. section 1001 shall be fined nor 
more than $10,000 or imprisoned not more than five years, or both.

(The reporting requirements contained in this section were approved by 
the Office of Management and Budget under control number 2106-0023)

[Docket No. 47582, 57 FR 38766, Aug. 27, 1992, as amended at 60 FR 
43524, Aug. 22, 1995]



Sec. 204.4  Carriers proposing to provide essential air service.

    Applicants proposing to provide essential air service have been 
divided into two categories, and are subject to differing data 
submission requirements as set forth in paragraphs (a) and (b) of this 
section. However, if a carrier has previously filed any of the required 
data with the Department or other Federal agency and they are available 
to the Department, and these data continue to reflect the current state 
of the carrier's fitness, the carrier may instead identify the data and 
provide a citation for the date and place of filing. All carriers may 
contact the Air Carrier Fitness Division to ascertain what information 
is already available to the Department and thus may not need to be 
resubmitted.
    (a) Carriers who propose to begin or expand non-subsidized essential 
air service when the incumbent leaves the market must file the following 
information:
    (1) All of the information required under Sec. 204.3 of this part.
    (2) A description of the back-up aircraft available to the 
applicant, including:
    (i) The number of each type of such aircraft;
    (ii) The conditions under which such aircraft will be available to 
the carrier;
    (iii) The carrier's plans for financing the acquisition or lease of 
such additional aircraft; and
    (iv) A sworn affidavit stating that all such aircraft have been 
certified by the FAA and currently comply with all FAA safety standards.
    (3) A description of the fuel available to perform the proposed 
essential air

[[Page 16]]

services and the carrier's contracts with fuel suppliers.
    (4) The carrier's systemwide on-time and completion record for the 
preceding year and, if applicable, in the subject market(s).
    (5) A list of the markets the carrier serves and the number of 
weekly round trips it provides in each.
    (6) A description of the average number of block hours each type of 
aircraft is currently flown per day.
    (7) An estimate of the impact the proposed essential air service 
would have on the carrier's utilization of its aircraft fleet.
    (8) A detailed schedule of the service to be provided, including 
times of arrivals and departures, the aircraft to be used for each 
flight, and the fares to be charged.
    (9) A pro-forma income statement for the proposed operation for the 
first annual period.
    (b) Carriers filing proposals to provide subsidized service in 
response to an order inviting proposals shall file:
    (1) All of the information required under Sec. 204.3 of this part.
    (2) All of the information required under paragraph (a) of this 
section.
    (3) A forecast Income Statement covering the operations conducted in 
essential air service for the first year following the initiation of the 
proposed essential services. Such statement shall include:
    (i) Subsidy needed;
    (ii) Estimated block hours and revenue miles by type of aircraft;
    (iii) Total projected revenue including volumes of passengers and 
freight by essential air service market and the associated fares and 
rates;
    (iv) An explanation of the derivation of estimates of operating 
expenses; and
    (v) A description of the manner in which costs and revenues are 
allocated.
    (4) A traffic forecast including a load factor analysis on all 
segments between the small community and the hub; and an estimate of the 
number of seats available to and from the eligible point each day.

(Approved by the Office of Management and Budget under control number 
2106-0023)
[Docket No. 47582, 57 FR 38766, Aug. 27, 1992, as amended at 60 FR 
43524, Aug. 22, 1995]



Sec. 204.5  Certificated and commuter air carriers undergoing or proposing to undergo substantial change in operations, ownership, or management.

    (a) A certificated or commuter air carrier proposing a substantial 
change in operations, ownership or management shall file the data set 
forth in Sec. 204.3. These data must be submitted in cases where:
    (1) The proposed change requires new or amended authority, or
    (2) Although the carrier's existing certificate or commuter 
authority is adequate for the performance of its planned services, the 
change substantially alters the factors upon which its latest fitness 
finding is based.
    (b) Information which a carrier has previously formally filed with 
the Department, or with another Federal agency where they are available 
to the Department, which continues to reflect the current state of the 
carrier's fitness may be omitted. The carrier instead should identify 
the data and provide a citation for the date(s) and place(s) of filing. 
Prior to filing any data, the carrier may contact the Department (Air 
Carriers Fitness Division) to ascertain what data required by this 
section, if any, are already available to the Department or are not 
applicable to the substantial change in question and need not be 
included in the filing.
    (c) Information filings pursuant to this section made to support an 
application for new or amended certificate authority shall be filed with 
the application and addressed to the Documentary Services Division, 
Department of Transportation, 400 Seventh Street, SW., Washington, DC 
20590. Information filed in support of a certificated or commuter air 
carrier's continuing fitness to operate under its existing authority in 
light of substantial changes in its operations, ownership or management 
shall be addressed to the Chief, Air Carrier Fitness Division, 
Department of Transportation, 400 Seventh Street, SW., Washington, DC 
20590.

(Approved by the Office of Management and Budget under control number 
2106-0023)

[[Page 17]]



Sec. 204.6  Certificated and commuter air carriers proposing a change in operations, ownership, or management which is not substantial.

    Carriers proposing to make a change which would not substantially 
affect their operations, management, or ownership, such as certificated 
carriers applying for additional authority which would not substantially 
change their operations, will be presumed to be fit and need not file 
any information relating to their fitness at time of the change. 
However, if the Department concludes, from its own analysis or based on 
information submitted by third parties, that such change may bring the 
carrier's fitness into question, the Department may require the 
applicant carrier to file additional information.



Sec. 204.7  Revocation for dormancy.

    (a) An air carrier that has not commenced any type of air 
transportation operations for which it was found fit, willing, and able 
within one year of the date of that finding, or an air carrier that, for 
any period of one year after the date of such a finding, has not 
provided any type of air transportation for which that kind of finding 
is required, is deemed no longer to continue to be fit to provide the 
air transportation for which it was found fit and, accordingly, its 
authority to provide such air transportation shall be revoked.
    (b) An air carrier found fit which commences operations within one 
year after being found fit but then ceases operations, shall not resume 
operations without first filing all of the data required by Sec. 204.3 
at least 45 days before it intends to provide any such air 
transportation. Such filings shall be addressed to the Documentary 
Services Division, Department of Transportation, 400 Seventh Street, 
SW., Washington, DC 20590. The Department will entertain requests for 
exemption from this 45-day advance filing requirement for good cause 
shown. If there has been no change in fitness data previously formally 
filed with the Department, the carrier shall file a sworn statement to 
that effect signed by one of its officers. The carrier may contact the 
Department (Air Carrier Fitness Division) to ascertain which data are 
already available to the Department and need not be refiled. A carrier 
to which this paragraph applies shall not provide any air transportation 
for which it is required to be found fit, willing, and able until the 
Department decides that the carrier continues to be fit, willing, and 
able to perform such air transportation. During the pendency of the 
Department's consideration of a data submission under this paragraph, 
the expiration period set out in paragraph (a) of this section shall be 
stayed. If the decision or finding by the Department on the issue of the 
carrier's fitness is favorable, the date or that decision or finding 
shall be the date considered in applying paragraph (a) of this section.
    (c) For purposes of this section, the date of a Department decision 
or finding shall be the service date of the Department's order 
containing such decision or finding, or, in cases where the Department's 
decision or finding is made by letter, the date of such letter.
    (d) For purposes of this section, references to operations and to 
the providing of air transportation shall refer only to the actual 
performance of flight operations under an operating certificate issued 
to the carrier by the FAA.

(Approved by the Office of Management and Budget under control number 
2106-0023)



PART 205--AIRCRAFT ACCIDENT LIABILITY INSURANCE--Table of Contents




Sec.
205.1  Purpose.
205.2  Applicability.
205.3  Basic requirements.
205.4  Filing of evidence of insurance.
205.5  Minimum coverage.
205.6  Prohibited exclusions of coverage.
205.7  Cancellation, withdrawal, modification, expiration, or 
          replacement of insurance coverage.
205.8  Cargo liability disclosure statement.

    Authority: 49 U.S.C. Chapters 401, 411, 413, 417.

    Source: ER-1253, 46 FR 52577, Oct. 27, 1981, unless otherwise noted.



Sec. 205.1  Purpose.

    This part contains the rules for aircraft accident liability 
insurance coverage needed by U.S. direct air carriers to obtain or to 
exercise authority from

[[Page 18]]

the Department to operate in interstate or foreign air transportation, 
and by foreign direct air carriers to operate under permit or other 
authority in foreign air transportation. It further requires a 
disclosure statement to shippers about cargo liability limits and 
insurance coverage for U.S. and foreign direct air carriers.

[ER-1253, 46 FR 52577, Oct. 27, 1981, as amended by Docket No. 47939, 57 
FR 40100, Sept. 2, 1992; Doc. No. OST-96-1269, 61 FR 19165, May 1, 1996]



Sec. 205.2  Applicability.

    These rules apply to all U.S. direct air carriers, including 
commuter air carriers and air taxi operators as defined in Sec. 298.2 of 
this chapter, and foreign direct air carriers, including Canadian 
charter air taxi operators as defined in Sec. 294.2(c) of this chapter.

[Docket No. 47939, 57 FR 40100, Sept. 2, 1992]



Sec. 205.3  Basic requirements.

    (a) A U.S. or foreign direct air carrier shall not engage in air 
transportation unless it has in effect aircraft accident liability 
insurance coverage that meets the requirements of this part for its air 
carrier or foreign air carrier operations. The minimum amounts of 
coverage required by this part may be provided either by insurance 
policies or by self-insurance plans. The currently effective policy of 
insurance or complete plan for self-insurance shall be available for 
inspection by the Department at the carrier's principal place of 
business. The current certificate of insurance or a summary of the 
complete self-insurance plan on file with the Department, as required by 
Sec. 205.4, shall be available for public inspection at the carrier's 
principal place of business.
    (b) For purposes of this part, a certificate of insurance is one or 
more certificates showing insurance by one or more insurers (excluding 
reinsurers) of currently effective and properly endorsed policies of 
aircraft accident liability insurance in compliance with this part. When 
more than one such insurer is providing coverage, the limits and types 
of liability assumed by each insurer (excluding reinsurers) shall be 
clearly stated in the certificate of insurance. Insurance policies and 
self-insurance plans named in a certificate of insurance that 
accompanies an application for initial registration or for operating 
authority shall become effective not later than the proposed starting 
date for air carrier operations as shown in the application.
    (c) The certificate of insurance shall list the types or classes of 
aircraft, or the specific aircraft by FAA or foreign government 
registration number, with respect to which the policy of insurance 
applies, or shall state that the policy applies to all aircraft owned or 
operated by the carrier in its air transportation operations. With 
respect to certificates of insurance that list aircraft by government 
registration number, the policy or self-insurance plan shall state that, 
while an aircraft owned or leased by the carrier and declared in the 
policy is withdrawn from normal use because of its breakdown, repair, or 
servicing, such insurance as is provided by the policy or plan for that 
aircraft shall apply also to another aircraft of similar type, 
horsepower, and seating capacity, whether or not owned by the insured, 
while temporarily used as a substitute aircraft.
    (d) Each certificate of insurance shall be signed by an authorized 
officer, agent, or other representative of the insurer or the insurance 
broker.
    (e) Insurance coverage to meet the requirements of this part shall 
be obtained from one or more of the following:
    (1) An insurer licensed to issue aircraft accident liability 
policies in any State, Commonwealth, or Territory of the United States, 
or in the District of Columbia;
    (2) Surplus line insurers named on a current list of such insurers 
issued and approved by the insurance regulatory authority of any State, 
Commonwealth, or Territory of the United States or of the District of 
Columbia; or
    (3) Insurers licensed or approved by a foreign government.

This requirement may be waived by the Department in the public interest.

[ER-1253, 46 FR 52577, Oct. 27, 1981, as amended by Docket No. 47939, 57 
FR 40100, Sept. 2, 1992]

[[Page 19]]



Sec. 205.4  Filing of evidence of insurance.

    (a) A U.S. or foreign air carrier shall file a certificate of 
insurance or a complete plan for self-insurance with the Department's 
Office of Aviation Analysis. Each carrier shall ensure that the evidence 
of aircraft accident liability coverage filed with the Department is 
correct at all times. The Department will normally notify the carrier 
within 20 days of receipt if the certificate or plan does not meet the 
requirements of this part. The two Certificates of Insurance (OST Form 
6410 for U.S. air carriers, including commuter air carriers and air taxi 
operators, and OST Form 6411 for foreign air carriers, including 
Canadian charter air taxi operators) are available from the Office of 
Aviation Analysis. The Department may return the certificate or self-
insurance plan to the carrier if it finds for good cause that such plan 
or certificate does not show adequate evidence of insurance coverage 
under this part.
    (b) If the coverage is by type or class of aircraft or by specific 
aircraft, endorsements that add previously unlisted aircraft or aircraft 
types or classes to coverage, or that delete listed aircraft, types, or 
classes from coverage, shall be filed with the Department's Office of 
Aviation Analysis not more than 30 days after the effective date of the 
endorsements. Aircraft shall not be listed in the carrier's operations 
specifications with the FAA and shall not be operated unless liability 
insurance coverage is in force.
    (c) When the insured air carrier is a U.S. air taxi operator 
operating in the State of Alaska, certificates and endorsements shall be 
filed with the Department's Alaska Field Office, 801 B Street, Suite 
506, Anchorage, Alaska 99501-3657.

(Approved by the Office of Management and Budget under control number 
2106-0030)
[Docket No. 47939, 57 FR 40100, Sept. 2, 1992, as amended by Doc. No. 
OST-96-1269, 61 FR 19165, May 1, 1996]



Sec. 205.5  Minimum coverage.

    (a) Insurance contracts and self-insurance plans shall provide for 
payment on behalf of the carrier, within the specific limits of 
liability in this section, of all sums that the carrier shall become 
legally obligated to pay as damages, excluding any deductible in the 
policy, for bodily injury to or death of a person, or for damage to the 
property of others, resulting from the carrier's operation or 
maintenance of aircraft in air transportation provided under its 
authority from the Department.
    (b) U.S. and foreign direct air carriers, including commuter air 
carriers but excluding U.S. air taxi operators and Canadian charter air 
taxi operators, shall maintain the following coverage:
    (1) Third-party aircraft accident liability coverage for bodily 
injury to or death of persons, including nonemployee cargo attendants, 
other than passengers, and for damage to property, with minimum limits 
of $300,000 for any one person in any one occurrence, and a total of 
$20,000,000 per involved aircraft for each occurrence, except that for 
aircraft of not more than 60 seats or 18,000 pounds maximum payload 
capacity, carriers need only maintain coverage of $2,000,000 per 
involved aircraft for each occurrence.
    (2) Any such carrier providing air transportation for passengers 
shall, in addition to the coverage required in paragraph (b)(1) of this 
section, maintain aircraft accident liability insurance coverage for 
bodily injury to or death of aircraft passengers, with minimum limits of 
$300,000 for any one passenger, and a total per involved aircraft for 
each occurrence of $300,000 times 75 percent of the number of passenger 
seats installed in the aircraft.
    (c) U.S. air taxi operators registered under part 298 shall maintain 
the following coverage:
    (1) Third-party aircraft accident liability coverage for bodily 
injury to or death of persons, including nonemployee cargo attendants, 
other than passengers, with minimum limits of:
    (i) $75,000 for any one person in any one occurrence, and a total of 
$300,000 per involved aircraft for each occurrence, and
    (ii) A limit of a least $100,000 for each occurrence for loss of or 
damage to property.
    (2) U.S. air taxi operators carrying passengers in air 
transportation shall, in addition to the coverage required in

[[Page 20]]

paragraph (c)(1) of this section, maintain aircraft accident liability 
insurance coverage for bodily injury to or death of aircraft passengers, 
with minimum limits of $75,000 for any one passenger, and a total per 
involved aircraft for each occurrence of $75,000 times 75 percent of the 
number of passenger seats installed in the aircraft.
    (d) Canadian charter air taxi operators registered under part 294 of 
this chapter shall maintain the following coverage:
    (1) Third-party aircraft accident liability coverage for bodily 
injury to or death of persons, including nonemployee cargo attendants, 
other than passengers, and for damage to property, with a minimum 
coverage of $75,000 for any one person in any one occurrence, and a 
total of $2,000,000 per involved aircraft for each occurrence, except 
that Canadian charter air taxi operators operating aircraft of more than 
30 seats or 7,500 pounds maximum cargo payload capacity, and a maximum 
authorized takeoff weight on wheels not greater than 35,000 pounds shall 
maintain coverage for those aircraft of $20,000,000 per involved 
aircraft for each occurrence.
    (2) Canadian charter air taxi operators engaging in passenger 
charter air service under part 294 of this chapter shall, in addition to 
the coverage required in paragraph (d)(1) of this section, maintain 
aircraft accident liability coverage for bodily injury to or death of 
aircraft passengers, with a minimum coverage of $75,000 for any one 
passenger and a total per involved aircraft for each occurrence of 
$75,000 times 75 percent of the total number of passenger seats 
installed in the aircraft.
    (e) Notwithstanding paragraphs (b), (c) and (d) of this section, the 
carrier may be insured for a combined single limit of liability for each 
occurrence. The combined single-limit coverage must be not less than the 
combined required minimums for bodily injury and property damage 
coverage plus, if the aircraft is used in passenger service, the 
required total passenger coverages stipulated in paragraph (b) of this 
section for U.S. and foreign direct air carriers and commuter carriers, 
paragraph (c) of this section for U.S. air taxi operators, or paragraph 
(d) of this section for Canadian charter air taxi operators.\1\ The 
single-limit liability policy for the required aircraft accident 
liability coverage may be provided by a single policy or by a 
combination of primary and excess policies.
---------------------------------------------------------------------------

    \1\ For example: the minimum single limit of liability acceptable 
for any aircraft in air taxi passenger service with 16 passenger seats 
would be computed on the basis of limits set forth in paragraph (c) as 
follows: 16  x  .75 equals 12; 12  x  $75,000 equals $900,000; $900,000 
plus $300,000 (nonpassenger liability per occurrence) plus $100,000 
(property damage per occurrence) equals $1,300,000. The latter amount is 
the minimum in which a single-limit liability policy may be written.
---------------------------------------------------------------------------

    (f) The liability coverage shall not be contingent upon the 
financial condition, solvency, or freedom from bankruptcy of the 
carrier. The limits of the liability for the amounts required by this 
part shall apply separately to each occurrence. Any payment made under 
the policy or plan because of any one occurrence shall not reduce the 
coverage for payment of other damages resulting from any other 
occurrence.

[Docket No. 47939, 57 FR 40101, Sept. 2, 1992; 57 FR 52590, Nov. 4, 
1992]



Sec. 205.6  Prohibited exclusions of coverage.

    (a) No warranty or exclusion in the policy or plan or in any 
endorsement or amendment to the policy or plan, nor any violation of the 
policy or plan by the carrier, shall remove the liability coverage 
required by this part, except as specifically approved by the 
Department. This requirement shall not limit the right of insurers to 
recover from the carrier for amounts paid.
    (b) A policy of insurance or a self-insurance plan required by this 
part shall not contain the following exclusions:
    (1) Violation of any safety-related requirement imposed by statute 
or by rule of a government agency.
    (2) Liability assumed by the carrier under an agreement to raise the 
liability limitations of the Warsaw Convention by signing a counterpart 
to the agreement of carriers (such as the Montreal Agreement, 18900, as 
approved by Board Order E-23680, May 13, 1966, agreeing to a limit on 
the carrier's liability for injury or death of

[[Page 21]]

passengers of $75,000 per passenger), or any amendment to such agreement 
that may be approved by the Department and to which the carrier becomes 
a party.

[ER-1253, 46 FR 52577, Oct. 27, 1981, as amended by Docket No. 47939, 57 
FR 40100, 40101, Sept. 2, 1992]



Sec. 205.7  Cancellation, withdrawal, modification, expiration, or replacement of insurance coverage.

    (a) Each policy of aircraft accident liability insurance and plan 
for self insurance shall specify that it shall remain in force, and may 
not be replaced, canceled, withdrawn, or in any way modified to reduce 
the minimum standards set forth in this part, or to change the extent of 
coverage, by the insurer or the carrier, nor expire by its own terms, in 
regard to coverage for the carrier in its common carrier operations in 
air transportation, until 10 days after written notice by the insurer 
(in the event of replacement, by the retiring insurer), or by the 
insurer's representative, or by the carrier, describing the change, to 
the Department's Office of Aviation Analysis (or, for Alaskan air taxi 
operators, to the Department's Alaska Field Office), which 10-day notice 
period shall start to run from the date such notice is actually received 
at the Department. For purposes of this part, a policy will not be 
considered to have expired if the same insurer renews its coverage 
without reduction in the extent of coverage or amounts of coverage, and 
without a break in coverage, whether or not a new policy is issued, and 
notice to the Department is not required in that event. If the coverage 
being changed is by type or class of aircraft or by specific aircraft, 
endorsements adding or deleting specific aircraft or types or classes of 
aircraft, for which prior notice would be required by this paragraph, 
shall be filed in accordance with Sec. 205.4(b), and prior notice of the 
change need not be given under this paragraph.
    (b) The requirements of this section shall not apply if the policy 
contains a lesser time period for cancellation in a war risk exclusion. 
If the war risk exclusion is activated by the insurer, the insurer or 
its representative shall immediately notify the Department.

[Docket No. 47939, 57 FR 40100, 40101, Sept. 2, 1992]



Sec. 205.8  Cargo liability disclosure statement.

    Every direct U.S. or foreign air carrier providing air cargo service 
in air transportation shall give notice in writing to the shipper, when 
a shipment is accepted, of the existence or absence of cargo liability 
insurance, and the limits on the extent of its liability, if any. The 
notice shall be clearly and conspicuously included on or attached to all 
of its rate sheets and airwaybills.

[ER-1282, 47 FR 16173, Apr. 15, 1982]



PART 206--CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY: SPECIAL AUTHORIZATIONS AND EXEMPTIONS--Table of Contents




Sec.
206.1  Emergency transportation.
206.2  Exemption from schedule filing.
206.3  Transportation of newspersons by all-cargo carriers.
206.4  Exemption of air carriers for military transportation.
206.5  Small aircraft operations by certificated carriers.

    Authority: 49 U.S.C. Chapters 401, 415, 417, 419.



Sec. 206.1  Emergency transportation.

    Notwithstanding the provisions of section 41101 of the Statute, and 
any term, condition or limitation attached to the exercise of the 
privileges of an air carrier certificate of public convenience and 
necessity which prohibits an air carrier from engaging in air 
transportation between any points on its route, the air carrier may 
carry between such points (a) any person or persons certified by a 
physician to be in need of immediate air transportation in order to 
secure emergency medical or surgical treatment together with any 
necessary attendant or attendants and (b) any medical supplies certified 
by a physician as requiring immediate air transportation for the 
protection of life. Air carriers offering

[[Page 22]]

to provide this emergency transportation shall file appropriate tariffs 
pursuant to Chapter 415 of the Statute.

(Secs. 204, 416, 72 Stat. 743, 771; 49 U.S.C. 1324, 1386)

[ER-261, 24 FR 1860, Mar. 14, 1959, as amended at 60 FR 43524, Aug. 22, 
1995]



Sec. 206.2  Exemption from schedule filing.

    All air carriers are hereby exempted from the requirements of 
section 41902(b) of the Statute, which provides that each air carrier 
must periodically provide the Department and the U.S. Postal Service a 
listing of all of its regularly operated aircraft schedules and schedule 
changes, showing for each schedule the points served and the departure 
and arrival times.

[Docket No. 47939, 57 FR 40101, Sept. 2, 1992, as amended at 60 FR 
43524, Aug. 22, 1995]



Sec. 206.3  Transportation of newspersons by all-cargo carriers.

    Notwithstanding the provisions of section 41101 and Chapter 415 of 
the Statute and part 221 of this chapter, an air carrier holding a 
certificate of public convenience and necessity for the transportation 
of only property and mail may provide transportation to persons on 
regularly scheduled cargo flights for the purpose of collecting data for 
preparation of feature news, pictorial or like articles provided that 
the transportation is limited to the writer, journalist, or photographer 
engaged in the preparation of data for use in feature news, pictorial, 
or like articles which are to appear in newspapers or magazines, or on 
radio or television programs and which will publicize the regularly 
scheduled cargo operations of the carrier.

[Docket No. 47939, 57 FR 40102, Sept. 2, 1992, as amended at 60 FR 
43524, Aug. 22, 1995]



Sec. 206.4  Exemption of air carriers for military transportation.

    Air carriers providing air transportation pursuant to a contract 
with the Department of Defense are hereby exempted from Chapter 415 of 
the Statute, and from part 221, Secs. 207.4 and 208.32, of this chapter, 
with respect to those services.

[Docket No. 47939, 57 FR 40102, Sept. 2, 1992, as amended at 60 FR 
43524, Aug. 22, 1995]



Sec. 206.5  Small aircraft operations by certificated carriers.

    (a) A carrier holding an effective certificate issued under section 
41102 of the Statute, when conducting operations with small aircraft, is 
exempt from the requirements of the Statute as set forth in subpart B of 
part 298 of this chapter, except section 41708 of the Statute, and is 
subject to the requirements set forth in the following provisions of 
this chapter:
    (1) Part 205, with the minimum coverage requirements of 
Sec. 205.5(b),
    (2) Part 215,
    (3) Part 298, subpart D, Secs. 298.30, and 298.38, and subpart H, 
and
    (4) Part 298, subpart F, if the certificated carrier conducts 
operations with small aircraft only (a certificated carrier conducting 
operations with both small and large aircraft is subject only to the 
reporting requirements contained in part 241 of this chapter).
    (b) If a certificated carrier, when conducting operations with small 
aircraft, provides foreign air transportation that includes a segment 
for which tariff filing is required and another segment for which tariff 
filing is not required, then for through service over that routing the 
carrier has the option of filing a tariff or charging the sum of the 
applicable local rates, fares, or charges. If the carrier files a tariff 
for through service, it is not exempt from Chapter 415 or section 41310 
of the Statute for that air transportation.

[Docket No. 47939, 57 FR 40102, Sept. 2, 1992, as amended at 60 FR 
43524, Aug. 22, 1995]



PART 207--CHARTER TRIPS BY U.S. SCHEDULED AIR CARRIERS--Table of Contents




Sec.
207.1  Applicability.
207.2  Terms of service.

    Authority: 49 U.S.C. 40101, 40102, 40109, 40113, 41101, 41102, 
41103, 41301, 41504, 41702, 41708, 41712, 46101.

    Source: Docket No. OST-97-2356, 63 FR 28236, May 22, 1998, unless 
otherwise noted.

[[Page 23]]



Sec. 207.1  Applicability.

    This part establishes the terms, conditions, and limitations 
applicable to charter air transportation conducted by air carriers 
holding certificates under 49 U.S.C. 41102 authorizing the operation of 
scheduled air transportation services.



Sec. 207.2  Terms of service.

    Charter air transportation under this part shall be performed in 
accordance with the provisions of part 212 of this chapter.



PART 208--CHARTER TRIPS BY U.S. CHARTER AIR CARRIERS--Table of Contents




Sec.
208.1  Applicability.
208.2  Terms of service.

    Authority: 49 U.S.C. 40101, 40102, 40109, 40113, 41101, 41102, 
41103, 41301, 41504, 41702, 41708, 41712, 46101.

    Source: Docket No. OST-97-2356, 63 FR 28236, May 22, 1998, unless 
otherwise noted.



Sec. 208.1  Applicability.

    This part establishes the terms, conditions, and limitations 
applicable to charter air transportation conducted by air carriers 
holding certificates under 49 U.S.C. 41102 authorizing the operation of 
charter air transportation services.



Sec. 208.2  Terms of service.

    Charter air transportation under this part shall be performed in 
accordance with the provisions of Part 212 of this chapter.



PART 211--APPLICATIONS FOR PERMITS TO FOREIGN AIR CARRIERS--Table of Contents




                           Subpart A--General

Sec.
211.1  Purpose.
211.2  Applicability.

                     Subpart B--General Requirements

211.10  Filing specifications.
211.11  Verification.
211.12  Filing and service.
211.13  Amendments to applications.
211.14  Incorporation by reference.
211.15  Statements of fact.
211.16  Oral hearing.

                   Subpart C--Information Requirements

211.20  Initial foreign air carrier permit or transfer of a permit.
211.21  Amendments or renewal of foreign air carrier permits.

             Subpart D--Freely Associated State Air Carriers

211.30  Eligibility.
211.31  Application.
211.32  Issuance of permit.
211.33  Interstate and interstate authority.
211.34  Other permits.
211.35  Termination of eligibility.

    Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417.

    Source: ER-1386, 49 FR 33439, Aug. 23, 1984, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 211 appear at 61 FR 
34725, July 3, 1996.



                           Subpart A--General



Sec. 211.1  Purpose.

    This part sets forth the filing and evidence requirements for 
foreign air carriers applying for authority to engage in foreign air 
transportation under section 41301 of Title 49 of the United States Code 
(Transportation).

(Approved by the Office of Management and Budget under control number 
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984]



Sec. 211.2  Applicability.

    (a) Except as provided in paragraph (b) of this section, this part 
applies to all foreign air carriers seeking initial foreign air carrier 
permits or the transfer, renewal, or amendment of an existing foreign 
air carrier permit.
    (b) Canadian charter air taxi operators, foreign indirect air 
carriers of property, and foreign charter operators are not required to 
submit applications under this part. Instead, Canadian charter air taxi 
operators shall register under part 294 of this chapter, foreign 
indirect air carriers of property shall register under part 297 of this 
chapter,

[[Page 24]]

and foreign charter operators shall register under subpart F of part 380 
of this chapter.

(Approved by the Office of Management and Budget under control number 
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984]



                     Subpart B--General Requirements



Sec. 211.10  Filing specifications.

    (a) Except as provided in paragraph (b) of this section, applicants 
shall follow the requirements in Sec. 302.3 of this chapter as to 
execution, number of copies, and formal specifications of papers.
    (b) Mexican air taxi operators filing applications for foreign air 
carrier permits authorizing charter flights across the Mexico-United 
States border with small aircraft (a maximum passenger capacity of 60 
seats or less, or a maximum payload capacity of 18,000 pounds or less) 
shall file an original and two copies of the application. The 
application shall conform to the instruction document available from the 
Foreign Air Carrier Licensing Division, Office of International 
Aviation, Department of Transportation, 400 Seventh Street, SW., 
Washington, DC 20590.
    (c) An application shall have consecutively numbered pages, and 
shall clearly describe and identify each exhibit by a separate number or 
symbol. All exhibits are part of the application to which they are 
attached.
    (d) Applications shall state all weights, measures and monetary 
units in U.S. terms, and all text in English.

(Approved by the Office of Management and Budget under control number 
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984; 61 FR 34725, July 3, 1996]



Sec. 211.11  Verification.

    Applications shall be verified and subscribed and sworn to before a 
Notary Public or other officer authorized to administer oaths in the 
jurisdiction in which the application is executed. An application 
verified before a United States consular officer meets the requirements 
of this section.

(Approved by the Office of Management and Budget under control number 
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984]



Sec. 211.12  Filing and service.

    All types of applications for foreign air carrier permits (initial, 
renewal, amendment, or transfer) are filed as of the date the 
applications are received at the Department's Docket Facility. Each 
applicant shall serve those persons as required in part 302, subpart Q, 
of this chapter.

(Approved by the Office of Management and Budget under control number 
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984]



Sec. 211.13  Amendments to applications.

    An applicant shall submit any information required by this part that 
is omitted from the original application, or any additional information, 
as an amendment to the original application. Applicants shall 
consecutively number amendments to applications and shall comply with 
the requirements of this subpart.

(Approved by the Office of Management and Budget under control number 
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984]



Sec. 211.14  Incorporation by reference.

    Where two or more applications are filed by a single carrier, the 
applicant may incorporate lengthy exhibits, or other documents, attached 
to one application into others by reference. The applicant may not 
incorporate by reference and update any information from a previous 
docket unless submitted within the past 2 years. The applicant must 
identify the docket, and the page number or exhibit number being 
incorporated, and state that there has been no change in that 
information since submitting the original information.

(Approved by the Office of Management and Budget under control number 
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984]



Sec. 211.15  Statements of fact.

    The applicant shall include only significant and relevant facts in 
an application. Each application shall contain adequate information with 
respect to the evidence required in subpart C of this part. The 
application may contain

[[Page 25]]

other information and data the applicant considers necessary to explain 
particular circumstances.

(Approved by the Office of Management and Budget under control number 
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984]



Sec. 211.16  Oral hearing.

    If an oral evidentiary hearing is convened, the applicant must make 
available witnesses who are competent and able to testify to the 
accuracy of the statements and documents submitted.

(Approved by the Office of Management and Budget under control number 
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984]



                   Subpart C--Information Requirements



Sec. 211.20  Initial foreign air carrier permit or transfer of a permit.

    A person applying for an initial foreign air carrier permit or the 
transfer of a permit shall submit the information listed below. The 
applicant must fully comply with this requirement. If the applicant is 
unable to respond to an item, the application shall contain an 
explanation, and include substitute information most closely 
approximating the information requested. The Department may require an 
applicant to provide additional information as necessary.
    (a) State the name and address of the applicant, the nature of its 
organization (individual, partnership, corporation, etc.), and, if other 
than an individual, the name of the country under the laws of which it 
is organized and the statutory citation of such laws, if any.
    (b) State the name and official address of the government air 
transport authority of applicant's country of citizenship having 
regulatory jurisdiction over applicant.
    (c) Supply the following information regarding the services 
proposed:
    (1) A complete statement of the authority sought; and
    (2) A description of the services proposed, specifying:
    (i) The point or points in the United States proposed to be served:
    (ii) The frequency of service planned at the start of operations, 
indicating any seasonal variations; whether the service proposed is to 
be scheduled, nonscheduled or charter; whether the service would be 
passenger, or property and mail, or a combination; and the type of 
equipment (and configuration) to be used; and
    (iii) A service schedule stating the manner in which the service 
will be operated (e.g., nonstop or multi-stop, and the identity of 
proposed intermediate traffic and nontraffic points).
    (d) Provide the names, addresses (both residence and business), and 
citizenship of all Directors, Officers and key management personnel, 
including the President, Vice Presidents, the Directors or Supervisors 
of Operations, Maintenance, and Finance, and the chief pilot and chief 
inspector. Indicate whether any of these persons are related by blood or 
marriage.
    (e) Provide the names and citizenship of all persons holding five 
percent (5%) or more of the capital stock or capital of the applicant. 
Also indicate the number and percentage of shares of stock or percentage 
of capital held by each. If five percent or more of the applicant's 
stock is held by a corporation or partnership, set forth the name and 
citizenship of each person holding five percent or more of the entire 
capital stock or capital of that corporation or partnership and the 
respective interest of each. If any shares are held for the benefit of 
another person, give the name and citizenship of that person.
    (f) If the applicant is not wholly owned by its homeland government, 
state whether the applicant (each officer, director, manager, or holder 
of five percent or more of the capital stock) holds any interest 
directly or indirectly (through brokers or holding companies) in any of 
the entities listed below. If no interest is held, so state.
    (1) Any U.S. carrier;
    (2) Any other foreign air carrier;
    (3) Any persons engaged in the business of aeronautics; and
    (4) Any common carrier, or any person whose principal business is 
the holding of stock in, or control of, any air carrier.

[[Page 26]]

    (g) Indicate the relationship between the applicant and its homeland 
government. If the applicant is wholly owned or substantially owned by 
the government, indicate which governmental department has 
responsibility for managerial decisions.
    (h) State whether the applicant's insurance coverage meets or 
exceeds the liability limits of 14 CFR part 205. State the name(s) of 
its insurance carrier(s).
    (i) Supply certified evidence, in English, of the applicant's 
operating authority issued by its government that relates to the 
operations proposed. This evidence must include a description of the 
applicant's present authority, the expiration date of this authority, 
and the manner in which it is expected to be renewed.
    (j) Summarize the operating history of the applicant. Include the 
types of transportation services rendered, points served, etc., from the 
beginning of operations to the present. Also, if the applicant is a new 
airline (i.e., an airline that began direct air services within the past 
12 months), briefly summarize the business experience of each officer, 
director and key management personnel, emphasizing any air 
transportation experience.
    (k) Provide a list of the aircraft owned, leased and operated by the 
applicant. State each aircraft registration number and the country of 
registration. If leased, state the address and citizenship of each 
lessor. Describe any plans for the acquisition or lease of additional 
aircraft if the present permit application is granted as proposed. If 
any of the listed aircraft will not be used exclusively by the 
applicant, explain its proposed use. State whether any aircraft are or 
will be wet-leased.
    (l) State where and by whom the maintenance of the aircraft is or 
will be performed. State whether the applicant's maintenance program 
complies with the provisions of ICAO Pilots and Airmen Annexes 1, 6 
(Part 1) and 7. Also state whether the applicant's home country is a 
contracting State to the Convention on International Civil Aviation.
    (m) Briefly describe any agreements or cooperative working 
arrangements (e.g., block-space, wet-lease), both oral and written, 
entered with and between the applicant, or on behalf of the applicant, 
and any U.S. or foreign air carrier, affecting the proposed services to 
the United States that are not on file with the Department. If there are 
no such agreements, so state.
    (n) Supply financial data summaries, setting forth in U.S. dollars 
the applicant's profit and loss statements and balance sheets for the 2 
most recent available years (calendar or fiscal). These summaries must 
be accompanied by a statement from the applicant's official responsible 
for preparation of the summaries that the submissions are complete and 
accurate. These summaries must include the following data, but need not 
be more detailed than the financial data summaries published by ICAO:
    (1) The profit and loss summary shall identify:
    (i) Total air transport operating revenues (separated into three 
categories: passenger, cargo, and other transport revenues);
    (ii) Total air transport operating expenses;
    (iii) Operating result (difference between (i) and (ii));
    (iv) Non-operating items; and
    (v) Profit or loss after income taxes.
    (2) The balance sheet summary shall state and identify:
    (i) Current assets;
    (ii) Flight equipment (after depreciation);
    (iii) Other assets;
    (iv) Total assets (sum of (i) through (iii));
    (v) Current liabilities;
    (vi) Other liabilities;
    (vii) Long-term debt;
    (viii) Capital stock;
    (ix) Retained earnings (balance including capital surplus); and
    (x) Total liabilities and equity (sum of (v) through (ix)).
    (o) Describe the amount, type and reason for financial assistance 
received or expected from the applicant's home government, if any.
    (p) Submit an estimate showing the total traffic and the financial 
results of the proposed services for the first full year of normal 
operations and the supporting data employed to calculate the financial 
forecast.

[[Page 27]]

    (q) If the air transportation proposed is not covered by an air 
transport agreement, state in narrative form each of the elements of 
reciprocity or comity relied upon for the requested authority. If the 
authority requested is governed by an agreement, state whether the 
applicant has been formally designated by its homeland government, and, 
if so, cite the diplomatic note.
    (r) To the extent not described in paragraph (q), state the policy 
of the applicant's homeland government with respect to U.S. carriers' 
applications for scheduled and charter authority. Specifically state 
whether the homeland government grants Fifth Freedom traffic rights to 
U.S. carriers.
    (s) For the preceeding 5 years, state whether the applicant has been 
involved in any safety or tariff violations or any fatal accidents. If 
so, furnish details.
    (t) Submit 3 completed copies of OST Form 4523 (Waiver of liability 
limits under the Warsaw Convention).

(Approved by the Office of Management and Budget under control number 
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR 
50027, Dec. 26, 1984; 61 FR 34725, July 3, 1996]



Sec. 211.21  Amendments or renewal of foreign air carrier permits.

    A person applying for an amendment or renewal of a foreign air 
carrier permit shall submit the information listed below. The applicant 
must comply fully with this requirement. If the applicant is unable to 
respond to an item, the application shall contain an explanation and 
include substitute information most closely approximating the 
information requested. The Department may require an applicant to 
provide any additional information necessary.
    (a) The information required in paragraphs (a), (b), (i), (o), (q), 
(r), and (s), of Sec. 211.20.
    (b) Except if seeking renewal of existing authority, the information 
specified in paragraphs (c) and (p) of Sec. 211.20 regarding the new or 
altered services proposed to be operated.
    (c) If the financial material for the applicant on file with the 
Department is more than 2 years old, financial summaries setting forth, 
in U.S. dollars, the applicant's profit and loss statements and balance 
sheets for the 2 most recent available years (calendar or fiscal) as 
required in paragraph (n) of Sec. 211.20, together with the statement of 
completeness and accuracy required by that paragraph. If the financial 
material on file with the Department is 2 years old or less, the 
applicant may incorporate that information by reference as described in 
Sec. 211.14 of this part.
    (d) If the ownership and control of the applicant are substantially 
unchanged, so state. If a change has occurred, the applicant shall 
respond to the paragraph in Sec. 211.20 that most closely relates to the 
change that has taken place.
    (e) A statement that applicant's maintenance program continues to 
comply with the provisions of ICAO Pilots and Airmen Annexes 1, 6 (Part 
1) and 7.

[ER-1386, 49 FR 33439, Aug. 23, 1984]



             Subpart D--Freely Associated State Air Carriers

    Source: Amdt. No. 211-18, 52 FR 5442, Feb. 22, 1987, unless 
otherwise noted.

    Editorial Note: Nomenclature changes to subpart D appear at 61 FR 
34725, July 3, 1996.



Sec. 211.30  Eligibility.

    Foreign carriers owned and controlled by citizens of the Federated 
States of Micronesia, the Marshall Islands, Palau and/or the United 
States may, in accordance with the provisions of paragraph 5(b) of 
Article IX of the Federal Programs and Services Agreement, implementing 
section 221(a)(5) of the Compact of Free Association between the United 
States and those governments, apply for authority as ``Freely Associated 
State Air Carriers.'' The permit application for such authority shall be 
labeled on the front page, ``Application for Freely Associated State 
Foreign Air Carrier Permit.''



Sec. 211.31  Application.

    The application shall include, in addition to other requirements of 
this

[[Page 28]]

part, documentation clearly establishing:
    (a) That the carrier is organized under the laws of the Federated 
States of Micronesia, the Marshall Islands, Palau or the United States;
    (b) That substantial ownership and effective control of the carrier 
are held by citizens of the Federated States of Micronesia, the Marshall 
Islands, Palau and/or the United States;
    (c) That citizens of other countries do not have interests in the 
carrier sufficient to permit them substantially to influence its 
actions, or that substantial justification exists for a temporary waiver 
of this requirement;
    (d) That the Administrator of the Federal Aviation Administration 
has determined that the carrier complies with such safety standards as 
the Administrator considers to be required.
    (e) That the government or governments of the Freely Associated 
States concerned have consented to the carrier's operation as a ``Freely 
Associated State Air Carrier.''



Sec. 211.32  Issuance of permit.

    If the Department is satisfied that the applicant meets the 
requirements of Sec. 211.31 (a) through (e), and that grant of all or 
part of the requested authority would otherwise be in the public 
interest, the Department may, subject to Presidential review under 
section 801(a) of the Federal Aviation Act, issue a ``Freely Associated 
State Foreign Air Carrier Permit'' to the applicant, including such 
terms, conditions or limitations as the Department may find to be in the 
public interest.



Sec. 211.33  Interstate and interstate authority.

    (a) An application under this subpart may include a request, in 
addition to other foreign air transportation, for authority to engage in 
interstate air transportation between Guam, the Commonwealth of the 
Northern Mariana Islands and Honolulu, Hawaii, and interstate air 
transportation within the Commonwealth of the Northern Mariana Islands. 
A request for all or part of such limited interstate air transportation 
authority shall be supported by documentation establishing:
    (1) The impact of such interstate air transportation services on the 
economic projections of the carrier's proposed operations;
    (2) The need for such proposed interstate air transportation by the 
affected U.S. points;
    (3) The economic impact of such interstate air transportation on 
services provided by other carriers providing essential air 
transportation services to eligible Freely Associated State points 
within the scope of part 272 of this chapter.
    (b) The Department may grant a Freely Associated State Air Carrier 
authority to engage in all or part of the interstate air transportation 
requested in paragraph (a) of this section provided that the Department 
finds:
    (1) That grant of such interstate air transportation authority would 
be in furtherance of the objectives of the Compact of Free Association 
and related agreements between the United States and the Freely 
Associated States, and would otherwise be in the public interest; and
    (2) That grant of such interstate air transportation authority would 
not significantly impair the economic viability of existing services 
providing essential air transportation to any eligible Freely Associated 
State point within the scope of part 272 of this chapter, or 
significantly increase compensation that may be required to maintain any 
such essential air transportation.
    (c) The Department may, at any time, subject to Presidential review 
under section 41307, suspend, modify, or revoke such interstate 
authority if it concludes that the requirements specified in paragraph 
(b) of this section are not then being met.

[Amdt. No. 211-18, 52 FR 5442, Feb. 22, 1987]



Sec. 211.34  Other permits.

    Nothing in this section shall be construed as limiting the authority 
of the Department to issue a foreign air carrier permit, other than a 
Freely Associated State Foreign Air Carrier Permit, to a carrier owned 
or controlled, in whole or in part, by citizens of the Federated States 
of Micronesia, the Marshall Islands or Palau, that does not meet the 
requirements of this section.

[[Page 29]]



Sec. 211.35  Termination of eligibility.

    The eligibility of a carrier owned or controlled, in whole or in 
part, by citizens of the Federated States of Micronesia, the Marshall 
Islands or Palau, respectively, for issuance of a Freely Associated 
State Foreign Air Carrier Permit under this subpart shall exist only for 
such period as subparagraphs (a), (d), and (e) (eligibility for Freely 
Associated State essential air transportation subsidy compensation), or 
subparagraph (c) (limited interstate air transportation authority), of 
paragraph (5) of the Agreement on Civil Aviation Economic Services and 
Related Programs (Article IX of the Federal Programs and Services 
Agreement) remain in effect between the Government of those States and 
the Government of the United States, insofar as authority is conferred 
by such permits for purposes specified in those subparagraphs.

[Amdt. No. 211-18, 52 FR 5442, Feb. 22, 1987]



PART 212--CHARTER RULES FOR U.S. AND FOREIGN DIRECT AIR CARRIERS--Table of Contents




Sec.
212.1  Scope.
212.2  Definitions.
212.3  General provisions.
212.4  Authorized charter types.
212.5  Operation of affinity (pro rata) charters.
212.6  Operation of gambling junket charters.
212.7  Direct sales.
212.8  Protection of customers' payments.
212.9  Prior authorization requirements.
212.10  Application for statement of authorization.
212.11  Issuance of statement of authorization.
212.12  Waiver.

Appendix A to Part 212--Certificated or Foreign Air Carrier's Surety 
          Bond Under part 212 of the Regulations of the Department of 
          Transportation (14 CFR Part 212)
Appendix B to Part 212--Certification of Compliance

    Authority: 49 U.S.C. 40101, 40102, 40109, 40113, 41101, 41103, 
41504, 41702, 41708, 41712, 46101.

    Source: Docket No. OST-97-2356, 63 FR 28236, May 22, 1998, unless 
otherwise noted.



Sec. 212.1  Scope.

    This part applies to all charter flights, and all other flights 
carrying charter passengers or cargo, in interstate and/or foreign air 
transportation by U.S. certificated air carriers or in foreign air 
transportation by foreign air carriers. It does not apply to any flights 
performed by a commuter air carrier, air taxi operator, or certificated 
air carrier operating ``small aircraft'' under part 298 of this chapter. 
Nothing in this part gives authority to operate a type or level of 
service not authorized by certificate, foreign air carrier permit, or 
exemption, except that a certificated air carrier authorized to conduct 
scheduled operations may conduct charter flights, in interstate and/or 
foreign air transportation, without limitation as to the points served.



Sec. 212.2  Definitions.

    For the purposes of this part:
    Affinity (pro rata) charter means a charter arranged by an 
organization on behalf of its membership, and which meets the 
requirements of Sec. 212.5.
    Certificated air carrier means a U.S. direct air carrier holding a 
certificate issued under 49 U.S.C. 41102.
    Charter flight means a flight operated under the terms of a charter 
contract between a direct air carrier and its charterer or lessee. It 
does not include scheduled interstate air transportation, scheduled 
foreign air transportation, or nonscheduled cargo foreign air 
transportation, sold on an individually ticketed or individually 
waybilled basis.
    Charter operator means:
    (1) A ``Public Charter operator'' as defined in Sec. 380.2 of this 
chapter, or
    (2) An ``Overseas Military Personnel Charter operator'' as defined 
in Sec. 372.2 of this chapter.
    Direct air carrier means a certificated or foreign air carrier that 
directly engages in the operation of aircraft under a certificate, 
permit, or exemption issued by the Department.
    Fifth freedom charter means a charter flight carrying traffic that 
originates and terminates in countries other than the carrier's home 
country, regardless of whether the flight operates via the home country.

[[Page 30]]

    Foreign air carrier means a direct air carrier which is not a 
citizen of the United States as defined in 49 U.S.C. 40102(a) that holds 
a foreign air carrier permit issued under 49 U.S.C. 41302 or an 
exemption issued under 49 U.S.C. 40109 authorizing direct foreign air 
transportation.
    Fourth freedom charter means a charter flight carrying traffic that 
terminates in the carrier's home country having originated in another 
country.
    Gambling junket charter means a charter arranged by a casino, hotel, 
cruise line, or its agents, the purpose of which is to transport 
passengers to the casino, hotel, or cruise ship where gambling 
facilities are available, and which meets the requirements of 
Sec. 212.6.
    Long-term wet lease means a wet lease which either--
    (1) Lasts more than 60 days, or
    (2) Is part of a series of such leases that amounts to a continuing 
arrangement lasting more than 60 days.
    Mixed charter means a charter, the cost of which is borne partly by 
the charter participants and partly by the charterer, where all the 
passengers meet the eligibility requirements for ``affinity (pro rata)'' 
charters of Sec. 212.5.
    Part charter means flight carrying both charter and scheduled 
passenger traffic.
    Single entity charter means a charter the cost of which is borne by 
the charterer and not by individual passengers, directly or indirectly.
    Third freedom charter means a charter flight carrying traffic that 
originates in the carrier's home country and terminates in another 
country.
    Wet lease means a lease between direct air carriers by which the 
lessor provides all or part of the capacity of an aircraft, and its 
crew, including operations where the lessor is conducting services under 
a blocked space or code-sharing arrangement.



Sec. 212.3   General provisions.

    (a) Certificated and foreign air carriers may conduct charter 
flights as described in this part, and may carry charter passengers on 
scheduled flights, or charter cargo on scheduled or nonscheduled flights 
(or on the main deck or in the belly of passenger charter flights), 
subject to the requirements of this chapter and any orders of, or 
specific conditions imposed by, the Department.
    (b) Charter flights may be operated on a round-trip or one-way 
basis, with no minimum group, shipment, or contract size.
    (c) Contracts to perform charter flights must be in writing and 
signed by an authorized representative of the certificated or foreign 
air carrier and the charterer prior to the operation of the flights 
involved. The written agreement shall include:
    (i) The name and address of either the surety whose bond secures 
advance charter payments received by the carrier, or of the carrier's 
depository bank to which checks or money orders for the advance charter 
payments are to be made payable as escrow holder pending completion of 
the charter trip; and
    (2) A statement that unless the charterer files a claim with the 
carrier, or, if the carrier is unavailable, with the surety, within 60 
days after the cancellation of a charter trip with respect to which the 
charterer's advance payments are secured by the bond, the surety shall 
be released from all liability under the bond to such charterer for such 
trips.
    (d) A certificated or foreign air carrier must make a reasonable 
effort to verify that any charterer with which it contracts, and any 
charter it conducts, meets the applicable requirements of this chapter.
    (e) The certificated or foreign air carriers shall require full 
payment of the total charter price, including payment for the return 
portion of a round trip, or the posting of a satisfactory bond for full 
payment, prior to the commencement of any portion of the air 
transportation, provided, however, that in the case of a passenger 
charter for less than the entire of an aircraft, the carrier shall 
require full payment of the total charter price, including payment for 
the return portion of a round trip, from the charterers not less than 10 
days prior to the commencement of any portion of the transportation, and 
such payment shall not be refundable unless the charter is canceled by 
the carrier or unless the carrier accepts a substitute charterer for one 
which has canceled a charter, in which case the

[[Page 31]]

amount paid by the latter shall be refunded. For the purpose of this 
section, payment to the carrier's depository bank, as designated in the 
charter contract, shall be deemed payment to the carrier.
    (f) A certificated or foreign air carrier operating a U.S.-
originating passenger charter shall be responsible to return to his or 
her point of origin any passenger who purchased round trip 
transportation on that charter and who was transported by that carrier 
on his or her outbound flight; except that this provision shall not 
apply in cases where the return transportation is to be provided by 
another certificated or foreign air carrier.
    (g) A certificated or foreign air carrier may not perform any 
charter flight for which a statement of authorization is required under 
Sec. 212.9 until one has been granted by the Department. In addition, if 
a foreign air carrier is required to obtain a statement of authorization 
under paragraph (e) of that section, neither it, not any charter 
operator, or any other person shall advertise or sell any passenger 
charter services except those that have been specifically authorized by 
the Department.
    (h) A certificated air carrier may not operate charters where such 
operations would result in a substantial change in the scope of its 
operations within the meaning of part 204 of this chapter.
    (i) A certificated air carrier may not limit its baggage liability 
for interstate charter flights except as set forth in part 254 of this 
chapter.
    (j) A certificated air carrier may not, except as set forth in part 
121 of the Federal Aviation Regulations (14 CFR part 121), limit the 
availability, upon reasonable request, of air transportation and related 
services to a person who may require help from another person in 
expeditiously moving to an emergency exit for evacuation of an aircraft.
    (k) A certificated air carrier holding a certificate to conduct only 
cargo operations may not conduct passenger charters.
    (l) A certificated air carrier may not perform any charter in 
interstate commerce within the State of Alaska.
    (m) A foreign air carrier may operate charters in foreign air 
transportation only to the extent authorized by its foreign air carrier 
permit under 49 U.S.C. 41302 or exemption authority under 49 U.S.C. 
40109, and only to the extent to which such operations are consistent 
with the provisions of any applicable bilateral aviation undertaking.



Sec. 212.4  Authorized charter types.

    Certificated and foreign air carriers may conduct the following 
charter types, subject to the provisions of this part:
    (a) Affinity (pro rata) charters.
    (b) Single entity charters, including:
    (1) Wet leases involving the carriage of passengers and/or cargo, 
provided, that the wet lessee holds appropriate economic authority from 
the Department to conduct the proposed operations; and
    (2) Charters pursuant to contracts with the Department of Defense, 
provided, that foreign air carriers may conduct charters for the 
Department of Defense only to the extent that such operations are 
consistent with the provisions of 49 U.S.C. 40118.
    (c) Mixed charters.
    (d) Gambling junket charters.
    (e) Public Charters in accordance with part 380 of this chapter 
(including operations by educational institutions as defined in that 
part).
    (f) Overseas military personnel charters in accordance with part 372 
of this chapter.
    (g) Cargo charters.



Sec. 212.5  Operation of affinity (pro rata) charters.

    An affinity (pro rata) charter operated by a certificated or foreign 
air carrier must meet the following criteria:
    (a) The aircraft must be chartered by an organization, no part of 
whose business is the formation of groups for transportation or 
solicitation or sale of transportation services, for the purpose of 
providing air transportation to its members and their immediate 
families.
    (b) The charter must be organized by the organization itself, or by 
a person

[[Page 32]]

or company who acts not as a principal, but as an agent for the 
chartering organization or the certificated or foreign air carrier.
    (c) No solicitation, sales, or participation may take place beyond 
the bona fide members of an eligible chartering organization, and their 
immediate families (spouse, children, and parents). All printed 
solicitation materials shall contain the following notice in boldface, 
10-point or larger type--
    Some of the Federal rules that protect against tour changes and loss 
of passengers' money in publicly sold charters do not apply to this 
charter flight.
    (d) ``Bona fide members'' are members of an organization who: Have 
not joined the organization merely to travel on a charter flight; and 
who have been members of the chartering organization for a minimum of 
six months prior to the date of commencement of the affected flight; 
provided, that the ``six month'' rule does not apply to:
    (1) Employees of a single commercial establishment, industrial 
plant, or government agency, or
    (2) Students and employees of a single school.
    (e) The charter price due the direct air carrier shall be prorated 
equally among all the charter passengers, except that children under 12 
may be offered discounted or free transportation.
    (f) The certificated or foreign air carrier shall make reasonable 
efforts to assure that passengers transported meet the eligibility 
requirements of this section. The certificated or foreign air carrier 
shall also obtain (no later than the date of departure), and maintain 
for two years, a certification by an authorized representative of the 
chartering organization that all passengers are eligible for 
transportation under this section.



Sec. 212.6  Operation of gambling junket charters.

    A gambling junket charter operated by a certificated or foreign air 
carrier must meet the following criteria:
    (a) The aircraft must be chartered by
    (1) A casino, hotel, or cruise line duly licensed by the government 
of any state, territory or possession of the United States, or by a 
foreign government, or
    (2) An agent of such a casino, or cruise line on behalf of that 
casino, hotel, or cruise line.
    (b) The casino, hotel, or cruise line or its agents, may not require 
a passenger to incur any expense in taking the trip, provided, that this 
provision shall not preclude the casino, hotel, or cruise line or its 
agents, from requiring prospective passengers to pay nominal reservation 
fees that are duly refundable by the casino, hotel, or cruise line 
before the flight, establish a minimum line-of-credit at the casino, 
hotel, or cruise line, bring (but not necessarily spend) a specified 
minimum amount of money, or meet other requirements that do not place 
them in financial jeopardy; nor does it preclude the casino, hotel, or 
cruise line, or its agents, from offering operational land packages for 
a fee.



Sec. 212.7  Direct sales.

    (a) Certificated and foreign air carriers may sell or offer for 
sale, and operate, as principal, Public Charter flights under part 380 
of this chapter directly to the public.
    (b) Each certificated or foreign air carrier operating a charter 
trip under this section shall comply with all the requirements of part 
380 of this chapter, except that:
    (1) Those provisions of part 380 relating to the existence of a 
contract between a charter operator and a direct air carrier do not 
apply;
    (2) A depository agreement shall comply with Sec. 380.34a (d) and 
(f);
    (3) A security agreement shall comply with Sec. 380.34 (c) and (d); 
and
    (i) If no depository agreement is used, protect charter participant 
payments (including those for ground accommodations and services) and 
assure the certificated or foreign air carrier's contractual and 
regulatory responsibilities to charter participants in an unlimited 
amount (except that the liability of the securer with respect to any 
charter participant may be limited to the charter price paid by or on 
behalf of such participant);
    (ii) If used in combination with a depository agreement, protect 
charter participant payments (including those

[[Page 33]]

for ground accommodations and services) and assure the certificated or 
foreign air carrier's contractual and regulatory responsibilities to 
charter participants in the amount of at least $10,000 times the number 
of flights, except that the amount need not be more than $200,000. The 
liability of the securer with respect to any charter participant may be 
limited to the charter price paid by or on behalf of such participant.
    (c) The Department reserves the right to limit or prohibit the 
operation of direct sales Public Charters by a foreign air carrier upon 
a finding that such action is necessary in the public interest.



Sec. 212.8  Protection of customers' payments.

    (a) Except as provided in paragraph (c) of this section, no 
certificated air carrier or foreign air carrier shall perform any 
charter trip (other than a cargo charter trip) originating in the United 
States or any Overseas Military Personnel Charter trip, as defined in 
part 372 of this chapter, nor shall such carrier accept any advance 
payment in connection with any such charter trip, unless there is on 
file with the Department a copy of a currently effective agreement made 
between said carrier and a designated bank, by the terms of which all 
sums payable in advance to the carrier by charterers, in connection with 
any such trip to be performed by said carrier, shall be deposited with 
and maintained by the bank, as escrow holder, the agreement to be 
subject to the following conditions:
    (1) The charterer (or its agent) shall pay the carrier either by 
check or money order made payable to the depository bank. Such check or 
money order and any cash received by the carrier from a charterer (or 
its agent) shall be deposited in, or mailed to, the bank no later than 
the close of the business day following the receipt of the check or 
money order or the cash, along with a statement showing the name and 
address of the charterer (or its agent); provided, however, that where 
the charter transportation to be performed by a carrier is sold through 
a travel agent, the agent may be authorized by the carrier to deduct its 
commission and remit the balance of the advance payment to the carrier 
either by check or money order made payable to the designated bank.
    (2) The bank shall pay over to the carrier escrowed funds with 
respect to a specific charter only after the carrier has certified in 
writing to the bank that such charter has been completed; provided, 
however, that the bank may be required by the terms of the agreement to 
pay over to the carrier a specified portion of such escrowed funds, as 
payment for the performance of the outbound segment of a round-trip 
charter upon the carrier's written certification that such segment has 
been so completed.
    (3) Refunds to a charterer from sums in the escrow account shall be 
paid directly to such charterer its assigns. Upon written certification 
from the carrier that a charter has been canceled, the bank shall turn 
over directly to the charterer or its assigns all escrowed sums (less 
any cancellation penalties as provided in the charter contract) which 
the bank holds with respect to such canceled charter, provided however, 
that in the case of a split charter escrowed funds shall be turned over 
to a charterer or its assigns only if the carrier's written 
certification of cancellation of such charter includes a specific 
representation that either the charter has been canceled by the carrier 
or, if the charter has been canceled by the charterer, that the carrier 
has accepted a substitute charterer.
    (4) The bank shall maintain a separate accounting for each charter 
flight.
    (5) As used in this section the term ``bank'' means a bank insured 
by the Federal Deposit Insurance Corporation.
    (b) The escrow agreement required under paragraph (a) of this 
section shall not be effective until approved by the Department. Claims 
against the escrow may be made only with respect to the non-performance 
of air transportation.
    (c) The carrier may elect, in lieu of furnishing an escrow agreement 
pursuant to paragraph (a) of this section, to furnish and file with the 
Department a surety bond with guarantees to the United States Government 
the performance of all charter trips (other

[[Page 34]]

than cargo charter trips) originating in the United States and of all 
overseas military personnel charter trips, as defined in part 372 of 
this chapter, to be performed, in whole or in part, by such carrier 
pursuant to any contracts entered into by such carrier. The amount of 
such bond shall be unlimited.\1\ Claims under the bond may be made only 
with respect to the non-performance of air transportation.
---------------------------------------------------------------------------

    \1\ While the face amount of the bond is unlimited, claims are 
limited to amounts that are paid to carrier for U.S.-originating 
passenger charter flights that carrier fails to perform or to refund.
---------------------------------------------------------------------------

    (d) The bond permitted by this section shall be in the form set 
forth as the appendix to this part. Such bond shall be issued by a 
bonding or surety company--
    (1) Which is listed in Best's Insurance Reports (Fire and Casualty) 
with a general policyholders' rating of ``A'' or better or
    (2) Which is listed in the U.S. Department of Treasury's notice 
listing companies holding Certificates of Authority as acceptable 
sureties on Federal bonds and as acceptable reinsuring companies, 
published in the Federal Register on or about July 1. The bonding or 
surety company shall be one legally authorized to issue bonds of that 
type in the State in which there is located the office or usual 
residence of the agency designated by the carrier under 49 U.S.C. 46103 
to receive service of notices, process and other documents issued by or 
filed with the Department of Transportation. For the purposes of this 
section the term ``State'' includes any territory or possession of the 
United States, or the District of Columbia. If the bond does not comply 
with the requirements of this section, or for any reason fails to 
provide satisfactory or adequate protection for the public, the 
Department will notify the certificated or foreign air carrier by 
registered or certified mail, stating the deficiencies of the bond. 
Unless such deficiencies are corrected within the time limit set forth 
in the notification, no amounts payable in advance by customers for the 
subject charter trips shall be accepted by the carrier.
    (e) The bond required by this section shall provide that unless the 
charterer files a claim with the carrier, or, if the carrier is 
unavailable, with the surety, within 60 days after cancellation of a 
charter trip with respect to which the charterer's advance payments are 
secured by the bond, the surety shall be released from all liability 
under the bond to such charterer for such charter trip. The contract 
between the carrier and the charterer shall contain notice of this 
provision.



Sec. 212.9   Prior authorization requirements.

    (a) Certificated air carriers shall obtain a statement of 
authorization for each long-term wet lease to a foreign air carrier.
    (b) Foreign air carriers shall obtain a statement of authorization 
for each:
    (1) Fifth freedom charter flight to or from the United States;
    (2) Long-term wet lease;
    (3) Charter flight for which the Department specifically requires 
prior authorization under paragraph (e) or (f) of this section; or
    (4) Part charter.
    (c) The Department may issue blanket statements of authorization to 
foreign air carriers to conduct fifth freedom charters. The standards 
for issuing such blanket authorizations shall be those stated in 
Sec. 212.11. The Department may revoke any authority granted under this 
paragraph at any time without hearing.
    (d) The Department may at any time, with or without hearing, but 
with at least 30 days' notice, require a foreign air carrier to obtain a 
statement of authorization before operating any charter flight. In 
deciding whether to impose such a requirement, the Department will 
consider (but not be limited to considering) whether the country of the 
carrier's nationality:
    (1) Requires prior approval for third or fourth freedom charter 
flights by U.S. air carriers;
    (2) Has, over the objection of the U.S. Government, denied rights of 
a U.S. air carrier guaranteed by a bilateral agreement; or
    (3) Has otherwise impaired, limited, or denied the operating rights 
of U.S.

[[Page 35]]

air carriers, or engaged in unfair, discriminatory, or restrictive 
practices with respect to air transportation services to, from, through, 
or over its territory.
    (e) The Department, in the interest of national security, may 
require a foreign air carrier to provide prior notification or to obtain 
a statement of authorization before operating any charter flight over 
U.S. territory.



Sec. 212.10   Application for statement of authorization.

    (a) Application for a statement of authorization shall be submitted 
on OST Form 4540 except that for part charters or long-term wet leases 
the application may be in letter form. An application for a long-term 
wet lease shall describe the purpose and terms of the wet lease 
agreement. An original and two copies of an application shall be 
submitted to the Department of Transportation, Office of International 
Aviation, U.S. Air Carrier Licensing Division, X-44 (for an application 
by a certificated air carrier), or Foreign Air Carrier Licensing 
Division, X-45 (for an application by a foreign air carrier), 400 
Seventh Street, SW., Washington, DC 20590. Upon a showing of good cause, 
the application may be transmitted by facsimile (fax) or telegram, or 
may be made by telephone, provided, that in the case of a fax or 
telephone application, the applicant must confirm its request (by filing 
an original and two copies of its application as described above) within 
three business days.
    (b) A copy of each application for a long-term wet lease shall also 
be served on the Director of Flight Standards Service (AFS-1), Federal 
Aviation Administration, 800 Independence Avenue, SW., Washington, DC 
20591, and on each certificated air carrier that is authorized to serve 
the general area in which the proposed transportation is to be 
performed.
    (c)(1) Applicants for statements of authorization filed by foreign 
air carriers shall include documentation to establish the extent to 
which the country of the applicant's nationality deals with U.S. air 
carriers on the basis of reciprocity for similar flights, if such 
flights are not subject to a bilateral agreement, and
    (i) The Department has not established that the country accords 
reciprocity;
    (ii) The Department has found reciprocity defective in the most 
recent prior approval application involving the country; or
    (iii) Changes in reciprocity have occurred since the most recent 
Department finding for the country in question.
    (2) Applications filed by certificated or foreign air carriers to 
conduct long-term wet leases shall include, for the country of the 
lessee's nationality, the documentation specified in paragraph (c)(1) of 
this section.
    (d)(1) Applications shall be filed at least 5 business days before 
commencement of the proposed flight or flights, except as specified in 
paragraphs (d)(2), (d)(3), and (d)(4) of this section. Late applications 
may be considered upon a showing of good cause for the lateness.
    (2) Applications for a part charter or for a long-term wet lease 
shall be filed at least 45 calendar days before the date of the first 
proposed flight.
    (3) Applications specifically required under Sec. 212.9(d) shall be 
filed at least 30 calendar days before the proposed flight or flights 
(10 calendar days for cargo charters), unless otherwise specified by the 
Department.
    (4) Applications required by a Department order under Sec. 212.9(e) 
shall be filed at least 14 calendar days before the proposed flight or 
flights, unless otherwise specified by the Department.
    (5) Where an application is required by more than one provision of 
this part and/or order of the Department, only one application need be 
filed, but it must conform to the earliest applicable filing deadline.
    (6) The Department may require service of applications as it deems 
necessary.
    (e)(1) Any part in interest may file a memorandum supporting or 
opposing an application. Three copies of each memorandum shall be filed 
within 7 business days after service of the application or before the 
date of the proposed flight or flights, whichever is earlier. 
Memorandums will be considered to the extent practicable; the Department 
may act on an application

[[Page 36]]

without waiting for supporting or opposing memorandums to be filed.
    (2) Each memorandum shall set forth the reasons why the application 
should be granted or denied, accompanied by whatever data, including 
affidavits, the Department is requested to consider.
    (3) A copy of each memorandum shall be served on the certified or 
foreign air carrier applying for approval.
    (f)(1) Unless otherwise ordered by the Department, each application 
and memorandum filed in response will be available for public inspection 
at the Office of International Aviation immediately upon filing. Notice 
of the filing of all applications shall be published in the Department's 
Weekly List of Applications Filed.
    (2) Any person objecting to public disclosure of any information in 
an application or memorandum must state the grounds for the objection in 
writing. If the Department finds that disclosure of all or part of the 
information would adversely affect the objecting person, and that the 
public interest does not require disclosure, it will order that the 
injurious information be withheld.



Sec. 212.11  Issuance of statement of authorization.

    (a) The Department will issue a statement of authorization if it 
finds that the proposed charter flight, part charter, or wet lease meets 
the requirements of this part and that it is in the public interest. 
Statements of authorization may be conditioned or limited.
    (b) In determining the public interest the Department will consider 
(but not be limited to) the following factors:
    (1) The extent to which the authority sought to covered by and 
consistent with bilateral agreements to which the United States is a 
party.
    (2) The extent to which an applicant foreign air carrier's home 
country (and, in the case of a long-term wet lease, the lessee's home 
country) deals with U.S. air carriers on the basis of substantial 
reciprocity.
    (3) Whether the applicant or its agent has previously violated the 
provisions of this part.
    (4) Where the application concerns a long-term wet lease:
    (i) Whether the lessor (applicant) or its agent or the lessee 
(charterer) or its agent has previously violated the provisions of the 
Department's charter regulations.
    (ii) Whether, because of the nature of the arrangement and the 
benefits involved, the authority sought should be the subject of a 
bilateral agreement.
    (iii) To what extent the lessor owns and/or controls the lessee, or 
is owned and/or controlled by the lessee.
    (c) The Department will submit any denial of an authorization 
specifically required of a foreign air carrier under Sec. 212.9(d) to 
the President of the United States at least 10 days before the proposed 
departure. The denial will be subject to stay or disapproval by the 
President within 10 days after it is submitted. A shorter period for 
Presidential review may be specified by the Department where the 
application for authorization is not timely or properly filed. Denial of 
a late-filed application need not be submitted to the President. For the 
purposes of this paragraph, an application filed by a foreign air 
carrier under Sec. 212.9(d) to conduct a cargo charter will be 
considered as timely filed only if it is filed at least 30 calendar days 
before the proposed flight, notwithstanding the 10-day filing 
requirement for cargo charters in Sec. 212.10(d)(3).
    (d) The Department will publish notice of its actions on 
applications for statements of authorization in its Weekly List of 
Applications Filed. Interested persons may upon request obtain copies of 
letters of endorsed forms advising applicants of action taken on their 
applications.



Sec. 212.12  Waiver.

    The Department may grant a waiver of any of the provisions of this 
part upon a finding that such waiver is in the public interest. A 
certificated or foreign air carrier may request a waiver by filing a 
written application with the Department, citing the specific provision 
to be waived and providing justification for such waiver.

[[Page 37]]

  Appendix A to Part 212--Certificated or Foreign Air Carrier's Surety 
      Bond Under Part 212 of the Regulations of the Department of 
                    Transportation (14 CFR Part 212)

    Know all persons by these presents, that we ____________________ 
(Name of certificated or foreign air carrier) of ____________________, 
(City) ____________________ (State or Country) as Principal (hereinafter 
called Principal), and ____________________ (name of Surety) a 
corporation created and existing under the laws of the State of 
________________ (State) as Surety (hereinafter called Surety) are held 
and firmly bound unto the United States of America in an unlimited 
amount, as required by 14 CFR 212.8, for which payment, well and truly 
to be made, we bind ourselves and our heirs, executors, administrators, 
successors, and assigns, jointly and severally, firmly by these 
presents.
    Whereas the principal, a certificated air carrier holding a 
certificate of public convenience and necessity issued under 49 U.S.C. 
41102, or a foreign air carrier holding a foreign air carrier permit 
issued under 49 U.S.C. 41302 or an exemption issued under 49 U.S.C. 
40109 authorizing that foreign air carrier to engage in charter trips in 
foreign air transportation, is subject to rules and regulations of the 
Department of Transportation relating to security for the protection of 
charterers of civil aircraft and has elected to file with the Department 
of Transportation such a bond as will guarantee to the United States 
Government the performance of all charter trips (other than cargo 
charter trips) originating in the United States and of all Overseas 
Military Personnel Charters, as defined in 14 CFR part 372, to be 
performed, in whole or in part, by such certificated or foreign air 
carrier pursuant to contracts entered into by such carrier after the 
execution date of this bond, and
    Whereas this bond is written to assure compliance by the Principal 
with rules and regulations of the Department of Transportation relating 
to security for the protection of charterer of civil aircraft for 
charter trips (other than cargo charters) originating in the United 
States or of Overseas Military Personnel Charter trips and shall inure 
to the benefit of any and all such charterers to whom the Principal may 
be held legally liable for any of the damages herein described.
    Now, therefore, the condition of this obligation is such that if the 
Principal shall pay or cause to be paid to such charterer any sum or 
sums for which the Principal may be held legally liable by reason of the 
Principal's failure faithfully to perform, fulfill, and carry out all 
contracts made by the Principal while this bond is in effect for the 
performance of charter trips (other than cargo charter trips) 
originating in the United States and of Overseas Military Personnel 
Charter trips, then this obligation shall be void, otherwise to remain 
in full force and effect.
    The liability of the Surety shall not be discharged by any payment 
or succession of payments hereunder in any specified amount. The surety 
agrees to furnish written notice to the Department of Transportation 
forthwith of all suits filed, judgments rendered, and payments made by 
said Surety under this bond.
    This bond is effective the ______ day of ________________, ________, 
12:01 a.m., standard time at the address of the Principal as stated 
herein and shall continue in force until terminated as hereinafter 
provided. The Principal or the Surety may at any time terminate this 
bond by written notice to the Department of Transportation at its office 
in Washington, D.C., such termination to become effective thirty (30) 
days after actual receipt of said notice by the Department. The Surety 
shall not be liable hereunder for the payment of the damages 
hereinbefore described which arise as the result of any contracts for 
the performance of air transportation services made by the Principal 
after the termination of this bond becomes effective, as herein 
provided, but such termination shall not affect the liability of the 
Surety hereunder for the payment of any such damages arising as the 
result of contracts for the performance of air transportation services 
made by the Principal after the termination of this bond becomes 
effective. Liability of the Surety under this bond shall in all events 
be limited only to a charterer who shall within sixty (60) days after 
the cancellation of a charter trip with respect to which the charterer's 
advance payments are secured by this bond give written notice of claim 
to the certificated or foreign air carrier, or, if it is unavailable, to 
the Surety, and all liability on this bond for such charter trip shall 
automatically terminate sixty (60) days after the termination date 
thereof except for claims filed within the time provided herein.
    In witness whereof, the said Principal and Surety have executed this 
instrument on the ______ day of ________________, ________.

                                Principal

Name____________________________________________________________________

By: Signature and title_________________________________________________

Witness_________________________________________________________________

                                 Surety

Name____________________________________________________________________

By: Signature and title_________________________________________________

Witness_________________________________________________________________

Bonding or surety company must be listed in Best's Insurance Reports 
(Fire and Casualty) with a general policyholders' rating of ``A''

[[Page 38]]

or better or in the Department of the Treasury listing of companies 
holding certificates of authority as acceptable sureties on Federal 
bonds. In addition, the bonding or surety company shall be one legally 
authorized to issue bonds of that type in the State(s) in which the 
charter flight(s) originate. Agents must provide satisfactory proof that 
they have the requisite authority to issue this bond.

           Appendix B to Part 212--Certification of Compliance

 Organization Charterworthiness for Affinity Charter Air Transportation 
  and Eligibility of All Prospective Passengers for Such Flights Under 
Part 212 of the Regulations of the Department of Transportation (14 CFR 
                                Part 212)

    I declare under penalty of perjury under the laws of the United 
States of America that the foregoing is true and correct.



PART 213--TERMS, CONDITIONS AND LIMITATIONS OF FOREIGN AIR CARRIER PERMITS--Table of Contents




Sec.
213.1  Applicability.
213.2  Reports of traffic data.
213.3  Filing and approval of schedules.
213.4  [Reserved]
213.5  Filing and service of schedules and applications for approval of 
          schedules; procedure thereon.
213.6  Compliance.
213.7  Filing requirements for adherence to Montreal Agreement.

    Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417.

    Source: ER-624, 35 FR 8881, June 9, 1970, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 213 appear at 61 FR 
34725, July 3, 1996.



Sec. 213.1  Applicability.

    This regulation sets forth terms, conditions, and limitations 
applicable to foreign air carrier permits issued under section 41302 of 
Title 49 of the United States Code (Transportation) authorizing 
scheduled foreign air transportation. Unless such permits or the orders 
issuing such permits otherwise provide, the exercises of the privileges 
to engage in scheduled foreign air transportation granted by any such 
permit shall be subject to the terms, conditions, and limitations as are 
set forth in this part, and as may from time to time be prescribed by 
the Department.

[ER-680, 36 FR 7306, Apr. 17, 1971, as amended at 61 FR 34725, July 3, 
1996]



Sec. 213.2  Reports of traffic data.

    The Department may at any time require any foreign air carrier to 
file with the Department traffic data disclosing the nature and extent 
of such carrier's engagement in transportation between points in the 
United States and points outside thereof. The Department will specify 
the traffic data required in each such instance. Interested persons 
seeking reconsideration of a Department determination under this section 
may file a petition pursuant to Rule 37 of part 302 within 10 days after 
Department action.



Sec. 213.3  Filing and approval of schedules.

    (a) In the absence of provisions to the contrary in the permit and 
of Department action pursuant to this section, a foreign air carrier may 
determine the schedules (including type of equipment used) pursuant to 
which it engages in transportation between points in the United States 
and points outside thereof.
    (b) In the case of a foreign air carrier permit for scheduled air 
transportation which is not the subject of an air transport agreement 
between the United States and the government of the holder, the 
Department, if it finds that the public interest so requires, may with 
or without hearing order the foreign air carrier to file with it within 
7 days after service of such order, an original and three copies of any 
or all of its existing schedules of service between any point in the 
United States and any point outside thereof, and may require such 
carrier thereafter to file an original and three copies of any proposed 
schedules of service between such points at least 30 days prior to the 
date of inauguration of such service. Such schedules shall contain all 
schedules of aircraft which are or will be operated by such carrier 
between each pair of points set forth in the order, the type of 
equipment used or to be used, the time of arrival and departure at each 
point, the frequency of each schedule,

[[Page 39]]

and the effective date of any proposed schedule.
    (c) In the case of any foreign air carrier permit for scheduled air 
transportation which is the subject of an air transport agreement 
between the United States and the government of the holder, the 
Department may with or without hearing issue an order, similar to that 
provided for in paragraph (b) of this section, if it makes the findings 
provided for in that subsection and, in addition, finds that the 
government or aeronautical authorities of the government of the holder, 
over the objections of the U.S. Government, have: (1) Taken action which 
impairs, limits, terminates, or denies operating rights, or (2) 
otherwise denied or failed to prevent the denial of, in whole or in 
part, the fair and equal opportunity to exercise the operating rights, 
provided for in such air transport agreement, of any U.S. air carrier 
designated thereunder with respect to flight operations to, from, 
through, or over the territory of such foreign government.
    (d) The carrier may continue to operate existing schedules, and may 
inaugurate operations under proposed schedules 30 days after the filing 
of such schedules with the Department, unless the Department with or 
without hearing issues an order, subject to stay or disapproval by the 
President of the United States within 10 days after adoption, notifying 
the carrier that such operations, or any part of them, may be contrary 
to applicable law or may adversely affect the public interest. If the 
notification pertains to a proposed schedule, service under such 
schedule shall not be inaugurated; if the notification pertains to 
existing schedules, service under such schedules shall be discontinued 
on the date specified in the Department's order. Such date shall be not 
less than ten days after adoption of the Department's order unless 
affirmative Presidential approval is obtained at an earlier date.
    (e) No petitions for reconsideration may be filed with respect to 
Department orders issued pursuant to paragraph (b), (c), or (d) of this 
section. Nevertheless, if the Department serves a notification under 
paragraph (d) of this section, the carrier may make application to the 
Department for approval of any or all existing or proposed schedules, 
pursuant to the provisions of Sec. 213.5. The Department may with or 
without hearing withdraw, in whole or in part, its notification at any 
time and may permit existing or proposed schedules to be operated for 
such period or periods as the Department may determine.
    (f) The date of service on a foreign air carrier of orders and 
notifications pursuant to this section shall be the date of mailing 
thereof, by certified or registered mail, to the agent designated by the 
foreign air carrier pursuant to 49 U.S.C. 46103 or, if the foreign air 
carrier has failed to designate an agent, the date of mailing by 
registered air mail to the foreign air carrier's home office.

[ER-624, 35 FR 8881, June 9, 1970, as amended by ER-870, 39 FR 30843, 
Aug. 26, 1974; ER-1107, 47 FR 46495, Oct. 19, 1982; 61 FR 34725, July 3, 
1996]



Sec. 213.4  [Reserved]



Sec. 213.5  Filing and service of schedules and applications for approval of schedules; procedure thereon.

    (a) Number of copies and certificate of service. An original and 
three copies of each schedule, and an original and seven (7) copies of 
application for approval of schedules (Sec. 213.3(e)) shall be filed 
with the Department, each setting forth the names and addresses of the 
persons, if any, required to be served, and stating that service has 
been made on all such persons by personal service or by registered or 
certified mail (if the addressee is located within the United States, 
its territories and possessions) or by registered air mail (if the 
addressee is located outside the United States, its territories and 
possessions) and the date of such service. In the case of service by 
mail, the date of mailing shall be considered the date of service.
    (b) Pleadings by interested persons. Any interested person may file 
and serve upon the foreign air carrier a memorandum in opposition to, or 
in support of, schedules or an application for approval of schedules 
within 10 days of the filing opposed or supported. All memoranda shall 
set forth in detail the

[[Page 40]]

reasons for the position taken together with a statement of economic 
data and other matters which it is desired that the Department 
officially notice, and affidavits stating other facts relied upon. 
Memoranda shall contain a certificate of service as prescribed in 
paragraph (a) of this section. An executed original and seven (7) true 
copies shall be filed with the Department's Docket Facility. Unless 
otherwise provided by the Department, further pleadings will not be 
entertained.
    (c) Determination and petitions for reconsideration. The Department 
may make its determination upon the application and other pleadings or, 
in its discretion, after hearing. Interested persons seeking 
reconsideration of the Department's determination on an application 
approval of schedules may file a petition pursuant to Rule 37 of part 
302 of this chapter within 10 days of Department action. Any interested 
person may file an answer in opposition to, or in support of, the 
petition within 10 days after it is filed. An executed original and 19 
copies of such petition for reconsideration or memorandum shall be filed 
with the Docket Facility. All petitions for reconsideration shall 
contain a certificate of service in the form prescribed by paragraph (a) 
of this section. Unless ordered by the Department upon application or 
upon its own motion, further pleadings will not be entertained.

[ER-624, 35 FR 8881, June 9, 1970, as amended by ER-644, 35 FR 14382, 
Sept. 12, 1970; 61 FR 34725, July 3, 1996]



Sec. 213.6  Compliance.

    Any violation by the foreign air carrier of applicable provisions of 
Subtitle VII of Title 49 of the U.S. Code or of orders, rules or 
regulations issued thereunder, or of the terms, conditions or 
limitations applicable to the exercise of the privileges granted by the 
permit shall constitute a failure to comply with the terms, conditions 
and limitations of such permit: Provided, That upon a showing that a 
violation of a provision not mandatorily prescribed by law resulted from 
the observance by the holder of an obligation, duty or liability imposed 
by a foreign country, the Department may excuse the violation.

[ER-624, 35 FR 8881, June 9, 1970, as amended at 61 FR 34725, July 3, 
1996]



Sec. 213.7  Filing requirements for adherence to Montreal Agreement.

    It shall be a condition upon the holding of a foreign air carrier 
permit or other authority authorizing direct foreign scheduled air 
transportation that the holder have and maintain in effect and on file 
with the Department a signed counterpart of Agreement 18900 (OST Form 
4523), and a tariff (for those carriers otherwise generally required to 
file tariffs) that includes its provisions, and comply with all other 
requirements of part 203 of this chapter. That form can be obtained from 
the Foreign Air Carrier Licensing Division (X-45), Office of 
International Aviation, Department of Transportation, 400 Seventh 
Street, SW., Washington, DC 20590.

(Approved by the Office of Management and Budget under control number 
3024-0064)
[ER-1330, 48 FR 8050, Feb. 25, 1983, as amended by ER-1346, 48 FR 31014, 
July 6, 1983; 61 FR 34725, July 3, 1996]



PART 214--TERMS, CONDITIONS, AND LIMITATIONS OF FOREIGN AIR CARRIER PERMITS AUTHORIZING CHARTER TRANSPORTATION ONLY--Table of Contents




Sec.
214.1  Applicability.
214.2  Terms of service.



Sec. 214.1  Applicability.

    This part establishes the terms, conditions, and limitations 
applicable to charter foreign air transportation pursuant to foreign air 
carrier permits authorizing the holder to engage in charter 
transportation only.

(Secs. 204, 402, Pub. L. 85-726, as amended, 72 Stat. 743, 757; 49 
U.S.C. 1324, 1371)

[ER-1223, 46 FR 28379, May 26, 1981]



Sec. 214.2  Terms of service.

    Charter air transportation under this part shall be performed in 
accordance

[[Page 41]]

with the provisions of part 212 of this chapter.

(Secs. 204, 402, Pub. L. 85-726, as amended, 72 Stat. 743, 757; 49 
U.S.C. 1324, 1371)

[ER-1223, 46 FR 28379, May 26, 1981]



PART 215--USE AND CHANGE OF NAMES OF AIR CARRIERS, FOREIGN AIR CARRIERS AND COMMUTER AIR CARRIERS--Table of Contents




Sec.
215.1  Applicability.
215.2  Purpose.
215.3  Use of name.
215.4  Change of name or use of trade name.
215.5  Procedure in case of similarity of names.
215.6  Acknowledgment of registration.

    Authority: 49 U.S.C. Chapters 401, 411, 413, 417.

    Source: 53 FR 17923, May 19, 1988, unless otherwise noted.



Sec. 215.1  Applicability.

    This part applies to all certified air carriers, commuter air 
carriers, and foreign direct air carriers and to initial or amended 
applications for authority, applications for certificate or permit 
transfers or reissuances, and registration of business names.



Sec. 215.2  Purpose.

    This part sets rules under which direct air carriers may use the 
names in their operating authorizations and change those names. It 
further provides for notification to air carriers that may be affected 
by the use by other air carriers of the same or similar names. Its 
purpose is to place the responsibility for resolving private disputes 
about the use of similar names with the air carriers involved, through 
recourse to the trade names statutes and the courts. These rules do not 
preclude Department intervention or enforcement action should there be 
evidence of a significant potential for, or of actual, public confusion.



Sec. 215.3  Use of name.

    In holding out to the public and in performing air transportation 
services, a direct air carrier or foreign direct air carrier subject to 
this part shall use only the name in which its operating authorization 
is issued or trade name is registered, and shall not operate or hold out 
to the public in a name not acknowledged by the Department to be so 
registered. Except as provided in Secs. 221.21(J) and 221.35(d) of this 
chapter, minor variations in the use of this name, including 
abbreviations, contractions, initial letters, or other variations of the 
name that are identifiable with the authorized name, are permitted. 
Slogans and service marks shall not be considered names for the purpose 
of this part, and their use is not restricted.



Sec. 215.4  Change of name or use of trade name.

    (a) Registrations. Any air carrier subject to this part that desires 
to change the name in which its operating authorization has been issued, 
or to use a trade name, or to obtain initial operating authority must 
register the name with the Department. The Department will construe any 
application for initial, reissued, or transferred authority, a well as 
any commuter air carrier registration or amendment filed under part 298, 
as containing a ``registration'' of the intended name. A separate name 
registration document need not be filed. A carrier registering use of a 
trade name, without seeking reissuance of its underlying certificate or 
foreign air carrier permit or exemption authority, must file a statement 
that complies with Secs. 302.3 and 302.4 of this chapter registering its 
intended name with the Air Carrier Fitness Division if it is a U.S. 
certificated or commuter carrier, or within the Licensing Division if it 
is a foreign air carrier.
    (b) Montreal Agreement. Each registration under this section shall 
be accompanied by three copies of a counterpart to the Montreal 
Agreement (Agreement 18900) (OST Form 4523) signed by the carrier using 
the proposed name. Upon arrival of the application, the Department will 
place a copy of the signed OST form 4523 in Docket 17325.

(Reporting and recordkeeping requirements in paragraph (b) were approved 
by the Office of Management and Budget under control number 3024-0064.)

[[Page 42]]



Sec. 215.5  Procedure in case of similarity of names.

    The Department will compare the proposed name in any registration 
filed under this part or in an application for new, reissued, or 
transferred authority with a list of names used by existing 
certificated, commuter and foreign direct air carriers. The Department 
will notify the applicant of any other certificated, foreign or commuter 
carriers that may have an identical or similar name. The registrant must 
then notify those carriers of its registration. The notification will 
identify the applicant and state its proposed name or the name 
requested, area of operation or proposed area of operation, type of 
business, and other pertinent matters. The registrant must then file a 
certificate of service of the notification with the Department.



Sec. 215.6  Acknowledgment of registration.

    After completion of the filing and notification requirements of this 
part, the Department may acknowledge the registration by notice in the 
action granting the application for initial operating authority, 
transfer, or reissuance or in approving the commuter registration, or by 
separate notice in the case of use of a trade name. Non-action under 
this provision shall not be construed as an adjudication of any rights 
or liabilities.



PART 216--COMMINGLING OF BLIND SECTOR TRAFFIC BY FOREIGN AIR CARRIERS--Table of Contents




Sec.
216.1  Definitions.
216.2  Applicability.
216.3  Prohibition.
216.4  Special authorizations.
216.5  Existing permits.
216.6  Existing unauthorized operations.

    Authority: Sec. 204(a), 72 Stat. 743; 49 U.S.C. 1324(a). Interpret 
or apply secs. 402 and 1108(b), 72 Stat. 757, 798; 49 U.S.C. 1372, 
1508(b).

    Source: ER-525, 33 FR 692, Jan. 19, 1968, unless otherwise noted.



Sec. 216.1  Definitions.

    (a) As used in this part, unless the context otherwise requires:
    Act means the Federal Aviation Act of 1958, as amended.
    Blind sector traffic means revenue traffic, carried by a foreign air 
carrier on a flight operating in air transportation, which is enplaned 
at one foreign point and deplaned at another foreign point, where at 
least one of such points is not named as a terminal or intermediate 
point in the carrier's applicable foreign air carrier permit.
    Note: This definition shall not be deemed to include the carriage of 
authorized beyond homeland traffic (i.e., traffic carried between a 
point named in a carrier's foreign air carrier permit and a point beyond 
a homeland terminal point authorized under such permit).
    Revenue traffic means persons, property or mail carried for 
compensation or hire.
    (b) Terms defined in section 101 of the Act have the meaning 
expressed in such definitions.



Sec. 216.2  Applicability.

    This part sets forth the requirements applicable to foreign air 
carriers for obtaining a Special Authorization from the Board with 
respect to any deviation from an authorized foreign air transportation 
route for the purpose of commingling blind sector traffic with air 
transportation traffic carried pursuant to a foreign air carrier permit 
issued by the Board. The deviation by a foreign air carrier from its 
authorized route for the purpose of combined carriage to or from the 
United States of nonrevenue or other traffic, the carriage of which does 
not constitute engaging in foreign air transportation, is governed by 
the provisions of part 375 of this chapter.



Sec. 216.3  Prohibition.

    No foreign air carrier shall carry any blind sector traffic, as 
defined in this part, on any flight operating in air transportation 
pursuant to the authority of a foreign air carrier permit issued under 
section 402 of the Act, unless the combined carriage of such traffic has 
been specifically authorized by such permit, or by a Special 
Authorization issued under Sec. 216.4.

[[Page 43]]



Sec. 216.4  Special authorizations.

    (a) Applications. Any foreign air carrier may apply to the Board for 
a Special Authorization, as required by this part, for the carriage of 
blind sector traffic on a particular flight, series of flights, or for a 
specified or indefinite period of time between specified points. 
Applications shall be submitted directly to the Board, addressed to the 
attention of the Director, Bureau of International Aviation. One 
original and two copies in conformity with the requirements of 
Secs. 302.3(b) and 302.4 (b) and (c) of this chapter shall be filed. The 
applications shall contain a proper identification of the applicant; the 
flight or flights upon which it is proposed to carry such blind sector 
traffic, including routing, nontraffic stops, and dates or duration of 
the authority sought; a full description of such traffic, and points 
between which such traffic will be carried; information or documentation 
as to whether the country of which the applicant is a national grants 
reciprocal privileges to U.S. carriers; and the reasons for requesting 
such authorization together with such additional information as will 
establish that the grant of such authority will otherwise be in the 
public interest. Such additional information as may be specifically 
requested by the Board shall also be furnished.
    (b) Service. Applications shall be served upon each direct U.S. air 
carrier certificated to engage in individually ticketed or waybilled 
foreign air transportation over any portion of the route to which the 
application pertains, and on such other persons as the Board may 
require, and proof of such service shall accompany the application as 
provided in Sec. 302.8 of this chapter. Notice of such applications 
shall also be published in the Board's Weekly List of Applications 
Filed.
    (c) Memoranda in support or opposition. Any interested person may 
file a memorandum in support of or in opposition to the grant of an 
application. Such memorandum shall set forth in detail the reasons why 
it is believed that the application should be granted or denied and 
shall be accompanied by such data, including affidavits, which it is 
desired that the Board consider. Copies of the memorandum shall be 
served upon the applicant. Nothing in this subparagraph shall be deemed 
to preclude the Board from granting or denying an application when the 
circumstances so warrant without awaiting the filing of memoranda in 
support of or in opposition to the application.
    (d) Time for filing. (1) Applications seeking authority to engage in 
blind sector operations for a period of 3 months or longer, shall be 
submitted at least 60 days in advance of the proposed commencement of 
such operations. Memoranda in response to such an application shall be 
submitted within 15 days after the date of filing thereof.
    (2) Applications seeking authority to engage in blind sector 
operations for a period less than three months shall be filed at least 
20 days in advance of the proposed commencement of such operations, and 
memoranda in response thereto within 7 days after the date of filing 
thereof: Provided, That the Board may consider late filed applications 
upon a showing of good cause for failure to adhere to this requirement.
    (e) General procedural requirements. Except as otherwise provided 
herein, the provisions of part 302, subpart A, of this chapter shall 
apply to the extent applicable.
    (f) Issuance of Special Authorization. A Special Authorization 
authorizing the carriage of blind sector traffic will be issued only if 
the Board finds that the proposed carriage is fully consistent with 
applicable law and this part, and that grant of such authority would be 
in the public interest. The application may be granted or denied in 
whole or in part without hearing, and a Special Authorization made 
subject to any conditions or limitations, to the extent that such action 
is deemed by the Board to be in the public interest. Special 
Authorizations are not transferable.
    (g) Nature of the privilege conferred. A Special Authorization 
issued pursuant to this section shall constitute a privilege conferred 
upon a carrier, which may be enjoyed only to the extent that its 
continued exercise remains in the interest of the public. Accordingly, 
any Special Authorization issued pursuant

[[Page 44]]

to this section may be revoked, suspended, amended or restricted without 
hearing.

(Sec. 204(a) of the Federal Aviation Act of 1958, as amended, 72 Stat. 
743 (49 U.S.C. 1324); Reorganization Plan No. 3 of 1961, 75 Stat. 837, 
26 FR 5989 (49 U.S.C. 1324 (note)))

[ER-525, 33 FR 692, Jan. 19, 1968, as amended by ER-910, 40 FR 23844, 
June 3, 1975; ER-1060, 43 FR 34117, Aug. 3, 1978]



Sec. 216.5  Existing permits.

    ``Foreign aircraft permits'' issued by the Board under the 
provisions of part 375 of the Board's Special Regulations, authorizing 
the combined carriage of blind sector traffic as defined in this part, 
shall continue in effect in accordance with their terms until their 
expiration date unless sooner terminated, revoked or modified by the 
Board. Such permits shall, upon the effective date of this part, be 
deemed to constitute a Special Authorization issued pursuant to 
Sec. 216.4.



Sec. 216.6  Existing unauthorized operations.

    Notwithstanding the provisions of Sec. 216.3, if within 30 days 
after the effective date of this part a carrier files an application for 
a Special Authorization to continue to perform existing blind sector 
operations which have been regularly performed by such carrier 
commencing on a date prior to August 9, 1967, such carrier may continue 
to engage in such blind sector operations until final decision by the 
Board on such application: Provided, That any such application shall, in 
addition to the requirements of Sec. 216.4(a), contain a statement that 
the carrier is relying upon this section for continuance of preexisting 
blind sector operations, and shall fully describe such operations 
including the date inaugurated, and the frequency and continuity of 
performance.



PART 217--REPORTING TRAFFIC STATISTICS BY FOREIGN AIR CARRIERS IN CIVILIAN SCHEDULED, CHARTER, AND NONSCHEDULED SERVICES--Table of Contents




Sec.
217.1  Definitions.
217.2  Applicability.
217.3  Reporting requirements.
217.4  Data collected (service classes).
217.5  Data collected (data elements).
217.6  Extension of filing time.
217.7  Certification.
217.8  Reporting procedures.
217.9  Waivers from reporting requirements.
217.10  Instructions.
217.11  Reporting compliance.

    Authority: 49 U.S.C. 329 and chapters 401, 413, 417.

    Source: 53 FR 46294, Nov. 16, 1988, unless otherwise noted.



Sec. 217.1  Definitions.

    As used in this part:
    Foreign Air Carrier means a non-U.S. air carrier holding a foreign 
air carrier permit or exemption authority from the Department of 
Transportation.
    Large Aircraft means an aircraft designed to have a passenger 
capacity of more than 60 seats or a payload of more the 18,000 pounds.
    Small Aircraft means an aircraft that is not a large aircraft.
    Statement of Authorization under this part means a statement of 
authorization from the Department, pursuant to 14 CFR part 207, 208, or 
212, as appropriate, that permits joint service transportation, such as 
blocked space agreements, part-charters, code-sharing or wet-leases, 
between two direct air carriers holding underlying economic authority 
from the Department.



Sec. 217.2  Applicability.

    This part applies to foreign air carriers that are authorized by the 
Department to provide civilian passenger and/or cargo scheduled, 
nonscheduled and charter services to or from the United States, whether 
performed pursuant to a permit or exemption authority. Operations 
conducted wholly with small aircraft are exempt from the requirements of 
this part. Where the service operations involve both large and small 
aircraft, only the large aircraft services must be reported.



Sec. 217.3  Reporting requirements.

    (a) Each foreign air carrier shall file BTS Form 41 Schedule T-
100(f) ``Foreign Air Carrier Traffic Data by Nonstop Segment and On-
flight Market.'' All traffic statistics shall be compiled

[[Page 45]]

in terms of each flight stage as actually performed.
    (b) The traffic statistics reported on Schedule T-100(f) shall be 
accumulated in accordance with the data elements prescribed in 
Sec. 217.5 of this part, and these data elements are patterned after 
those in section 19-5 of part 241 of this chapter.
    (c) One set of Form 41 Schedule T-100(f) data shall be filed.
    (d) Schedule T-100(f) shall be submitted to the Department within 
thirty (30) days following the end of each reporting month.
    (e) Schedule T-100(f) shall be filed with the Bureau of 
Transportation Statistics at the address referenced in Sec. 217.10 and 
the Appendix to Sec. 217.10 of this part.

[53 FR 46294, Nov. 16, 1988, as amended at 60 FR 66722, Dec. 26, 1995]



Sec. 217.4  Data collected (service classes).

    (a) The statistical classifications are designed to reflect the 
operating elements attributable to each distinctive class of service 
offered for scheduled, nonscheduled and charter service.
    (b) The service classes that foreign air carriers shall report on 
Schedule T-100(f) are:
    (1) F  Scheduled Passenger/Cargo
    (2) G  Scheduled All-Cargo
    (3) L  Nonscheduled Civilian Passenger/Cargo Charter
    (4) P  Nonscheduled Civilian All-Cargo Charter
    (5) Q  Nonscheduled Services (Other than Charter). This service 
class is reserved for special nonscheduled cargo flights provided by a 
few foreign air carriers under special authority granted by the 
Department.



Sec. 217.5  Data collected (data elements).

    (a) Within each of the service classifications prescribed in 
Sec. 217.4, data shall be reported in applicable traffic elements.
    (b) The statistical data to be reported on Schedule T-100(f) are:
    (1) Air carrier. The name and code of the air carrier reporting the 
data. The carrier code is assigned by DOT. The Office of Airline 
Information (OAI'S) will confirm the assigned code upon request; OAI's 
address is in the Appendix to Sec. 217.10 of this part.
    (2) Reporting period date. The year and month to which the reported 
data are applicable.
    (3) Origin airport code. This code represents the industry 
designator as described in the Appendix to Sec. 217.10 of this part. A 
common private industry source of these industry designator codes is the 
Official Airline Guides (OAG). Where none exists, OAI will furnish a 
code upon request. OAI's address is in the Appendix to Sec. 217.10 of 
this part.
    (4) Destination airport code. This represents the industry 
designator, from the source described in Sec. 217.5(b)(3).
    (5) Service class code. For scheduled and other services, the 
applicable service class prescribed in Sec. 217.4 of this part shall be 
reported.
    (6) Aircraft type code. This code represents the aircraft type, as 
specified in the Appendix to Sec. 217.10 of this part. Where none 
exists, OAI will furnish a code upon request.
    (7) Revenue aircraft departures performed (Code 510). The number of 
revenue aircraft departures performed.
    (8) Revenue passengers transported (Code 130). The total number of 
revenue passengers on board over a flight stage, including those already 
on the aircraft from previous flight stages. Includes both local and 
through passengers on board the aircraft.
    (9) Revenue freight transported (kilograms) (Code 237). The volume, 
expressed in kilograms, of revenue freight that is transported. As used 
in this part, ``Freight'' means revenue cargo other than passengers or 
mail.
    (10) Total revenue passengers in market (Code 110). The total number 
of revenue passengers enplaned in a market, boarding the aircraft for 
the first time. While passengers may be transported over several flight 
stages in a multi-segment market, this data element (code 110) is an 
unduplicated count of passengers originating within the market.
    (11) Total revenue freight in market (kilograms) (Code 217). The 
amount of revenue freight cargo (kilograms) that is enplaned in a 
market, loaded on the aircraft for the first time.
    (12) Available capacity-payload (Code 270). The available capacity 
is collected in kilograms. This figure shall reflect

[[Page 46]]

the available load (see load, available in 14 CFR part 241 Section 03) 
or total available capacity for passengers, mail and freight applicable 
to the aircraft with which each flight stage is performed.
    (13) Available seats (Code 310). The number of seats available for 
sale. This figure reflects the actual number of seats available, 
excluding those blocked for safety or operational reasons. Report the 
total available seats in item 310.

[53 FR 46294, Nov. 16, 1988 and 53 FR 52404, Dec. 28, 1988, as amended 
at 54 FR 7183, Feb. 17, 1989; 60 FR 66722, Dec. 26, 1995; 62 FR 6718, 
Feb. 13, 1997]



Sec. 217.6  Extension of filing time.

    (a) If circumstances prevent the filing of a Schedule T-100(f) 
report on or before the due date prescribed in section 22 of part 241 of 
this chapter and the Appendix to Sec. 217.10 of this part, a request for 
an extension must be filed with the Director, Office of Airline 
Information.
    (b) The extension request must be received at the address provided 
in Sec. 217.10 at least 3 days in advance of the due date, and must set 
forth reasons to justify granting an extension, and the date when the 
report can be filed. If a request is denied, the air carrier must submit 
the required report within 5 days of its receipt of the denial of 
extension.

[53 FR 46294, Nov. 16, 1988, as amended at 60 FR 66722, Dec. 26, 1995]



Sec. 217.7  Certification.

    The certification for BTS Form 41 Schedule T-100(f) shall be signed 
by an officer of the air carrier with the requisite authority over the 
collection of data and preparation of reports to ensure the validity and 
accuracy of the reported data.

[53 FR 46294, Nov. 16, 1988, as amended at 60 FR 66722, Dec. 26, 1995]



Sec. 217.8  Reporting procedures.

    Reporting guidelines and procedures for Schedule T-100(f) are 
prescribed in the Appendix to Sec. 217.10 of this part.



Sec. 217.9  Waivers from reporting requirements.

    (a) A waiver from any reporting requirement contained in Schedule T-
100(f) may be granted by the Department upon its own initiative, or upon 
the submission of a written request of the air carrier to the Director, 
Office of Airline Information, when such a waiver is in the public 
interest.
    (b) Each request for waiver must demonstrate that: Existing 
peculiarities or unusual circumstances warrant a departure from the 
prescribed procedure or technique; a specifically defined alternative 
procedure or technique will result in substantially equivalent or more 
accurate portrayal of the operations reported; and the application of 
such alternative procedure will not adversely affect the uniformity in 
reporting applicable to all air carriers.

[53 FR 46294, Nov. 16, 1988, as amended at 60 FR 66722, Dec. 26, 1995]



Sec. 217.10  Instructions.

    (a) Foreign air carriers shall submit Form 41 Schedule T-100(f) on 
either floppy discs produced on microcomputers or on other ADP media, 
such as magnetic tape, or hardcopy reports.
    (b) The detailed instructions for preparing Schedule T-100(f) are 
contained in the Appendix to this section. Blank copies of Schedule T-
100(f) are available from the Office of Airline Information, K-25, Room 
4125, U.S. Department of Transportation, 400 Seventh St., SW., 
Washington, DC 20590.

 Appendix to Section 217.10 of 14 CFR Part 217--Instructions to Foreign 
  Air Carriers for Reporting Traffic Data on Form 41 Schedule T-100(f)

    (a) General instructions.
    (1) Description. Form 41 Schedule T-100(f) provides flight stage 
data covering both passenger/cargo and all cargo operations in scheduled 
and nonscheduled services. The schedule is used to report all flights 
which serve points in the United States or its territories as defined in 
this part.
    (2) Applicability. Each foreign air carrier holding a 402 permit, or 
exemption authority, and operating aircraft with seating configurations 
of more than sixty seats and/or

[[Page 47]]

available capacity (payload of passengers and cargo) of more than 18,000 
pounds shall file Form 41 Schedule T-100(f). Reference to 402 is to 
section 402 of the Federal Aviation Act of 1958, as amended (FAAct).
    (3) Address for filing reports: Office of Airline Information, K-25, 
Room 4125, U.S. Department of Transportation, 400 Seventh St., SW., 
Washington, DC 20590.
    (4) Filing period. Form 41 Schedule T-100(f) shall be filed monthly 
and is due at the Department thirty (30) days following the end of the 
reporting month to which the data are applicable.
    (5) Number of copies. A single set of legible Form 41 Schedule T-
100(f) data and certification shall be submitted.
    (6) Foreign air carrier certification. Each foreign air carrier 
shall submit a certification statement (illustrated at the end of this 
Appendix) as an integral part of each monthly Schedule T-100(f), as 
prescribed in Sec. 217.5 of this part.
    (7) Alternative filing on Automatic Data Processing (ADP) media. 
Foreign air carriers are encouraged to use ADP equipment to reduce the 
manual effort of preparing Schedule T-100(f). Foreign air carriers may 
use the floppy disk medium. ADP submission requirements for floppy discs 
are prescribed in paragraph (f).
    (b) Preparation of Form 41 Schedule T-100(f):
    (1) Explanation of nonstop segments and on-flight markets. There are 
two basic categories of data, one pertaining to nonstop segments and the 
other pertaining to on-flight markets. For example, the routing (A-B-C-
D) consists of three nonstop segment records A-B, B-C, and C-D, and six 
on-flight market records A-B, A-C, A-D, B-C, B-D, and C-D.
    (2) Guidelines for reporting a nonstop segment. A nonstop segment is 
reported when one or both points are in the United States or its 
territories. These data shall be merged with that for all of the other 
reportable nonstop operations over the same segment. Nonstop segment 
data must be summarized by aircraft type, under paragraph (h)(1), and 
class of service, paragraph (g)(1)(v).
    (3) Rules for determining a reportable on-flight market. On-flight 
markets are reportable when one or both points are within the U.S., with 
the following exceptions: (i) Do not report third country to U.S. 
markets resulting from flight itineraries which serve a third country 
prior to a homeland point in flights passing through the homeland bound 
for the U.S.; and (ii) do not report U.S. to third country markets 
resulting from itineraries serving third country points subsequent to a 
homeland point in flights outbound from the U.S. and passing through the 
homeland. In reporting data pertaining to these two exceptions, the 
traffic moving to or from the U.S. relating to the applicable prior or 
subsequent third countries (referred to as ``behind'' or ``beyond'' 
traffic) is to be combined with the applicable foreign homeland gateway 
point, just as though the traffic were actually enplaned or deplaned at 
the homeland gateway, without disclosure of the actual prior or 
subsequent points. Applicable flights are illustrated in examples (6) 
and (7) under paragraph (c).
    (c) Examples of flights. Following are some typical flight 
itineraries that show the reportable nonstop segment and on-flight 
market entries. The carrier's homeland is the key factor in determining 
which on-flight markets are reportable.
    (1) SQ flight # 11 LAX--NRT--SIN. This is an example of a flight 
with an intermediate foreign country. It is not necessary to report 
anything on the NRT--SIN leg.

SQ--Singapore Airlines
LAX--Los Angeles, USA
NRT--Tokyo-Narita, Japan
SIN--Singapore, Singapore

--------------------------------------------------------------------------------------------------------------------------------------------------------
          A-3--Airport code            A-4--Airport  A-5--Service class                     By aircraft type--                      Sum of all aircraft
--------------------------------------     code          (mark an X)    ---------------------------------------------------------         types--
                                      ----------------------------------                                                         -----------------------
                                                                                                                    B-4--Revenue              C-2--Total
                                                                         B-1--Aircraft  B-2--Revenue  B-3--Revenue     freight     C-1-Total    revenue
                Origin                  Destination   F   G   L   P   Q    type code      aircraft     passengers    transported    revenue   freight in
                                                                                         departures    transported      (kg)      passengers    market
                                                                                                                                   in market     (kg)
--------------------------------------------------------------------------------------------------------------------------------------------------------
LAX..................................          NRT    X  ..  ..  ..  ..       8161              12          2400          4800          400         500
LAX..................................          SIN    X  ..  ..  ..  ..  .............  ............  ............  ............       2000        4300
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (2) SQ flight 15 LAX-- HNL-- TPE-- SIN. This is an example of two 
U.S. points, an intermediate third country, and a homeland point. 
Information is reportable on only the on-flight markets and nonstop 
segments that consist of one or both U.S. points.

SQ--Singapore Airlines
LAX--Los Angeles, USA
HNL--Honolulu, USA
TPE--Taipei, Taiwan
SIN--Singapore, Singapore

[[Page 48]]



--------------------------------------------------------------------------------------------------------------------------------------------------------
            A-3--Airport code             A-4--Airport  A-5--Service class                   By aircraft type--                     Sum of all aircraft
-----------------------------------------     code          (Mark an x)    ------------------------------------------------------         types--
                                         ----------------------------------                                                      -----------------------
                                                                                                                    B-4--Revenue              C-2--Total
                                                                            B-1--Acft.  B-2--Revenue  B-3--Revenue     freight    C-1--Total    revenue
                 Origin                    Destination   F   G   L   P   Q   type code    aircraft     passengers    transported    revenue   freight in
                                                                                         departures    transported      (kg)      passengers    market
                                                                                                                                   in market     (kg)
--------------------------------------------------------------------------------------------------------------------------------------------------------
LAX.....................................          HNL    X  ..  ..  ..  ..      8161            12          2700          5300            0           0
LAX.....................................          TPE    X  ..  ..  ..  ..  ..........  ............  ............  ............        700        1300
LAX.....................................          SIN    X  ..  ..  ..  ..  ..........  ............  ............  ............       2000        4000
HNL.....................................          TPE    X  ..  ..  ..  ..      8161            12          2200          6800         1200         800
HNL.....................................          SIN    X  ..  ..  ..  ..  ..........  ............  ............  ............       1000        6000
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (3) LB flight  902 LPB-VVI-MAO-CCS-MIA. This flight serves two 
homeland points and two different foreign countries before terminating 
in the U.S. Nonstop segment information is required only for the nonstop 
segment involving a U.S. point. On-flight market information is required 
in 4 of the 10 markets, LPB-MIA and VVI-MIA, since these involve 
homeland and U.S. points; MAO-MIA is necessary to show traffic carried 
into the U.S., and CCS-MIA for the same reason, and also because in all 
cases where a nonstop segment entry is required, a corresponding on-
flight market entry must also be reported.

LB--Lloyd Aero Boliviano
LPB--La Paz, Bolivia
VVI--Santa Cruz-Viru Viru, Bolivia
MAO--Manaus, Brazil
CCS--Caracas, Venezuela
MIA--Miami, USA

--------------------------------------------------------------------------------------------------------------------------------------------------------
            A-3--Airport code             A-4--Airport  A-5--Service class                   By aircraft type--                     Sum of all aircraft
-----------------------------------------     code          (mark an x)    ------------------------------------------------------         types--
                                         ----------------------------------                                                      -----------------------
                                                                                                                    B-4--Revenue              C-2--Total
                                                                            B-1--Acft.  B-2--Revenue  B-3--Revenue     freight    C-1--Total    revenue
                 Origin                    Destination   F   G   L   P   Q   type code    aircraft     passengers    transported    revenue   freight in
                                                                                         departures    transported      (kg)      passengers    market
                                                                                                                                   in market     (kg)
--------------------------------------------------------------------------------------------------------------------------------------------------------
CCS.....................................          MIA    X  ..  ..  ..  ..      8161            31          6900         71000            0           0
LPB.....................................          MIA    X  ..  ..  ..  ..  ..........  ............  ............  ............       1100       20000
VVI.....................................          MIA    X  ..  ..  ..  ..  ..........  ............  ............  ............       4000       30000
MAO.....................................          MIA    X  ..  ..  ..  ..  ..........  ............  ............  ............       1000       12000
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (4) LY flight 005 TLV-AMS-ORD-LAX. This flight serves a single 
foreign intermediate point and two U.S. points after its homeland 
origination. The information on the TLV-AMS leg is not reportable.

LY--El Al Israel Airlines
TLV--Tel Aviv, Israel
AMS--Amsterdam, Netherlands
ORD--Chicago, USA
LAX--Los Angeles, USA

--------------------------------------------------------------------------------------------------------------------------------------------------------
            A-3--Airport code             A-4--Airport  A-5--Service class                   By aircraft type--                     Sum of all aircraft
-----------------------------------------     code          (mark an x)    ------------------------------------------------------         types--
                                         ----------------------------------                                                      -----------------------
                                                                                                                    B-4--Revenue              C-2--Total
                                                                            B-1--Acft.  B-2--Revenue  B-3--Revenue     freight    C-1--Total    revenue
                 Origin                    Destination   F   G   L   P   Q   type code    aircraft     passengers    transported    revenue   freight in
                                                                                         departures    transported      (kg)      passengers    market
                                                                                                                                   in market     (kg)
--------------------------------------------------------------------------------------------------------------------------------------------------------
AMS.....................................          ORD    X  ..  ..  ..  ..      8161             1           350         10000           50        1500
TLV.....................................          ORD    X  ..  ..  ..  ..  ..........  ............  ............  ............        150        4000
TLV.....................................          LAX    X  ..  ..  ..  ..  ..........  ............  ............  ............        125        3000
ORD.....................................          LAX    X  ..  ..  ..  ..      8161             1           150          4500            0           0
AMS.....................................          LAX    X  ..  ..  ..  ..  ..........  ............  ............  ............         25        1500
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (5) QF flight 25 SYD--BNE--CNS--HNL--YVR. This flight serves three 
homeland points, a U.S. point, and a subsequent third

[[Page 49]]

country. Nonstop segment information is required on the respective legs 
into and out of the United States. All on-flight market entries 
involving the U.S. point HNL are also required. Data are not required on 
the homeland to homeland markets, or the homeland--third country 
markets.

QF--Qantas Airways (Australia)
SYD--Sydney, Australia
BNE--Brisbane, Australia
CNS--Cairns, Australia
HNL--Honolulu, USA
YVR--Vancouver, Canada

--------------------------------------------------------------------------------------------------------------------------------------------------------
              A-3--Airport code                A-4--Airport  A-5--Service class                  By aircraft type                   Sum of all aircraft
----------------------------------------------     code          (mark an x)    -------------------------------------------------          types
                                              ----------------------------------                                                 -----------------------
                                                                                 B-1--                              B-4--Revenue              C-2--Total
                                                                                 Acft.  B-2--Revenue  B-3--Revenue     freight    C-1--Total    revenue
                    Origin                      Destination   F   G   L   P   Q   type    aircraft       freight     transported    revenue   freight in
                                                                                  code   departures    transported      (kg)      passengers    market
                                                                                                                                   in market     (kg)
--------------------------------------------------------------------------------------------------------------------------------------------------------
CNS..........................................          HNL    X                   8161           5          2200         41000          400        8000
SYD..........................................          HNL    X                  .....  ............  ............  ............        600       10000
BNE..........................................          HNL    X                  .....  ............  ............  ............        600        9000
HNL..........................................          YVR    X                   8161           5           750         15700          150        1700
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (6) JL flight 002 HKG--NRT--SFO. This flight originates in a third 
country prior to the homeland. No data is required on the HKG-NRT leg, 
but the HKG-SFO passengers and cargo shall be shown as enplanements in 
the NRT-SFO on-flight market entry. These volumes are included by 
definition in the passenger and cargo transported volumes of the NRT-SFO 
nonstop segment entry.

JL--Japan Air Lines
HKG--Hong Kong, Hong Kong
NRT--Tokyo-Narita, Japan
SFO--San Francisco, USA

--------------------------------------------------------------------------------------------------------------------------------------------------------
            A-3--Airport code             A-4--Airport  A-5--Service class                    By aircraft type                      Sum of all aircraft
-----------------------------------------     code          (mark an x)    ------------------------------------------------------          types
                                         ----------------------------------                                                      -----------------------
                                                                                                                    B-4--Revenue              C-2--Total
                                                                            B-1--Acft.  B-2--Revenue  B-3--Revenue     freight    C-1--Total    revenue
                 Origin                    Destination   F   G   L   P   Q   type code    aircraft     passengers    transported    revenue   freight in
                                                                                         departures    transported      (kg)      passengers    market
                                                                                                                                   in market     (kg)
--------------------------------------------------------------------------------------------------------------------------------------------------------
NRT.....................................          SFO    X                      8161             3          1200         18000         1200       18000
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (7) JL flight  001 SFO-NRT-HKG. This flight is the reverse sequence 
of flight  002 above; it requires a nonstop segment entry covering SFO-
NRT, and a single on-flight market entry also for SFO-NRT. In this case, 
the on flight traffic enplaned at SFO and destined for HKG, a beyond 
homeland point, shall be included in the SFO-NRT entry; a separate SFO-
HKG entry is not required.

JL--Japan Air Lines
SFO--San Francisco, USA
NRT--Tokyo-Narita, Japan
HKG--Hong Kong, Hong Kong

--------------------------------------------------------------------------------------------------------------------------------------------------------
            A-3--Airport code             A-4--Airport  A-5--Service class                    By aircraft type                      Sum of all aircraft
-----------------------------------------     code          (mark an x)    ------------------------------------------------------          types
                                         ----------------------------------                                                      -----------------------
                                                                                                                    B-4--Revenue              C-2--Total
                                                                            B-1--Acft.  B-2--Revenue  B-3--Revenue     freight    C-1--Total    revenue
                 Origin                    Destination   F   G   L   P   Q   type code    aircraft     passengers    transported    revenue   freight in
                                                                                         departures    transported      (kg)      passengers    market
                                                                                                                                   in market     (kg)
--------------------------------------------------------------------------------------------------------------------------------------------------------
SFO.....................................          NRT    X                      8161             1           400         20000          400       20000
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (8) BA flight  5 LHR-ANC-NRT-OSA. This example contains a single 
homeland point and a single U.S. point followed by two third country 
points. It is necessary to report the nonstop segments into and out of 
the U.S., and all three of the on-flight markets which have the U.S. 
point ANC as either an origin or destination.


[[Page 50]]


BA--British Airways
LHR--London, England
ANC--Anchorage, USA
NRT--Tokyo-Narita, Japan
OSA--Osaka, Japan

--------------------------------------------------------------------------------------------------------------------------------------------------------
            A-3--Airport code             A-4--Airport  A-5--Service class             By aircraft type                   Sum of all aircraft types
-----------------------------------------     code          (mark an x)    -----------------------------------------------------------------------------
                                         ----------------------------------                                                                   C-2--Total
                                                                                        B-2--Revenue  B-3--Revenue  B-4--Revenue  C-1--Total    revenue
                 Origin                                                     B-1--Acft.    aircraft     passengers      freight      revenue   freight in
                                           Destination   F   G   L   P   Q   type code   departures    transported   transported  passengers    market
                                                                                                                        (kg)       in market     (kg)
--------------------------------------------------------------------------------------------------------------------------------------------------------
LHR.....................................          ANC    X                      8161            10          3000         50000          100        1000
ANC.....................................          NRT    X                      8161            10          3150         55000          100        2500
ANC.....................................          OSA    X                  ..........  ............  ............  ............        150        1500
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (d) Provisions to reduce paperwork:
    (1) Nonstop Segment Entries. The flight stage data applicable to 
nonstop segment entries must be summarized to create totals by aircraft 
equipment type, within service class, within pairs-of-points.
    (2) On-flight Market Entries. The applicable on-flight market 
entries shall be summarized to create totals by service class within 
pair-of-points.
    (e) Preparation of hard copy Schedule T-100(f):
    (1) Section A--Indicative and flight pattern information. A copy of 
Schedule T-100(f) is shown at the end of this Appendix. Section A 
defines the origin and destination points and the service class code to 
which the nonstop segment data in Section B and the on-flight market 
data in Section C are applicable. Section A information, along with the 
carrier code and report date, must be included on each schedule.
    (2) Section B--Nonstop segment information. Section B of the 
schedule is used for reporting nonstop segment information by aircraft 
type. To reduce the number of schedules reported, space is provided for 
including data on multiple different aircraft types. Similarly, the on-
flight market section has been included on a single Schedule T-100(f), 
along with the nonstop segment data, rather than on a separate schedule.
    (3) Section C--On-flight market information. Section C of the 
schedule is used for reporting on-flight market data. There will always 
be an on-flight market that corresponds to the nonstop segment. Because 
the on-flight market data are reported at the service class level rather 
than by aircraft type, a specific flight may produce more on-flight 
markets than nonstop segments, (see examples in paragraph (c) of this 
Appendix), resulting in data reported in sections A and C only.
    (f) ADP media reports:
    (1) ADP report format. A foreign air carrier may, in accordance with 
the following guidelines, use personal computers (and in some cases 
mainframe or minicomputers) to report Schedule T-100(f) data.
    (i) Reporting medium. ADP data submission of T-100(f) information 
must be on IBM compatible floppy disk, including diskettes, floppy 
disks, or flexible disks. The particular type of acceptable minidisk is 
5\1/4\ inch, double-sided/double density, with a capacity of 
approximately 360,000 characters of data (360K). Carriers using 
mainframe or minicomputers shall download (transcribe) the data to the 
required floppy disk. Carriers wishing to use a different ADP procedure 
must obtain written approval to do so from the Director, OAI, under the 
waiver provisions in Sec. 217.9 of this part. Requests for approval to 
use alternate methods must disclose the proposed data transmission 
methodology.
    (ii) File characteristics. OAI files are reported in ASCII delimited 
format, sometimes called Data Interchange Format (DIF). This form of 
recording data provides for variable length fields (data elements) 
which, in the case of alphabetic data, are enclosed by quotation marks 
(``) and separated by a comma (,); numeric data elements are recorded 
without editing symbols and separated by a comma. The data is identified 
by its juxtaposition within a given record. Each record submitted by an 
air carrier shall contain the specified number of data elements all of 
which must be juxtapositionally correct.
    (iii) Schedule T-100(f) record layout. Each minidisk record shall 
consist of data fields for recording a maximum of eleven (11) elements. 
The order and description of the data fields are as follows:

(1). Carrier code: Alphanumeric
(2). Report date: Numeric
(3). Origin airport: Alphabetic
(4). Destination airport: Alphabetic
(5). Service class code: Alphabetic
(6). Aircraft type code: Numeric
(7). Aircraft departures performed: Numeric
(8). Revenue passengers transported: Numeric
(9). Revenue freight transported: Numeric
(10). Total revenue passengers in market: Numeric

[[Page 51]]

(11). Total revenue freight in market: Numeric

    (A) Fields numbered 1 through 11 must always be provided. Therefore, 
enter a zero (0) or space when there is no reportable data for a given 
element. See paragraph (g)(1) through (g)(3) for a detailed definition 
of each data element.
    (B) The following are sample disk records:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        1        2       3        4       5       6      7      8      9      10     11
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sample No. 1.......................................................  ``CCC''    8701  ``JFK''  ``LHR''  ``F''    8161     29     59     69     79     89
Sample No. 2.......................................................  ``CCC''    8701  ``JFK''  ``LHR''  ``F''    6901    299    599      0      0      0
Sample No. 3.......................................................  ``CCC''    8701  ``JFK''  ``LHR''  ``G''    7102    299      0    599      0    799
Sample No. 4.......................................................  ``CCC''    8701  ``JFK''  ``LHR''  ``F''       0      0      0      0    699    799
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Sample No. 1 represents a full record, using the applicable fields 
for reporting both the nonstop segment (6 through 9) and the on-flight 
market information (10 and 11). The service class is ``F'' indicating 
scheduled passenger/cargo service; the aircraft type code is 8161; the 
816 indicates a Boeing 747-100, and the 1 in the units position 
indicates the standard ``passengers-above and cargo-below'' 
configuration.
    Sample No. 2 contains nonstop segment information only. It is needed 
in this example to report the volumes transported on the same nonstop 
segment, but with a second aircraft type.
    Sample No. 3 contains nonstop segment and on-flight market 
information for the same points, but for another service class (code 
letter ``G'' indicates all-cargo service). Also, the units position of 
aircraft type is a 2, indicating a cargo cabin. Field numbers 8 and 10 
are for reporting passengers. In this case both contain a zero, 
indicating no passengers, while at the same time maintaining the 
required juxtaposition.
    Sample No. 4 shows the reporting of only on-flight market 
information for a pair-of-points for which there is no corresponding 
nonstop segment information.
    (2) External labeling requirements: Physical label. The following 
data must be clearly printed on a label affixed to the minidisk or its 
container.

Carrier Name
Carrier code (as prescribed by DOT, BTS, OAI)
File identification = ``T-100(F) DATA''
Report date (year, month to which data applies)

    (3) Collating sequence, optional. If practical, the records should 
be sorted by origin and destination airport codes, service class, and 
aircraft type. However, the sequence is optional. Data may be submitted 
in any sequence including random.
    (4) Summarization. See summarization rules as specified in paragraph 
(d)(1).
    (g) Data element definitions:
    (1) Service pattern information.
    (i) Line A-1 Carrier code. Use the carrier code established by the 
Department. This code is provided to each carrier in the initial 
reporting letter from the Office of Airline Information (OAI). If there 
are any questions about these codes, contact the OAI Data Administration 
Division at the address in paragraph (a)(3) of this Appendix.
    (ii) Line A-2 Report date. This is the year and month to which the 
data are applicable. For example, 8901 indicates the year 1989, month of 
January.
    (iii) Line A-3 Origin airport code. This is the departure airport, 
where an aircraft begins a flight segment, and where the passengers 
originate in an on-flight market. Use the 3-letter code from the City/
Airport Codes section of the Official Airline Guide Worldwide Edition. 
If no 3-letter code is available, OAI will assign one; the address is in 
paragraph (a)(3) of this Appendix.
    (iv) Line A-4 Destination airport code. This is the arrival airport, 
where an aircraft stops on a flight segment, and where passengers 
deplane (get off the flight) after reaching their destination in a 
market. Use the 3-letter code from the source described in paragraph 
(g)(1)(iii) of this Appendix.
    (v) Line A-5 Service class code. Select one of the following single 
letter codes which describes the type of service being reported on a 
given flight operation.

F = Scheduled Passenger/cargo Service
G = Scheduled All-cargo Service
L = Nonscheduled Civilian Passenger/Cargo Charter
P = Nonscheduled Civilian All-Cargo Charter
Q = Nonscheduled Services (Other than Charter)

    (2) Nonstop segment information:
    (i) Line B-1 Aircraft type code. Use the four digit numeric code 
prescribed in paragraph (h)(1) of this Appendix. If no aircraft type 
code is available, OAI will assign one. The address is in paragraph 
(a)(3) of this Appendix.
    (ii) Line B-2 Aircraft departures performed. This is the total 
number of physical departures performed with a given aircraft type, 
within service class and pair-of-points.
    (iii) Line B-3 Revenue passengers transported. This is the total 
number of revenue passengers transported on a given nonstop segment. It 
represents the total number of

[[Page 52]]

revenue passengers on board over the segment without regard to their 
actual point of enplanement.
    (iv) Line B-4 Revenue freight transported. This item is the total 
weight in kilograms (kg) of the revenue freight transported on a given 
nonstop segment without regard to its actual point of enplanement.
    (3) On-flight market information:
    (i) Line C-1 Total revenue passengers in market. This item 
represents the total number of revenue passengers, within service class, 
that were enplaned at the origin airport and deplaned at the destination 
airport.
    (ii) Line C-2 Total revenue freight in market. This item represents 
the total weight in kilograms (kg) of revenue freight enplaned at the 
origin and deplaned at the destination airport.
    (h)  [Reserved]
    (i) Joint Service.
    (1) The Department may authorize joint service operations between 
two direct air carriers. Examples of these joint service operations are:
    Blocked-space agreements;
    Part-charter agreements;
    Code-sharing agreements;
    Wet-lease agreements, and similar arrangements.
    (2) Joint service operations shall be reported in Form 41 Schedules 
T-100 and T-100(f) within the following guidelines: (i) Blocked space, 
part-charters and code-sharing arrangements shall be reported by the 
carrier in operational control of the flight. The traffic moving under 
those agreements is reported the same as any other traffic on board the 
aircraft. (ii) Wet lease agreements shall be reported by the lessee as 
though the leased aircraft and crew were a part of the lessee's own 
fleet. (iii) If there are questions about reporting a joint service 
operation, contact the Director, Office of Aviation Information 
Management at the address in paragraph (a)(3) of this Appendix. (iv) The 
Department may require information pertaining to joint service 
operations in addition to that reported in Schedules T-100 and T-100(f) 
by U.S. and foreign air carriers. If additional information is needed, 
ad hoc reporting will be used by the Director, Office of Aviation 
Information Management (OAI), under authority delegated in Sec. 385.27 
(b) and (d) of this chapter. Ad hoc reporting requirements will be 
communicated to the applicable carriers by letter.
    (j) Schedules.

[[Page 53]]

[GRAPHIC] [TIFF OMITTED] TC30SE91.000


[[Page 54]]


[GRAPHIC] [TIFF OMITTED] TC30SE91.001


[53 FR 46294, Nov. 16, 1988, as amended at 54 FR 7183, Feb. 17, 1989; 60 
FR 66722, Dec. 26, 1995]



Sec. 217.11  Reporting compliance.

    (a) Failure to file reports required by this part will subject an 
air carrier to civil and criminal penalties prescribed in sections 901 
and 902 of the Federal Aviation Act of 1958, as amended.
    (b) Title 18 U.S.C. 1001, Crimes and Criminal Procedure, makes it a 
criminal offense subject to a maximum fine of $10,000 or imprisonment 
for not more than 5 years, or both, to knowingly and willfully make, or 
cause to be made, any false or fraudulent statements or representations 
in any matter within the jurisdiction of any agency of the United 
States.

[[Page 55]]



PART 218--LEASE BY FOREIGN AIR CARRIER OR OTHER FOREIGN PERSON OF AIRCRAFT WITH CREW--Table of Contents




Sec.
218.1  Definitions.
218.2  Applicability.
218.3  Prohibition against unauthorized operations employing aircraft 
          leased with crew.
218.4  Condition upon authority of lessee.
218.5  Application for disclaimer of jurisdiction.
218.6  Issuance of order disclaiming jurisdiction.
218.7  Presumption.

    Authority: Secs. 204(a), 402, Pub. L. 85-726, as amended, 72 Stat. 
743, 757 (49 U.S.C. 1324, 1372).

    Source: ER-716, 36 FR 23148, Dec. 4, 1971, unless otherwise noted.



Sec. 218.1  Definitions.

    For the purpose of this part the term lease shall mean an agreement 
under which an aircraft is furnished by one party to the agreement to 
the other party, irrespective of whether the agreement constitutes a 
true lease, charter arrangement, or some other arrangement.



Sec. 218.2  Applicability.

    This part applies to foreign air carriers and other persons not 
citizens of the United States which, as lessors or lessees, enter into 
agreements providing for the lease of aircraft with crew to a foreign 
air carrier for use in foreign air transportation. For purposes of 
section 402 of the Act, the person who has operational control and 
safety responsibility is deemed to be the carrier, and is required to 
have appropriate operating authority.

[ER-716, 36 FR 23148, Dec. 4, 1971, as amended by ER-1250, 46 FR 47770, 
Sept. 30, 1981]



Sec. 218.3  Prohibition against unauthorized operations employing aircraft leased with crew.

    (a) No foreign air carrier, or other person not a citizen of the 
United States, shall lease an aircraft with crew to a foreign air 
carrier for use by the latter in performing foreign air transportation 
unless either:
    (1) The lessor holds a foreign air carrier permit issued under 
section 402 of the Act or an approved registration issued under part 294 
of this chapter, and any statement of authorization required by part 212 
of this chapter; or
    (2) The Board has issued an exemption under section 416 of the Act 
specifically authorizing the lessor to engage in the foreign air 
transportation to be performed under the lease; or
    (3) The Board has issued an order under Sec. 218.6 disclaiming 
jurisdiction over the matter.
    (b) For purposes of this part, an aircraft shall be considered to be 
leased with crew if:
    (1) The pilot in command or a majority of the crew of the aircraft, 
other than cabin attendants:
    (i) Is to be furnished by the lessor;
    (ii) Is employed by the lessor;
    (iii) Continues in the employ of the lessor in the operation of 
services other than those provided for in the agreement between the 
parties; or
    (iv) Has been employed by the lessor prior to the lease, and the 
employment of whom by the lessee is coextensive with the period or 
periods for which the aircraft is available to the lessee under the 
lease; or
    (2) The aircraft is operated under operations specifications issued 
to the lessor by the Federal Aviation Administration.

[ER-716, 36 FR 23148, Dec. 4, 1971, as amended by ER-1250, 46 FR 47770, 
Sept. 30, 1981; ER-1260, 46 FR 52598, Oct. 27, 1981]



Sec. 218.4  Condition upon authority of lessee.

    In any case where a foreign air carrier leases from another foreign 
air carrier or other person not a citizen of the United States an 
aircraft with crew for use in performing foreign air transportation, it 
shall be a condition upon the authority of the lessee to perform such 
foreign air transportation that compliance be achieved with the 
requirements of this part.



Sec. 218.5  Application for disclaimer of jurisdiction.

    The parties to a lease with crew as described in Sec. 218.3(b) may 
apply to the Board for an order disclaiming jurisdiction over the 
matter. The application

[[Page 56]]

shall be filed jointly by both parties to the lease, and shall generally 
conform to the procedural requirements of part 302, subpart A, of this 
chapter. It shall be served upon any air carrier providing services over 
all or any part of the route upon which air transportation services will 
be provided pursuant to the agreement. The application should set forth 
in detail all evidence and other factors relied upon to demonstrate that 
true operational control and safety responsibility for the air 
transportation services to be provided are in the hands of the lessee 
rather than the lessor. A copy of the agreement and all amendments 
thereof, as well as a summary interpretation of its pertinent 
provisions, shall be included with the applications. Any interested 
person may file an answer to the application within 7 days after service 
hereof. Until the Board has acted upon the application, no operations in 
foreign transportation shall be performed pursuant to the agreement.



Sec. 218.6  Issuance of order disclaiming jurisdiction.

    If the Board finds that true operational control and safety 
responsibility will be vested in the lessee and not in the lessor (i.e., 
that the lease transaction is in substance a true lease of aircraft 
rather than a charter or series of charters), and that the performance 
of the operations provided for in such lease will not result in the 
lessor's being engaged in foreign air transportation, it will issue an 
order disclaiming jurisdiction over the matter. Otherwise the 
application for disclaimer of jurisdiction will be denied.



Sec. 218.7  Presumption.

    Whether under a particular lease agreement the lessor of the 
aircraft is engaged in foreign air transportation is a question of fact 
to be determined in the light of all the facts and circumstances. 
However, in circumstances where the lessor furnishes both the aircraft 
and the crew, there is a presumption that true operational control and 
safety responsibility are exercised by the lessor, and that the 
agreement constitutes a charter arrangement under which the lessor is 
engaged in foreign air transportation. The burden shall rest upon the 
applicants for disclaimer of jurisdiction in each instance to 
demonstrate by an appropriate factual showing that the operation 
contemplated will not constitute foreign air transportation by the 
lessor.



PART 221--TARIFFS--Table of Contents




                           Subpart A--General

Sec.
221.1  Applicability of this part.
221.2  Board may direct reissue of publications.
221.3  Carrier's duty.
221.4  Definitions.
221.5  English language.
221.6  [Reserved]
221.7  Unauthorized air transportation.

         Subpart B--Who Is Authorized To Issue and File Tariffs

221.10  Carrier.
221.11  Agent.

     Subpart C--Form and Other Specifications of Tariff Publications

221.20  Book or loose-leaf form.
221.21  Specifications applicable to all tariff publications.
221.22  Specifications applicable only to loose-leaf tariff 
          publications.
221.23  Specifications applicable only to book tariffs and supplements.
221.24  Statement of filing with foreign government to be shown in air 
          carriers' tariff publications.

                      Subpart D--Contents of Tariff

221.30  Arrangement and nature of contents.
221.31  Title page.
221.32  Correction number check sheet (loose-leaf tariff).
221.33  Table of contents.
221.34  List of participating carriers.
221.35  Explanations of abbreviations, reference marks, and symbols.
221.36  Index of commodities (property tariff).
221.37  Index of points.
221.38  Rules and regulations.
221.39  Classification ratings or exceptions to governing classification 
          ratings.
221.40  Statement of fares or rates for air transportation.
221.41  Routing.

 Subpart E--Requirements Applicable to All Statements of Fares or Rates

221.50  Clear and explicit statement; systematic arrangement.

[[Page 57]]

221.51  Currency.
221.52  Territorial application.
221.53  Airport-to-airport application, accessorial services.
221.54--221.55  [Reserved]
221.56  Rates may include transfer at interchange points.
221.57  Proportional fares or rates.
221.58  Arbitraries.
221.59  Fares or rates stated in percentages of other fares or rates; 
          other relationships prohibited.
221.60  Conflicting or duplicating rates or fares prohibited.
221.61  Provisions for alternative use of or precedence of rates or 
          fares prohibited.
221.62  [Reserved]
221.63  Applicable rate when no through local or joint fares or rates.

 Subpart F--Requirements Applicable Only to Statements of Property Rates

221.70  Definite unit of rate.
221.71  Quantities on which rates apply.
221.72  Types of property rates (class, general commodity, or specific 
          commodity) which may be published.
221.73  Class rates.
221.74  General commodity rates and exception ratings thereto.
221.75  Specific commodity rates.
221.76  Precedence of authorized types of rates.
221.77  Straight or mixed shipments.
221.80  Rate scale method of publishing rates.

                      Subpart G--Governing Tariffs

221.100  When reference to governing tariffs permitted.
221.101  Contents of all governing tariffs.
221.102  Rules tariff.
221.103  [Reserved]
221.104  Explosives and other dangerous or restricted articles.
221.105  Classification tariff.
221.106  [Reserved]
221.107  Aircraft equipment tariff.
221.108  Other types of governing tariffs.

                     Subpart H--Amendment of Tariffs

221.110  Methods of amending tariffs.
221.111  Amending loose-leaf tariff by revised pages and additional 
          original pages.
221.112  Amending book tariff by supplement (also applicable to 
          supplements to loose-leaf tariffs when such supplements are 
          specifically authorized in this part).
221.113  Reissuing and canceling tariffs; transferring matter to other 
          tariffs.
221.114  Amendment symbols to indicate changes in rates, fares and other 
          provisions.
221.115  Reinstating canceled or expired tariff provisions.
221.116  Supplement to loose-leaf tariff authorized when service 
          terminated or suspended.

           Subpart I--Suspension of Tariff Provisions by Board

221.120  Effect of suspension by Board.
221.121  Suspension supplement.
221.122  Reissuing tariff publications suspended in part or containing 
          matter continued in effect by suspension.
221.123  Reissue of matter continued in effect by suspension to be 
          canceled upon termination of suspension.

           Subpart J--Vacating the Suspension of Tariff Matter

221.130  Tariff must be amended to make suspended matter effective.
221.131  Vacating supplement.
221.132  When tariff amendments in addition to vacating supplement are 
          required.
221.133  When Special Tariff Permission is required to file amendments 
          making suspended matter effective pursuant to vacating order.

 Subpart K--Canceling Suspended Matter in Compliance With Board's Order

221.140  Notice required when canceling suspended matter in compliance 
          with Board's order.
221.141  Cancellation of suspended matter subsequent to date to which 
          suspended.

                       Subpart L--Index of Tariffs

221.150  When index required.
221.151  Index to be issued and filed as a tariff.
221.152  Arrangement of lists of tariffs.
221.153  Information to be shown in list of tariffs.
221.154  Index to be maintained current.

            Subpart M--Filing Tariff Publications With Board

221.160  Required notice.
221.161  Delivering tariff publications to Board.
221.162  Number of copies required.
221.163  Letter of tariff transmittal.
221.164  Concurrences or powers of attorney not previously filed to 
          accompany tariff transmittal.
221.165  Explanation and data supporting tariff changes and new matter 
          in tariff publications.
221.166  Explanation of missing C.A.B. numbers to accompany tariff 
          transmittal.
221.167  Posting copies to be furnished participating carriers at time 
          of filing.
221.168  Withdrawal or substitution of filed tariff publications 
          prohibited.

[[Page 58]]

      Subpart N--Posting Tariff Publications for Public Inspection

221.170  Public notice of tariff information.
221.171  Posting at stations, offices, or locations other than principal 
          or general office.
221.172  Accessibility of tariffs to the public.
221.173  Notice of tariff posting.
221.174  Notification to the passenger of status of fare, rule, charge 
          or practice.
221.175  Special notice of limited liability for death or injury under 
          the Warsaw Convention.
221.176  Notice of limited liability for baggage; alternative 
          consolidated notice of liability limitations.
221.177  Alternative notice of tariff terms.
221.178  [Reserved]
221.179  Transmission of tariff filings to subscribers.

               Subpart O--Rejection of Tariff Publications

221.180  Board's authority to reject.
221.181  Notification of rejection.
221.182  Rejected publication is void and must not be used.
221.183  Tariff publication issued in lieu of rejected publication.
221.184  Issue page in lieu of rejected loose-leaf page within 20 days.

  Subpart P--Special Tariff Permission To File on Less Than Statutory 
                                 Notice

221.190  Grounds for approving or denying Special Tariff Permission 
          applications.
221.191  How to prepare and file applications for Special Tariff 
          Permission.
221.192  Special Tariff Permission to be used in its entirety as 
          granted.
221.193  Re-use of Special Tariff Permission when publication is 
          rejected.
221.194  Reference to Special Tariff Permission on tariff publications.
221.195  Pre-filing tariff approval for fare reductions.

                 Subpart Q--Waiver of Tariff Regulations

221.200  Applications for waiver of tariff regulations.
221.201  Form of application for waivers.

         Subpart R--Giving and Revoking Concurrences to Carriers

221.210  Method of giving concurrence.
221.211  Method of revoking concurrence.
221.212  Method of withdrawing portion of authority conferred by 
          concurrence.

       Subpart S--Giving and Revoking Powers of Attorney to Agents

221.220  Method of giving power of attorney.
221.221  Method of revoking power of attorney.
221.222  Method of withdrawing portion of authority conferred by power 
          of attorney.
221.223  Procedure for alternate agent to assume the duties of and take 
          over tariffs of the principal agent.
221.224  Procedure for having new principal agent assume the duties of 
          and take over tariffs of another agent.
221.225  New powers of attorney to be filed within 180 days after death 
          or disability of either principal or alternate.

 Subpart T--Adoption Publications Required To Show Change in Carrier's 
                  Name or Transfer of Operating Control

221.230  Adoption notice.
221.231  Adoption supplements and revised title pages to be filed to 
          former carrier's tariffs.
221.232  Receiver shall file adoption notice and supplements.
221.233  Agents' and other carriers' tariffs shall reflect adoption.
221.234  C.A.B. numbers of tariffs issued by adopting carrier and method 
          of publishing reference to C.A.B. numbers of former carrier's 
          tariffs.
221.235  Concurrences or powers of attorney to be reissued.
221.236  Numbering adopting carrier's letters of tariff transmittal.
221.237  Numbering adopting carrier's Special Tariff Permission 
          applications.
221.238  Cessation of operations without successor.

                       Subpart U--Prescribed Forms

221.240  Letter of tariff transmittal.
221.241  Application for Special Tariff Permission.
221.242  Concurrence.
221.243  Notice of Revocation of Concurrence.
221.244  Power of attorney.
221.245  Notice of Revocation of Power of Attorney.
221.246  Adoption notice.
221.247  Adoption supplement.
221.248  Specimen title page of tariff.

                  Subpart V--Complaints Against Tariffs

221.250  Complaints against tariffs.

                 Subpart W--Electronically Filed Tariffs

221.251  Applicability of the subpart.
221.260  Requirements for filing.
221.270  Time for filing and computation of time periods.
221.275  Requirement for filing paper tariffs.
221.280  Content and explanation of abbreviations, reference marks and 
          symbols.

[[Page 59]]

221.282  Statement of filing with foreign governments to be shown in air 
          carrier's tariff filings.
221.283  The filing of tariffs and amendments to tariffs.
221.284  Unique rule numbers required.
221.285  Adoption of provisions of one carrier by another carrier.
221.286  Justification and explanation for certain fares.
221.287  Statement of fares.
221.300  Suspension of tariffs.
221.301  Cancellation of suspended matter.
221.302  Special tariff permission.
221.400  Discontinuation of electronic tariff system.
221.500  Filing of paper tariffs required.
221.600  Transmission of electronic tariffs to subscribers.
221.650  Copies of tariffs made from filer's printer(s) located in 
          Department's public reference room.
221.700  Actions under assigned authority and petitions for review of 
          staff action.

    Authority: 49 U.S.C. 40101, 40109, 40113, 46101, 46102, Chapter 411, 
Chapter 413, Chapter 415 and Subchapter I of Chapter 417.

    Source: ER-439, 30 FR 9439, July 29, 1965, unless otherwise noted.



                           Subpart A--General



Sec. 221.1  Applicability of this part.

    All tariffs and amendments to tariffs of air carriers and foreign 
air carriers filed with the Board pursuant to section 403 of the act 
shall be constructed, published, filed, posted and kept open for public 
inspection in accordance with the regulations in this part.



Sec. 221.2  Board may direct reissue of publications.

    The Board for good cause shown, may direct the reissue of any tariff 
publication, concurrence, or power of attorney at any time.



Sec. 221.3  Carrier's duty.

    (a) Must file tariffs. Except as set forth in paragraph (d) or (e) 
of this section, every air carrier and every foreign air carrier shall 
file with the Board, and print, and keep open to public inspection, 
tariffs showing all rates, fares, and charges for air transportation 
between points served by it, and between points served by it and points 
served by any other air carrier or foreign air carrier, when through 
service and through rates shall have been established, and showing to 
the extent required by regulations of the Board, all classifications, 
rules, regulations, practices, and services in connection with such air 
transportation. Tariffs shall be filed, posted, and published in such 
form and manner, and shall contain such information as the Board shall 
by regulation prescribe. Any tariff so filed which is not consistent 
with section 403 of the act and such regulations may be rejected. Any 
tariff so rejected shall be void.
    (b) Must observe tariffs. No air carrier or foreign air carrier 
shall charge or demand or collect or receive a greater or less or 
different compensation for air transportation or for any service in 
connection therewith, than the rates, fares and charges specified in its 
currently effective tariffs; and no air carrier or foreign air carrier 
shall, in any manner or by any device, directly or indirectly, or 
through any agent or broker, or otherwise, refund or remit any portion 
of the rates, fares, or charges so specified, or extend to any person 
any privileges or facilities, with respect to matters required by the 
Board to be specified in such tariffs, except those specified in such 
tariffs.
    (c) No relief from violations. Nothing contained in this part shall 
be construed as relieving any air carrier or foreign air carrier from 
liability for violations of the act, nor shall the filing of a tariff, 
or amendment thereto, relieve any air carrier or foreign air carrier 
from such violations or from violations of regulations issued under the 
Act.
    (d) Exemption authority. Air carriers and foreign air carriers, both 
direct and indirect, are exempted from the requirement of section 403 of 
the Act and any requirement of this chapter to file, and shall not file 
with the Board, tariffs for operations under the following provisions:
    (1) Part 291, Domestic Cargo Transportation, except to the extent 
noted in Sec. 291.31(a)(1);
    (2) Part 296, Indirect Air Transportation of Property;
    (3) Part 297, Foreign Air Freight Forwarders and Foreign Cooperative 
Shippers Association;

[[Page 60]]

    (4) Part 298, Exemption for Air Taxi Operations, except to the 
extent noted in Sec. 298.11(b);
    (5) Part 380, Public Charters;
    (6) Part 207, Charter Trips and Special Services;
    (7) Part 208, Terms, Conditions, and Limitations of Certificates to 
Engage in Charter Air Transportation;
    (8) Part 212, Charter Trips by Foreign Air Carriers;
    (9) Part 292, International Cargo Transportation, except as provided 
in 292.
    (e) Domestic passenger fare tariffs. For interstate and overseas air 
transportation of passengers, the following provisions apply to each 
pair of points served by an air carrier:
    (1) The carrier shall file a tariff stating an unrestricted coach 
fare for service between those points. The carrier may also file tariffs 
describing other fare categories (e.g., first class, super-saver). Such 
tariffs shall include the availability conditions applicable to each 
fare category filed. The carrier shall not charge any passenger more 
than the fare on file for the fare category purchased by the passenger, 
but may charge less than that fare. If there is no fare on file for the 
fare category purchased by the passenger, the carrier shall not charge 
more than the unrestricted coach fare on file, except for service that 
includes additional amenities.
    (2) The carrier shall also file a tariff stating the amount to be 
used for construction of joint fares for interline service, if that 
amount is different from the unrestricted coach fare on file. Joint 
fares constructed from such filed amounts shall be binding on carriers 
and ticket agents except for interline routings where the carriers have 
agreed to charge lesser amounts.
    (3) Ticket agents shall not charge any passenger more than the fare 
on file for the fare category purchased by the passenger, but may, 
except as set forth in paragraph (e)(2) of this section, charge less 
than that fare. If there is no fare on file for the fare category 
purchased by the passenger, the ticket agent shall not charge more than 
the unrestricted coach fare on file except for service that includes 
additional amenities. A carrier may arrange, by contract with its ticket 
agents, to specify fixed fares to be charged by the ticket agents, and 
may provide notice of such arrangements in its tariffs. Failure of 
ticket agents to observe such arrangements will not, however, be 
considered a violation of the Act or of Board rules. The Board does not 
hereby approve such contractual arrangements under section 412 of the 
Act or exempt them from the antitrust laws under section 414.
    (4) Air carriers and ticket agents are exempt from the requirements 
of section 403(a) and (b)(1) of the Act and the other provisions of this 
part to the extent necessary to allow the filing of tariffs and the 
charging of prices for interstate and overseas air transportation as set 
forth in this paragraph (e).
    (5) In this paragraph, ``charge'' includes ``charge,'' ``collect,'' 
``demand,'' and ``receive,'' as those terms are used in section 403 of 
the Act.

(Secs. 102, 204, 403, and 416 of the Federal Aviation Act of 1958, as 
amended by Pub. L. 95-504, 72 Stat. 740, 743, 758, and 771, 92 Stat. 
1731, 1732 (49 U.S.C. 1302, 1324, 1373, and 1386))

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1125, 44 FR 33059, 
June 8, 1979; ER-1246, 46 FR 46794, Sept. 22, 1981; ER-1313, 48 FR 1941, 
Jan. 17, 1983; 60 FR 61478, Nov. 30, 1995]



Sec. 221.4  Definitions.

    As used in this part, terms shall be defined as follows:
    Act means the Federal Aviation Act of 1958, as amended.
    Area No. 1 means all of the North and South American Continents and 
the islands adjacent thereto; Greenland; Bermuda; the West Indies and 
the islands of the Caribbean Sea; and the Hawaiian Islands (including 
Midway and Palmyra).
    Area No. 2 means all of Europe (including that part of the Union of 
the Soviet Socialist Republics in Europe) and the islands adjacent 
thereto; Iceland; the Azores; all of Africa and the islands adjacent 
thereto; Ascension Island; and that part of Asia lying west of and 
including Iran.
    Area No. 3 means all of Asia and the islands adjacent thereto except 
that portion included in Area No. 2; all of the East Indies, Australia, 
New Zealand, and the islands adjacent thereto;

[[Page 61]]

and the islands of the Pacific Ocean except those included in Area No. 
1.
    Board means the Civil Aeronautics Board.
    Book tariff means a tariff consisting of pages bound together in 
book form which conforms with the specifications applicable only to book 
tariffs.
    Bundled Normal Economy Fare means the lowest one-way fare available 
for unrestricted, on-demand service in any city-pair market.
    CRT means a video display terminal that uses a cathode ray tube as 
the image medium.
    Carrier means an air carrier or foreign air carrier subject to 
section 403 of the Act.
    Class rate means a rate which is published to apply on articles or 
commodities assigned to a numbered class by a classification or an 
exception thereto.
    Consignee means the person whose name appears on the airwaybill as 
the party to whom the shipment is to be delivered by the carrier.
    Contract of carriage means those fares, rates, rules, and other 
provisions applicable to the foreign air transportation of passengers, 
baggage, or property, as defined in the Federal Aviation Act.
    Direct-service market means an international market where the 
carrier provides service either on a nonstop or single-flight-number 
basis, including change-of-gauge.
    ECAC agreement means the Memorandum of Understanding between the 
United States and various member nations of the European Civil Aviation 
Conference, signed on December 17, 1982, as revised and renewed on 
October 11, 1984, as further revised and renewed on February 13, 1987, 
and as may be subsequently further revised and renewed.
    Electronic Tariff means an international passenger fares tariff or a 
special tariff permission application transmitted to the Department by 
means of an electronic medium, and containing fares for the 
transportation of persons and their baggage or property, and including 
such associated data as arbitraries, footnotes, routings, and fare class 
explanations.
    Fare means the amount per passenger or group of persons stated in 
the applicable tariff for the transportation thereof and includes 
baggage unless the context otherwise requires.
    Fare tariff means a tariff containing fares for the air 
transportation of person and may include baggage charges and provisions 
relating thereto.
    Field means a specific area of a record used for a particular 
category of data.
    Filer means an air carrier, foreign air carrier, or tariff 
publishing agent of such a carrier filing electronic tariffs on its 
behalf in conformity with this subpart.
    General commodity rate means a rate which is published to apply on 
all articles or commodities except those which will not be accepted for 
transportation under the terms of the tariff containing such rate or of 
governing tariffs.
    General effective date means the effective date shown on the title 
page of a tariff as required by Sec. 221.31(a)(11), the effective date 
shown on title page of a supplement as required by Sec. 221.112(b)(8), 
and the effective date shown on an original or revised page as required 
by Sec. 221.22(b)(6). Also, see Sec. 221.160.
    Item means a small subdivision of a tariff designated as an item and 
identified by a number, a letter, or other definite method for the 
purpose of facilitating reference and amendment.
    Joint fare or rate means a fare or rate that applies to 
transportation over the joint lines or routes of two or more carriers 
and which is made and published by arrangement or agreement between such 
carriers evidenced by concurrence or power of attorney.
    Joint tariff means a tariff that contains joint fares or rates.
    Local fare or rate means a fare or rate that applies to 
transportation over the lines or routes of one carrier only.
    Local tariff means a tariff that contains local fares or rates.
    Loose-leaf tariff means a tariff consisting of loose-leaf pages and 
conforming with the specifications applicable to loose-leaf tariffs as 
set forth in Sec. 221.22.
    Machine-Readable Data means encoded computer data, normally in a 
binary format, which can be read electronically by another computer with

[[Page 62]]

the requisite software without any human interpretation.
    Official DOT Tariff Database means those data records constituted 
pursuant to Secs. 221.283 and 221.286 of this subpart, which are in the 
custody of, and are maintained by, the Department of Transportation.
    On-line Tariff Database means the remotely accessible, on-line 
version, maintained by the filer, of (1) the electronically filed tariff 
data submitted to the official DOT tariff database, and (2) the 
Departmental approvals, disapprovals, and other actions, as well as any 
Departmental notation concerning such approvals, disapprovals, or other 
actions, that subpart W of part 221 requires the filer to maintain in 
its database.
    Original tariff, as applied to a loose-leaf tariff, refers to the 
tariff as it was originally filed exclusive of any supplements, revised 
pages, or additional original pages. Original tariff, as applied to a 
book tariff, refers to the tariff as it was originally filed exclusive 
of any supplements.
    Passenger means any person who purchases, or who contacts a ticket 
office or travel agent for the purpose of purchasing, or considering the 
purchase of, air transportation.
    Passenger tariff means a tariff containing fares, charges, or 
governing provisions applicable to the air transportation of persons and 
their baggage.
    Property tariff means a tariff containing rates, charges, or 
governing provisions applicable to the air transportation of property 
(other than baggage accompanied or checked by passengers).
    Proportional rate (or fare) means a rate (or fare) which may be used 
only to construct a through combination rate (or fare) on traffic which:
    (1) Originates at a point beyond the point from which such 
proportional rate (or fare) applies, or
    (2) Is destined to a point beyond the point to which such 
proportional rate (or fare) applies, or
    (3) Both originates at a beyond point specified in paragraph (1) 
above and is destined to a beyond point specified in paragraph (2) 
above.
    Proportional tariff or basing tariff means a tariff which contains 
proportional or basing rates or fares.
    Rates means the amount per unit stated in the applicable tariff for 
the transportation of property, and includes charge unless the context 
otherwise requires.
    Rate tariff means a tariff containing rates and charges for the air 
transportation of property, other than baggage accompanying or checked 
by passengers.
    SFFL means the Standard Foreign Fare Level as established by the 
Department of Transportation under section 1002 of the Federal Aviation 
Act of 1958, as amended (49 U.S.C. 1482).
    Shipper means the person whose name appears on the airwaybill as the 
party contracting with, or a person who contacts a carrier, a cargo 
sales office or agent of a carrier for the purpose of contracting with 
the carrier for carriage of a shipment.
    Specific commodity rate means a rate which is published to apply 
only on a specific commodity or commodities which are specifically named 
or described in the item naming such rate or in an item specifically 
referred to by such rate in the manner prescribed by Sec. 221.75.
    Statutory Notice means the number of days required for tariff 
filings in Sec. 221.160(a).
    Tariff publication means a tariff, a supplement to a tariff, or an 
original or revised page of a loose-leaf tariff, and includes an index 
of tariffs (subpart L) and an adoption notice (Sec. 221.230).
    Through fare means the total fare from point of origin to 
destination. It may be a local fare, a joint fare, or combination of 
separately established fares.
    Through rate means the total rate from point of origin to 
destination. It may be a local rate, a joint rate, or combination of 
separately established rates.
    Ticket/Cargo Sales Office means a station, office, or other location 
where tickets are sold, or airwaybills or other similar documents are 
issued, that is under the charge of a person employed exclusively by the 
carrier, or by it jointly with another person.

[[Page 63]]

    Unbundled Normal Economy Fare means the lowest one-way fare 
available for on-demand service in any city-pair market which is 
restricted in some way, e.g., by limits set and/or charges imposed for 
enroute stopovers or transfers.
    United States means the several States, the District of Columbia, 
and the several Territories and possessions of the United States, 
including the Territorial waters and the overlying air space thereof.
    Warsaw Convention means the Convention for the Unification of 
Certain Rules Relating to International Transportation by Air, 49 Stat. 
3000.

(Secs. 102, 204, 403, and 416 of the Federal Aviation Act of 1958, as 
amended by Pub. L. 95-504, 72 Stat. 740, 743, 758, and 771, 92 Stat. 
1731, 1732 (49 U.S.C. 1302, 1324, 1373, and 1386))

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-947, 41 FR 11018, 
Mar. 16, 1976; ER-987, 42 FR 12422, Mar. 4, 1977; ER-1038, 43 FR 1322, 
Jan. 9, 1978; ER-1051, 43 FR 24277, June 5, 1978; ER-1125, 44 FR 33059, 
June 8, 1979; 53 FR 52677, Dec. 29, 1988; Amdt. 221-68, 54 FR 2095, Jan. 
19, 1989]



Sec. 221.5  English language.

    All tariff publications, powers of attorney, concurrences, 
revocations of powers of attorney or concurrences, letters of tariff 
transmittal, Special Tariff Permission applications, waiver applications 
and all other documents filed with the Board pursuant to this part shall 
be in the English language.



Sec. 221.6  [Reserved]



Sec. 221.7  Unauthorized air transportation.

    Tariff publications shall not contain rates, fares, or charges, or 
their governing provisions, applicable to air transportation which the 
issuing or participating carriers are not authorized by the Board to 
perform, except where the Board expressly requests or authorizes tariff 
publications to be filed prior to the Board's granting authority to 
perform the air transportation covered by such tariff publications. Any 
tariff publication filed pursuant to such express request or 
authorization which is not consistent with section 403 of the Act and 
this part may be rejected; any tariff publication so rejected shall be 
void.



         Subpart B--Who Is Authorized To Issue and File Tariffs



Sec. 221.10  Carrier.

    (a) Local or joint tariffs. A carrier may issue and file, in its own 
name, tariff publications which contain:
    (1) Local rates or fares of such carrier only and provisions 
governing such local rates or fares, and/or
    (2) Joint rates or fares which apply jointly via such issuing 
carrier in connection with other carriers (participating in the tariff 
publications under authority of their concurrences given to the issuing 
carrier as provided in Sec. 221.210) and provisions governing such joint 
rates and fares. Provisions for account of an individual participating 
carrier may be published to govern such joint rates or fares provided 
Sec. 221.38(k) is complied with.

A carrier shall not issue and file tariff publications containing local 
rates or fares of other carriers, joint rates or fares in which the 
issuing carrier does not participate, or provisions governing such local 
or joint rates or fares.
    (b) Issuing officer. An officer or designated employee of the 
issuing carrier shall be shown as the issuing officer of a tariff 
publication issued by a carrier, and such issuing officer shall file the 
tariff publication with the Board on behalf of the issuing carrier and 
all carriers participating in the tariff publication. (See 
Secs. 221.22(b)(7), 221.31(a)(12), and 221.112(b)(9) for location of 
issuing officer's name on tariff publications.)



Sec. 221.11  Agent.

    An agent may issue and file, in his or its own name, tariff 
publications naming local rates or fares and/or joint rates or fares, 
and provisions governing such rates or fares, for account of carriers 
participating in such tariff publications, under authority of their 
powers of attorney given to such issuing agent as provided in 
Sec. 221.220. The issuing agent shall file such tariff publications with 
the Board on behalf of all carriers participating therein. Only one 
issuing agent may act in issuing and filing each such tariff 
publication.

[[Page 64]]



     Subpart C--Form and Other Specifications of Tariff Publications



Sec. 221.20  Book or loose-leaf form.

    Tariffs shall be prepared either in the form of book tariffs or in 
the form of loose-leaf tariffs. Supplements shall be prepared in book 
form in accordance with the specifications applicable to book tariffs.



Sec. 221.21  Specifications applicable to all tariff publications.

    (a) Paper and size. Tariff publications shall be prepared on paper 
of good quality and strong texture 8\1/2\ by 11 inches.
    (b) Printing or other durable process; legible copies. Tariff 
publications shall be plainly and legibly printed, planographed, 
mimeographed, sterotyped, or prepared by other similar durable process. 
Typewritten copies, carbon copies, proof sheets, or copies reproduced by 
hectograph (or similar process where the printed matter is subject to 
fading) shall not be used for filing or posting. Copies of tariff 
publications posted and filed shall be clear and legible in all 
respects.
    (c) Size of type. The size of type shall not be less than 8-point 
bold or full face type except:
    (1) As provided in Sec. 221.31(a)(1), (C.A.B. number),
    (2) Not less than 6-point bold or full face type may be used for 
explanations or reference marks (when such explanations appear on the 
page where the reference marks are used), for the cross reference 
required by Sec. 221.35(a), the statement of filing with other countries 
required by Sec. 221.24, and for column headings.
    (d) Margin. A clear margin of not less than one inch without any 
printing shall be allowed on each page at the vertical binding edge of 
each tariff or supplement (including all revised or original pages of a 
loose-leaf tariff, notwithstanding that such pages shall contain no 
binding).
    (e) Alterations prohibited. Alteration by writing, erasure, rubber 
stamps, or otherwise shall not be made in tariff publications.
    (f) Tables to be ruled or spaced. When fares, rates, charges, and 
numbers or letters (used for rate bases or similar purposes) are shown 
in tables, such tables shall be systematically arranged, and ruled or 
spaced to prevent misapplication. When not more than three figures 
(digits) or letters, including reference marks, are employed to express 
each rate, fare, charge, rate base, etc., the column shall be not less 
than one-fourth of an inch in width with a proportionately greater width 
when more than three figures or letters, including reference marks, are 
so employed. Tables shall not contain more than six horizontal lines of 
printed matter without a horizontal break in the printed matter (either 
by a ruled line or by at least one blank space across the table) where 
it is necessary for the tariff user to refer to corresponding provisions 
on the same line in parallel columns.
    (g) Items and similar units to be in numerical order. All items in a 
tariff publication shall be arranged in numerical or alphabetical order 
(with the lowest appearing first and the highest appearing last in the 
tariff). Each item shall bear a separate item designation and the same 
designation shall not be assigned to more than one item in the tariff. A 
gap between item designations may be allowed for the addition of future 
items, for example, the items in an original tariff may be numbered 
Items Nos. 5, 10, 15, etc. The requirements of this paragraph are also 
applicable to units similar to items (see Sec. 221.38(b) for designating 
rules).
    (h) Item, rule, or similar unit continued to next page. Where an 
item, rule, or similar unit is commenced on one page and is continued on 
the following page, the notation ``(continued on next page)'' shall be 
shown at the bottom of the portion of the item, rule, or unit on the 
page from which it is continued, and the following page to which it is 
continued shall show the designation of the item, rule, or similar unit 
followed by ``(continued)''.
    (i) Tariff shall apply to persons or property (not both). Rates and 
charges applicable to the transportation of property or provisions 
governing such rates or charges shall not be published in the same 
tariff with fares or charges applicable to the transportation of persons 
or provisions governing such fares or charges, except:
    (1) [Reserved]

[[Page 65]]

    (2) A tariff applicable to passengers may include provisions 
applicable to passengers' baggage.
    (3) A tariff applicable to property may include provisions 
applicable to persons accompanying shipments, provided that the carrier 
holds authority to transport such persons.
    (j) Carrier's name. Wherever the name of a carrier appears in a 
tariff publication, such name shall be shown in full exactly as it 
appears in the carrier's certificate of public convenience and 
necessity, foreign air carrier permit, letter of registration, or 
whatever other form of operating authority of the Board to engage in air 
transportation is held by the carrier, or such other name which has 
specifically been authorized by order of the Board. Except as provided 
in Sec. 221.35(d), a carrier's name may be abbreviated, provided the 
abbreviation is explained in the tariff.
    (k) Agent's name and title. Wherever the name of an agent appears in 
tariff publications, such name shall be shown in full exactly as it 
appears in the powers of attorney given to such agent by the 
participating carriers and the title ``Agent'' or ``Alternate Agent'' 
(as the case may be) shall be shown immediately in connection with the 
name.

(Secs. 102, 204, 403, and 416 of the Federal Aviation Act of 1958, as 
amended by Pub. L. 95-504, 72 Stat. 740, 743, 758, and 771, 92 Stat. 
1731, 1732 (49 U.S.C. 1302, 1324, 1373, and 1386))

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1125, 44 FR 33059, 
June 8, 1979]



Sec. 221.22  Specifications applicable only to loose-leaf tariff publications.

    (a) No binding. Pages of a loose-leaf tariff shall not be bound, but 
may be secured by a single staple or similar removable device when 
submitted to the Board for filing.
    (b) Information required on all interior pages. Each original page 
and revised page following the title page of a loose-leaf tariff shall 
contain the following information in the location specified:
    (1) In the upper left corner, the name of the issuing carrier or the 
name and title of the issuing agent.
    (2) In the upper left corner, immediately below the name of the 
issuing carrier or agent, the title of the tariff.
    (3) In the upper right corner, the C.A.B. number of the tariff.
    (4) Immediately below the C.A.B. number, the original page number or 
the revised page number, as the case may be, and, if a revised page, the 
cancellation of preceding issues of that page (see paragraph (c) of this 
section and Sec. 221.111).
    (5) In the lower left corner, the issued date of the page.
    (6) In the lower right corner, the effective date on which the 
fares, rates, charges, rules, and other provisions will become effective 
(see Sec. 221.160). When a page which is published back-to-back with 
another page on the same leaf is reissued without change in its 
provisions, the same general effective date shall be shown on both 
pages: Provided, however, That the general effective date on the page 
which reissues matter without change shall allow at least the statutory 
notice (see Sec. 221.60) and shall not be earlier than the general 
effective date of the prior issue of such page.
    (7) Centered at the bottom of the page, the name, title and address 
of:
    (i) The issuing officer (if tariff is issued by a carrier).
    (ii) The issuing agent (if tariff is issued by an individual agent).
    (iii) The official or employee of a corporate agent designated by 
such agent to issue and file tariff publications in the corporate 
agent's name (if tariff is issued by a corporate agent).

The information required by paragraph (b)(7) of this section may be 
omitted from interior loose-leaf pages provided that, whenever there is 
a change in such required information, a revision of the title page is 
issued and filed immediately to reflect the current name, title and 
address. When such information is omitted from interior pages, each 
letter of tariff transmittal tendering revised or original interior 
pages for filing shall bear the name, address and title of the issuing 
officer, individual agent, or corporate agent's designee shown on the 
latest issue of the title page at the time of filing; if a letter of 
tariff transmittal bears a different name, title or address from that on 
the latest issue of the title page, the pages submitted with such letter 
of

[[Page 66]]

tariff transmittal are in violation of these requirements.
    (c) Numbering pages. The title page of an original loose-leaf tariff 
shall bear no page number but shall show the designation ``Original 
Title Page'' in the upper right corner of the page, a few spaces below 
the C.A.B. number and any tariff cancellation thereunder. The pages 
following the title page of an original loose-leaf tariff shall be 
designated as ``Original Page 1'', ``Original Page 2'', etc. (to be 
shown immediately below the C.A.B. number in the upper right corner of 
the page) and shall be consecutively numbered in one series of page 
numbers throughout the entire tariff, commencing with ``Original Page 
1'' (see Sec. 221.111 for numbering original and revised pages issued to 
the tariff after the original filing of the tariff with the Board).
    (d) Printing matter on one or both faces of each loose-leaf. Tariff 
matter shall be published uniformly throughout a loose-leaf tariff 
either (1) on only one face of each leaf (reverse side of each leaf left 
entirely blank) or (2) commencing on page 1, on both faces of each leaf 
(2 pages back-to-back to each other). The method of publication used in 
an original tariff shall be used on all revised pages and added original 
pages filed to such tariff. When it is desired to change from one method 
to the other, the entire tariff shall be reissued.

(Secs. 204, 403, 1002; 72 Stat. 743, 758, 788; 49 U.S.C. 1324, 1373, 
1482, as amended)

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1038, 43 FR 1322, 
Jan. 9, 1978; ER-1104, 44 FR 9577, Feb. 13, 1979]



Sec. 221.23  Specifications applicable only to book tariffs and supplements.

    (a) Binding. The pages of a book tariff or supplement shall be bound 
together in book form at the left binding edge of the tariff or 
supplement. The binding shall be by two or more staples, wire or other 
permanent book binding.
    (b) Numbering pages. The title page of a book tariff or supplemental 
shall bear no page number. The pages following the title page of each 
book tariff or supplement shall be consecutively numbered as 1, 2, 3, 4, 
etc. (to be shown centered at the bottom of the page) and shall be 
consecutively numbered in only one series of page numbers throughout the 
entire tariff or supplement.
    (c) Information which is not to be shown on interior pages. The 
pages following the title page of a book tariff or supplement shall not 
contain any of the information specified in Sec. 221.22(b) except that, 
if desired, the name of the issuing carrier or agent, the number of the 
supplement, and the title of the tariff may be shown at the top of each 
interior page.



Sec. 221.24  Statement of filing with foreign government to be shown in air carriers' tariff publications.

    (a) Every tariff publication issued by or on behalf of an air 
carrier which contains rates, fares, rules, or other tariff provisions 
which by treaty, convention, or agreement entered into between any 
foreign country and the United States are required to be filed with that 
foreign country, shall include a statement substantially as follows:
    The rates, fares, charges, classifications, rules, regulations, 
practices, and services provided herein have been filed in each country 
in which filing is required by treaty, convention, or agreement entered 
into between that country and the United States, in accordance with the 
provisions of the applicable treaty, convention, or agreement.
    (b) The foregoing statement may be included upon each tariff 
publication by a symbol which is properly explained.
    (c) The required statement may be omitted from a tariff publication 
which has been filed with the foreign country pursuant to its tariff 
regulations and which bears a tariff filing designation of the foreign 
country in addition to the C.A.B. number appearing on the tariff 
required by this part.



                      Subpart D--Contents of Tariff



Sec. 221.30  Arrangement and nature of contents.

    (a) Except as otherwise provided in this part, tariffs shall contain 
only the contents prescribed by Secs. 221.31 to 221.41, inclusive, which 
shall be arranged in each tariff in the following order:
    (1) Title page (Sec. 221.31).

[[Page 67]]

    (2) Correction number check sheet (loose-leaf tariff only) 
(Sec. 221.32).
    (3) Table of contents (Sec. 221.33).
    (4) List of participating carriers (Sec. 221.34).
    (5) Explanations of abbreviations, symbols, and reference marks 
(Sec. 221.35).
    (6) Index of Commodities (property tariff only) (Sec. 221.36).
    (7) Index of points (Sec. 221.37).
    (8) Rules and regulations (Sec. 221.38).
    (9) Classification ratings or exceptions to governing classification 
ratings (property tariff only) (Sec. 221.39).
    (10) Statement of fares or rates for air transportation 
(Sec. 221.40).
    (11) Routing (Sec. 221.41).



Sec. 221.31  Title page.

    (a) Contents. Except as otherwise required in this part, or by other 
regulatory agencies, the title page of every tariff shall contain the 
following information to be shown in the order named in paragraphs (a) 
(1) through (12) of this section and shall contain no other matter:
    (1) C.A.B. number. In the upper right-hand corner of the title page, 
the C.A.B. number of the tariff shall be shown in not less than 12-point 
bold face type. Except as provided in Sec. 221.224(d), tariffs shall 
bear consecutive C.A.B. numbers in the series of the issuing carrier or 
the issuing agent. Each carrier and each agent shall issue and file 
tariffs consecutively in its own individual series of C.A.B. numbers, 
commencing with C.A.B. No. 1, and shall use only one series of C.A.B. 
numbers for all of the tariffs which it issues. Passenger tariffs and 
property tariffs shall be consecutively numbered in the same series of 
C.A.B. numbers and a separate series shall not be used for each type of 
tariff. C.A.B. numbers shall not bear prefixes or suffixes.
    (2) Tariff cancellation. In the upper right-hand corner of the title 
page, immediately below the C.A.B. number, the cancellation of tariffs 
to be superseded shall be shown in the manner prescribed by 
Sec. 221.113.
    (3) Issuing carrier or agent. The name of the issuing carrier or the 
name and title of the issuing agent shall be shown in the upper central 
portion of the title page.
    (4) Title of tariff. The title of the tariff, including the issuing 
carrier's or issuing agent's tariff serial number, if any, shall be 
shown in the upper central portion of the title page, below the name of 
the issuing carrier or agent. The title should be descriptive of the 
type of tariff, for example, Mileage Guide No. 1.
    (5) Description of rates, fares, or other contents of tariff. In the 
central portion of the title page, below the title of the tariff, there 
shall be shown a statement indicating the kinds or types of rates or 
fares contained in the tariff or, if the tariff is a governing tariff 
such as a rules tariff, classification, or mileage guide, a brief 
description of the tariff's contents shall be shown. Such statement in a 
fare or rate tariff shall specify:
    (i) Whether the tariff contains local fares or rates, joint fares or 
rates, or local and joint fares or rates.
    (ii) If a fare tariff, that the tariff applies on passengers.
    (iii) If a rate tariff, the type(s) of rates contained therein such 
as class, specific commodity, or general commodity rates, or any 
combination thereof.
    (iv) If a fare tariff, the type(s) of fares contained therein, such 
as normal first class, coach, excursion, or other types of fares, or any 
combination thereof.
    (6) Description of territory. The title page shall contain a brief 
but reasonably comprehensive description of the territory within which 
the rates or fares in the tariff apply. The territory shall be described 
by the names of cities, states, countries, or other definite 
geographical designations.
    (7) Reference to governing tariffs. If a tariff is governed by other 
tariffs as authorized in this part, such as rules tariffs, mileage 
guides, and classifications, the title page shall show reference to such 
governing tariffs (by title, C.A.B. number, and issuing carrier or agent 
thereof in substantially the following form:
    This tariff is governed, except as otherwise provided herein, by 
__________ (show tariff title), C.A.B. No. ____, issued by __________ 
(show name of issuing carrier or agent), by __________ (show tariff 
title), C.A.B. No. ____, issued by __________ (show name of issuing

[[Page 68]]

carrier or agent), and by supplements to and successive issues of said 
publications.

If preferred, reference to governing tariffs may be omitted from the 
title page and published in the first rule of the tariff, provided that 
the title page refers to such rule in the following manner:
    For reference to governing tariffs, see rule No. ____ as amended.
    (8) Reference to Special Tariff Permissions, orders, and 
regulations. Where an entire tariff is issued pursuant to a Special 
Tariff Permission order, or regulation which requires the tariff to bear 
a notation referring to such Special Tariff Permission order or 
regulation, such notation shall be shown in the manner required thereby. 
If only certain tariff provisions, and not the entire tariff, are issued 
pursuant to permission, order, or regulation, reference to the 
permission, order, or regulation shall be shown in connection with such 
tariff provisions and not on the title page.
    (9) Expiration date. If the entire tariff is to expire with a given 
date, such expiration date shall be shown in distinctive type on the 
title page in the following manner:
    This tariff expires with __________ (show date in full) unless 
sooner canceled, changed, or extended.

If, however, only a portion of the tariff is to expire with a given 
date, the expiration date shall not be shown on the title page but shall 
be shown in connection with the particular item, rule, or other 
provision which is to expire.
    (10) Issued date. The date on which the tariff is issued shall be 
shown in the lower left-hand portion of the title page in the following 
manner:
    Issued: ________________________, 19__.
    (Show month, date, and year in full, using no abbreviations.)

Tariffs must be received by the Board on or before the designated issued 
date. (See Sec. 221.160(d) and Sec. 221.171 of this part.)
    (11) Effective date. The date on which the fares, rates, charges, 
rules and other provisions in the tariff will become effective shall be 
shown in the lower right-hand portion of the title page (directly 
opposite the issued date) in the following manner:
    Effective: ____________________, 19__.
    (Show month, date, and year in full, using no abbreviations.)

See Sec. 221.160 for required notice.
    (12) Issuing officer, agent or designee. The name, title and address 
of the following person shall be shown centered at the bottom of the 
title page:
    (i) The issuing officer (if tariff is issued by a carrier),
    (ii) The issuing agent (if tariff is issued by an individual agent),
    (iii) The official or employee of a corporate agent designated by 
such agent to issue and file tariff publications in the corporate 
agent's name (if tariff is issued by a corporate agent).

With respect to loose-leaf tariffs, the title page shall be revised 
immediately, upon lawful notice, to reflect the current name, title and 
address of the above person whenever there is a change in such 
information. The title of an issuing officer of a carrier or the 
official or employee designated by a corporate agent to issue and file 
tariff publications shall not include the terms ``Agent'' or ``Alternate 
Agent''. (See Secs. 221.10 and 221.11 stating who may issue tariffs.)
    (b) Specimen title page. See Sec. 221.248 containing a specimen 
title page which is shown only for the purpose of illustrating the 
arrangement of the contents of a title page.

(Secs. 204, 403, 1002; 72 Stat. 743, 758, 788 (49 U.S.C. 1324, 1373, 
1482, as amended))

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1104, 44 FR 9577, 
Feb. 13, 1979]



Sec. 221.32  Correction number check sheet (loose-leaf tariff).

    Original Page 1 (page following the title page) of each loose-leaf 
tariff shall contain a check sheet of correction numbers (see 
Sec. 221.111(c)). Original Page 1 shall contain no other contents of the 
tariff unless the tariff contains less than 30 pages. Such check sheet 
shall consist of the following explanatory provision followed by columns 
of consecutive correction numbers arranged in numerical order, 
commencing with No. 1, which shall be shown in the following manner:

                      Correction Number Check Sheet

    Each time revised or additional original pages are received, check 
marks should be

[[Page 69]]

made on this check sheet opposite the correction numbers corresponding 
to those appearing in the lower right-hand corner of the revised or 
additional original pages. If pages are received not bearing consecutive 
correction numbers, the issuing carrier or agent should be requested to 
furnish the page bearing the correction number for which a page has not 
been received.

                           Correction Numbers
1.......       6       11       16       21       26       31       36
2.......       7       12       17       22       27       32       37
3.......       8       13       18       23       28       33       38
4.......       9       14       19       24       29       34       39
5.......      10       15       20       25       30       35       40
 
------------------------------------------------------------------------
 


When all correction numbers on a check sheet have been used and 
additional corrections are to be issued, the check sheet should be 
revised to continue the series of correction numbers. The correction 
numbers on a revised check sheet shall commence with the correction 
number following the last number on the preceding check sheet.



Sec. 221.33  Table of contents.

    The table of contents shall contain a full and complete statement of 
the exact locations where information in the tariff will be found. Such 
statement shall show all subjects in alphabetical order and shall show 
the page number and the number of the item, rule, or unit where each 
subject will be found. The general headings of the various parts of the 
tariff, the subjects of individual rules and regulations, and terms 
descriptive of the application of the sections or tables of fares, rates 
or charges shall be included in the subjects of the tables of contents. 
If preferred, a separate index of the rules and regulations may be 
published immediately following the table of contents, provided the 
latter makes reference to such index. If a tariff or supplement contains 
so small a volume of matter that its title page or its interior 
arrangement plainly discloses its contents, the table of contents may be 
omitted.



Sec. 221.34  List of participating carriers.

    (a) One list of carriers arranged alphabetically. Except as provided 
in paragraph (e) of this section and in Sec. 221.151, the names of all 
carriers which participate in a tariff shall be shown in alphabetical 
order in one list with the power of attorney or concurrence number of 
each carrier shown opposite its name. If a participating carrier is an 
individual or partnership doing business under a trade name, the trade 
name should be shown in its alphabetical sequence in the list of 
participating carriers followed by the name of the individual or 
partners in the following manner:
    Doe Airlines (John Doe and Earl Doe, doing business as).
    (b) Agent's tariff. Except as provided in paragraph (e) of this 
section and Sec. 221.151, the list of participating carriers in an 
agent's tariff shall be published in the following manner:

                List of Participating Carriers

    This tariff is issued and filed with the Civil Aeronautics Board by 
________________________(show name and title of agent) for and on behalf 
of the following participating carriers under authority of their powers 
of attorney filed with the Civil Aeronautics Board:

------------------------------------------------------------------------
                                                             Power of
                  Participating carrier                    attorney No.
------------------------------------------------------------------------
(List participating carriers alphabetically and show opposite each
 carrier the number of its power of attorney given to the issuing agent)
------------------------------------------------------------------------

    (c) Carrier's tariff. Except as provided in paragraph (e) of this 
section, the list of participating carriers in a tariff issued by a 
carrier shall be published in the following manner:

                     List of Participating Carriers

    This tariff is issued and filed with the Civil Aeronautics Board by 
________ (show name of issuing carrier) for and on behalf of itself and 
the following participating carriers under authority of their 
concurrences filed with the Civil Aeronautics Board:

------------------------------------------------------------------------
                                                            Concurrence
                  Participating carrier                         No.
------------------------------------------------------------------------
(List participating carriers alphabetically and show opposite each
 carrier the number of its concurrence given to the issuing carrier)....
------------------------------------------------------------------------

    (d) Restrictions upon participation. Restrictions upon the extent to 
which a carrier participates in the tariff shall not be shown in the 
list of participating carriers (as amended) but shall be shown elsewhere 
in the tariff as authorized by this part.
    (e) When powers of attorney or concurrence numbers may be omitted. 
Powers of

[[Page 70]]

attorney numbers and concurrence numbers need not be shown in the tariff 
as required above by the publishing carrier or agent, provided:
    (1) That with the filing of each tariff, a separate alphabetical 
list of all participating carriers be transmitted to the Board, which 
list shall include opposite the name of each carrier the current power 
of attorney or concurrence number under which the carrier participates 
in the tariff; and
    (2) That when revisions of the tariff propose the addition or 
elimination of any carrier in the tariff, such tariff revision shall be 
accompanied by a revised alphabetical list showing all participating 
carriers and specifically indicating additions and cancellations, and 
such list shall also be filed when there is any change in a power of 
attorney or concurrence such as a cancellation, revocation, reissue.



Sec. 221.35  Explanations of abbreviations, reference marks, and symbols.

    (a) Explanation required. Abbreviations, reference marks, and 
symbols which are used in the tariff shall be explained either on the 
same page on which they are used or their explanations shall be shown 
preceding the indexes of commodities and points. Each page on which 
abbreviations, reference marks or symbols are used but not explained 
thereon shall refer to the page containing their explanations 
substantially in the following manner (at the bottom of the page):
    For explanations of abbreviations, reference marks, and symbols used 
but not explained hereon, see page ____ (as amended).
    (b) Uniform symbols. The following symbols shall be used only in the 
manner specified in Sec. 221.114 and the following explanations of such 
symbols shall be used in all tariff publications.
(R) or --denotes reductions.
(A) or --denotes increases.
(C) or --denotes changes which result in neither increases nor 
          reductions.
(K) or --denotes no change.
(N) or --addition.
Either the set of lettered symbols above or the set of solid black 
symbols to their right, but not both, shall be used.
    (c) Restrictions on use of certain symbols. The symbols  cents and $ 
shall be used only to indicate currencies and shall clearly define the 
type of currency for which used. The symbol % shall be used only to mean 
percent.
    (d) Prohibited abbreviations, symbols, or reference marks. The 
following shall be shown in full and shall not be designated by symbols, 
abbreviations, or reference marks:
    (1) Name of an agent.
    (2) Name of a carrier (except in the rules or regulations and in the 
routings and indexes of points).
    (3) Name of a city or town (except in routings).
    (4) Name of a month when used in issued, effective or expiration 
dates.



Sec. 221.36  Index of commodities (property tariff).

    (a) Complete index. Except as provided in paragraph (d) of this 
section, each property tariff shall contain a complete, alphabetical 
index of all commodities or articles for which ratings or specific 
commodity rates are provided in the tariff. Opposite each commodity or 
article in the index, reference shall be shown to the number of each 
item (or similar unit, such as group) in which such commodity or article 
is shown.
    (b) Alphabetical arrangement. Commodities shall be arranged in the 
index in alphabetical order according to their nouns, for example, 
``wrapping paper'' shall be shown and indexed as ``paper, wrapping''. If 
the noun is not sufficiently explicit, the commodity should also be 
indexed under the adjective as well as under the noun. All of the 
entries for the same noun should be grouped together and indexed 
alphabetically first according to the noun and then according to the 
adjective appearing after the noun, for example, various kinds of paper 
would be indexed under ``paper'' in the following manner:

------------------------------------------------------------------------
                           Commodity                            Item No.
------------------------------------------------------------------------
Paper, gummed.................................................       120
Paper, printing...............................................       210
Paper, waxed..................................................       120
Paper, wrapping...............................................       240
------------------------------------------------------------------------

    (c) Indexing commodity lists. When a tariff contains specific 
commodity rates applicable to a list of specific commodities or articles 
grouped under

[[Page 71]]

a generic commodity description heading as authorized by Sec. 221.75, 
the index of commodities shall show:
    (1) Such generic heading or description (in distinctive type) in its 
proper alphabetical sequence in the index and opposite thereto reference 
to each item where such generic heading or description is shown 
including the item which contains the list of commodities under such 
generic heading;
    (2) Each individual commodity or article (named in such list under 
the generic heading) in its proper alphabetical sequence in the index 
and opposite thereto reference to each item where such generic heading 
or description is shown including the item containing the list of 
commodities under such generic heading.
    (d) When index may be omitted--(1) Alphabetical arrangement. The 
index of commodities may be omitted from a tariff or supplement if all 
specific commodity rates therein are arranged in alphabetical order (by 
commodities) in only one alphabetical sequence and all classification or 
exceptions ratings are arranged in alphabetical order (by commodities) 
in only one alphabetical sequence (the showing of generic headings in 
alphabetical sequence will not meet this requirement since individual 
commodities thereunder would not appear in the required alphabetical 
sequence). If the index of commodities is omitted under authority of 
this paragraph, an explanation of the alphabetical arrangement shall be 
published in the place where the index would have been published, for 
example:

                          Index of Commodities

 (Commodities are arranged alphabetically throughout pages ____ through 
                                  ____)

    (2) Less than five pages of commodity descriptions. If the commodity 
descriptions on which rates or ratings are applicable are shown on not 
more than four pages of a tariff or supplement, the index of commodities 
may be omitted from such tariff or such supplement.



Sec. 221.37  Index of points.

    (a) Alphabetical index required. Each tariff shall contain an 
alphabetical index of all points of origin named in the tariff and a 
separate alphabetical index of all points of destination named in the 
tariff, except that the points of origin and destination may be included 
in one alphabetical index when all or substantially all of the rates or 
fares in the tariff apply in both directions between their respective 
points. The state, territory, possession, or District of Columbia in 
which each United States point is located shall be shown in connection 
with each such point. If the tariff applies to or from foreign 
countries, the respective country shall also be shown in connection with 
each and every point in the index except that:
    (1) Only the name of the state, possession, territory or the 
District of Columbia is required to be shown in connection with each 
point in the United States.
    (2) Only the name of the province is required to be shown in 
connection with each point in Canada.
    (3) Only the name of the possession or territory is required to be 
shown in connection with each foreign point which is situated within a 
possession or territory of a mother country, for example, Antigua, 
British West Indies; however, if such point is coextensive with the 
territory or possession in which it lies, such as Hong Kong, it shall be 
identified by nationality in the following manner: Hong Kong (British).

Opposite each point, reference shall be made to the number of each item 
(or similar unit) in which the respective point appears. If the point is 
not published in a numbered item (or similar unit), reference shall be 
made to the page on which the point appears. If the tariff contains 
rates or fares for account of more than one carrier, each point in the 
index shall show the carrier or carriers serving the respective point.
    (b) When index may be omitted. The index of points may be omitted 
provided that all points of origin and destination are arranged in 
alphabetical order throughout the tariff or, if the fares or rates are 
published in two or more distinct sections or tables, throughout each 
section or table. Such alphabetical arrangement shall be explained as 
required by paragraph (c) of this section. In addition, when fares or

[[Page 72]]

rates are so arranged in sections or tables, reference to each section 
or table shall be shown in the table of contents. Tables of rate scale 
numbers conforming to Sec. 221.80(b)(1) and alphabetical lists of points 
conforming to Sec. 221.80(c)(1) shall constitute acceptable alphabetical 
arrangements of points for the purpose of determining whether an index 
of points may be omitted under the terms of this paragraph. The 
following arrangements of points shall be considered to be in 
alphabetical order:
    (1) From origin points arranged in alphabetical sequence, to 
destination points arranged in alphabetical sequence under their 
respective origin points;
    (2) To destination points arranged in alphabetical sequence, from 
origin points arranged in alphabetical sequence under their respective 
destination points;
    (3) Between one group of points arranged alphabetically as headline 
points, and another group of different points arranged alphabetically as 
sideline points under their respective headline points, (but with no 
fares or rates between points in the same group) as, for example, 
between United States headline points, on the one hand, and Canadian 
sidelines points, on the other hand;
    (4) Between points shown in a descending alphabetical arrangement in 
which fares or rates are provided between substantially all points in 
the fare or rate table as, for example, between headline point A and 
sideline points B through Z, between headline point B and sideline 
points C through Z, between headline point C and sideline points D 
through Z, and continuously descending to the final listing, between 
headline point Y and sideline point Z. In the above arrangements, points 
shall be either (i) in alphabetical sequence by points or (ii) in 
alphabetical sequence first by States (or Canadian provinces) and thence 
by points grouped under their respective States (or provinces).
    (c) Explanation required when index omitted. When the index of 
points is omitted as provided in paragraph (b) of this section, a 
comprehensive explanation of the alphabetical arrangement of points must 
be shown in the place where the index of points would have been 
published. The following are some examples of such explanations which 
may be modified to explain the particular alphabetical arrangement 
employed in the tariff:

                Index of Points of Origin and Destination

    Points of origin are arranged alphabetically as headline points 
throughout the tariff. Points of destination are arranged alphabetically 
as sideline points under each origin point. (See Sec. 221.37(b)(1).)

                                   or

    Points in the United States are arranged alphabetically as headline 
points throughout the tariff. Points in Canada are arranged 
alphabetically as sideline points under each headline point. (See 
Sec. 221.37(b)(3).)

                                   or

    Points of origin and destination are arranged alphabetically 
throughout the tariff (or each section or table of fares (or rates)). 
(See Sec. 221.37(b)(4).)

                                   or

    Points of origin and destination are arranged alphabetically 
throughout the tariff (or each section or table of fares (or rates)) 
first by States or provinces, thence by points of origin and destination 
grouped under their respective States or provinces. (See 
Sec. 221.37(b)(4).)
    (d) When reference to items (or similar units) or pages may be 
omitted from index. If an index is published in a tariff containing 
rates or fares for account of two or more carriers, the index of points 
shall show the carrier or carriers serving each point but may omit 
reference to each item (or similar unit) or page where each point 
appears, provided that the tariff conforms with Sec. 221.37(b) and that 
the explanation of the alphabetical arrangement of points is shown in 
the heading of the index on each page thereof in the manner set forth in 
paragraph (c) of this section.



Sec. 221.38  Rules and regulations.

    (a) Contents. Except as otherwise provided in this part, the rules 
and regulations of each tariff shall contain:
    (1) Such explanatory statements regarding the fares, rates, rules or 
other provisions contained in the tariff as may be necessary to remove 
all doubt as to their application.

[[Page 73]]

    (2) All of the terms, conditions, or other provisions which affect 
the rates, fares, or charges for air transportation named in the tariff.
    (3) All the rates or charges for, and the provision governing, 
terminal services, and all other services which the carrier undertakes 
or holds out to perform on, for, or in connection with air 
transportation, except that, in the case of pick-up and delivery 
services, the tariff need only specify the extent to which the air 
transportation rates named in the tariff include such services; and, 
where pick-up and delivery services are provided only at an additional 
charge, such additional charges shall not be included in the tariffs.
    (4) All other provisions and charges which in any way increase or 
decrease the amount to be paid on any shipment or by any passenger, or 
which in any way increase or decrease the value of the services rendered 
to the shipper or passenger.
    (5) [Reserved]
    (6) For individually ticketed passenger service, the name of each 
type of aircraft used in rendering such service by manufacturer model 
designation and a description of the seating configuration (or 
configurations if there are variations) of each type of aircraft. Where 
fares are provided for different classes or types of passenger service 
(that is, first class, coach, day coach, night coach, tourist, economy 
or whatever other class or type of service is provided under the 
tariff), the tariff shall specify the type of aircraft and the seating 
configuration used on such aircraft for each class or type of passenger 
service. When two or more classes or types of passenger service are 
performed in a single aircraft, the seating configuration for each type 
or class shall be stated. The description of the seating configuration 
of each type of service on each aircraft shall include the following:
    (i) The number of seats abreast.
    (ii) The maximum and minimum distances in inches from the forward 
edge of a seat to the forward edge of the seat directly in front thereof 
(pitch).
    (iii) The number of lounge seats.
    (iv) The number of lounge seats or other seats withheld from sale 
and available for passengers' temporary use during flight. If some or 
all lounge seats are available for sale under certain conditions, such 
fact and conditions shall be explicitly stated.
    (7) Denied boarding compensation. For carriers subject to part 250, 
denied boarding compensation as specified in part 250.
    (8) For certificated air carriers, the rules and regulations 
relating to the transportation of persons who may need assistance to 
evacuate the aircraft during an emergency. All such provisions shall be 
in conformity with part 121 of the Federal Aviation Regulations (14 CFR 
part 121), as amended or revised from time to time: Provided, That no 
provision of the Board's regulations issued under this part or elsewhere 
shall be construed to permit the filing of any tariff rules limiting or 
conditioning a carrier's obligation to provide transportation and 
services in connection therewith upon reasonable request therefor to a 
person who may require assistance of another person in expeditiously 
moving to an emergency exit of the aircraft in the event of an 
evacuation, except as provided for in said part 121.
    (b) Rule numbers. Each rule or regulation shall be given a separate 
designation. The same designation shall not be assigned to more than one 
rule in the tariff. The rules and regulations shall be shown in the 
tariff in numerical or alphabetical order. A gap between rule numbers 
may be allowed for the addition of future rules, for example, the rules 
in an original tariff may be numbered Rules Nos. 5, 10, 15, etc. When a 
rule contains more than one paragraph, the paragraphs and subparagraphs 
shall be consecutively lettered or numbered.
    (c) Single subject and caption. Each numbered rule shall be confined 
to a single subject and shall bear a caption descriptive of the subject 
matter therein. Such caption shall be shown in distinctive type.
    (d) Rules of limited application. A rule affecting only a particular 
rate, fare, or other provisions in the tariff shall be specifically 
referred to in connection with such rate, fare, or other provision, and 
such rule shall indicate that it is applicable only in connection with 
such rate, fare or other provision.

[[Page 74]]

Such rule shall not be published in a separate governing rules tariff.
    (e) Clear, explicit, and definite statements required. All rules and 
regulations shall be stated in clear, explicit, and definite terms. 
Ambiguous or indefinite terms or language shall not be used. Where the 
rules and regulations contain any rates or charges or other amounts 
affecting the charges to be paid on any shipment or by any passenger, 
such rates, charges, or amounts shall be stated in United States dollars 
or cents to be applied to a definite unit of weight, measurement, time, 
currency, or other definite measure. When transportation fares or rates 
are published in foreign currency under authority of Sec. 221.51(b), any 
charges or other amounts set forth in rules or regulations may be stated 
in such foreign currency in addition to the required statement in United 
States currency, provided that such charges or other amounts in foreign 
currency are substantially equivalent in value to the respective charges 
or other amounts stated in United States currency. Where the carrier 
holds out to perform terminal or other services in connection with air 
transportation, the rule covering such services shall describe the exact 
service, state the rates or charges which the carrier will make for such 
service, and set forth in definite terms the conditions under which the 
carrier will perform such service. Where a rule provides a charge in the 
nature of a penalty, the rule shall state the exact conditions under 
which such charge will be imposed. Rules and regulations shall not 
contain indefinite statements to the effect that traffic of any nature 
will be ``taken only by special arrangements'', or that services will be 
performed or penalties imposed ``at carrier's option'', or that the 
carrier ``reserves the right'' to act or to refrain from acting in a 
specified manner, or other provisions of like import; instead, the rules 
shall state definitely what the carrier will or will not do under the 
exact conditions stated in the rules.
    (f) Conflicting or duplicating rules prohibited. The publication of 
rules or regulations which duplicate or conflict with other rules or 
regulations published in the same or any other tariff for account of the 
same carrier or carriers and applicable to or in connection with the 
same transportation is hereby prohibited.
    (g) Separate rules tariff. If desired, the rules and regulations 
required by this section may be published in separate governing tariffs 
to the extent authorized and in the manner required by Secs. 221.100 
through 221.104, and 221.107.
    (h) Personal liability rules. No provision of the Board's 
regulations issued under this part or elsewhere shall be construed to 
require on and after March 2, 1954, the filing of any tariff rules 
stating any limitation on, or condition relating to, the carrier's 
liability for personal injury or death. No subsequent regulation issued 
by the Board shall be construed to supersede or modify this rule of 
construction except to the extent that such regulation shall do so in 
express terms.
    (i) Carriers' extension of credit--passenger tariffs, property 
tariffs. Air carriers and foreign air carriers shall not file tariffs 
that set forth charges, rules, regulations, or practices relating to the 
extension of credit for payment of charges applicable to the air 
transportation of persons or property.
    (j) Notice of limitation of liability for death or injury under the 
Warsaw Convention. Notwithstanding the provisions of paragraph (h) of 
this section, each air carrier and foreign air carrier shall publish in 
its tariffs a provision stating whether it avails itself of the 
limitation on liability to passengers as provided in Article 22(1) of 
the Warsaw Convention or whether it has elected to agree to a higher 
limit of liability by a tariff provision. Unless the carrier elects to 
assume unlimited liability, its tariffs shall contain a statement as to 
the applicability and effect of the Warsaw Convention, including the 
amount of the liability limit in dollars. Where applicable, a statement 
advising passengers of the amount of any higher limit of liability 
assumed by the carrier shall be added.
    (k) Individual carrier provisions governing joint rates or fares. 
Provisions governing joint rates or fares may be published for account 
of an individual carrier participating in such joint rates or fares 
provided that the tariff clearly indicates how such individual carrier's

[[Page 75]]

provisions apply to the through transportation over the applicable joint 
routes comprised of such carrier and other carriers who either do not 
maintain such provisions or who maintain different provisions on the 
same subject matter.
    (l) Passenger tariffs; property which cannot lawfully be carried in 
the aircraft cabin. Each air carrier shall set forth in its tariffs 
governing the transportation of persons, including passengers' baggage, 
charges, rules, and regulations providing that such air carrier 
receiving as baggage any property of a person traveling in air 
transportation, which property cannot lawfully be carried by such person 
in the aircraft cabin by reason of any Federal law or regulation, shall 
assume liability to such person, at a reasonable charge and subject to 
reasonable terms and conditions, within the amount declared to the air 
carrier by such person, for the full actual loss or damage to such 
property caused by such air carrier.

(Secs. 102, 416, 72 Stat. 240, 771, secs. 3, 4, 80 Stat. 383, 81 Stat. 
54; 49 U.S.C. 1302, 1386, 5 U.S.C. 552, 553, secs. 102, 204, 403, and 
416 of the Federal Aviation Act of 1958, as amended by Pub. L. 95-504, 
72 Stat. 740, 743, 758, and 771, 92 Stat. 1731, 1732 (49 U.S.C. 1302, 
1324, 1373, and 1386))

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-504, 32 FR 11938, 
Aug. 18, 1967; ER-795, 38 FR 9222, Apr. 12, 1973; ER-871, 39 FR 31882, 
Sept. 3, 1974; ER-1020, 42 FR 43830, Aug. 31, 1977; ER-1062, 43 FR 
34442, Aug. 4, 1978; ER-1125, 44 FR 33059, June 8, 1979; ER-1229, 46 FR 
32551, June 24, 1981; ER-1369, 48 FR 54589, Dec. 6, 1983]



Sec. 221.39  Classification ratings or exceptions to governing classification ratings.

    (a) Classification ratings. Each tariff containing class rates shall 
list all articles or commodities accepted for transportation together 
with their applicable ratings in the following manner:
    (1) The articles or commodities on which the ratings apply shall be 
described and listed in an orderly manner, and opposite each article or 
commodity there shall be shown the class rating applicable to the 
respective article or commodity.
    (2) The articles or commodities shall be listed alphabetically in 
one sequence throughout the section of class ratings to the greatest 
extent that is practicable. A group of articles or commodities may be 
published under a generic commodity heading: Provided, That the generic 
heading appears in its proper alphabetical sequence in the section of 
class ratings and that the articles or commodities in such group are 
listed alphabetically and indented under such generic heading.
    (3) The class ratings assigned to the articles or commodities shall 
be numbered classes corresponding identically to the numbered classes 
for which class rates are provided. (See Sec. 221.73(c) describing rates 
on numbered classes.)
    (4) Each commodity description and its applicable class rating shall 
be published in a separate, numbered item. The items shall be shown in 
numerical order in sequence with other item numbers as may be used in 
the tariff.
    (5) An item shall not state that the rating on any article or 
commodity will be that applying on another article or commodity, for 
example, an item shall not provide that ``paper wrappers'' will take 
``wrapping paper'' ratings. (If ``paper wrappers'' are to take the same 
rating as ``wrapping paper'', such rating shall be shown in the item 
listing ``paper wrappers''.)
    (6) The publication of class ratings which duplicate or conflict 
with other class ratings is hereby prohibited. Also, class ratings shall 
not take precedence over other class ratings (except as provided in 
paragraph (c) of this section).
    (7) The following format is suggested for the publication of 
classification ratings in the tariff containing the class rates, but may 
be adjusted to conform with the format or context of a particular 
tariff:

                         Classification Ratings
      [Applicable only in connection with class rates Section____]
------------------------------------------------------------------------
                                      Article or
            Item No.                   commodity             Class
------------------------------------------------------------------------
 
------------------------------------------------------------------------

    (b) Classification ratings in governing tariff. The classification 
of articles required by paragraph (a) of this section may be omitted 
from the rate tariff provided that it is published in its entirety in a 
separate classification tariff

[[Page 76]]

in accordance with Secs. 221.100, 221.101, and 221.105.
    (c) Exceptions to governing classification ratings. When the 
classification ratings are published in a separate classification tariff 
as provided under paragraph (b) of this section and it is found 
necessary to publish ratings which are exceptions to such classification 
ratings without canceling the classification ratings, this part of the 
class rates tariff shall contain the ratings which are exceptions to the 
ratings in the governing classification tariff. Such exception ratings 
shall be published in compliance with the following requirements:
    (1) The exceptions ratings shall comply with paragraph (a)(1) 
through (7) of this section, except that the heading reading 
``Classification Ratings'' in paragraph (a)(7) of this section shall be 
changed to read substantially ``Exceptions to Ratings in Governing 
Classification.''
    (2) Exceptions ratings shall be exceptions, in fact, to ratings in 
the governing classification and shall not be published to cover 
commodities for which no ratings are provided in the governing 
classification.
    (3) Exceptions ratings restricted to apply from and to or between a 
small number of points shall not be published to avoid the publication 
of specific commodity rates from and to or between such points.
    (4) The descriptions of the commodities on which the exceptions 
ratings apply shall conform as closely as possible to the commodity 
descriptions in the governing classification tariff.



Sec. 221.40  Statement of fares or rates for air transportation.

    The statement of fares for the air transportation of persons shall 
be prepared in accordance with the provisions of subpart E. The 
statement of rates for the air transportation of property shall be 
prepared in accordance with the provisons of subparts E and F.



Sec. 221.41  Routing.

    (a) Required routing. The route or routes over which each fare or 
rate applies shall be stated in the tariff in such manner that the 
following information can be definitely ascertained from the tariff:
    (1) The carrier or carriers performing the transportation,
    (2) The point or points of interchange between carriers if the route 
is a joint route (via two or more carriers),
    (3) The intermediate points served on the carrier's or carriers' 
routes applicable between the origin and destination of the rate or fare 
and the order in which such intermediate points are served. (This 
information, however, is not required in those property tariffs which 
are not subject to rules or other provisions for stopping in transit or 
to any other provisions which require determining what intermediate 
points are served via the tariff routing between the origin point and 
destination point of a rate; nor is it required in passenger tariffs of 
carriers whose operations are other than over defined routes stated in 
certificates or permits issued by the Board; nor in charter tariffs.) On 
an experimental basis, for the purposes of complying with this 
paragraph, tariffs may include for each carrier a separate map of the 
carrier's routes, showing intermediate points in the order served.
    (b) Individually stated routings--(1) Method of publication. Except 
as otherwise authorized in paragraphs (c) and (d) of this section, the 
routing required by paragraph (a) of this section shall be shown 
directly in connection with each fare, rate or charge for 
transportation, or in a routing portion of the tariff (following the 
rate or fare portion of the tariff), or in a governing routing tariff. 
When shown in the routing portion of the tariff or in a governing 
routing tariff, the fare or rate from each point of origin to each point 
of destination shall bear a routing number and the corresponding routing 
numbers with their respective explanations of the applicable routings 
shall be arranged in numerical order in the routing portion of the 
tariff or in the governing routing tariff.
    (2) Class of passenger service and aircraft type specified in 
routing. Where a passenger fare applies via one class of service (or 
type of aircraft) over a portion of the routing applicable from origin 
to destination and via a different

[[Page 77]]

class or classes of service (or a different type or types of aircraft) 
over the remainder of the routing, provisions as to the classes of 
services (or types of aircraft) provided over the respective segments of 
the routing may be included in the applicable routing published in 
accordance with paragraph (b)(1) of this section. When routings 
containing such provisions are published in a separate routing section 
of the tariff or in a governing routing tariff, the headings of the 
pages containing fares subject to such routings shall indicate that 
provisions as to class of service or type of aircraft are set forth in 
the routing.
    (c) Diagrammatic routings. For property rates between United States 
points, on the one hand, and points in foreign countries or United 
States Territories or Possessions, on the other hand, the routing 
information required by paragraphs (a) (1) and (2) of this section may 
be shown in the form of routing diagrams. A routing diagram consists of 
a series of connected columns or rectangular figures, each naming or 
designating a group of points, with carrier routing designated between 
each pair of consecutive, connected groups, and an explanation of how to 
use the diagram in determining applicable routings. An illustration of 
an acceptable form of routing diagram is set forth in Illustration No. 1 
at the end of this paragraph. Publication of routing diagrams shall 
conform to the following requirements:
    (1) Each routing diagram shall bear a routing number. Only connected 
groups shall be included in one diagram.
    (2) Routing diagrams shall be published in numerical order, by 
routing number, in the routing portion of the tariff following the rate 
portion or in a governing routing tariff.
    (3) The pages containing the rates shall refer, by routing number, 
to the applicable routing diagrams. Where all rates in a tariff, table 
or section are subject to one routing diagram, such reference may be 
shown in the heading of each rate page thereof. Otherwise, reference to 
the applicable routing diagrams shall be shown directly in connection 
with the respective rates from each origin to each destination.
    (4) An explanation of the application and use of each routing 
diagram shall be published in connection therewith in sufficient detail 
to enable the applicable routings to be definitely determined.
    (5) Groups of points of origin, destination and interchange shall be 
designated in the diagram by definite geographic terms.
    (6) The carriers performing the transportation between each pair of 
consecutive, connected groups of points in the diagram shall be 
specifically designated in the routing diagram except that where space 
limitations make this impractical, such carrier routing may be published 
in the following manner:
    (i) Except as otherwise authorized in paragraph (a)(6)(ii) of this 
section, the routing between two consecutive, connected groups in the 
diagram may be shown by referring to a routing chart conforming to the 
following requirements. Routing charts shall be in tabular form showing 
the specific points in one group as headline points and the specific 
points in the other group as sideline points. Headline points shall be 
arranged alphabetically and the sideline points shall be arranged 
alphabetically under the respective headline points. Carrier routing 
between each headline point and each sideline point shall be shown in 
the intersecting space in the tabular chart. An illustration of such 
routing chart (using abbreviations to designate carriers) is set forth 
in Illustration No. 2 at the end of this paragraph.
    (ii) Carrier routing between two consecutive, connected groups 
consisting exclusively of foreign points may be shown either by a 
routing chart authorized under paragraph (a)(6)(i) of this section or in 
the following manner. The routing diagram may provide that carrier 
routing between such groups of foreign points shall be via any single-
carrier service and shall refer to the tariff's alphabetical index or 
list of points of origin and destination to determine the carriers 
serving the respective points in each group. The latter method of 
publication may be used only where the tariff contains an alphabetical 
index or list of points of origin and destination showing the carriers 
serving the respective points,

[[Page 78]]

and only where each carrier indicated by such index or list as serving a 
pair of points (one in each such group) does in fact maintain service 
between such pair of points.
    (d) [Reserved]
    (e) Emergency routing rule. If desired, the following routing rule 
may be published in property rate tariffs conforming with paragraph (b) 
or (c) of this section:
    Routing instructions. The rates named in this tariff will apply only 
over the routes and via interchange points authorized herein except that 
when, in the case of pronounced traffic congestion (not an embargo) or 
other similar emergency, or through carrier's error, carriers forward 
shipments by other transfer points of the same carriers or over other 
carriers parties to the tariff, the rates specified in this tariff (but 
not higher than the rate applicable over the actual route of movement) 
will be applied.
    (f) Forwarders. The preceding paragraphs of this section do not 
apply to tariffs of Air Freight Forwarders or International Air Freight 
Forwarders. Where the rates and charges of two or more forwarders are 
published in one tariff issued by an agent, the tariff shall clearly 
indicate in connection with each rate or charge the respective 
individual forwarder for whom it is published.

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-867, 39 FR 35570, 
Oct. 2, 1974]



 Subpart E--Requirements Applicable to All Statements of Fares or Rates



Sec. 221.50  Clear and explicit statement; systematic arrangement.

    All fares, rates, and charges shall be clearly and explicity stated 
and shall be arranged in a simple and systematic manner. Complicated 
plans and ambiguous or indefinite terms shall not be used. So far as 
practicable, the fares, rates, and charges shall be subdivided into 
items or similar units, and an identifying number shall be assigned to 
each item or unit to facilitate reference thereto.



Sec. 221.51  Currency.

    (a) Statement in United States currency required. All fares, rates, 
and charges shall be stated in cents or dollars of the United States 
except as provided in paragraph (b) of this section.
    (b) Statements in both United States and foreign currencies 
permitted. Rates, fares, and charges applying between points in the 
United States, on the one hand, and points in foreign countries, on the 
other hand, or applying between points in foreign countries, may also be 
stated in the currencies of foreign countries in addition to being 
stated in United States currency as required by paragraph (a) of this 
section: Provided, That:
    (1) The fares, rates, and charges stated in currencies of countries 
other than the United States are substantially equivalent in value to 
the respective fares, rates, and charges stated in cents or dollars of 
the United States.
    (2) Each page containing fares, rates, and charges shall clearly 
indicate the respective currencies in which the fares, rates and charges 
thereon are stated, and
    (3) The fares, rates, and charges stated in cents or dollars of the 
United States are published separately from those stated in currencies 
of other countries. Such separate publication shall be done in a 
systematic manner and the fares, rates, and charges in the respective 
currencies shall be published either in separate columns on the same 
page, or on separate pages, or in separate sections or tables of the 
tariff.



Sec. 221.52  Territorial application.

    (a) Specific points of origin and destination. Except as otherwise 
provided in this part, the specific points of origin and destination 
from and to which the fares or rates apply shall be specifically named 
directly in connection with the respective fares or rates. If the tariff 
names points only in the United States and/or Canada, the respective 
State, possession, territory or District of Columbia shall be shown in 
connection with each United States point and the respective province 
shall be shown in connection with each Canadian point; however, if such 
tariff applies to scheduled transport service and contains an index of 
points conforming to Sec. 221.37 (a) or (d), the State, possession, 
territory, District of Columbia, or Canadian province may be omitted (at 
publisher's election) from the fare or

[[Page 79]]

rate tables except in connection with different points of the same name. 
If the tariff contains fares or rates applying to or from points in 
foreign countries (other than or in addition to Canada), the following 
shall be shown in connection with each point named:
    (1) The respective State, possession, territory or District of 
Columbia in which each United States point is situated, and the 
respective province in which each Canadian point is situated;
    (2) The respective country in which each point is situated except 
that the country may be omitted (at publisher's election) in connection 
with United States and Canadian points;
    (3) Only the respective possession is required to be shown in 
connection with each foreign point which is situated within a possession 
of a mother country, for example, Antigua, British West Indies; however, 
if such point is coextensive with the possession in which it lies, such 
as Hong Kong, it shall be identified by nationality in the following 
manner: Hong Kong (British).
    (b) Points taking same fares or rates. The fares or rates applying 
to (or from) a particular point named in the table of fares or rates may 
be made to apply to (or from) other points in the following manner. Show 
such other points in their proper alphabetical order in the rate or fare 
table and show in connection with each such point a statement that it 
takes the same fares or rates as apply to (or from) the particular point 
for which fares or rates are specifically published in the table. If the 
tariff has an index or list of points, the latter statement may be 
published in connection with the respective points in the index or list 
instead of in the rate or fare table. All such statements shall be 
published uniformly either (1) in the index (or list) or (2) in the 
table, but not in both.
    (c) Directional application. A tariff shall specifically indicate 
directly in connection with the rates or fares therein whether they 
apply ``from'' and ``to'' or ``between'' the points named. Where the 
rates or fares apply in one direction, the terms ``From'' and ``To'' 
shall be shown in connection with the point of origin and point of 
destination, respectively, and, where the rates and fares apply in both 
directions between the points, the terms ``Between'' and ``And'' shall 
be shown in connection with the respective points.

[ER-439, 30 FR 9439, July 29, 1965, as amended by Amdt. 221-69, 56 FR 
44001, Sept. 6, 1991]



Sec. 221.53  Airport-to-airport application, accessorial services.

    (a) Tariff publications containing rates or fares for air 
transportation shall specify whether or not they include additional 
services in one or more of the following ways:
    (1) The tariff shall indicate that rates or fares include pick-up, 
delivery, or other services, explicitly defining the services to be 
furnished, and defining areas or points within or between which the 
services will be performed; or
    (2) The tariffs shall indicate that the rates or fares apply from 
airport-to-airport and that the carrier does not perform additional 
services; or
    (3) The tariff shall indicate that the rates or fares apply only 
from airport-to-airport but that additional services are furnished 
subject to additional charges, and, except for pick-up and delivery 
services, the tariff shall set forth charges for all other services and 
other provisions applicable thereto, as required by Sec. 221.38, clearly 
and explicitly specifying the extent to which such services will be 
furnished.
    (b) The above requirements shall not be construed as precluding the 
publication of rates or fares for air transportation which include pick-
up or delivery service at certain specified points or areas within the 
pick-up and delivery zone of the airport city of origin or destination 
but subject to a further provision that pick-up or delivery service will 
be provided at other specified areas or points within the same pick-up 
and delivery zone only upon payment of an additional charge.
    (c) The airport-to-airport application of rates or fares for air 
transportation and the statements as to the extent to which such rates 
or fares include pick-up, delivery or other accessorial services shall 
be published in the rate or fare tariff and not in a governing tariff. 
However, the definitions of such services, the definitions of areas or 
points within or between which such services will be performed, and the 
rates or

[[Page 80]]

charges for such services (when not included in the air transportation 
rates or fares) may be published in a governing rules tariff conforming 
to Sec. 221.102, except that additional charges for pick-up and delivery 
services shall not be included in the tariffs.

[ER-1229, 46 FR 32551, June 24, 1981]



Secs. 221.54--221.55  [Reserved]



Sec. 221.56  Rates may include transfer at interchange points.

    A rate applying locally over the lines of one carrier or jointly 
over the lines of two or more carriers shall include transfer service at 
interchange points unless the tariff otherwise provides. In the case the 
transfer service is not included, the tariff containing such rates shall 
state that such transfer service is not included or is provided at a 
specified additional charge.



Sec. 221.57  Proportional fares or rates.

    (a) Definite application. Proportional fares or rates shall be 
specifically designated as ``proportional'' fares or rates on each page 
where they appear. Subject to paragraph (b) of this section, 
proportional fares or rates shall be specifically restricted to apply:
    (1) Only on traffic which:
    (i) Originates at a point of origin beyond the point from which the 
proportional fare or rate applies, or
    (ii) Is destined to a point of destination beyond the point to which 
the proportional fare or rate applies, or
    (iii) Both originates at a beyond point specified in paragraph 
(a)(1)(i) of this section and is destined to a beyond point specified in 
paragraph (a)(1)(ii) of this section.
    (2) Only when the passenger is transported on a through ticket or 
the shipment is transported on a through air waybill or other form of 
transportation contract or document covering the through transportation 
from and/or to such beyond points, or, with respect to foreign air 
transportation, when such through ticket or through air waybill, or 
other form of through transportation contract or document cannot be 
issued, the tariff shall provide that the proportional fare or rate may 
be used only upon presentation by the passenger or shipper of clear and 
convincing evidence that the passenger or shipment has been or will be 
transported from and/or to such beyond points.
    (b) Restrictions upon beyond points or connecting carriers. If a 
proportional fare or rate is intended for use only on traffic 
originating at and/or destined to particular beyond points or is to 
apply only in connection with particular connecting carriers, such 
application shall be clearly and explicitly stated directly in 
connection with such proportional fare or rate.



Sec. 221.58  Arbitraries.

    (a) A tariff may provide that rates or fares from (or to) particular 
points shall be determined by the addition of arbitraries to, or the 
deduction of arbitraries from, rates or fares therein which apply from 
(or to) a base point. An arbitrary is a specific amount in dollars or 
cents published specifically for application in the above manner. 
Provisions for the addition or deduction of such arbitraries shall be 
shown either directly in connection with the fare or rate applying to or 
from the base point or in a separate provision which shall specifically 
name the base point. The tariff shall clearly and definitely state the 
manner in which such arbitraries shall be applied. In the case of 
arbitraries applicable to the transportation of property, the 
arbitraries shall be published in the same units of currency and rate as 
those in which the base rates are stated, and shall be stated to apply 
on the same minimum quantities (or quantity groups) as those on which 
the base rates apply.
    (b) The tariff shall state definitely whether the arbitraries are to 
be added to, or deducted from, the fares or rates applying from (or to) 
the base points (for example, it may provide in effect that the 
arbitraries shall be added to the fares or rates applying from (or to) 
the base points except that those arbitraries bearing a particular 
reference mark, such as a minus sign (-), shall be deducted from such 
base fares or rates). In some circumstances, it may be necessary to 
publish a zero amount ``0'' in the table of arbitraries; in this event, 
the tariff shall state definitely that the fare or rate applying from 
(or to) the base point shall also

[[Page 81]]

apply from (or to) the point taking the zero amount in the arbitrary 
table without the addition or deduction of an arbitrary.



Sec. 221.59  Fares or rates stated in percentages of other fares or rates; other relationships prohibited.

    (a) Fares or rates for air transportation of persons or property 
shall not be stated in the form of percentages, multiples, fractions, or 
other relationships to other fares or rates except to the extent 
authorized in paragraphs (b), (c), (d), and (e) of this section with 
respect to passenger fares and baggage charges and in subpart F with 
respect to property rates.
    (b) A basis of fares for refund purposes may be stated, by rule, in 
the form of percentages of other fares.
    (c) Transportation rates for the weight of passengers' baggage in 
excess of the baggage allowance under the applicable fares may be 
stated, by rule, as percentages of fares, provided reference is made to 
a conversion table complying with paragraph (e) of this section for the 
purpose of determining the amounts of such rates in dollars or cents 
represented by the published percentages of the fares.
    (d) Children's fares, round-trip fares, or other types of fares may 
be stated, by rule, as percentages of other fares published specifically 
in dollars and cents (hereinafter referred to as base fares): Provided, 
That:
    (1) Fares stated as percentages of base fares shall apply from and 
to the same points, via the same routes, and for the same class of 
service and same type of aircraft to which the applicable base fares 
apply, and shall apply to all such base fares in a fares tariff or 
designated section or table of a fares tariff except that:
    (i) If the base fares are published for account of two or more 
participating carriers, such percentage fares may be restricted to apply 
for account of only certain participating carriers. If such carriers 
participate in joint base fares, the extent to which such restricted 
percentage fares apply to the joint base fares shall be clearly 
indicated.
    (ii) If the base fares are named between points in the continental 
United States and points outside thereof, such percentage fares may be 
restricted territorially to apply between, within, or from and to any of 
the following areas (but not portions of a single area):
Alaska.
Hawaii.
Continental United States.
United States of America.
One or more Territories or Possessions of the United States.
One or more foreign countries.
A definite geographic area larger than a country.

The term ``continental United States,'' as used in this paragraph, means 
all of the 48 contiguous States and the District of Columbia.
    (2) Fares shall not be stated as percentages of base fares for the 
purpose of establishing fares applying from and to points, or via 
routes, or on types of aircraft, or for classes of service different 
from the points, routes, types of aircraft, or classes of service to 
which the base fares are applicable.
    (3) Fares stated as percentages of base fares shall refer to a 
conversion table complying with paragraph (e) of this section for the 
purpose of determining the amounts of such fares in dollars and cents 
represented by the published percentages of the base fares.
    (e)(1) A conversion table shall be published in the fares section of 
the tariff containing the base fares or, if that tariff is governed by a 
rules tariff, the table may be published after the last rule therein. 
The conversion table shall contain in the first column, in numerical 
order ranging from the lowest to the highest amounts, the amounts of all 
the base fares on which the percentages are to be applied. Each of the 
other columns shall be captioned with a percentage corresponding to a 
percentage in which a fare is stated. In each of the percentage-
captioned columns and directly opposite each base fare, the amount in 
dollars or cents represented by the stated percentage of the respective 
base fare shall be shown. Such columns shall be arranged in numerical 
order (according to percentage). A clear and definite explanation of how 
to use the conversion table shall be shown in connection therewith.
    (2) Instead of showing in the first column all base fares from the 
lowest to the highest, the table may contain in the first column $0.05 
and all multiples

[[Page 82]]

thereof to and including $1.00 and all multiples of $1.00 to and 
including $100.00 with a plainly stated rule for using, in combination, 
amounts ascertained in the percentage columns for the separate portions 
of the base fare. The rule shall provide, for example, that if the base 
fare is $7.65, the percentages for $7.00 and $0.65 are to be ascertained 
separately and combined.



Sec. 221.60  Conflicting or duplicating rates or fares prohibited.

    The publication of rates or fares of a carrier which duplicate or 
conflict with the rates or fares of the same carrier published in the 
same or any other tariff for application over the same route or routes 
is hereby prohibited.



Sec. 221.61  Provisions for alternative use of or precedence of rates or fares prohibited.

    Except as specifically authorized otherwise in this part, a tariff 
containing rates or fares shall not contain nor be made subject to any 
tariff provisions to the effect that rates or fares in such tariff take 
precedence over or apply alternatively with other rates or fares in the 
same or any other tariff, or that the rates or fares in any other tariff 
take precedence over or alternate with the rates or fares in such 
tariff.



Sec. 221.62  [Reserved]



Sec. 221.63  Applicable rate when no through local or joint fares or rates.

    (a) Lowest combination fare or rate applicable. Where no applicable 
local or joint fare or rate is provided from point of origin to point of 
destination over the route of movement, whichever combination of 
applicable fares or rates provided over the route of movement produces 
the lowest charge shall be applicable, except that a tariff may state 
that a fare or rate cannot be used in any combination or in a 
combination on particular traffic or under specified conditions, 
provided another combination is available.
    (b) Date governing combination fares or rates. A combination fare or 
rate for through transportation shall be treated as a unit (single-
factor fare or rate) from point of origin to final destination. The 
combination fare or rate applied shall be the combination of the 
intermediate fares or rates in effect on the date on which the passenger 
begins his transportation or shipment was received by the carrier and 
all of the rules and other tariff provisions applicable to each 
intermediate fare or rate in effect on such date shall be observed and 
cannot be varied as to that passenger or shipment during the period of 
transportation to final destination; except that in foreign or overseas 
air transportation, carriers may, by appropriate tariff rules, provide 
for application of combination fares in effect on date of sale of ticket 
for transportation commencing not later than 30 days after the effective 
date of an increase in any intermediate fares when such transportation 
is sold prior to the issue date of tariffs stating increased fares, and 
provided that each factor of the combination is subject to like tariff 
provisions.



 Subpart F--Requirements Applicable Only to Statements of Property Rates



Sec. 221.70  Definite unit of rate.

    (a) All rates for the air transportation of property shall be 
clearly and explicitly stated in cents or dollars per pound, per 100 
pounds, per kilogram, per ton of 2,000 pounds, per ton of 2,240 pounds, 
per United States gallon, or other definite unit of weight, measurement 
or value except that:
    (1) [Reserved]
    (2) Rates stated to apply on specific types of animals may be stated 
in cents or dollars per animal.
    (b) When rates are stated in units of cubical measurement, such as 
per cubic foot, the tariff containing such rates, or its governing rules 
tariff, shall explicitly state how the cubical measurement of the 
articles shipped (including irregular shaped articles) is to be 
determined.
    (c) Rates shall not be stated to apply per package or other shipping 
unit unless definite specifications as to size, weight, or capacity of 
the package or other shipping unit is specified in the tariff. This rule 
does not prohibit the publication of charges or rates other

[[Page 83]]

than by units for accessorial services performed by the carrier.

(Secs. 102, 204, 403, and 416 of the Federal Aviation Act of 1958, as 
amended by Pub. L. 95-504, 72 Stat. 740, 743, 758, and 771, 92 Stat. 
1731, 1732; 49 U.S.C. 1302, 1324, 1373, and 1386)

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1125, 44 FR 33059, 
June 8, 1979]



Sec. 221.71  Quantities on which rates apply.

    (a) Quantities shall be specified. When rates for the air 
transportation of property are to apply only on particular quantities, 
such quantities shall be specified in the tariff in connection with the 
rates or, in the case of class rates, they may be stated in connection 
with the class ratings. Such quantities shall be stated in the same unit 
of weight or measurement as the rate; for example, rates stated in cents 
per pound shall be subject to minimum weights in pounds, rates stated in 
cents per kilogram shall be subject to minimum weights in kilograms. The 
published quantities to which rates are subject may be stated as minimum 
quantities (for example, minimum weight ____ pounds), or they may be 
stated in the form of quantity groups (for example, weight groups of 
``under 100 pounds'', ``100 pounds and over but less than 3,000 
pounds'', ``3,000 pounds and over but less than 10,000 pounds'', and 
``10,000 pounds and over''). These particular weights are shown for 
purposes of illustration only. This provision does not prohibit the 
publication of specific minimum charges in lieu of or in addition to 
minimum quantities.
    (b) Different rates subject to different quantities. Different rates 
on the same commodities from and to the same points subject to different 
minimum quantities or quantity groups may be published provided the 
following requirements are complied with:
    (1) A lower rate shall be provided on a greater minimum quantity or 
quantity group.
    (2) A tariff containing such rates or its governing rules tariff 
shall contain a rule to the effect that when two or more rates subject 
to different minimum quantities are provided on the same commodity in 
the same shipping form from and to the same points over the same route, 
the lower of the two charges specified under paragraph (b) (2) (i) and 
(ii) of this section shall be applied:
    (i) The charge computed on the quantity shipped at the rate 
applicable to such quantity, or
    (ii) The charge computed on the next greater quantity, for which a 
lower rate is provided at the rate applicable to such greater quantity.
    (3) All such rates of the same type (class, specific commodity, or 
general commodity) applying on the same commodities from the same point 
of origin to the same point of destination via the same route shall be 
published together continuously on one page or two or more successive 
pages or in one item, except as otherwise authorized in paragraph (c) of 
this section. This does not waive the requirements of Sec. 221.75(b) as 
to publishing specific commodity rates in numbered items.
    (c) Volume rate conversion table. Rates meeting the requirements of 
paragraph (b) of this section may be published in the following manner. 
Where a rate table names rates subject to a definite minimum weight, for 
example, ``minimum weight 100 pounds,'' lower rates for greater minimum 
weights may be published in a separate conversion table substantially in 
the following form:

            Table of Volume Rates (in dollars per 100 pounds)
    This table is applicable only in connection with rates subject to
 minimum weight of 100 pounds which refer hereto for rates applicable to
                        greater minimum weights.
------------------------------------------------------------------------
                                    The rate for the following minimum
                                    weights will be as specified in the
  Where the rate of subject to       respective columns below (minimum
  minimum weight 100 pounds is              weight in pounds):
                                 ---------------------------------------
                                   1,000   3,000   5,000  10,000  20,000
------------------------------------------------------------------------
4.00............................    3.80    3.60    3.40    3.00    2.80
------------------------------------------------------------------------


The particular minimum weights shown in the above form are for 
illustrative purposes only. Such conversion table shall be published 
immediately following each table or section naming the applicable base 
rates or, where a single conversion table applies to two or more tables 
or sections of base rates, such conversion table may be published 
immediately following the last table or section of rates in the tariff. 
Each conversion table shall provide

[[Page 84]]

that it is applicable only in connection with the base rates which refer 
to it (substantially as shown in the above form). Each page naming the 
base rates shall make specific reference to such conversion table for 
rates applicable to the greater minimum weights provided by the 
conversion table. Such reference shall be made substantially in the 
following manner:
For rates subject to minimum weights of ____ pounds and over, apply 
Table of volume Rates on page ____.



Sec. 221.72  Types of property rates (class, general commodity, or specific commodity) which may be published.

    (a) Types permitted. Except as otherwise authorized in this part, 
only the following types of rates shall be published to apply on the air 
transportation of property:
    (1) Class rates (see Sec. 221.73).
    (2) General commodity rates (see Sec. 221.74).
    (3) Specific commodity rates (see Sec. 221.75).
    (b) Order of publication in same tariff. If both general commodity 
rates and specific commodity rates are published in the same tariff, the 
general commodity rates shall be published in tables or sections 
preceding the specific commodity rates. If both class rates and specific 
commodity rates are published in the same tariff, the class rates shall 
be published in tables or sections preceding the specific commodity 
rates.



Sec. 221.73  Class rates.

    (a) Captions. Class rates shall be published under the caption 
``Class Rates'' to be shown on each page containing such rates.
    (b) Governing classification and exceptions thereto. A tariff of 
class rates shall contain a classification which shall assign a class 
rating to each specific article or commodity as required by 
Sec. 221.39(a) or shall be governed by a separate tariff containing such 
class ratings (see Sec. 221.105). Also, the class rates may be made 
subject to exceptions to the ratings in the governing tariff as provided 
in Sec. 221.39(c).
    (c) Rates may be published on specified classes; percentage 
relationship. (1) Class rates may be published for specified classes 
which shall correspond identically to the classes assigned to the 
various articles or commodities by the classification or exceptions 
thereto and on which such rates are applicable.
    (2) The classes shall be specified, for example:
    Method 1. The classes shall be consecutively numbered as ``Class 
1,'' ``Class 2,'' ``Class 3,'' ``Class 4,'' etc., ranging from the class 
taking the highest rates to the class taking the lowest rates, 
respectively. All rates published for each class lower or higher than 
Class 1 shall bear the same percentage relationship to the respective 
Class 1 rates, for example, each Class 2 rate may equal 85 percent of 
the respective Class 1 rate, each Class 3 rate may equal 70 percent of 
the respective Class 7 rate. If it is found necessary to publish rates 
for classes higher than Class 1, such rates shall be assigned a class 
number which represents their percentage relationship to the respective 
Class 1 rates, for example, rates for ``Class 125'' shall equal 125 
percent of the respective Class 1 rates.
    Method 2. The rates in each class shall be assigned a class number 
which represents their percentage relationship of the respective ``Class 
100'' rates. For example, rates for ``Class 85'' shall equal 85 percent 
of the respective ``Class 100'' rates, rates for ``Class 70'' shall 
equal 70 percent of the respective ``Class 100'' rates.
    (d) Arrangement. The rates for each class shall be published in a 
single column and each column shall be captioned with its respective 
class. The columns shall be arranged on each page in the order of the 
classes ranging from the class taking the highest rates (to be published 
in the first rate column) to the class taking the lowest rates (to be 
published in the last rate column).



Sec. 221.74  General commodity rates and exception ratings thereto.

    (a) General commodity rates. General commodity rates shall be 
published under the caption ``General Commodity Rates.'' Such caption 
shall be shown on each page containing such rates. Each tariff which 
contains general commodity rates shall contain a rule captioned 
``Application of General Commodity Rates'' which shall provide that the 
general commodity rates apply on all commodities except those which will 
not be accepted for transportation under the terms of the tariff or of 
governing tariffs. Each rule shall be published in the tariff containing 
the general commodity rates and not in a governing tariff. If it is 
desired to

[[Page 85]]

establish a rate on a particular commodity different from the general 
commodity rate, an exception rating to the general commodity rate (see 
paragraph (b) of this section) or a specific commodity rate (see 
Sec. 221.75) shall be published on such commodity.
    (b) Exception ratings to general commodity rates. Exception ratings 
to general commodity rates may be stated as percentages of general 
commodity rates applying from and to the same points over the same route 
or routes provided the following requirements are complied with:
    (1) Such exception ratings shall be published under the caption 
``Exception Ratings to General Commodity Rates (stated as percentages of 
the General Commodity Rates)''. Such caption shall be shown on each page 
containing the exception ratings.
    (2) Such exception ratings shall be published in numbered items in 
the same tariff naming the general commodity rates to which they are 
exceptions, and shall follow the general commodity rates and precede 
specific commodity rates (if published therein) in the order of the 
tariff's contents.
    (3) Such exception ratings shall be published to apply only on 
specific articles or commodities which shall be named directly in 
connection with the applicable exception ratings.
    (4) Each exception rating shall be stated as a single percentage of 
the general commodity rates for all quantities on which the general 
commodity rates apply. However, where the general commodity rates vary 
according to the different quantities on which they apply, exception 
ratings may be stated as percentages of one or more of such general 
commodity rates provided the quantities to which the exception ratings 
apply are specifically stated.
    (5) Such exception ratings shall not be published unless they are to 
apply from and to or between all of the points for which general 
commodity rates are provided in the tariff or in a designated table or 
section of the tariff except:
    (i) If the tariff names general commodity rates for account of two 
or more carriers, such exception ratings may be restricted to apply for 
account of only certain carriers. If the tariff names joint general 
commodity rates in which such carriers participate, the tariff shall 
clearly indicate the extent to which such restricted exception ratings 
apply in connection with the joint general commodity rates.
    (ii) If the tariff names general commodity rates between points in 
the continental United States and points outside thereof, such exception 
ratings may be restricted territorially to apply between, within, or 
from and to any of the following areas (but not portions of a single 
area):

                                  Areas

Alaska.
Hawaii.
Continental United States.
United States of America.
One or more Territories of Possessions of the United States.
One or more foreign countries.
A definite geographic area larger than a country.

The term ``continental United States,'' as used in this paragraph 
(b)(5)(ii), means all of the 48 contiguous States and the District of 
Columbia.
    (6) Such exception ratings shall refer to a conversion table in the 
same tariff complying with paragraph (b)(7) of this section for the 
purpose of determining the rates in cents or dollars represented by the 
exception rating percentages of the general commodity rates.
    (7) A conversion table shall be published immediately following such 
exception ratings. The conversion table shall contain in the first 
column, in numerical order ranging from the lowest to the highest 
amounts, the amounts of all of the base general commodity rates on which 
the percentages are to be applied. Each of the following columns shall 
be captioned with a percentage corresponding to a percentage in which an 
exception rating is stated. In each of the latter columns and directly 
opposite each base rate, the amount in cents or dollars represented by 
the stated percentage of the respective base rate shall be shown. Such 
columns shall be arranged in numerical order (according to percentages). 
A clear and definite explanation of how to use the conversion table 
shall be shown in connection therewith. Instead of showing in the first 
column all base

[[Page 86]]

general commodity rates from the lowest to the highest, the table may 
contain in the first column all amounts from $0.01 to $1.00 and all 
multiples of $1.00 to and including $50.00 with a plainly stated rule 
for using in combination amounts ascertained in the percentage column 
for separate portions of the general commodity rate. The rule must 
provide, for example, that if the general commodity rate is $2.77, the 
percentages for $2.00 and $0.77 are to be ascertained separately and 
combined.



Sec. 221.75  Specific commodity rates.

    (a) Applicable on specific articles or commodities named in tariff. 
Specific commodity rates shall be published to apply only on specific 
articles or commodities which shall be specifically named in the tariff. 
Generic commodity descriptions shall not be used except to the extent 
permitted in paragraph (c) in this section. The commodity descriptions 
shall be set forth directly in connection with the respective rates to 
which they apply, except as otherwise provided in this section. Specific 
commodity rates shall apply only on the specific articles or commodities 
on which they are indicated by the tariff to apply and shall not apply 
on analogous articles or commodities. As far as possible, uniform 
commodity descriptions shall be use in all tariffs.
    (b) Page caption and numbered items. Specific commodity rates shall 
be published under the caption ``Specific Commodity Rates'' to be shown 
on each page containing such rates. Specific commodity rates shall be 
published in numbered items except as otherwise provided in paragraph 
(d) in this section. Two or more commodities taking different specific 
commodity rates from and to the same points shall not be published in 
the same item. When an item containing specific commodity rates is 
continued to a successive page or pages, either the commodity 
description shall be repeated on each such successive page or the 
commodity description may be omitted from each such successive page 
provided such page refers to the commodity description in the following 
manner:
    For commodity description of this item, see page ____.
    (c) When generic commodity descriptions may be used. A generic 
commodity description may be used in connection with a specific 
commodity rate to designate a number of specific commodities or articles 
embraced within such generic description, without naming such specific 
commodities or articles in connection with the rate: Provided, That the 
following requirements are complied with:
    (1) The generic commodity description shown in connection with the 
rate shall refer to a numbered item (other than a rate item) in the same 
tariff which contains a list of the specific commodities or articles 
embraced within such generic commodity description and on which the rate 
will apply. The generic commodity description shall be shown in 
connection with the rate exactly as it appears in the heading of the 
item to which reference is made. Such generic commodity description and 
reference to the description item in the same tariff shall be shown in 
connection with the rate substantially in the following manner:
    Abrasives, as described in Item No. ____ (as amended).
    (2) The item to which such reference is made in accordance with 
paragraph (c)(1) of this section shall show:
    (i) The same generic commodity description as a heading and the list 
of specific articles or commodities on which the rate is to apply, 
arranged in alphabetical order under such generic heading. For example, 
if the rate is indicated to apply on ``Abrasives, as described in Item 
No. ____, as amended'', the item to which such reference is made shall 
contain the following heading: ``Abrasives, namely:'' and the specific 
abrasives on which the rate is to apply shall be named in alphabetical 
order and indented under such heading, for example:
Abrasives, namely:
    Abrasive cloth or paper, including emery or sandpaper.
    Alundum, corundum, emery or other natural or synthetic abrasive 
material.
    Wheels, pulp grinding.

or,
    (ii) The same generic commodity description as a heading followed by 
an

[[Page 87]]

explicit explanation of the application of the generic description.
    (3) The items containing the lists of specific commodities or 
articles under their respective generic headings shall be published 
immediately preceding the rates sections or tables in the tariff, and 
shall be published under a heading (on each page) which shall provide 
that such commodity descriptions are applicable only when and to the 
extent that reference is made to such commodity descriptions. Each such 
list of articles or commodities under a generic heading shall be 
published in a separate item.
    (4) The method of publication authorized in this paragraph shall not 
be used when a specific commodity rate applies on less than ten specific 
commodities or articles embraced within a generic commodity description. 
In such cases, the specific commodities or articles shall be named in 
connection with the rate.
    (d) Commodity descriptions published separately from rates when 
latter arranged alphabetically by points. When all specific commodity 
rates in a tariff are published in tabular form and all points of origin 
and destination are arranged alphabetically in conformance with 
Sec. 221.37(b) (1) through (4) throughout the table of specific 
commodity rates, the commodity descriptions applicable to such rates may 
be published separately provided the following requirements are complied 
with:
    (1) The full commodity descriptions shall be published in numbered 
items (other than rate items) immediately preceding the table of 
specific commodity rates.
    (2) The items containing the commodity descriptions shall be 
published under a heading (on each page) which shall state that such 
commodity descriptions apply only in connection with and to the extent 
that reference is made thereto by the specific commodity rates on pages 
____ through ____ (or, in Sec. ____) of the tariff.
    (3) Directly in connection with each specific commodity rate, 
reference shall be shown to the respective item containing the 
description of the specific commodities or articles on which such rate 
applies.



Sec. 221.76  Precedence of authorized types of rates.

    (a) Exception ratings to general commodity rates versus general 
commodity rates. When both general commodity rates and exception ratings 
to general commodity rates (stated as percentages of the general 
commodity rates) are published to apply from and to the same points via 
the same routes, the tariffs containing such rates and exception ratings 
(or their governing rules tariffs) shall contain a rule reading as 
follows:
    An exception rating to the general commodity rate, stated as a 
percentage of the general commodity rate, removes the application of the 
general commodity rate on the same quantity of the same article or 
commodity (in the same package or shipping form) from and to the same 
points over the same route.
    (b) Specific commodity rates versus general commodity rates and 
exceptions to general commodity rates. When specific commodity rates, 
general commodity rates and exception ratings to general commodity rates 
(stated as percentages of the general commodity rates) are published to 
apply from and to the same points via the same routes, the tariffs 
containing such rates and exception ratings (or their governing rules 
tariffs) shall contain a rule reading as follows:
    A specific commodity rate removes the application of the general 
commodity rate and the exception rating to the general commodity rate on 
the same quantity of the same article or commodity (in the same package 
or shipping form) from and to the same points over the same route.

If no exception ratings to general commodity rates are published, the 
phrase ``and the exception rating to the general commodity rate'' shall 
be omitted from the above rule.
    (c) Specific commodity rates versus class rates. When both specific 
commodity rates and class rates are published to apply from and to the 
same points via the same routes, the tariffs containing such rates (or 
their governing rules or classification tariffs) shall contain a rule 
reading as follows:
    A specific commodity rate removes the application of the class rate 
on the same quantity of the same article or commodity (in the same 
package or shipping form) from and to the same points over the same 
route.

[[Page 88]]

    (d) Prescribed rules in forwarder tariffs. When the rules prescribed 
in this section are published in tariffs of Air Freight Forwarders or 
International Air Freight Forwarders, the phrase ``over the same route'' 
shown in the prescribed rules shall be omitted from the rules published 
in such tariffs.



Sec. 221.77  Straight or mixed shipments.

    (a) Rates will apply on straight or mixed shipments unless 
restricted. When a rate is subject to a commodity description which 
names two or more commodities, such rate shall apply on a straight 
shipment (consisting wholly of only one of the commodities) or on a 
mixed shipment (containing two or more of the commodities), unless the 
commodity description specifies that the rate applies on the commodities 
in straight shipments only or on the commodities in mixed shipments 
only. If a rate is restricted to apply only on mixed shipments, the 
restriction shall specify whether two or more or all of the commodities 
named in the applicable description must be included in a single 
shipment.
    (b) Mixed shipment rule. Each rate tariff (or its governing rules or 
classification tariff) shall contain a rule stating how the rates and 
charges are to be applied to a single mixed shipment of two or more 
commodities for which the same or different rates or charges are 
separately published. The rule shall state which minimum quantity is 
applicable to the entire mixed shipment where different minimum 
quantities are provided on the commodities in a mixed shipment and, if 
different rates are made applicable to the commodities in such mixed 
shipment, the rule shall state which rate is applicable to any deficit 
quantity (the difference between the quantity shipped and the applicable 
minimum quantity when the latter is greater).



Sec. 221.80  Rate scale method of publishing rates.

    (a) When to be used. In lieu of publishing the points of origin and 
destination directly in connection with the rates as required by 
Sec. 221.52(a), the rate scale method of publication may be employed in 
the manner authorized by either paragraph (b) or (c) of this section. 
The rate scale method will normally reduce the volume of publication 
where a rate tariff names numerous points of origin and destination for 
class rates, general commodity rates or rates on one specific commodity 
(or one group of specific commodities taking the same rates) and the 
same rate or rates apply in many instances between different points of 
origin and destination. Where such conditions do not exist, the rate 
scale method shall not be used and the points of origin and destination 
shall be shown directly in connection with the rates as required by 
Sec. 221.52(a) which results in a more simplified tariff format. When 
the rate scale method authorized by this section is employed, the volume 
rate conversion table method of publication under Sec. 221.71(c) shall 
not be used.
    (b) Rate scale method without zone numbers. The rate scale method 
without zone numbers consists of publishing two tables, namely, a table 
of rate scale numbers showing the rate scale number applicable between 
each point of origin and each point of destination and referring to a 
table of rates to determine the applicable rates for the respective rate 
scale numbers, and a table of rates listing such rate scale numbers (in 
numerical order) and showing the applicable rates for each rate scale 
number. Such tables shall conform to the following requirements:
    (1) Table of rate scale numbers. The table of rate scale numbers 
shall be published immediately preceding the table of rates. The points 
of origin and destination shall be arranged in alphabetical order, 
conforming with Sec. 221.37(b) (1) through (4), in the table of rate 
scale numbers which shall show the rate scale number applying from each 
point of origin to each point of destination (or applying between such 
points). All such pairs of points taking the same rates shall be 
assigned the same rate scale number. The heading on each page of the 
table shall refer to the table of rates substantially in the following 
manner: ``To determine rates for the applicable rate scale number, refer 
to Section ____.''
    (2) Table of rates. The rate scale numbers shall be arranged in the 
table of rates in numerical order (from lowest to highest) and the rates 
for each rate

[[Page 89]]

scale number shall be shown directly in connection with the respective 
rate scale number. The rates shall conform to all requirements of this 
part. The heading on each page of the table shall refer to the table of 
rate scale numbers substantially in the following manner: ``To determine 
the applicable rate scale number, refer to Section ____.''
    (c) Rate scale method with zone numbers. The rate scale method with 
zone numbers may be used where, in addition to the rate situations 
mentioned in paragraph (a) of this section, the points of origin and 
destination fall into zones with all points in each zone taking the same 
rates (common rated points). It shall not be used where such common 
rated points are not extensive, or where the method of publishing common 
rated points authorized by Sec. 221.52(b) is used. The rate scale method 
with zone numbers consists of three parts, namely, an alphabetical index 
or list of origin and destination points showing the rate zone number 
assigned to each point, a table of rate scale numbers showing the rate 
scale number applicable between each pair of zone numbers (arranged in 
numerical order in headline and sideline format), and a table of rates 
which lists the rate scale numbers (in numerical order) showing the 
applicable rates for each rate scale number. Such tables shall conform 
to the following requirements:
    (1) Alphabetical index or list of points showing zone numbers. A 
zone number shall be assigned to each and every point of origin or 
destination. Points taking the same rates shall be assigned the same 
zone number. Such zone numbers shall be published in a column captioned 
``Zone Number'' in the index of points or, if the tariff contains no 
index of points, in an alphabetical list of origin and destination 
points placed immediately preceding the table of rate scale numbers. If 
such list or index of points is published in a tariff containing rates 
for account of two or more carriers, such list or index shall also show 
the carrier or carriers serving each respective point. The heading of 
each page of such index or list of points shall refer to the table of 
rate scale numbers substantially in the following manner: ``To determine 
applicable rate scale numbers, refer to Section ________.''
    (2) Table of rate scale numbers. The table of rate scale numbers 
shall be published immediately preceding the table of rates. The zone 
numbers assigned to the points of origin and destination shall be 
arranged in numerical order in headline and sideline format in the table 
of rate scale numbers which shall show the rate scale number applying 
between each headline zone number and each sideline zone number (or from 
each headline zone number to each sideline zone number, or in the 
reverse direction). All such pairs of zone numbers taking the same rates 
shall be assigned the same rate scale number. The heading on each page 
of the table shall refer to the index or list of points substantially in 
the following manner: ``To determine the zone numbers of the points of 
origin and destination, refer to Section ________'', and shall also 
refer to the table of rates substantially in the following manner: ``To 
determine rates for the applicable rate scale number, refer to Section 
________.''
    (3) Table of rates. The table of rates shall conform to the 
requirements of paragraph (b)(2) of this section.
    (d) Routing. When the rate scale method of publication makes it 
impossible to show comprehensibly the required routing provisions 
directly in connection with the rates in accordance with Sec. 221.41, 
such routing provisions shall be shown directly in connection with each 
respective rate scale number in the table of rate scale numbers. If the 
routing provisions cannot be indicated comprehensibly under the above 
methods, the rate scale method of publication shall not be used.



                      Subpart G--Governing Tariffs



Sec. 221.100  When reference to governing tariffs permitted.

    (a) Reference to other tariffs, etc., prohibited except as 
authorized. A tariff shall not refer to nor provide that it is governed 
by any other tariff, document, or publication, or any part thereof, 
except as specifically authorized by this part.
    (b) Reference by rate or fare tariff to governing tariffs. A fare 
tariff or a rate

[[Page 90]]

tariff may be made subject to a governing tariff or governing tariffs 
authorized by this subpart: Provided, That reference to such governing 
tariffs is published in the rate tariff or fare tariff in the manner 
required by Sec. 221.31(a)(7).
    (c) Participation in governing tariffs. A rate tariff or a fare 
tariff may refer to a separate governing tariff authorized by this 
subpart only when all carriers participating in such rate tariff or fare 
tariff are also shown as participating carriers in the governing tariff: 
Provided, That:
    (1) If such reference to a separate governing tariff does not apply 
for account of all participating carriers and is restricted to apply 
only in connection with local or joint rates or fares applying over 
routes consisting of only particular carriers, only the carriers for 
whom such reference is published are required to be shown as 
participating carriers in the governing tariff to which such qualified 
reference is made.
    (d) Maximum number of governing tariffs. A single fare tariff or a 
single rate tariff shall not make reference to conflicting governing 
tariffs.

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1229, 46 FR 32552, 
June 24, 1981]



Sec. 221.101  Contents of all governing tariffs.

    (a) Contents. Each governing tariff authorized by this subpart shall 
contain the following contents in the order named (in addition to the 
contents specified in the following respective sections of this 
subpart):
    (1) Title page (Sec. 221.31).
    (2) Correction number check sheet (in loose-leaf tariffs only) 
(Sec. 221.32).
    (3) Table of contents (Sec. 221.33).
    (4) List of participating carriers (Sec. 221.34).
    (5) Explanations of abbreviations reference marks, and symbols 
(Sec. 221.35).
    (6) The contents specified in Secs. 221.102 through 221.108, 
whichever section is applicable to the particular type of governing 
tariff. The contents specified in two or more of such sections shall not 
be combined into one governing tariff except that a governing rules 
tariff authorized by Sec. 221.102 may include the contents specified in 
Secs. 221.103 and 221.107.
    (b) Notation to be shown on title page. Each governing tariff 
authorized by this subpart shall contain the following notation in 
distinctive type (to be shown above the issued and effective dates in 
the lower part of the title page):
    This tariff is applicable only in connection with tariffs making 
reference hereto.



Sec. 221.102  Rules tariff.

    Carriers may publish all the rules and regulations as required by 
Sec. 221.38, in separate governing tariffs, conforming to Secs. 221.100 
and 221.101, instead of being included in the rate tariffs or fare 
tariffs.

[ER-1062, 43 FR 34443, Aug. 4, 1978]



Sec. 221.103  [Reserved]



Sec. 221.104  Explosives and other dangerous or restricted articles.

    Carriers may publish rules and regulations governing the 
transportation of explosives and other dangerous or restricted articles 
in separate government tariffs, conforming to Secs. 221.100 and 221.101, 
instead of being included in the fares or rate tariffs or in the 
governing rules tariff authorized by Sec. 221.102. This separate 
governing tariff shall contain no other rules or governing provisions.

[ER-1062, 43 FR 34443, Aug. 4, 1978]



Sec. 221.105  Classification tariff.

    (a) Requirements. When the classification ratings required by 
Sec. 221.39(a) are published in a separate classification tariff 
pursuant to Sec. 221.39(b), such separate classification tariff shall 
conform with Secs. 221.100 and 221.101 and the requirements in this 
section.
    (b) Index of commodities. Each classification tariff shall contain 
an index of commodities conforming with Sec. 221.36.
    (c) Rules or regulations. Each classification tariff shall contain 
such rules or regulations as may be necessary to make the application of 
the classification ratings clear and definite. If the classification 
tariff is published for account of more than one carrier, any exceptions 
to such rules or regulations for account of a particular carrier shall

[[Page 91]]

be published in the tariff containing the class rates of that carrier.
    (d) Classification ratings. All articles or commodities accepted for 
transportation shall be listed together with their applicable class 
ratings in the manner described in Sec. 221.39 (a) (1) through (6). Any 
exceptions to the classification ratings shall be published in the 
tariffs containing the class rates governed by such classification 
tariff (see Sec. 221.39(c)).



221.106  [Reserved]



Sec. 221.107  Aircraft equipment tariff.

    If desired, the seating configuration data required by 
Sec. 221.38(a)(6) may be published in a separate governing aircraft 
equipment tariff conforming to Secs. 221.100 and 221.101 in lieu of 
publishing such data in the fare tariff or in the governing rules tariff 
authorized by Sec. 221.102. Such aircraft equipment tariff may also 
include other definite data concerning the respective configurations, 
capacities or other physical characteristics of the various types of 
aircraft to the extent that such data are pertinent to the application 
of fares or charges in tariffs governed thereby. The seating 
configuration and other aircraft equipment data shall be arranged in a 
simple and systematic manner.



Sec. 221.108  Other types of governing tariffs.

    Carriers may publish other types of governing tariffs not specified 
in this subpart, such as routing guides.



                     Subpart H--Amendment of Tariffs



Sec. 221.110  Methods of amending tariffs.

    (a) Loose-leaf tariffs. Amendment of a loose-leaf tariff shall be 
made only by (1) issuing revised pages or additional original pages to 
such tariff as provided in Sec. 221.111, or (2) reissuing the tariff, 
that is, issuing a new tariff canceling completely the tariff to be 
amended. Supplements shall not be issued to a loose-leaf tariff except 
as specifically authorized in this part.
    (b) Book tariffs. Amendment of a book tariff shall be made only by 
(1) issuing supplements to such tariff as provided in Sec. 221.112, or 
(2) reissuing the tariff, that is, issuing a new tariff canceling 
completely the tariff to be amended.
    (c) Who may amend. A tariff shall be amended only by the carrier or 
agent who issued the tariff (except as otherwise authorized in subparts 
S and T).
    (d) Amendment symbols. All amendments of rates, fares, rules, and 
other tariff provisions accomplished by tariffs, supplements, revised 
pages, or original pages shall be indicated by the use of uniform 
amendment symbols in the manner prescribed by Sec. 221.114.
    (e) Amendments involving suspension. All amendments involving tariff 
provisions suspended by the Board or continued in effect by such 
suspension are also subject to the requirements of subparts I, J, and K.



Sec. 221.111  Amending loose-leaf tariff by revised pages and additional original pages.

    (a) Amendment by revised pages--(1) Method. The amendment of any 
page of a loose-leaf tariff shall be made by reissuing the particular 
page upon which the change, addition or cancellation is to be made. 
Reissuing a page means to cancel it by a new page which shall be 
designated as a revised page in the manner shown in paragraphs (a) (2) 
and (3) of this section and shall contain the same tariff provisions 
except for whatever additions, changes, or cancellations are to be made 
in such provisions. Where provisions are to be amended on only one of 
two pages published back-to-back on the same leaf, both pages shall be 
reissued on lawful notice, and the page containing no changes shall bear 
the notation ``NO CHANGE OF THIS PAGE'' at its top.

Reissuance of pages containing suspended matter or matter continued in 
effect by suspension shall comply with Sec. 221.122 (a) or (b), 
whichever is applicable.
    (2) Revised page numbers. Each revised page shall bear the same page 
number as the page which it amends and shall bear a consecutive revision 
number. A revised page which amends an original page shall be designated 
``1st Revised Page ____'' and revisions of the same page subsequent to 
the 1st revision

[[Page 92]]

shall bear consecutive revisions numbers: ``2nd Revised Page ____'', 
``3rd Revised Page ____'', ``4th Revised Page ____'', etc.
    (3) Page cancellation. Each revised page shall direct the 
cancellation of the original or revised page which it amends and such 
cancellation shall be shown in the following manner (using page 10 as an 
example):

                           1st Revised Page 10

                                 cancels

                            Original Page 10

or, when 1st Revised Page 10 is to be amended, it shall be canceled by 
2nd Revised Page 10 in the following manner:

                           2nd Revised Page 10

                                 cancels

                           1st Revised Page 10

In the case of revised title pages, the designation of the revised title 
page and the page cancellation shall be shown as ``1st Revised Title 
Page cancels Original Title Page'', ``2nd Revised Title Page cancels 1st 
Revised Title Page'', etc., in the above manner.
    (4) Revised title page shall show effective date of original tariff. 
Each revised title page shall bear (immediately below its own effective 
date) the effective date of the original tariff which is to be shown in 
the following manner:
(Original tariff effective ____________.) (show date).
    (5) Revised title page shall bring forward tariff cancellation. Each 
revised title page shall bring forward without change any tariff 
cancellation or reference to a cancellation notice that is shown below 
the tariff's C.A.B. number on the original title page.
    (b) Adding original pages for expanded or added matter. If, after a 
loose-leaf tariff has been issued, it becomes necessary to add pages 
thereto to provide for expanded or added tariff matter, such added page 
shall comply with the following requirements:
    (1) A page added between pages shall be designated as an original 
page (not a revised page) and shall be given the same page number as the 
page which it follows but a letter suffix (in alphabetical sequence) 
shall be shown in such page number, for example:
    (i) In a tariff where matter is printed on only one face of each 
leaf, a page added between pages 4 and 5 shall be designated as 
``Original Page 4-A''; a page added between pages 4-A and 5 shall be 
designated ``Original Page 4-B''; and so on.
    (ii) In a tariff where matter is printed on both faces of each leaf, 
two consecutive pages printed back-to-back on the same leaf to be added 
between pages 30 and 31 shall be designated ``Original Page 30-A'' and 
``Original Page 30-B'', respectively; two consecutive pages printed 
back-to-back on the same leaf to be added between pages 30-B and 31 
shall be designated ``Original Page 30-C'' and ``Original Page 30-D'', 
respectively; and so on.
    (2) When a page is added at the end of the tariff after the last 
page, the added page shall be designated as an original page and shall 
bear the next consecutive page number following the number of the last 
page of the tariff. For example, if the last page of the tariff is page 
99, the added page shall be designated Original Page 100.
    (3) A page shall not be added between two pages both bearing page 
numbers with letter suffixes.
    (4) A page shall not be added between two pages printed back-to-back 
on the same leaf. For example, if a tariff contains pages 31 and 32 
published back-to-back, pages designated as Original Pages 31-A and 31-B 
shall not be added to such tariff.
    (5) Where pages are added to a tariff in which matter is printed on 
both faces of each leaf, original pages shall be issued simultaneously 
on both faces of each added leaf. If the added or expanded matter 
requires the space of only one page on the added leaf, the body of the 
page on the reverse side thereof shall bear the notation ``This page 
intentionally left blank.''
    (c) Correction numbers. Each revised page and each original page 
(added to the tariff after issuance of the tariff) shall bear a 
consecutive correction number in the lower right-hand corner of the 
page. One series of consecutive correction numbers shall be used for 
each loose-leaf tariff. The first revised page or added original page 
issued to

[[Page 93]]

the tariff shall be ``Correction No. 1'' and subsequent revised or 
original pages issued to that tariff shall bear consecutive Corrections 
Nos. 2, 3, 4, etc. (see Sec. 221.32).
    (d) Transferring matter from page to page. When a revised page of a 
loose-leaf tariff is issued which omits rates, fares, rules, or other 
provisions formerly published on the page which it cancels and such 
omitted matter is transferred to a different page, such revised page 
shall make specific reference to the respective page on which such 
omitted matter will thereafter be found, for example:
    For ________ (here identify the omitted matter) formerly published 
on ____ Revised Page ____, see ____ Revised Page ____.

The page to which such omitted matter is transferred shall refer, 
substantially in the following manner, to the respective page on which 
such matter was formerly published:
    For ________ (here identify the transferred matter) in effect prior 
to the effective date hereof, see ____ Revised Page ____ (or, Original 
Page ____).

The cancellation of the matter from the former page shall be made 
effective simultaneously with the effective date of such matter on the 
page to which it is transferred. Subsequent revisions of the respective 
pages accomplishing such transfer shall omit the references required 
above with respect to such transferred matter.
    (e) Cancellation of omitted matter. If a rate, fare, rule or other 
tariff provision on a page is to be canceled entirely and is not to be 
transferred to another page of the same tariff, the revised page which 
effects such amendment shall specifically show the cancellation of such 
provisions and identify the provisions to be canceled. For example, if a 
rule is canceled, the number and caption of the rule shall be brought 
forward on the new page but the body of the rule shall be omitted and, 
in lieu thereof, a statement that the rule is canceled shall be shown; 
or, if a fare is to be canceled, the points of origin and destination 
shall be brought forward on the new page but the fare shall be omitted 
and, in lieu thereof, a statement that the fare is canceled shall be 
shown. Alternatively, such cancellation (but not transfer of matter to 
another page) may be accomplished by omitting the matter to be canceled, 
provided that a footnote at the bottom of the revised page specifically 
identifies the matter to be canceled and directs its cancellation. All 
of the foregoing cancellation shall be omitted from subsequent revisions 
of the revised page which effected the cancellation.
    (f) Matter reissued before it becomes effective. When rates, fares, 
rules, or other provisions which have not become effective are reissued 
and brought forward on a page which bears a general effective date 
earlier than the effective date of such rates, fares, rules, or other 
provisions, such page shall conform with the following:
    (1) Such rates, fares, rules, or other provisions shall bear their 
original effective date, shall be designated as reissued matter, and 
shall indicate the page from which they are reissued. Such information 
shall be shown, either directly in connection with the reissued matter 
or by the use of a reference mark (explained on the same page), in the 
following manner:
    Effective ________. Released from ____. Revised Page ____.
    (2) The general effective date of the page shall be qualified by a 
notation reading ``(Except as noted)'' to be shown directly following 
the general effective date.
    (g) Cancellation of participating carrier. When a participating 
carrier is canceled by a revised page, the fares (or rates) and other 
provisions of the tariff insofar as they apply in connection with such 
carrier shall be canceled at the same time, by either of the following 
methods:
    (1) Such cancellation shall be accomplished by revising the 
particular pages containing the fares (or rates) and other provisions 
applying in connection with the canceled participating carrier, or
    (2) Such cancellation shall be accomplished by publishing the 
following statement (following the list of participating carriers) which 
shall be referred to in connection with the elimination of the carrier 
from the list of participating carriers:

[[Page 94]]

                   Participating Carrier Cancellation

    (Name of canceled participating carrier) eliminated as participating 
carrier in this tariff and all rates (or fares) and other provisions 
published in connection with that carrier canceled effective ________ by 
______ Revised Page ____.

If the eliminated carrier is designated by abbreviation or carrier 
number in the tariff, show the carrier abbreviation or number in 
parentheses immediately following the carrier's name in the above 
statement. Also, in the above statement, show the effective date of the 
carrier's elimination as a participating carrier and the revised page on 
which the above statement is initially published. Such cancellation 
statement shall be brought forward on subsequent revisions of the page 
until such time as specific cancellation of all rates, fares and other 
provisions in connection with the eliminated carrier has been 
accomplished by revising the pages affected. Such specific cancellation 
shall be fully accomplished not later than 180 days after the effective 
date of the cancellation of the carrier's participation.



Sec. 221.112  Amending book tariff by supplement (also applicable to supplements to loose-leaf tariffs when such supplements are specifically authorized in this 
          part).

    (a) Form of supplement. (1) A supplement shall be constructed in the 
same manner and its contents arranged in the same order as the tariff to 
which it is issued, subject to the provisions of this section.
    (2) When points in a tariff are given station numbers, index 
numbers, or similar designations, the same designation shall be used for 
the same point in all supplements to the tariff.
    (b) Title page of supplement. Except as otherwise provided in this 
part, the title page of each supplement shall contain the following 
information to be shown in the order named below and shall contain no 
other matter:
    (1) Supplement and C.A.B. numbers. Each supplement shall bear a 
consecutive supplement number as follows: The first supplement issued to 
a particular tariff shall be designated as Supplement No. 1 and 
subsequent supplements to the same tariff shall be consecutively 
numbered Supplements Nos. 2, 3, 4, etc. The supplement number and the 
C.A.B. number (of the tariff to which the supplement is issued) shall be 
shown in the upper right-hand corner of the title page in the manner 
shown in the following example:

                            Supplement No. 1

                                   to

                              C.A.B. No. 1

    (2) Specifying canceled and effective supplements. Each supplement 
shall specify on its title page the supplements which it cancels in full 
and the supplements which remain in effect. Such provisions shall be 
shown immediately below the supplement and C.A.B. numbers in the upper 
right-hand corner of the title page in the manner shown in the following 
example:

                            Supplement No. 3

                                   to

                              C.A.B. No. 1

                       (Cancels Supplement No. 1)

    Supplements Nos. 2 and 3 are the only effective supplements.

The only cancellation of prior supplements or of the tariff which shall 
be shown on the title page of a supplement shall be the complete 
cancellation of prior supplements or of the tariff as provided in this 
paragraph and in paragraph (b)(3) of this section. Specific cancellation 
of the particular items, rules, rates, fares or other provisions to be 
amended shall be made within the supplement in the manner required by 
this section.
    (3) Specifying cancellation of original tariff. When a tariff is 
conceled in full by a supplement issued thereto, such cancellation shall 
specify the C.A.B. number of the tariff and shall be shown immediately 
under the supplement and C.A.B. numbers in the upper right-hand corner 
of the title page of the supplement in the manner shown in the following 
example:

[[Page 95]]

                            Supplement No. 4

                                   to

                              C.A.B. No. 1

                                 cancels

                              C.A.B. No. 1

(Also, see Sec. 221.113(d).)
    (4) Provisions to be reproduced from title page of tariff (as 
amended). The following provisions appearing on the title page of the 
tariff (to which the supplement is issued), as amended, shall be shown 
on the title page of the supplement in the same order and location as it 
appears on the title page of the tariff, as amended:
    (i) Name of issuing carrier or agent,
    (ii) Title of tariff (the supplement number may also be shown 
immediately above the title of the tariff, if desired),
    (iii) Description of rates, fares, or other contents of tariff,
    (iv) Description of territory.
    (5) Reference to Special Tariff Permissions, orders, and 
regulations. Where an entire supplement is issued pursuant to a Special 
Tariff Permission, order, or regulation which requires the supplement to 
bear a notation referring to such Special Tariff Permission, order, or 
regulation, such notation shall be shown in the manner required thereby. 
If only certain provisions, and not the entire supplement, are issued 
pursuant to such permission, order, or regulation, such notation shall 
be shown in connection with those provisions and not on the title page.
    (6) Expiration date. When a tariff is indicated on its title page to 
expire with a specified date, the title page of a supplement to such 
tariff shall indicate that the supplement expires with the same date. 
When a supplement is to expire with a given date, for the above or other 
reasons, the expiration date shall be shown in distinctive type in the 
following manner:
    This supplement expires with ________(Show date) unless sooner 
canceled, changed, or extended.

If, however, only a portion of the supplement is to expire with a given 
date, such expiration date shall not be shown on the title page but 
shall be shown in connection with the particular item, rule, or other 
provision which is to expire.
    (7) Issued date. The date on which the supplement is issued shall be 
shown in the lower left-hand portion of the title page. Tariffs must be 
received by the Board on or before the designated issued date. (See 
Sec. 221.160(d) and Sec. 221.171 of this part.)
    (8) Effective date. The date on which the fares, rates, charges, 
rules and other provisions in the supplement will become effective shall 
be shown in the lower right-hand portion of the title page (See 
Sec. 221.160 for required notice.)
    (9) Issuing officer or agent. The name, title, and address of the 
issuing officer or the issuing agent shall be shown centered at the 
bottom of the title page. If the supplement is issued by a corporate 
agent, the name, title and business address of the person designated by 
the corporation to issue and file tariffs in the corporation's name 
shall also be shown. The issuing officer or employee of a carrier or the 
person so designated by a corporate tariff agent shall not use the title 
``Agent'' or ``Alternate Agent'' (see Secs. 221.10 and 221.11).
    (c) Table of contents. A supplement shall contain a table of its 
contents conforming to Sec. 221.33.
    (d) List of participating carriers. (1) When a tariff contains a 
list of participating carriers (see Sec. 221.34), each supplement issued 
thereto shall contain the following provision:
    List of participating carriers. The list of participating carriers 
is as shown in tariff.

If amendment of the list of participating carriers has been made in 
prior supplements, add ``as amended'' after the word ``tariff'' in the 
above statement. If additions, eliminations, or changes are to be made 
in the list of participating carriers, such amendments shall be 
published in the following manner:

                     List of Participating Carriers
  The list of participating carriers is as shown in tariff, as amended,
                                 except:
------------------------------------------------------------------------
                                                             Concurrence
        Revised as indicated         Participating carriers      No.
------------------------------------------------------------------------
Add................................  Boe Air Lines, Inc....           1
Change.............................  Doe Airways, Inc......           2

[[Page 96]]

 
Cancel.............................  Roe Airline Co........  ...........
------------------------------------------------------------------------
Note: Concurrence numbers may be omitted if carrier complies with Sec.
  221.34(e). The listing of participating carriers in a supplement shall
  otherwise conform to the requirements of Sec.  221.34.

    (2) When the participation of a carrier in a tariff is canceled by 
supplement, the fares or rates and other provisions of the tariff, so 
far as they apply in connection with such carrier, shall be canceled at 
the same time. Such cancellation shall be accomplished by amending the 
affected items or other provisions in the manner prescribed by 
paragraphs (h) and (i) of this section.
    (e) Index of commodities. A supplement shall contain an index of the 
commodities therein conforming to Sec. 221.36.
    (f) Index of points. A supplement shall contain an index of the 
points therein conforming to Sec. 221.37.
    (g) Explanations of abbreviations, reference marks, and symbols. All 
abbreviations, reference marks, and symbols used in a supplement shall 
be explained and are subject to the provisions of Sec. 221.35. Each page 
of a supplement on which abbreviations, reference marks, or symbols are 
used but not explained thereon shall refer to the page of the supplement 
or to the page of the original tariff which contains their explanations.
    (h) Amending numbered items, rules, and similar units--(1) Method of 
amending. When any provision contained in a numbered item, rule, or 
similar unit is amended, all provisions (in their amended form) of such 
item, rule, or unit shall be published in their entirety in the 
supplement effecting such amendment and shall be given the same item, 
rule, or unit number followed by a letter suffix (each item, rule, or 
unit number shall be assigned letter suffixes in consecutive 
alphabetical sequence, commencing with ``A''). The revised item, rule, 
or unit containing the amended provisions shall direct the cancellation 
of the former item, rule, or unit which it amends. The numbers of such 
revised items, rules, or units and the cancellation of such former 
items, rules, or units shall be shown in the following manner (using 
successive amendments in an Item 10 series as examples): When Item 10 is 
to be amended, the revised item containing the amended provisions shall 
show ``Item 10-A cancels Item 10''; when Item 10-A is to be amended, the 
revised item containing the amended provisions shall show ``Item 10-B 
cancels Item 10-A''; when Item 10-B is to be amended, the revised item 
containing the amended provisions shall show ``Item 10-C cancels Item 
10-B''; and so on. Using similar successive amendments in a Rule 10 
series as examples, the successive issues of Rule 10 shall show ``Rule 
10-A cancels Rule 10''; ``Rule 10-B cancels Rules 10-A''; ``Rule 10-C 
cancels Rule 10-B'' and so on.
    (2) Withdrawing an item, rule, or similar unit. When all provisions 
in a numbered item, rule, or similar unit are to be canceled, such 
cancellation shall be made by amending the time, rule, or similar unit 
in the manner prescribed by paragraph (h)(1) of this section, but the 
canceled matter shall not be reproduced in the revised item, rule, or 
like unit except to the extent necessary to identify the subject matter 
which is being canceled. For example, only the caption or subject of a 
rule or the generic commodity caption of a rating or rate item shall be 
shown when such rule, rates or ratings are to be canceled.
    (3) Reestablishing expired or canceled items, rules, or other units. 
The provisions of an expired or canceled item, rule, or similar unit may 
be reinstated only by republishing such provisions under a new effective 
date allowing lawful notice. The item, rule, or similar unit which 
effected the cancellation of such provisions or which contained the 
expired provisions shall be amended in the manner prescribed by 
paragraph (h)(1) of this section and the provisions shall be republished 
in the revised item, rule, or similar unit.
    (4) Transferring matter. When all or part of the matter in a 
numbered item, rule, or similar unit is to be transferred to another 
portion of the tariff or to a different tariff, such item, rule, or 
similar unit shall be amended in the manner prescribed by paragraph 
(h)(1) of this section and shall specify the

[[Page 97]]

cancellation of such matter and where it will thereafter be published; 
for example, ``Item 10-A cancels Item 10; rates formerly appearing in 
Item 10 but not shown herein will be found in Item ____(or in Item ____ 
of C.A.B. No. ____).'' The item, rule, or similar unit, or different 
tariff, to which the matter has been transferred shall show reference to 
the item, rule or similar unit, or other tariff, which formerly 
contained the transferred matter.
    (i) Amending matter not published in numbered units. When an 
amendment is made in a provision which is not published in a numbered 
item, rule, or similar unit, the changed provision shall be published in 
its entirety in a supplement. The cancellation of the former provision 
shall be shown directly in connection with such changed provision, and 
such cancellation shall refer to the page of the tariff or supplement 
containing the former provision and clearly specify the matter to be 
canceled. Where the provision to be amended is published in a prior 
supplement, the cancellation of such provision shall specify both the 
page of the prior supplement and the page of the tariff which contained 
the corresponding provision; or, if the provision was published 
initially in a supplement and not in the tariff, the cancellation shall 
specify both the page of the prior supplement and the page of any 
effective supplement previously issued thereto which contained the 
corresponding provision.
    (j) Omitted matter. When a supplement canceling a previous 
supplement omits points of origin or destination, routes, rates, fares, 
ratings, rules, or other provisions appearing in the previous 
supplement, the new supplement shall specifically indicate the 
cancellation of such omitted matter, and if such omission effects 
changes in rates, fares, charges, or services, that fact shall be 
indicated by the use of the uniform symbols prescribed in Sec. 221.114.
    (k) Reissued matter--(1) Designating reissued matter. When a 
supplement cancels a preceding supplement to the same tariff, those 
provisions and amendments in the canceled supplement which have not been 
amended by subsequent supplements and which are not to be amended by the 
new supplement shall be brought forward without change in the new 
supplement (except that amendment symbols required by Sec. 221.114 shall 
not be brought forward). Such matter brought forward without change from 
one supplement to another shall be specifically designated ``Reissued'' 
in distinctive type and shall show the number of the original supplement 
form which it was reissued. For example, if Item 5-A was published in 
Supplement No. 1 and is brought forward without change to Supplement No. 
2 (canceling Supplement No. 1), the following notation shall be shown in 
Item 5-A in Supplement No. 2: ``Reissued from Supplement No. 1''; if 
Item 5-A is again brought forward without change, for example, in 
Supplement No. 3 (canceling Supplement No. 2), it shall continue to bear 
the same notation indicating that it is reissued from Supplement No. 1. 
Such reissued matter may also be indicated by the use of a reference 
mark shown preceding such matter and explained in the supplement in 
which it is used. When the latter method is used, the reference mark 
shall consist of a number within a square and the number shall be that 
of the original supplement from which the matter is reissued, for 
example, the reference mark {time}  shall be used to indicate matter 
reissued from Supplement No. 1. The reference marks shall be explained 
in the following manner:
{time} --Reissued from Supplement No. 1.
{time} --Reissued from Supplement No. 2.

Such reference marks comprised of a number within a square shall be used 
only for the above purpose and shall not be used for any other purpose.
    (2) Matter reissued before its effective date. When matter published 
in a supplement is brought forward as reissued matter in a subsequent 
supplement which bears a general effective date earlier than the 
effective date of such reissued matter shall be included in the reissued 
notation required by paragraph (k)(1) of this section. For example, if 
Item 5-A published to become effective May 1, 1952 in Supplement No. 1 
is brought forward without change in Supplement No. 2 (canceling 
Supplement No. 1) which bears a general effective date of April 15, 
1952, Item 5-A

[[Page 98]]

shall bear the following notation indicating its effective date and that 
it is reissued matter:
    Effective May 1, 1952. Reissued from Supplement No. 1.

When the supplement contains reissued matter to become effective after 
the general effective date of the supplement, the notation ``(Except as 
otherwise provided herein)'' shall be shown directly after the general 
effective date on the title page of the supplement.
    (3) Expired matter. When an item, rule, or other matter in a 
supplement has expired by its own terms and such supplement is canceled 
by a subsequent supplement, the latter supplement shall identify, but 
not republish, the matter which has expired and shall show when it 
expired and the supplement in which it appeared when it expired. For 
example, if the expired matter is an item which formerly contained 
commodity rates, the item number and cancellation and an identifying 
portion of the commodity description should be shown with a statement 
reading substantially: ``This term expired with ____ in Supplement No. 
____.'' Such notation shall be shown in all successive reissues of the 
supplement.
    (l) Maximum supplemental matter permitted. (1) Except as authorized 
in paragraphs (l) (2), (3), and (4) of this section, a book tariff 
containing the number of pages stated in Column 1 in the table below may 
have in effect at any time not more than the number of supplements shown 
directly opposite thereto in Column 2 in the table below and all 
supplements in effect at any time to such tariff may contain in the 
aggregate not more than the aggregate number of pages indicated directly 
opposite thereto in Column 3 in the table of this paragraph.

------------------------------------------------------------------------
                                                     Column 3--Aggregate
                                   Column 2--Number    number of pages
   Column 1--Number of pages in      of effective        permitted in
              tariff                  supplements        aggregate of
                                       permitted          effective
                                                         supplements
------------------------------------------------------------------------
4 or less........................  None............  None.
Over 4 but not over 12...........  1...............  4.
Over 12 but not over 16..........  1...............  (See Note 1.)
Over 16 but not over 80..........  2...............  (See Note 1.)
Over 80 but not over 200.........  3...............  (See Note 1.)
Over 200.........................  4...............  (See Note 1.)
------------------------------------------------------------------------
Note 1: 33\1/3\ percent of the number of pages in the original tariff.
  Resulting fractions of a page shall be increased to a whole page.


In determining the number of pages in a tariff or an effective 
supplement, the title page of the tariff and the title pages of the 
supplements shall be counted in all instances, and every page of an 
effective supplement shall be counted regardless of whether the 
provisions on a particular page are in effect.
    (2) The supplements (and the numbers of pages therein) authorized or 
required to be filed under the terms of the following sections shall be 
in addition to the number of supplements and volume of supplemental 
matter permitted by the terms of paragraph (l)(1) of this section:
Sec.
221.113(d)  (Cancellation supplement)
221.121  (Suspension supplement)
221.131  (Vacating supplement)
221.140  (Provided the supplement contains only matter described in 
          Sec. 221.140)
221.223(c)  (Take-over supplement issued by alternate agent)
221.224(b)  (Take-over supplement issued by new principal agent)
221.231  (Adoption supplement)
    (3) A supplement which has been canceled except as to matter 
suspended by the Board or a supplement suspended in full by the Board 
shall be in addition to the maximum number of supplements and supplement 
pages permitted by paragraph (l)(1) of this section. If, upon 
termination of the suspension, such supplements result in a greater 
number of effective supplements or supplement pages than permitted by 
paragraph (l)(1) of this section, the tariff shall be brought into 
conformity with paragraph (l)(1) of this section by the next amendment 
of the tariff issued subsequently to the termination of the suspension.
    (4) When a tariff is continued in effect by reason of the Board's 
suspending an entire tariff, any supplements lawfully issued and filed 
during the suspension period to the tariff continued in effect by the 
suspension shall

[[Page 99]]

be in addition to the maximum number of supplements and supplement pages 
permitted by paragraph (l)(1) of this section. If the maximum number of 
supplements or supplement pages permitted under paragraph (l)(1) of this 
section is exceeded under this authority and the Board orders the 
cancellation of the suspended tariff, the tariff which was continued in 
effect by the suspension shall be brought into conformity with paragraph 
(l)(1) of this section by a supplement filed within 120 days after the 
date of such order of the Board or such tariff shall be reissued within 
that time.

(Secs. 204, 403, 1002; 72 Stat. 743, 758, 788; 49 U.S.C. 1324, 1373, 
1482, as amended)

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1104, 44 FR 9577, 
Feb. 13, 1979]



Sec. 221.113  Reissuing and canceling tariffs; transferring matter to other tariffs.

    (a) One or more tariffs superseded by one new tariff. (1) When one 
new tariff is issued to supersede one or more previously filed tariffs 
(of the same issuing carrier or agent) which are to have no further 
effect, such new tariff shall direct the cancellation of the tariff or 
tariffs to be superseded. Such cancellation shall specify the C.A.B. 
numbers of the tariff or tariffs to be canceled and shall be shown in 
the upper right-hand corner of the title page of the new tariff 
(immediately below its C.A.B. number) in the following manner:

                             C.A.B. No. ____

                                 cancels

                             C.A.B. No. ____

    (2) If the tariff or tariffs to be canceled contain any rates, 
fares, or other tariff provisions which are to be canceled and not 
brought forward in the new tariff, the new tariff shall contain a notice 
reading substantially as follows:

                                 Notice

    Rates (or fares, charges, rules, ratings, as the case may be) 
formerly published in C.A.B. No. ____ but not brought forward herein are 
hereby canceled.

Such notice shall be published immediately following the table of 
contents and reference thereto shall be shown on the title page of the 
new tariff, immediately below the cancellation prescribed by paragraph 
(a)(1) of this section, in the following manner:

                             C.A.B. No. ____

                                 cancels

                             C.A.B. No. ____

                    (See Notice on Page ____ hereof)

    (b) One tariff superseded by two or more new tariffs. When two or 
more new tariffs are issued to supersede one previously filed tariff (of 
the same issuing carrier or agent) which is to have no further effect, a 
supplement shall be issued to the tariff to be superseded and such 
supplement shall direct the cancellation of the tariff in the manner 
prescribed by Sec. 221.112 (b) (3) and paragraph (d) (2) of this section 
and shall refer to the new tariffs in the manner required thereby. Each 
of the new tariffs shall direct the following cancellation of the tariff 
to be superseded (to be shown in the upper right-hand corner of the 
title page of each new tariff immediately below its C.A.B. number):

                             C.A.B. No. ____

                                 cancels

                             C.A.B. No. ____

                         (to the extent shown in

                      Supplement No. ____ thereto)

    (c) Transferring rates, fares or provisions from one tariff to 
another. When all or a portion of the rates, fares, or other provisions 
of a tariff are to be transferred to another tariff or other tariffs, 
such transfer shall be accomplished by the following amendments (except 
that this paragraph shall not apply when paragraphs (a) and (b) of this 
section are applicable):
    (1) If no effective provisions are to remain in the tariff from 
which the provisions are transferred, the issuing carrier or agent shall 
issue a supplement thereto canceling such tariff in its entirety in the 
manner prescribed by Sec. 221.112 (b) (3) and paragraph (d) (2) of this 
section and stating where the transferred provisions will thereafter be 
found.
    (2) If only a portion of a tariff's provisions are to be 
transferred, the tariff

[[Page 100]]

shall be amended (in the manner required by Sec. 221.110) by 
specifically canceling the provisions to be transferred and, in 
connection with such cancellation, a reference shall be shown to the 
tariff or tariffs (specifying their C.A.B. numbers) to which the 
provisions are transferred.
    (3) The tariff or tariffs to which the provisions are to be 
transferred shall be amended (in the manner prescribed by Sec. 221.110) 
by adding the transferred provisions thereto effective on the same date 
as the date on which the cancellation of such provisions from the former 
tariff becomes effective. The publication effecting the addition of the 
transferred provisions shall refer to the former tariff in the following 
manner:
    (i) If the publication to which the provisions are transferred is a 
new tariff (issued by the same issuing carrier or agent of the former 
tariff), it shall direct a partial cancellation of the former tariff and 
such cancellation shall be shown in the following manner (in the upper 
right-hand corner of the title page of the new tariff immediately below 
its C.A.B. number):
C.A.B. No. ____ cancels C.A.B. No. ____ to the extent shown in 
Supplement No. ____ (or, ____ Revised Page ____) thereto
    (ii) If the publication to which the provisions are transferred is a 
new tariff (issued by an agent or carrier other than the issuing agent 
or carrier of the former tariff), the new tariff shall bear the 
following notation ``(see notice on page ____ hereof)'' in the upper 
right-hand corner of the title page (immediately below the C.A.B. number 
and any cancellation thereunder and the notice referred to shall be 
shown following the table of contents and shall read substantially:

                                 Notice

    Rates (or fares, rules, etc.), herein applying (____ briefly 
identify transferred rates, etc. ____) were formerly published in C.A.B. 
No. ____ issued by ________.
    (iii) If the transferred provisions are added by supplement, revised 
page or original page to an existing tariff (issued by the same or 
different issuing carrier or agent), reference to the former tariff 
shall be shown in connection with the added provisions in such 
supplement, revised page or original page and such reference shall read 
substantially:
    These rates (or fares, rules, etc.) were formerly published in 
C.A.B. No. ______ issued by ________.
    (d) Canceling tariff by supplement--(1) When permitted. A supplement 
shall be issued to a tariff (including a loose-leaf tariff) for the 
purpose of canceling such tariff in its entirety when:
    (i) All of the fares, rates, or other tariff provisions in such 
tariff are to be canceled entirely and are to have no further 
application; or
    (ii) A later issue of such tariff failed to cancel such tariff as 
required by paragraph (a) of this section; or
    (iii) Other paragraphs of this section require that a tariff be 
canceled by supplement; or
    (iv) Suspended matter is to be canceled, under authority of the 
Board, from a tariff which has previously been canceled except as to 
such suspended matter.
    (2) Cancellation notice. In addition to directing the cancellation 
of the tariff (by C.A.B. number) in the manner prescribed by 
Sec. 221.112(b) (3), such cancellation supplement shall contain a 
cancellation notice stating what disposition has been made of the rates, 
fares, or other provisions formerly published in the canceled tariff. 
When such rates, fares, or other provisions will thereafter be published 
in other tariffs, the notice shall refer to such other tariffs (by 
C.A.B. number) and, if reference is made to two or more tariffs, the 
notice shall briefly describe the respective rates, fares, or other 
provisions which will be found in each of such tariffs, for example:

                           Cancellation Notice

    ________ (title of tariff), C.A.B. No. ____, issued by ____ is 
hereby canceled.
    See C.A.B. No. ____ issued by ________ for rates between ________ 
and ________.
    See C.A.B. No. ____ issued by ________ for rates between ________ 
and ________.

If the canceled tariff contains any rates, fares, or other provisions 
which are to be canceled and not brought forward in the new tariffs, the 
following cancellation statement shall be added to the above notice:
    Rates (or fares, etc.) formerly published herein but not carried 
forward to the above tariffs are hereby canceled.

[[Page 101]]


The cancellation notice in this subparagraph shall be published either 
in the body of the title page of the cancellation supplement (below the 
territorial application and above the issued and effective dates) or on 
the next page.



Sec. 221.114  Amendment symbols to indicate changes in rates, fares and other provisions.

    (a) Uniform amendment symbols required. All tariffs, supplements, 
original pages, and revised pages shall indicate the changes made 
thereby in existing rates, fares, charges, routings, ratings, rules, and 
other tariff provisions and shall indicate the character of each change, 
that is, whether it results in a reduction or an increase in fares, 
rates, or charges or is a change resulting in neither increase nor 
reduction. The changes and their character shall be indicated by the use 
of the following uniform amendment symbols and, except as provided in 
paragraph (b) of this section, shall be shown immediately in connection 
with and preceding each change
(R) or  to denote increases.
(A) or  to denote reductions.
(C) or  to denote changes which result in neither increases 
nor reductions.
(N) or  to denote addition.
    (b) Indicating general changes--(1) Changes of same character in all 
fares, rates, or charges. When a change of the same character (either 
increase or reduction) is effected by all of the rates, fares, or 
charges in a tariff or supplement, or a page thereof, including a 
revised page or added original page, that fact and the character of such 
change may be indicated in distinctive type at the top of the title page 
of such tariff or supplement, or at the top of such page, as the case 
may be, in the following manner:

            (Notation for title page of tariff or supplement)

                     ALL ** IN THIS ISSUE ARE ****.

                       (Notation for other pages)

                      ALL ** ON THIS PAGE ARE ****.

    **--show RATES, FARES, or CHARGES, whichever is appropriate.
    ****--show INCREASES or REDUCTIONS, whichever is appropriate.
    (2) Changes of same character in substantial portion of rates, 
fares, or charges. The notations prescribed in paragraph (b)(1) of this 
section may be qualified by adding thereto the words ``unless otherwise 
indicated'' and such qualified notations may be used, in the manner 
described in paragraph (b)(1) of this section, to indicate changes of 
the same character in a substantial portion but not all of the rates, 
fares, or charges in a tariff, supplement, or a page thereof, including 
a revised page or added original page. When this method is used to 
indicate such changes, any rates, fares, or charges which are exceptions 
to the qualified notation used shall be indicated by:
    (i) Showing a bold-faced dot ``O'' or the symbol ``(K)'' in 
connection with and preceding a rate, fare, or charge in which no change 
has been made, and
    (ii) Using the proper amendment symbol prescribed in paragraph (a) 
of this section for the purpose of indicating the character of any 
changes which are not indicated by the notation used on the title page 
or at the top of the page, as the case may be.
    (c) Explanations and uniform use of symbols. Explanations of the 
symbols prescribed in paragraphs (a) and (b) of this section shall be 
provided in the manner prescribed by Sec. 221.35 and such symbols shall 
not be used for any other purpose.
    (d) Symbols and notations not to be brought forward. When a symbol 
or notation prescribed by this section is used in a tariff, supplement, 
or page, such symbol or notation shall not be carried forward into 
reissues, supplements, or revised pages when the matter in connection 
with which they were used is reissued without change.



Sec. 221.115  Reinstating canceled or expired tariff provisions.

    Any rates, fares, rules, or other tariff provisions which have been 
canceled or which have expired may be reinstated only by republishing 
such provisions and posting and filing the tariff publications 
(containing such republished provisions) on lawful notice in the form 
and manner required by this part.

[[Page 102]]



Sec. 221.116  Supplement to loose-leaf tariff authorized when service terminated or suspended.

    When the Board authorizes or requires a carrier to suspend air 
transportation service to and from a particular point, or terminates 
authority to serve a particular point, supplements may be issued to 
loose-leaf tariffs for the purpose of canceling rates, fares, or other 
provisions therein applying to, from, at, or via such point for account 
of such carrier. The title page of a supplement issued hereunder shall 
bear the following notation on its title page, ``Issued under 
Sec. 221.116 of Economic Regulations of Civil Aeronautics Board.'' A 
single tariff shall have not more than one supplement, issued under 
authority of this section, in effect at any one time. Supplements issued 
hereunder shall contain no provisions other than the cancellation of 
rates, fares, or other provisions published under the above authority. 
When a supplement is issued under authority of this section, the 
canceled rates, fares, or other provisions shall be specifically removed 
from the tariff pages on which they appear by reissuing such pages not 
later than 180 days after the effective date of such supplement.



           Subpart I--Suspension of Tariff Provisions by Board



Sec. 221.120  Effect of suspension by Board.

    (a) Suspended matter not to be used. A rate, fare, charge, or other 
tariff provision which is suspended by the Board, under authority of 
section 1002(g) of the act, shall not be used during the period of 
suspension specified by the Board's order.
    (b) Suspended matter not to be changed. A rate, fare, charge, or 
other tariff provision which is suspended by the Board shall not be 
changed in any respect or withdrawn or the effective date thereof 
further deferred except by authority of an order or special tariff 
permission of the Board.
    (c) Suspension continues former matter in effect. If a tariff 
publication containing matter suspended by the Board directs the 
cancellation of a tariff, supplements, or loose-leaf tariff page, or any 
portion thereof, which contains fares, rates, charges, or other tariff 
provisions sought to be amended by the suspended matter, such 
cancellation is automatically suspended for the same period insofar as 
it purports to cancel any tariff provisions sought to be amended by the 
suspended matter.
    (d) Matter continued in effect not to be changed. A rate, fare, 
charge, or other tariff provision which is continued in effect as a 
result of a suspension by the Board shall not be changed during the 
period of suspension unless the change is authorized by order or special 
tariff permission of the Board, except that such matter may be reissued 
without change during the period of suspension.

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-991, 42 FR 19126, 
Apr. 12, 1977]



Sec. 221.121  Suspension supplement.

    (a) To be filed immediately to either book or loose-leaf tariff. 
Upon receipt of an order of the Board suspending any tariff publication 
in part or in its entirety, the carrier or agent who issued such tariff 
publication shall immediately issue and file with the Board a 
consecutively numbered supplement for the purpose of announcing such 
suspension. Such supplement, referred to in this subpart as a suspension 
supplement, is required to be filed to a loose-leaf tariff as well as a 
book tariff and shall conform fully with the provisions of this section.
    (b) Title page of suspension supplement. The title page of a 
suspension supplement shall be constructed in the manner prescribed in 
Sec. 221.112(b) except that it shall not contain an effective date and 
it shall contain the suspension notice required by paragraph (c) of this 
section.
    (c) Suspension notice. The title page of a suspension supplement 
shall contain a notice of suspension (to be shown immediately below the 
description of tariff contents and territory) which shall:
    (1) Indicate what particular rates, fares, charges, or other tariff 
provisions are under suspension,
    (2) State the date to which such tariff matter is suspended,
    (3) State the Board's docket number and order number which suspended 
such tariff matter,
    (4) Give specific reference to the tariffs (specifying their C.A.B. 
numbers),

[[Page 103]]

supplements, revised pages, original pages, items, etc., which contain 
the rates, fares, charges, or other tariff provisions continued in 
effect.
    Note: Where impracticable to provide on the title page the required 
detailed suspension notice, the title page may, under the caption 
``Suspension Notice'', make specific reference to where the detailed 
suspension notice is provided in the supplement.
    The following are illustrations of such notices of suspension:
    (When a portion of the fares on a revised page are suspended):

                            suspension notice

    The fares applying between New York, N.Y., and Chicago, Ill., on 1st 
Revised Page 75 of this tariff are suspended to and including August 23, 
1953 by Civil Aeronautics Board order No. E ____ in Docket No. ____. 
Such fares shall not be used on or before August 23, 1953. For fares 
between the above points continued in effect as a result of the 
suspension, see Original Page 75 of this tariff.
    (When an item in a supplement is suspended):

                            suspension notice

    Item No. 10-B in Supplement No. 5 is suspended to and including 
August 23, 1953 by Civil Aeronautics Board order No. E ____ in Docket 
No. ____. The rates and other provisions in Item No. 10-B of Supplement 
No. 5 shall not be used on or before August 23, 1953. For rates 
continued in effect as a result of the suspension, see Item No. 10-A in 
Supplement No. 4.
    (d) Quote Board's order in part. A suspension supplement shall quote 
the following portions of the Board's order of suspension (to be shown 
on the page following the title page):
    (1) The heading of the order,
    (2) The portions describing the suspended matter,
    (3) The paragraph naming the date to which such matter is suspended,
    (4) The paragraph prohibiting changes in the suspended matter,
    (5) The paragraph prohibiting changes in the matter continued in 
effect by the suspension.
    (e) Cancel reissue of suspended matter. When the Board has suspended 
a loose-leaf tariff page or a supplement in whole or in part, it may 
occur that prior to receipt of the suspension order, the issuing carrier 
or agent has transmitted for filing a revised page or a supplement 
subsequent to that containing the suspended matter and such subsequent 
revised page or supplement reissues without change the matter suspended 
in the previous loose-leaf tariff page or supplement. In such 
circumstances, the suspension supplement required by this section shall:
    (1) Cancel such reissued matter published in the subsequent revised 
page or supplement, and
    (2) Amend the cancellation which such subsequent revised page or the 
title page of such subsequent supplement directs of the loose-leaf page 
or of the supplement containing the suspended matter. Such cancellation 
shall be amended so as to exclude cancellation of the suspended matter. 
The suspension supplement accomplishing such amendments shall be filed 
promptly since a page or supplement which cancels suspended matter 
without authority of the Board is subject to rejection.



Sec. 221.122  Reissuing tariff publications suspended in part or containing matter continued in effect by suspension.

    (a) Loose-leaf tariff page suspended in part. When a loose-leaf 
tariff page suspended in part is reissued, the reissue of such page 
shall conform with the following requirements:
    (1) The revised page (reissue) shall not reproduce or bring forward 
the matter under suspension.
    (2) The revised page (reissue) shall direct the cancellation of the 
partially suspended page except the portions thereof under suspension. 
Such page cancellation shall be set forth in substantially the manner 
shown in the following example:

                           2nd Revised Page 10

                                 cancels

1st Revised Page 10 (except portions under suspension in C.A.B. Docket 
No. ____)
    (3) If the suspension has continued in effect tariff provisions on 
preceding issues of the page, the reissue of the page suspended in part 
shall bring forward without change those tariff provisions which were 
continued in effect by the suspension. In such cases, such reissue 
shall, in addition to directing the page cancellation required by 
paragraph (a)(2) of this section, complete

[[Page 104]]

the cancellation of the page which contained the matter continued in 
effect by the suspension. Such cancellation shall be set forth in 
substantially the manner shown in the following example:

                           2nd Revised Page 10

                                 cancels

1st Revised Page 10 (except portions under suspension in C.A.B. Docket 
No. ____) and completes the cancellation of Original Page 10

All subsequent revisions of the same page, which are issued after such 
reissue and which become effective during the period of suspension, 
shall bring forward unchanged the tariff provisions continued in effect 
by the suspension and shall bear reference to the revision containing 
the suspended matter. Such reference shall be set forth immediately 
below the page number and cancellation in the manner shown in the 
following example:

                           3rd Revised Page 10

                                 cancels

                           2nd Revised Page 10

(1st Revised Page 10 contains portions under suspension in C.A.B. Docket 
No. ____)
    (b) Reissuing a loose-leaf page continued in effect by suspension of 
entire revised page. When the Board has suspended a revised page in its 
entirety and the prior revision (which is continued in effect by such 
suspension) is to be reissued, the reissue shall conform with the 
following requirements:
    (1) The revised page (reissue) shall not reproduce or bring forward 
the matter under suspension.
    (2) The revised page (reissue) shall bring forward without change 
those tariff provisions which are continued in effect by the suspension 
and shall cancel the page containing such provisions.
    (3) The revised page (reissue) shall not direct any cancellation of 
the suspended page but shall contain a statement that such page is under 
suspension which shall be set forth (immediately below the page number 
and page cancellation) in the manner shown in the following example:

                           3rd Revised Page 10

                                 cancels

                           1st Revised Page 10

(2nd Revised Page 10 is under suspension in C.A.B. Docket No. ____)

All subsequent revisions of the same page, which are issued after such 
reissues and which become effective during the period of suspension, 
shall bring forward unchanged the tariff provisions continued in effect 
by the suspension and shall bear reference to the suspended revision to 
be set forth in the manner shown in the above example.
    (c) Supplement suspended in part. When a supplement suspended in 
part is reissued, the reissue of such supplement shall conform to the 
following requirements:
    (1) The supplement (reissue) shall not reproduce or bring forward 
the matter under suspension.
    (2) The supplement (reissue) shall direct the cancellation of the 
partially suspended supplement except the portions thereof under 
suspension. Such supplement cancellation shall be set forth in the upper 
right-hand corner of the title page of the reissue in substantially the 
manner shown in the following example:

                            Supplement No. 4

                                   to

                              C.A.B. No. 2

(Cancels Supplement No. 2 except portions under suspension in C.A.B. 
Docket No. ____)

    Supplements Nos. *2, 3, and 4 are the only effective supplements.
    *--Contains only matter suspended in C.A.B. Docket No. ____.
    (3) If the suspension has continued in effect tariff provisions in a 
prior supplement which is indicated as canceled by the partially 
suspended supplement, except as to the provisions continued in effect by 
the suspension, the reissue of the partially suspended supplement shall 
bring forward unchanged the matter continued in effect by the suspension 
and the title page of such reissue shall, in addition to directing the 
supplement cancellation, complete the cancellation of the supplement 
containing the matter continued in effect

[[Page 105]]

by the suspension. Such cancellation shall be set forth in substantially 
the manner shown in the following example:

                            Supplement No. 4

                                   to

                              C.A.B. No. 1

(Cancels Supplement No. 2 except portions under suspension in C.A.B. 
Docket No. ____, and completes the cancellation of Supplement No. 1)
    Supplements Nos. *2, 3, and 4 are the only effective supplements.
    *--contains only matter suspended in C.A.B. Docket No. ____.
    (d) Tariff suspended in part. When a tariff suspended in part 
(including a tariff having a supplement suspended wholly or in part) is 
reissued, the reissue of such tariff shall conform to the following 
requirements:
    (1) The tariff (reissue) shall not reproduce or bring forward the 
matter under suspension.
    (2) The tariff (reissue) shall direct the cancellation of the 
partially suspended tariff except the portions thereof under suspension. 
Such tariff cancellation shall be set forth (in the upper right-hand 
corner of title page of the reissue) in substantially the manner shown 
in the following example:

                              C.A.B. No. 3

                                 cancels

C.A.B. No. 2 (except portions under suspension in C.A.B. Docket No. 
____)
    (3) If the suspension has continued in effect tariff provisions 
which are published in the tariff containing the suspended matter, the 
reissue of such tariff shall bring forward such effective tariff 
provisions without change.
    (4) If the tariff containing the suspended matter has canceled a 
preceding issue except provisions in such preceding issue which are 
continued in effect by reason of the suspension, the reissue of the 
partially suspended tariff shall, in addition to directing the 
cancellation required by paragraph (d)(2) of this section, complete the 
cancellation of the tariff containing the provisions continued in effect 
by the suspension, and shall bring forward such provisions without 
change. Such tariff cancellation shall be set forth (in upper right-hand 
corner of title page of the reissue) in substantially the manner shown 
in the following example:

                              C.A.B. No. 8

                                 cancels

C.A.B. No. 2 (except portions under suspension in C.A.B. Docket No. 
____) and completes the cancellation of C.A.B. No. 1
    (e) Item, rule, or similar unit suspended in part. When a numbered 
item, rule, or similar unit in a book tariff or supplement thereto is 
suspended in part, a reissue of such item, rule, or similar unit shall 
conform to the following requirements:
    (1) The reissue shall not reproduce or bring forward the matter 
under suspension.
    (2) The reissue shall direct the cancellation of the partially 
suspended item rule, or similar unit except the portions thereof under 
suspension. Such cancellation shall be set forth in substantially the 
manner shown in the following example:

                              Item No. 10-B

                                 cancels

Item No. 10-A (except portions under suspension in C.A.B. Docket No. 
____)
    (3) If the suspension has continued in effect tariff provisions in 
preceding issues of the partially suspended item, rule, or similar unit, 
the reissue of the partially suspended item, rule, or similar unit shall 
bring forward without change the tariff provisions which were continued 
in effect by the suspension. In such cases, such reissue shall, in 
addition to directing the cancellation required by paragraph (e)(2) of 
this section, complete the cancellation of the item, rule, or similar 
unit which contained the matter continued in effect by the suspension. 
Such cancellation shall be set forth in substantially the manner shown 
in the following example:

                              Item No. 10-B

                                 cancels

Item No. 10-A (except portions under suspension in C.A.B. Docket No. 
____) and completes the cancellation of Item No. 10

[[Page 106]]



Sec. 221.123  Reissue of matter continued in effect by suspension to be canceled upon termination of suspension.

    When tariff provisions continued in effect by a suspension are 
reissued during the period of such suspension, the termination of the 
suspension and the coming into effect of the suspended matter will not 
accomplish the cancellation of such reissued matter. In such 
circumstances, prompt action shall be taken by the issuing agent or 
carrier to cancel such reissued provisions upon the termination of the 
suspension in order that they will not conflict with the provisions 
formerly under suspension.



           Subpart J--Vacating the Suspension of Tariff Matter



Sec. 221.130  Tariff must be amended to make suspended matter effective.

    (a) When the Board vacates an order which suspended certain tariff 
matter in full or in part, such matter will not become effective until 
the termination of the suspension period unless the issuing agent or 
carrier amends the pertinent tariffs in the manner prescribed in this 
subpart (except as provided in paragraph (b) of this section).
    (b) If the Board vacates its suspension order prior to the original 
published effective date of the tariff provisions whose suspension is 
vacated, such provisions will become effective on their published 
effective date without filing a vacating supplement as required by this 
subpart.



Sec. 221.131  Vacating supplement.

    (a) Subject to Secs. 221.132 and 221.133, the tariff, supplement, 
page, item, rule, fare, rate, or other tariff provision whose suspension 
has been vacated by an order of the Board may be made effective prior to 
the termination of the suspension period only by issuing and filing to 
the tariff containing the suspended matter a supplement (referred to in 
this subpart as a vacating supplement) which shall conform with the 
following requirements:
    (1) Such vacating supplement shall be issued on not less than one 
day's notice unless otherwise provided by the Board's vacating order.
    (2) Such vacating supplement may be filed to a loose-leaf tariff as 
well as a book tariff.
    (3) Such vacating supplement shall contain a vacating notice which 
shall specify the tariff matter whose suspension is vacated and shall 
state the specific date on which such matter will become effective. Such 
date shall be the same effective date as the effective date of the 
vacating supplement and must be earlier than the date to which the 
tariff matter was suspended. The vacating notice shall be published on 
the title page of the supplement (immediately below the description of 
contents and territory) or at the top of the next page.
    (4) Such vacating supplement shall direct the cancellation of the 
suspension supplement if all suspended matter covered by the suspension 
supplement is being vacated.
    (5) Such vacating supplement shall contain no tariff provisions 
other than those specifically authorized to be included therein by this 
section and Sec. 221.132, and those required by other regulatory bodies.
    (6) The title page of such vacating supplement shall contain 
reference to this subpart and to the Board's vacating order to be shown 
immediately above the issued and effective dates in the following 
manner:
    Issued under authority of subpart J, part 221 of the Economic 
Regulations and Order No. ____ in Docket No. ____ of the Civil 
Aeronautics Board.
    (b) [Reserved]



Sec. 221.132  When tariff amendments in addition to vacating supplement are required.

    (a) Notice and effective date. All amendments made pursuant to this 
section shall be filed on not less than one day's notice, unless 
otherwise provided by the Board's vacating order, and shall bear the 
same effective date as the effective date of the vacating supplement 
filed pursuant to Sec. 221.131, except as otherwise provided in 
paragraph (h) of this section, and except that the effective date of any 
tariff provisions other than the vacated matter shall not be advanced 
under this authority. All tariff amendments made pursuant to this 
section which are not published in the vacating supplement

[[Page 107]]

shall bear the reference required by Sec. 221.131(a)(6).
    (b) When a loose-leaf page suspended in part has been reissued. When 
a loose-leaf page is suspended in part and such suspension is vacated in 
its entirety by the Board but, prior to such vacating of the suspension, 
the page has been canceled (except as to matter under suspension) by a 
subsequent revision of that page, the following tariff amendments shall 
be made in addition to issuing and filing a vacating supplement pursuant 
to Sec. 221.131:
    (1) A consecutive revision in the series of the page containing the 
suspended matter shall be issued which shall (i) republish the suspended 
matter without change, (ii) cancel the matter continued in effect by the 
suspension (if published on the preceding revisions of the page) and 
(iii) complete the cancellation of the page which contained the 
suspended matter. The latter cancellation shall be set forth (below the 
C.A.B. and page numbers in the upper right-hand corner of the page) in 
the manner shown in the following example:

                           3rd Revised Page 20

                                 cancels

                           2nd Revised Page 20

         (and completes the cancellation of 1st Revised Page 20)

In the above example, the 3rd revision (filed pursuant to this 
paragraph) cancels the 2nd revision and completes the cancellation of 
the 1st revision (which was previously canceled by the 2nd revision 
except as to the suspended matter).
    (2) [Reserved]
    (c) When a loose-leaf page continued in effect by suspension of 
entire revised page has been reissued. When an entire revised page has 
been suspended and the Board fully vacates such suspension but prior to 
such vacating of the suspension, the page continued in effect by such 
suspension has been revised, the following tariff amendments shall be 
made in addition to issuing and filing the vacating supplement pursuant 
to Sec. 221.131:
    (1) A consecutive revision in the series of the suspended page shall 
be issued and filed which shall (i) republish the suspended tariff 
provisions without change, (ii) cancel the reissue of the tariff 
provisions which were continued in effect by the suspension, and (iii) 
include the cancellation of the revised page whose suspension has been 
vacated.
    (2) [Reserved]
    (d) When provisions continued in effect by suspension of supplement 
(in full or part) have been reissued in a supplement. When the Board has 
suspended in full or in part, a supplement to a book tariff and such 
suspension is vacated by the Board but (prior to such vacating of the 
suspension) all or part of the provisions which were continued in effect 
by the suspension have been reissued in a subsequent supplement to the 
same tariff, the vacating supplement shall include the following 
amendments:
    (1) The vacating supplement shall cancel such reissue of the 
provisions continued in effect by the suspension.
    (2) The vacating supplement shall republish without change the 
respective suspended provisions which are to supersede the provisions 
canceled pursuant to paragraph (d)(1) of this section and shall cancel 
such suspended provisions from the supplement which was under 
suspension.
    (e) When partially suspended item, rule, or similar unit in a book 
tariff or supplement has been reissued in a supplement. When the Board 
has suspended, in part, a numbered item, rule, or similar unit in a book 
tariff or supplement and such suspension is fully vacated by the Board 
but (prior to such vacating of the suspension) the partially suspended 
item, rule, or similar unit has been canceled except as to the suspended 
matter by a subsequent issue of such item, rule, or unit, the vacating 
supplement shall amend such items, rules, or similar units as specified 
below:
    (1) The tariff provisions whose suspension is vacated shall be 
republished without change.
    (2) The tariff provisions which were continued in effect by such 
suspension shall be canceled.
    (3) The cancellation of the partially suspended item, rule, or 
similar unit shall be completed in the manner shown in the following 
example:

[[Page 108]]

                              Item No. 10-C

                                 cancels

                              Item No. 10-B

            (and completes the cancellation of Item No. 10-A)

In the above example, Item No. 10-C in the vacating supplement directs 
the cancellation of the current Item No. 10-B and completes the 
cancellation of Item No. 10-A (which has been previously canceled by 
Item No. 10-B except as to the suspended matter).
    (f) When tariff continued in effect by suspension has been amended 
by supplement or loose-leaf page. When the Board fully vacates the 
suspension of an entire tariff but, prior to such action, the tariff 
which was continued in effect by the suspension has been amended by 
supplement or loose-leaf page, the following tariff amendments shall be 
made in addition to issuing and filing the vacating supplement pursuant 
to Sec. 221.131:
    (1) If the suspended tariff is a book tariff, the vacating 
supplement issued to such tariff shall set forth as reissued matter 
(without change) any changes or additions which were lawfully published 
in the tariff continued in effect by the suspension but which are not 
included in the suspended tariff.
    (2) If the suspended tariff is a loose-leaf tariff loose-leaf pages 
shall be issued thereto and such pages shall set forth as reissued 
matter (without change) any changes or additions which were lawfully 
published in the tariff continued in effect by the suspension but which 
are not included in the suspended tariff.
    (g) When tariff continued in effect by suspension has been reissued. 
When the Board fully vacates the suspension of an entire tariff but, 
prior to such action, the tariff which was continued in effect by such 
suspension has been reissued, the following tariff amendments shall be 
made in addition to filing the vacating supplement pursuant to 
Sec. 221.131:
    (1) A supplement shall be issued and filed to the tariff containing 
the reissued tariff provisions which were continued in effect by the 
suspension and such supplement shall cancel that tariff in its entirety.
    (2) Any changes or additions which have been lawfully published in 
the tariff specified in paragraph (g)(1) of this section but which are 
not included in the suspended tariff shall be republished:
    (i) As reissued matter (without change) in the vacating supplement 
issued to the suspended tariff if the latter is a book tariff, or
    (ii) As reissued matter (without change) in revised pages or 
additional original pages issued to the suspended tariff if the latter 
is a loose-leaf tariff.
    (h) When a tariff suspended in part has been reissued. When a tariff 
has been suspended in part (or has a supplement suspended in full or in 
part) and the Board fully vacates such suspension but, prior to the 
vacating of the suspension, a new tariff has been issued which directs 
the cancellation of the partially suspended tariff (except as to the 
suspended provisions), the following tariff amendments are required in 
order to make the suspended tariff provisions effective under authority 
of the Board's vacating order:
    (1) When the suspended tariff provisions are to be made effective 
prior to the effective date of such new tariff, a vacating supplement 
shall be issued and filed to the partially suspended tariff together 
with any amendments required by other paragraphs of this section. Also, 
the new tariff shall be amended in the manner prescribed by Sec. 221.110 
for the purpose of establishing the following amendments effective on 
the effective date of the new tariff:
    (i) The tariff cancellation shown on the title page of the new 
tariff shall be amended so that it fully cancels the former tariff by 
C.A.B. number instead of canceling it ``except portions under suspension 
in C.A.B. Docket No. ____''.
    (ii) The tariff provisions whose suspension has been vacated in the 
former tariff shall be republished without change in the new tariff.
    (iii) The reissue of the tariff provisions which were continued in 
effect by the suspension shall be canceled from the new tariff.
    (2) When the suspended tariff provisions are to be made effective on 
or after the effective date of such new tariff, a vacating supplement 
shall not be issued to the partially suspended tariff

[[Page 109]]

but a supplement shall be issued and filed to such tariff which shall 
cancel the suspended provisions, refer to such provisions as republished 
in the new tariff, and complete the cancellation of the tariff. The 
latter cancellation shall be set forth in the upper right corner of the 
supplement's title page (below the supplement and C.A.B. numbers) in the 
manner shown in the following example:

                            Supplement No. 3

                                   to

                              C.A.B. No. 6

              (completes the cancellation of C.A.B. No. 6)

Also, the new tariff shall be amended simultaneously in the manner 
prescribed by Sec. 221.110 for the purpose of accomplishing the 
following amendments:
    (i) The tariff provisions in the former tariff whose suspension has 
been vacated by the Board shall be republished without change in the new 
tariff.
    (ii) The reissue of the tariff provisions which were continued in 
effect by such suspension shall be canceled from the new tariff.



Sec. 221.133  When Special Tariff Permission is required to file amendments making suspended matter effective pursuant to vacating order.

    When tariff provisions continued in effect by a suspension have been 
reissued prior to the Board's vacating the suspension and Sec. 221.132 
does not authorize the amendments necessary to cancel such provisions in 
order to prevent a conflict with the tariff provisions whose suspension 
is being vacated, a vacating supplement shall not be issued and filed. 
In such circumstances, the issuing agent or carrier shall file an 
application for Special Tariff Permission specifically setting forth the 
amendments which are proposed to be issued and filed on one day's notice 
(unless the Board's vacating order provides otherwise) for the purpose 
of making the suspended matter effective and canceling the reissue of 
the tariff provisions continued in effect by the suspension. Upon 
approval of such application, the issuing agent or carrier shall then 
file the amendments authorized thereunder.



 Subpart K--Canceling Suspended Matter in Compliance With Board's Order



Sec. 221.140  Notice required when canceling suspended matter in compliance with Board's order.

    When the Board orders the cancellation shall be filed on not less 
than one other tariff provisions theretofore suspended by the Board, the 
tariff amendments which accomplish such cancellation of rates, fares, 
charges, rules, or day's notice to the Board and the public unless 
otherwise provided by the Board's order. The tariff amendments which 
accomplish such cancellation of suspended matter shall bear reference to 
this subpart and the Board's order in the following manner:
    Issued in compliance with subpart K of Economic regulations and 
Order No. ____in Docket No. ____ of the Civil Aeronautics Board.



Sec. 221.141  Cancellation of suspended matter subsequent to date to which suspended.

    (a) Endeavor to cancel prior to expiration of suspension period. 
When an order of the Board requires the cancellation of tariff 
provisions which were suspended by the Board and such cancellation is 
required to be made effective on or before a date which is subsequent to 
the date to which such tariff provisions were suspended, the issuing 
carrier or agent shall, if possible, make the cancellation effective 
prior to the date to which such tariff provisions were suspended.
    (b) When necessary to republish matter continued in effect by 
suspension. If suspended tariff provisions become effective upon 
expiration of their suspension period and thereby accomplish the 
cancellation of the tariff provisions continued in effect by the 
suspension, the issuing agent or carrier shall republish and reestablish 
such canceled tariff provisions effective simultaneously with the 
cancellation of the suspended provisions in compliance with the Board's 
order. The tariff amendments which reestablish such canceled tariff 
provisions shall bear reference to this subpart and the Board's order in 
the manner shown in Sec. 221.140.

[[Page 110]]



                       Subpart L--Index of Tariffs



Sec. 221.150  When index required.

    Each carrier shall issue, post, and file individually or by a duly 
appointed agent an index of the tariffs which have been filed with the 
Board by such carrier or for its account when:
    (a) The carrier has ten or more tariffs which it has issued and 
filed in its own name with the Board and such tariffs are either 
effective or are to become effective, or
    (b) The carrier is shown as a participating carrier under authority 
of its power of attorney or concurrence in three or more tariffs issued 
by agents or other carriers, and such participation is either effective 
or is filed to become effective.



Sec. 221.151  Index to be issued and filed as a tariff.

    The index of tariffs required by this subpart shall bear a 
consecutive C.A.B. number in the tariff series of the issuing carrier or 
agent and shall be prepared, posted, filed, and amended in the form and 
manner prescribed for a tariff except:
    (a) Such index of tariffs shall contain only the following contents:
    (1) Title page.
    (2) Correction number check sheet if index is in loose-leaf form.
    (3) Explanations of abbreviations, reference marks, and symbols.
    (4) A list of tariffs on file with the Board which are in effect or 
are to become effective and which the carrier has issued in its own name 
or in which the carrier is shown as a participating carrier.
    (b) Such index of tariffs shall be issued in the name of and filed 
by the carrier for whom it is published and, except as provided in 
paragraph (c) of this section, shall not be issued and filed by the 
carrier's agent.
    (c) An agent may publish an index of tariffs, and the regulations 
relating to powers of attorney will not apply: Provided, That the agency 
index contains a complete alphabetical index of carriers and that each 
carrier electing to publish its index in an agency issue shall inform 
the Board by letter as to what agency issue will include its index of 
tariffs. Also, any such carrier which changes its method of publishing 
the tariff index from individual carrier index to agency index or from 
agency index to individual carrier index or from one agent to another 
shall notify the Board by letter. The arrangement and information 
required by Secs. 221.152 and 221.153 shall be observed in connection 
with each participant in an agency issue.
    (d) Such index of tariffs (including supplements or loose-leaf pages 
issued thereto) shall bear an issued date but shall not bear an 
effective date. Such index of tariffs (including supplements or loose-
leaf pages issued thereto) shall be transmitted to the Board promptly 
upon issuance. The requirement that tariff publications shall be filed 
on thirty days' notice is not applicable to such index of tariffs 
(including amendments thereof).
    (e) Such index of tariffs shall list both passenger tariffs and 
property tariffs and each carrier may have only one effective index of 
tariffs.
    (f) The title page of an index issued by a carrier shall contain the 
following statement (below the title of the index):

     THIS INDEX CONTAINS A LIST OF TARIFFS ISSUED BY OR ON BEHALF OF

                      (Show issuing carrier's name)

(If an agency tariff, an agent must show participating carriers on the 
title page or make reference thereon to the list of participants named 
therein.)



Sec. 221.152  Arrangement of lists of tariffs.

    When the carrier issuing the index of tariffs required by this 
subpart issues or participates in both passenger tariffs and property 
tariffs, the list of tariffs in such carrier's index may be divided into 
two sections; the first section shall list the passenger tariffs only 
and the second section shall list the property tariffs only. When the 
carrier issues or participates in either passenger tariffs or property 
tariffs (but not both), all tariffs shall be listed in one section. The 
tariffs listed shall be shown in the following order in each section:
    (a) The tariffs issued in the name of and by the carrier issuing the 
index

[[Page 111]]

(listed in numerical order by C.A.B. number),
    (b) The tariffs issued in the name of and by an agent or agents and 
in which the carrier (issuing the index) is shown as a participating 
carrier under authority of its power of attorney (the names of the 
agents shall be listed alphabetically and each agent's tariffs shall be 
listed numerically by C.A.B. number under that agent's name),
    (c) The tariffs issued by other carriers and in which the carrier 
(issuing the index) is shown as a participating carrier under authority 
of its concurrence (the names of the carriers issuing such tariffs shall 
be listed alphabetically and the tariffs of each such carrier shall be 
listed in numerical order by C.A.B. number under the carrier's name).



Sec. 221.153  Information to be shown in list of tariffs.

    The index of tariffs required by this subpart shall show the 
following information for each tariff listed therein (preferably in 
tabular form):
    (a) Name of issuing carrier or agent.
    (b) C.A.B. number.
    (c) C.A.B. number of tariff cancelled by tariff listed.
    (d) General effective date.
    (e) Title of tariff.
    (f) Description of rates, fares or other contents of tariff (as 
shown on its title page).
    (g) Where tariff applies from (as shown on its title page).
    (h) Where tariff applies to (as shown on its title page).

When supplements or loose-leaf pages are issued to a tariff after it has 
been filed with the Board which result in the information in the index 
of tariffs becoming inaccurate, such index shall be amended to reflect 
the correct information.



Sec. 221.154  Index to be maintained current.

    Additions, changes, or cancellations in an index of tariffs required 
by this part shall be made by reissue or amendment quarterly.



            Subpart M--Filing Tariff Publications With Board



Sec. 221.160  Required notice.

    (a) Statutory notice required. Unless otherwise authorized by the 
Board or specified in a bilateral agreement between the United States 
and a foreign country, all tariff filings shall be made on the following 
schedule, whether or not they effect any changes:
    (1) At least 30 days before they are to become effective, for 
tariffs stating a passenger fare within the zone created by section 
1002(d)(4) of the Act (interstate and overseas) or the zone created by 
section 1002(j)(6) (foreign), or stating a rule that affects only such a 
fare;
    (2) At least 25 days before they are to become effective, for 
matching tariffs that are to become effective on the same date as the 
tariff to be matched and that meet competition as described in 
Sec. 221.165(d)(1)(iv); and
    (3) At least 60 days before they are to become effective, for all 
other tariffs.
    (b) When single publication contains changes effective on different 
dates. Each tariff, supplement, or loose-leaf tariff page which contains 
various changes to become effective on different dates shall:
    (1) Bear a general effective date which shall allow at least thirty 
days' notice,
    (2) Show directly in connection with such general effective date the 
following notation: ``(except as noted)'',
    (3) Show in connection with each change which is to become effective 
earlier or later than such general effective date, its specific 
effective date which shall allow at least thirty days' notice unless the 
Board authorizes the change to be filed on less notice.
    (4) When matter is authorized by the Board to be filed on less than 
thirty days' notice, show reference to the Board's order, regulation, or 
special tariff permission authorizing such filing. Such reference shall 
be shown (immediately following the specific effective date of such 
matter) in the manner required by the order, regulation, or special 
tariff permission, for example:
    Effective: ________. Issued on ________days' notice under Special 
Tariff Permission No. ________ of the Civil Aeronautics Board. (See also 
Sec. 221.194.)

[[Page 112]]

    (c) Computing number of days' notice. A tariff publication shall be 
deemed to be filed only upon its actual receipt by the Board, and the 
first day of any required period of notice shall be the day of actual 
receipt by the Board.
    (d) Issued date. All tariff publications must be received by the 
Board on or before the designated issued date.

(Approved by the Office of Management and Budget under control number 
3024-0038)

(Secs. 204, 403, 1002; 72 Stat. 743, 758, 788; 49 U.S.C. 1324, 1373, 
1482, as amended)

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1038, 43 FR 1322, 
Jan. 9, 1978; ER-1044, 44 FR 9577, Feb. 13, 1979; ER-1171, 45 FR 20064, 
Mar. 27, 1980; ER-1271, 46 FR 63218, Dec. 31, 1981]



Sec. 221.161  Delivering tariff publications to Board.

    Tariff publications will be received for filing only by delivery 
thereof to the Board through normal mail channels, or by delivery 
thereof directly to that office of the Board charged with the 
responsibility of maintaining the Board's official file of tariffs. 
Tariff publications will be received for filing only during the 
established business hours of the Board. The office of the Board is 
closed on Saturdays and Sundays and on the following holidays:
New Year's Day (January 1).
Inauguration Day (January 20, 1973, and January 20 of each fourth year 
thereafter).
Washington's Birthday (third Monday in February).
Memorial Day (last Monday in May).
Independence Day (July 4).
Labor Day (first Monday in September).
Columbus Day (second Monday in October).
Veterans Day (November 11).
Thanksgiving Day (fourth Thursday in November).
Christmas (December 25).

When any such holiday falls on Saturday, the office of the Board will be 
closed on the preceding Friday. When any such holiday falls on Sunday, 
the office of the Board will be closed on the following Monday. No 
tariff publication will be accepted by the Board unless it is delivered 
to the Board free from all charges, including claims for postage.

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-670, 36 FR 4538, 
Mar. 9, 1971; ER-1079, 43 FR 52697, Nov. 14, 1978]



Sec. 221.162  Number of copies required.

    Three copies of each tariff, supplement, loose-leaf tariff page, 
index of tariffs, and adoption notice to be filed shall be sent to the 
Civil Aeronautics Board, Tariffs Section, Washington, DC 20428. All such 
copies shall be included in one package and shall be accompanied by a 
letter of tariff transmittal (Sec. 221.163).



Sec. 221.163  Letter of tariff transmittal.

    All tariff publications (including indexes of tariffs and adoption 
notices) filed with the Board shall be accompanied by a letter of tariff 
transmittal in duplicate in the form prescribed in Sec. 221.240. Each 
letter of transmittal may include one or more tariff publications but 
passenger tariff publications shall not be included in the same letter 
of tariff transmittal with property tariff publications. If the filing 
carrier or agent desires a receipt for the filing, the letter of tariff 
transmittal shall be sent in triplicate (accompanied by a preaddressed 
postage paid return envelope, if return by mail is requested), and one 
copy thereof showing the date of receipt by the Board will be returned 
to the sender.

(Approved by the Office of Management and Budget under control number 
3024-0038)
[ER-874, 39 FR 34514, Sept. 26, 1974, as amended by ER-1271, 46 FR 
63218, Dec. 31, 1981]



Sec. 221.164  Concurrences or powers of attorney not previously filed to accompany tariff transmittal.

    When a tariff publication is filed on behalf of a carrier 
participating therein under authority of its concurrence or power of 
attorney, such concurrence or power of attorney shall, if not previously 
filed with the Board, be transmitted with such tariff publication 
submitted for filing and shall be listed in the letter of tariff 
transmittal.

(Approved by the Office of Management and Budget under control number 
3024-0038)
[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1271, 46 FR 63218, 
Dec. 31, 1981]



Sec. 221.165  Explanation and data supporting tariff changes and new matter in tariff publications.

    When a tariff publication is filed with the Board which contains new 
or changed local or joint rates, fares, or

[[Page 113]]

charges for air transportation, or new or changed classifications, 
rules, regulations, or practices affecting such rates, fares, or 
charges, or the value of the service thereunder, the issuing air 
carrier, foreign air carrier, or agent shall submit with the filing of 
such publication, in or attached to the transmittal letter:
    (a) An explanation of the new or changed matter and the reasons for 
the filing, including (if applicable) the basis of rate making employed. 
Where a tariff publication is filed pursuant to an intercarrier 
agreement approved by the Board, the explanation shall identify such 
agreement by CAB agreement number, IATA, or ATC resolution number, or if 
none is designated, then by other definite identification. Where a 
tariff publication is filed on behalf of a foreign air carrier pursuant 
to a Government order, a copy of such order shall be submitted with the 
letter of tariff transmittal.
    (b) Economic data and/or information in support of the new or 
changed matter, including, in cases where pertinent,
    (1) Estimates of costs of service, with supporting details and 
references to sources, and
    (2) Estimates of the aggregate effect of the new or changed matter 
upon such carrier's traffic, schedules, and revenues, and an explanation 
of the basis for the estimates (including, where available, data as to 
past traffic, schedules and revenues).
    (c) In cases where such publication contains new or changed local or 
joint rates (other than charter rates), fares, or charges (whether such 
rates, fares, or charges are published specifically or by rule), a table 
prepared as follows:
    (1) In the first column, a sample of the pairs of points between 
which such new or changed rates, fares, or charges apply, which sample 
shall contain every 10th pair of all such pairs (but not less than 10 
pairs, unless such new or changed rates, fares, or charges apply between 
fewer than 10 pairs of points, in which event all such pairs shall be 
included), but need not include more than 75 pairs of points, for each 
new or changed type of rate, fare (e.g., first class, coach, etc.), or 
charge included in such publication; 5
---------------------------------------------------------------------------

    5  If a carrier's freight rates are published in rate scales 
rather than on a point-to-point basis, the table shall contain a 
representative sample of the proposed rates and charges for each rate 
scale, which sample shall contain 10 percent of all rates or charges, 
but not less than 10 rates or charges unless such new or changed rates 
or charges are less than 10, in which event all such rates or charges 
shall be included: Provided, however, That the sample need not include 
more than a total of 75 representative rates and charges for each new or 
changed type of rate or charge (e.g., general commodity or specific 
commodity) included in such publication.
---------------------------------------------------------------------------

    (2) In the second column, the existing rates, fares, or charges 
canceled or superseded by the new or changed rates, fares, or charges, 
except in cases where the publication contains new rates, fares, or 
charges which do not cancel or supersede existing rates, fares, or 
charges, in which event the second column shall contain those rates, 
fares, or charges upon which the filing air carrier relies for 
comparison 6 in evaluating such new rates, fares, or charges;
---------------------------------------------------------------------------

    6  Identify as, e.g., jet coach fare, general commodity 
rate, etc. If reliance is placed upon rates, fares, or charges for 
different pairs of points than shown in the first column, such points 
should be indicated by footnote.
---------------------------------------------------------------------------

    (3) In the third column, the new or changed rates, fares, or 
charges;
    (4) In the fourth column, the differences between the rates, fares, 
or charges listed in the second and third columns, expressed as 
percentages of those listed in the second column;
    (5) In the fifth column, the existing fares per mile or rates or 
charges per ton-mile;
    (6) In the sixth column, the new or changed fares per mile, or rates 
or charges per ton-mile; and
    (7) In the seventh column, the airport-to-airport mileage 7 
used in computing the fares per mile or rates or charges per ton-mile.
---------------------------------------------------------------------------

    7  The direct airport-to-airport mileage between the 
points shown in the first column shall normally be used for purposes of 
this table. Where points with multiple airports are involved, show the 
mileage to/from the principal airport with respect to the related 
service. Other than direct mileages may be used where appropriate (e.g., 
where the filing carrier is not authorized to provide direct service, or 
where a joint fare involves a circuitous routing via a junction point). 
In all instances where a mileage other than the direct airport-to-
airport mileage is used, show the points by which it is computed and the 
reason for its use.

---------------------------------------------------------------------------

[[Page 114]]

    (d) Exceptions: (1) The requirement for data and/or information in 
paragraphs (b) and (c) of this section will not apply to tariff 
publications containing new or changed matter which are filed.
    (i) In response to Board orders or specific policy pronouncements of 
the Board directly related to such new or changed matter.
    (ii) Pursuant to an intercarrier agreement approved by the Board 
prescribing the rates, fares, charges (or specific formulas therefor) or 
other matter,
    (iii) For the interstate air transportation of property, as defined 
in Sec. 1002(k)(1) of the Act, or by air freight forwarders or 
international air freight forwarders, as defined in part 296 of this 
subchapter, or
    (iv) To meet competition: Provided, That
    (a) Changed matter will be deemed to have been filed to meet 
competition only when it affects decreases in rates, fares, or charges 
and/or increases the value of service so that the level of the rates or 
fares or charges and the services provided will be substantially similar 
to the level of rates or fares or charges and the services of a 
competing carrier or carriers.
    (b) New matter will be deemed to have been filed to meet competition 
only when it establishes or affects a rate, fare, or charge and a 
service which will be substantially similar to the rates, fares, or 
charges and the services of a competing carrier or carriers.
    (c) When new or changed matter is filed to meet competition over a 
portion of the filing air carrier's system and is simultaneously made 
applicable to the balance of the system, such matter, insofar as it 
applies over the balance of the system, will be deemed to be within the 
exception in this paragraph (d)(1)(iv) of this section only if such 
carrier submits an explanation as to the necessity of maintaining 
uniformity over its entire system with respect to such new or changed 
matter.
    (d) In any case where new or changed matter is filed to meet 
competition, the filing carrier or agent must supply, in or attached to 
the transmittal letter, the complete tariff references which will serve 
to identify the competing tariff matter which the tariff publication 
purports to meet. In such case the transmittal letter or attachment 
shall state whether the new or changed matter is identical to the 
competing tariff matter which it purports to meet or whether it 
approximates the competing tariff matter. If the new or changed matter 
is not identical, the transmittal letter or attachment shall contain a 
statement explaining, in reasonable detail, the basis for concluding 
that the tariff publication being filed is substantially similar to the 
competing tariff matter.
    (2) The requirement for data and/or information in paragraph (b) of 
this section will not apply to foreign air carriers.
    (3) The requirement for information in paragraph (c) of this section 
will not apply to tariff publications containing new or changed rates, 
fares or charges which result from (i) uniform percentage adjustments, 
(ii) specific increment adjustments, or (iii) cancellation of rates, 
fares or charges.
    (4) The requirement for data and/or information in paragraph (b) of 
this section shall not apply to:
    (i) Fares for scheduled passenger service that are within a 
statutory or Board-established zone of fare flexibility; and
    (ii) Rates for cargo service in foreign air transportation that are 
within the rate flexibility zones set forth in Sec. 399.41 of this 
chapter, except as specifically required by the Board.

(Approved by the Office of Management and Budget under control number 
3024-0038)

(Sec. 102, 72 Stat. 740 (49 U.S.C. 1302); National Environmental Policy 
Act of 1969 (Pub. L. 91-90, 42 U.S.C. 4321 et seq.) and E. O. 11514)

[ER-493, 32 FR 7453, May 19, 1967, as amended by ER-760, 37 FR 19804, 
Sept. 22, 1972; ER-796, 38 FR 10256, Apr. 26, 1973; ER-927, 40 FR 37183, 
Aug. 25, 1975; ER-1061, 43 FR 34118, Aug. 3, 1978; ER-1271, 46 FR 63218, 
Dec. 31, 1981; ER-1322, 48 FR 4270, Jan. 31, 1983]

[[Page 115]]



Sec. 221.166  Explanation of missing C.A.B. numbers to accompany tariff transmittal.

    Section 221.31(a) requires a carrier or agent to file tariffs under 
consecutive C.A.B. numbers. However, the Board may accept a tariff 
bearing a C.A.B. number which is not consecutive and results in an 
unused C.A.B. number intervening since the last previously filed tariff: 
Provided, That a letter accompanies the tariff transmittal explaining 
why the C.A.B. number of the tariff is not consecutive to the last 
previously filed tariff and stating whether or not the missing C.A.B. 
number will be used on a future tariff.

(Approved by the Office of Management and Budget under control number 
3024-0038)
[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1271, 46 FR 63218, 
Dec. 31, 1981]



Sec. 221.167  Posting copies to be furnished participating carriers at time of filing.

    At the same time that a tariff publication is transmitted to the 
Board for filing, the issuing carrier or agent shall send sufficient 
copies of the tariff publication for posting purposes to all 
participating carriers (see subpart N).



Sec. 221.168  Withdrawal or substitution of filed tariff publications prohibited.

    A tariff publication filed with the Board will not be surrendered or 
returned and no substitution thereof will be permitted.



      Subpart N--Posting Tariff Publications for Public Inspection



Sec. 221.170  Public notice of tariff information.

    Carriers must make tariff information available to the general 
public, and in so doing must comply with either:
    (a) Sections 221.171, 221.172, 221.173, 221.174, 221.175, and 
221.176 or
    (b) Sections 221.175, 221.176 and 221.177 of this subpart.

[53 FR 52677, Dec. 29, 1988]



Sec. 221.171  Posting at stations, offices, or locations other than principal or general office.

    (a) Each carrier shall post and make available for public inspection 
at each of its stations, offices, or other locations which is in charge 
of a person employed exclusively by the carrier, or by it jointly with 
another person, currently effective tariffs and tariff publications 
which have been issued but are not yet effective, to which it is a 
party, as follows:
    (1) At stations, offices, or locations at which tickets for 
passenger transportation are sold, all tariff publications applicable to 
passenger traffic from or to the point where such station, office, or 
location is situated, including tariffs covering any terminal services, 
charges, or practices whatsoever, which apply to passenger traffic from 
or to such point.
    (2) At stations, offices, or locations at which property is handled, 
received, and delivered for transportation, all tariff publications 
applicable to cargo traffic from or to the point where such station, 
office or location is situated, including tariffs covering any terminal 
services, charges, or practices whatsoever, which apply to cargo traffic 
transported from or to such point.
    (b) A carrier will be deemed to have complied with the requirement 
that it ``post'' tariffs, if it maintains at each station, office, or 
location a file in complete form of all tariff publications required to 
be posted; and in the case of tariffs involving passenger fares, rules, 
charges or practices, notice to the passenger as required in 
Secs. 221.174 and 221.175.
    (c) Tariff publications shall be posted by each carrier party 
thereto no later than the issued date designated thereon except that in 
the case of carrier stations, offices of locations situated outside the 
United States, its territories and possessions, the time shall be not 
later than five days after the issued date, and except that a tariff 
publication which the Board has authorized to be filed on shorter notice

[[Page 116]]

shall be posted by the carrier on like notice as authorized for filing.

(Secs. 204, 403, 1002; 72 Stat. 743, 758, 788; 49 U.S.C. 1324, 1373, 
1482, as amended)

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1104, 44 FR 9578, 
Feb. 13, 1979]



Sec. 221.172  Accessibility of tariffs to the public.

    Each file of tariffs shall be kept in complete and accessible form. 
Employees of the carrier shall be required to give any desired 
information contained in such tariffs, to lend assistance to seekers of 
information therefrom, and to afford inquirers opportunity to examine 
any of such tariffs without requiring the inquirer to assign any reason 
for such desire.



Sec. 221.173  Notice of tariff posting.

    Each carrier shall cause to be displayed continuously in a 
conspicuous public place at each station, office, or location at which 
tariffs are required to be posted, a notice printed in large type 
reading as follows:

                      Public Inspection of Tariffs

    All the currently effective passenger (and/or cargo as applicable) 
tariffs to which this company is a party and all passenger (and/or cargo 
as applicable) tariff publications which have been issued but are not 
yet effective are on file in this office, so far as they apply to 
traffic from or to ________. (Here name the point.) These tariffs may be 
inspected by any person upon request and without the assignment of any 
reason for such inspection. The employees of this company on duty in 
this office will lend assistance in securing information from the 
tariffs.
    In addition, a complete file of all tariffs of this company, with 
indexes thereof, is maintained and kept available for public inspection 
at ________. (Here indicate the place or places where complete tariff 
files are maintained, including the street address, and where 
appropriate, the room number.)

[ER-439, 39 FR 9439, July 29, 1965, as amended at 53 FR 52677, Dec. 29, 
1988]



Sec. 221.174  Notification to the passenger of status of fare, rule, charge or practice.

    A carrier or ticket agent shall print, stamp upon, or affix to every 
purchased passenger ticket a notice stating that the terms and 
conditions of the contract of carriage including the price of the ticket 
are subject to adjustment prior to the commencement of transportation, 
except that such notice is not required where a passenger ticket is sold 
pursuant to an effective tariff rule which provides that the terms and 
conditions of the contract of carriage, including the price of the 
ticket, are not subject to any future adjustment during the validity of 
the ticket, or the ticket is sold for transportation commencing on the 
same day.

[53 FR 52677, Dec. 29, 1988]



Sec. 221.175  Special notice of limited liability for death or injury under the Warsaw Convention.

    (a) In addition to the aforesaid requirements of this subpart, each 
air carrier and foreign air carrier which, to any extent, avails itself 
of the limitation on liability to passengers provided by the Warsaw 
Convention, shall, at the time of delivery of the ticket, furnish to 
each passenger whose transportation is governed by the Convention and 
whose place of departure or place of destination is in the United 
States, the following statement in writing:

     Advice to International Passengers on Limitations of Liability

    Passengers embarking upon a journey involving an ultimate 
destination or a stop in a country other than the country of departure 
are advised that the provisions of a treaty known as the Warsaw 
Convention may be applicable to their entire journey including the 
portion entirely within the countries of departure and destination. The 
Convention governs and in most cases limits the liability of carriers to 
passengers for death or personal injury to approximately $10,000.
    Additional protection can usually be obtained by purchasing 
insurance from a private company. Such insurance is not affected by any 
limitation of the carrier's liability under the Warsaw Convention. For 
further information please consult your airline or insurance company 
representative.

Provided, however, That when the carrier elects to agree to a higher 
limit of liability to passengers than that provided in Article 22(1) of 
the Warsaw Convention, such statement shall be modified to reflect the 
higher limit. The statement prescribed herein shall be printed in type 
at least as large as 10-point modern type and in ink contrasting with 
the stock on:
    (1) Each ticket; (2) a piece of paper either placed in the ticket 
envelope

[[Page 117]]

with the ticket or attached to the ticket; or (3) the ticket envelope; 
And provided further, That a carrier which has heretofore been 
furnishing a statement including either the sum of ``$8,290'' or the sum 
of ``$9,000,'' in place of the sum of ``$10,000'' in the text of the 
statement prescribed by this paragraph, may continue to use such 
statement until July 15, 1974.
    (b) Each air carrier and foreign air carrier which, to any extent, 
avails itself of the limitation on liability to passengers provided by 
the Warsaw Convention, shall also cause to be displayed continuously in 
a conspicuous public place at each desk, station, and position in the 
United States which is in the charge of a person employed exclusively by 
it or by it jointly with another person, or by any agent employed by 
such air carrier or foreign air carrier to sell tickets to passengers 
whose transportation may be governed by the Warsaw Convention and whose 
place of departure or destination may be in the United States, a sign 
which shall have printed thereon the statement prescribed in paragraph 
(a) of this section: Provided, however, That an air carrier, except an 
air taxi operator subject to part 298 of this subchapter, or foreign air 
carrier which provides a higher limitation of liability than that set 
forth in the Warsaw Convention and has signed a counterpart of the 
agreement among carriers providing for such higher limit, which 
agreement was approved by the Board by Order E-23680, dated May 13, 1966 
(31 FR 7302, May 19, 1966), may use the alternate form of notice set 
forth in the proviso to Sec. 221.176(a) of this chapter in full 
compliance with the posting requirements of this paragraph. And provided 
further, That an air taxi operator subject to part 298 of this 
subchapter, which provides a higher limitation of liability than that 
set forth in the Warsaw Convention and has signed a counterpart of the 
agreement among carriers providing for such higher limit, which 
agreement was approved by the Board by Order E-23680, dated May 13, 1966 
(31 FR 7302, May 19, 1966), may use the following notice in the manner 
prescribed above in full compliance with the posting requirements of 
this paragraph.

      Advice to International Passengers on Limitation of Liability

    Passengers traveling to or from a foreign country are advised that 
airline liability for death or personal injury and loss or damage to 
baggage may be limited by the Warsaw Convention and tariff provisions. 
See the notice with your ticket or contact your airline ticket office or 
travel agent for further information.

Such statements shall be printed in bold faced type at least one-fourth 
of an inch high.

(Sec. 402, 72 Stat. 757; 49 U.S.C. 1372)

[ER-708, 36 FR 22229, Nov. 23, 1971, as amended by ER-837, 39 FR 8319, 
Mar. 5, 1974; ER-844, 39 FR 16120, May 7, 1974]



Sec. 221.176  Notice of limited liability for baggage; alternative consolidated notice of liability limitations.

    (a) Each air carrier and foreign air carrier which, to any extent, 
avails itself of limitations on liability for loss of, damage to, or 
delay in delivery of baggage shall cause to be displayed continuously in 
a conspicuous public place at each desk, station, and position in the 
United States which is in the charge of a person employed exclusively by 
it or by it jointly with another person, or by any agent employed by 
such air carrier or foreign air carrier to sell tickets to persons or 
accept baggage for checking, a sign which shall have printed thereon the 
following statement:

                 Notice of Limited Liability for Baggage

    For most international travel (including domestic portions of 
international journeys) liability for loss, delay, or damage to baggage 
is limited to approximately $9.07 per pound for checked baggage and $400 
per passenger for unchecked baggage unless a higher value is declared 
and an extra charge is paid. Special rules may apply for valuables. 
Consult your carrier for details.

Provided, however, That an air carrier or foreign air carrier which 
provides a higher limitation of liability for death or personal injury 
than that set forth in the Warsaw Convention and has signed a 
counterpart of the agreement approved by the Board by Order E-23680, 
dated May 13, 1966 (31 FR 7302, May 19, 1966), may use the following 
notice in full compliance with the posting requirements of this 
paragraph and of Sec. 221.175(b):

[[Page 118]]

            Advice to Passengers on Limitations of Liability

    Airline liability for death or personal injury may be limited by the 
Warsaw Convention and tariff provisions in the case of travel to or from 
a foreign country.
    For most international travel (including domestic portions of 
international journeys) liability for loss, delay or damage to baggage 
is limited to approximately $9.07 per pound for checked baggage and $400 
per passenger for unchecked baggage unless a higher value is declared 
and an extra charge is paid. Special rules may apply to valuable 
articles.
    See the notice with your tickets or consult your airline or travel 
agent for further information.

Provided, however, That carriers may include in the notice the 
parenthetical phrase ``($20.00 per kilo)'' after the phrase ``$9.07 per 
pound'' in referring to the baggage liability limitation for most 
international travel. Such statements shall be printed in bold-face type 
at least one-fourth of an inch high and shall be so located as to be 
clearly visible and clearly readable to the traveling public.
    (b) Each air carrier and foreign air carrier which, to any extent, 
avails itself of limitations of liability for loss of, damage to, or 
delay in delivery of, baggage shall include on or with each ticket 
issued in the United States or in a foreign country by it or its 
authorized agent, the following notice printed in at least 10 point 
type:

                 Notice of Baggage Liability Limitations

    For most international travel (including domestic portions of 
international journeys) liability for loss, delay, or damage to baggage 
is limited to approximately $9.07 per pound for checked baggage and $400 
per passenger for unchecked baggage unless a higher value is declared in 
advance and additional charges are paid. Excess valuation may not be 
declared on certain types of valuable articles. Carriers assume no 
liability for fragile or perishable articles. Further information may be 
obtained from the carrier.

Provided, however, That carriers may include in their ticket notice the 
parenthetical phrase ``($20.00 per kilo)'' after the phrase ``$9.07 per 
pound'' in referring to the baggage liability limitation for most 
international travel.
    (c) It shall be the responsibility of each carrier to ensure that 
travel agents authorized to sell air transportation for such carrier 
comply with the notice provisions of paragraphs (a) and (b), of this 
section.
    (d) Any air carrier or foreign air carrier subject to the provisions 
of this section which wishes to use a notice of limited liability for 
baggage of its own wording, but containing the substance of the language 
prescribed in paragraphs (a) and (b) of this section may substitute a 
notice of its own wording upon approval by the Board.
    (e) The requirements as to time and method of delivery of the notice 
(including the size of type) specified in paragraphs (a) and (b) of this 
section and the requirement with respect to travel agents specified in 
paragraph (c) may be waived by the Board upon application and showing by 
the carrier that special and unusual circumstances render the 
enforcement of the regulations impractical and unduly burdensome and 
that adequate alternative means of giving notice are employed.
    (f) Applications for relief under paragraphs (d) and (e) of this 
section shall be filed with the Board (Attention: Assistant Director, 
Bureau of Pricing and Domestic Aviation, Legal Analysis Division) not 
later than 15 days before the date on which such relief is requested to 
become effective.
    (g) Notwithstanding any other provisions of this section, no air 
taxi operator subject to part 298 of this subchapter shall be required 
to give the notices prescribed in this section, either in its capacity 
as an air carrier or in its capacity as an agent for an air carrier or 
foreign air carrier.

[ER-708, 36 FR 22229, Nov. 23, 1971, as amended by ER-995, 42 FR 20459, 
Apr. 20, 1977; ER-1119, 44 FR 25627, May 2, 1979; ER-1310, 48 FR 227, 
Jan. 4, 1983; 48 FR 3585, Jan. 26, 1983; ER-1390, 49 FR 40005, Oct. 12, 
1984]



Sec. 221.177  Alternative notice of tariff terms.

    (a) Terms incorporated in the contract of carriage. (1) A ticket, 
airwaybill, or other written instrument that embodies the contract of 
carriage for foreign air transportation shall contain or be accompanied 
by notice to the passenger, shipper, or consignee as required in 
paragraphs (b) and (d) of this section.
    (2) Each carrier shall make the full text of all terms that are 
incorporated

[[Page 119]]

in a contract of carriage readily available for public inspection at 
each airport or other ticket/cargo sales office of the carrier: 
Provided, That the medium, i.e., printed or electronic, in which the 
incorporated terms and conditions are made available to the consumer 
shall be at the discretion of the carrier.
    (3) Each carrier shall display continuously in a conspicuous public 
place at each airport or other ticket/cargo sales office of the carrier 
a notice printed in large type reading as follows:

                      Explanation of Contract Terms

    All passenger (and/or cargo as applicable) contract terms 
incorporated by law to which this company is a party are available in 
this office. These provisions may be inspected by any person upon 
request and for any reason. The employees of this office will lend 
assistance in securing information, and explaining any terms.
    In addition, a file of all tariffs of this company, with indexes 
thereof, from which the incorporated contract terms are obtained is 
maintained and kept available for public inspection at ________. (Here 
indicate the place or places where tariff files are maintained, 
including the street address and, where appropriate, the room number.)
    (4) Each carrier shall provide to the passenger, shipper or 
consignee a complete copy of the text of any/all terms and conditions 
applicable to the contract of carriage, free of charge, immediately, if 
feasible, or otherwise promptly by mail or other delivery service, upon 
request at any airport or other ticket/cargo sales office of the 
carrier. In addition, all other locations where the carrier's tickets or 
airwaybills may be issued shall have available at all times, free of 
charge, information sufficient to enable the passenger, shipper or 
consignee to request a copy of such term(s).
    (b) Notice of incorporated terms. Each carrier and ticket agent 
shall include on or with a ticket, airwaybill or other written 
instrument given to the passenger, shipper, or consignee, that embodies 
the contract of carriage, a conspicuous notice that:
    (1) The contract of carriage may incorporate by law terms and 
conditions filed in public tariffs with U.S. authorities; passengers, 
shippers and consignees may inspect the full text of each applicable 
incorporated term at any of the carrier's airport locations or other 
ticket/cargo sales offices of the carrier; and passengers, shippers and 
consignees have the right to receive, upon request at any airport or 
other ticket/cargo sales office of the carrier, a free copy of the full 
text of any/all such terms by mail or other delivery service;
    (2) The incorporated terms may include, among others, the terms 
shown in paragraphs (b)(2) (i) through (v) of this section. Passengers 
may obtain a concise and immediate explanation of the terms shown in 
paragraphs (b)(2) (i) through (v) of this section from any location 
where the carrier's tickets are sold, and a shipper or consignee may 
obtain the same information at any location where an airwaybill or any 
similar document may be issued:
    (i) Limits on the carrier's liability for personal injury or death 
of passengers (subject to Sec. 221.175), and for loss, damage, or delay 
of goods and baggage, including fragile or perishable goods.
    (ii) Claim restrictions, including time periods within which 
passengers, shippers, or consignees must file a claim or bring an action 
against the carrier for its acts or omissions or those of its agents.
    (iii) Rights of the carrier to change the terms of the contract. 
(Rights to change the price, however, are governed by paragraph (d) of 
this section).
    (iv) Rules about re-confirmations or reservations, check-in times, 
and refusal to carry.
    (v) Rights of the carrier and limitations concerning delay or 
failure to perform service, including schedule changes, substitution of 
alternate carrier or aircraft, and rerouting.
    (3) The salient features of any applicable terms that restrict 
refunds of the transportation price, impose monetary penalties on 
passengers, shippers or consignees, or permit a carrier to raise the 
price, are also being provided on or with the ticket.
    (c) Explanation of incorporated terms. Each carrier shall ensure 
that any passenger, shipper, or consignee can obtain from any location 
where its tickets are sold, or airwaybills or any similar documents are 
issued, a concise and

[[Page 120]]

immediate explanation of any term incorporated concerning the subjects 
listed in paragraph (b)(2) or identified in paragraph (d) of this 
section.
    (d) Direct notice of certain terms. A passenger, shipper or 
consignee must receive conspicuous written notice, on or with the 
ticket, airwaybill, or other similar document, of the salient features 
of any terms that (1) restrict refunds of the price of the 
transportation, (2) impose monetary penalties on passengers, shippers, 
or consignees, or (3) permit a carrier to raise the price: Provided, 
That the notice specified in paragraph (d)(3) of this section is not 
required where a passenger ticket is sold pursuant to an effective 
tariff rule which provides that the terms and conditions of the contract 
of carriage, including the price of the ticket, are not subject to any 
future adjustment during the validity of the ticket, or the ticket is 
sold for transportation commencing on the same day.

[53 FR 52677, Dec. 29, 1988]



Sec. 221.178  [Reserved]



Sec. 221.179  Transmission of tariff filings to subscribers.

    (a) Each carrier required to file tariffs in accordance with this 
part shall make available to any person so requesting a subscription 
service as described in paragraph (b) of this section separately for its 
passenger tariffs and its freight tariffs issued by it or by a 
publishing agent on its behalf.
    (b) Under the required subscription service one copy of each new 
tariff, supplement, and loose-leaf page, including the justification 
required by Sec. 221.165, must be transmitted to each subscriber thereto 
by first-class mail (or other equivalent means agreed upon by the 
subscriber) not later than one day following the time the copies for 
official filing are transmitted to the Board. The subscription service 
described herein shall not preclude the offering of additional types of 
subscription services by carriers or their agents.
    (c) The carriers or their publishing agents at their option may 
establish a charge for providing the required subscription service to 
subscribers: Provided, That the charge may not exceed a reasonable 
estimate of the added cost of providing the service.

(Secs. 102, 204, 403, and 416 of the Federal Aviation Act of 1958, as 
amended by Pub. L. 95-504, 72 Stat. 740, 743, 758, and 771, 92 Stat. 
1731, 1732; 49 U.S.C. 1302, 1324, 1373, and 1386)

[ER-1001, 42 FR 28877, June 6, 1977, as amended by ER-1125, 44 FR 33059, 
June 8, 1979]



               Subpart O--Rejection of Tariff Publications



Sec. 221.180  Board's authority to reject.

    Under the terms of section 403(a) of the act, the Board is empowered 
to reject any tariff publication which is not consistent with section 
403 of the act or with the regulations in this part.



Sec. 221.181  Notification of rejection.

    When a tariff publication is rejected, the issuing carrier or agent 
thereof will be notified in writing that the publication is rejected and 
of the reason for such rejection. The rejected publication will not be 
returned to the issuing carrier or issuing agent.



Sec. 221.182  Rejected publication is void and must not be used.

    A tariff publication rejected by the Board is void and is without 
any force or effect whatsoever. Such rejected tariff publication must 
not be used.



Sec. 221.183  Tariff publication issued in lieu of rejected publication.

    When a publication is rejected by the Board, the number which it 
bears must not be again used. Such publication must not thereafter be 
referred to as canceled or amended but a publication that is issued in 
lieu of such rejected publication shall bear the following notation (to 
be shown in the manner described in paragraphs (a), (b), and (c) of this 
section):
    (Issued in lieu of ________________________ rejected by C.A.B.) 
(Show number of rejected publication)
    (a) If the rejected publication is a tariff, the tariff which is 
issued in lieu thereof shall show the above required notation under its 
C.A.B. number on the title page in the manner shown in the following 
example:

[[Page 121]]

                              C.A.B. No. 3

           (Issued in lieu of C.A.B. No. 2 rejected by C.A.B.)

                                 cancels

                              C.A.B. No. 1

    (b) If the rejected publication is a loose-leaf tariff page, the 
page which is issued in lieu thereof shall show the required notation 
under the page number in the manner shown in the following examples:
    (1) When new page is issued in lieu of a rejected original page:

                           1st Revised Page 10

                   (Issued in lieu of Original Page 10

                           rejected by C.A.B.)

    (2) When new page is issued in lieu of a rejected revised page:

                           3rd Revised Page 16

       (Issued in lieu of 2nd Revised Page 16 rejected by C.A.B.)

                                 cancels

                           1st Revised Page 16

    (c) If the rejected publication is a supplement, the supplement 
which is issued in lieu thereof shall show the required notation under 
the supplement number in the manner shown in the following example:

          Supplement No. 3 (Issued in lieu of Supplement No. 2

                         rejected by C.A.B.) to

                              C.A.B. No. 1

                       (Cancels Supplement No. 1)

    Supplement No. 3 is the only effective supplement.



Sec. 221.184  Issue page in lieu of rejected loose-leaf page within 20 days.

    If a rejected loose-leaf tariff page is published on the reverse 
side of another page which has not been rejected, a page shall be issued 
and filed in lieu of the rejected page within 20 days after the date of 
the rejection notice, and the page on the reverse side of the rejected 
page shall be reissued on lawful notice.



  Subpart P--Special Tariff Permission To File on Less Than Statutory 
                                 Notice



Sec. 221.190  Grounds for approving or denying Special Tariff Permission applications.

    (a) General authority. The Board is authorized, when actual 
emergency or real merit is shown, to permit changes in rates, fares, or 
other tariff provisions on less than the statutory notice required by 
section 403 of the Act.
    (b) Grounds for approval. The following facts and circumstances 
constitute some of the grounds for approving applications for Special 
Tariff Permission in the absence of other facts and circumstances 
warranting denial:
    (1) Clerical or typographical errors. Clerical or typographical 
errors in tariff publications constitute grounds for approving 
applications for Special Tariff Permission to file on less than 
statutory notice the tariff changes necessary to correct such errors. 
Each application for Special Tariff Permission based on such grounds 
shall plainly specify the errors and contain a complete statement of all 
the attending facts and circumstances, and such application shall be 
presented to the Board with reasonable promptness after issuance of the 
defective tariff publication.
    (2) Rejection caused by clerical or typographical errors or 
illegibility. Rejection of a tariff publication caused by illegible 
printing (in matter reissued without change) or by clerical or 
typographical errors constitutes grounds for approving applications for 
Special Tariff Permission to file on less than statutory notice, 
effective not earlier than the original effective dates in the rejected 
publication, all changes contained in the rejected publication but with 
the errors corrected. Each application for the grant of Special Tariff 
Permission based on such grounds shall plainly specify the errors and 
contain a complete statement of all the attending facts and 
circumstances, and such application shall be filed with the Board within 
five days after receipt of the Board's notice of rejection.
    (3) Incorrect page cancellation caused by rejection of prior issue. 
When a revision of a loose-leaf page bears incorrect

[[Page 122]]

page cancellation because it was submitted prior to receipt of the 
notice of rejection of a prior issue of such page, such circumstances 
constitute grounds for approving an application for Special Tariff 
Permission to file amendments on less than statutory notice for the 
purpose of effecting adjustment of the page cancellation and to show 
``(Issued in lieu of ____ rejected by C.A.B.)'' to be made effective on 
the effective date of the revision bearing the incorrect page 
cancellation.
    (4) Newly authorized transportation. The fact that the Board has 
newly authorized a carrier to perform air transportation constitutes 
grounds for approving applications for Special Tariff Permission to file 
on less than statutory notice the fares, rates, and other tariff 
provisions covering such newly authorized transportation.
    (5) The fact that a passenger fare or cargo rate is within a 
statutory or Board-established zone of fare or rate flexibility 
constitutes grounds for approving an application for Special Tariff 
Permission to file a tariff stating that fare or rate, and any rules 
affecting it only, on less than statutory notice. The Board's policy on 
approving such applications is set forth in Sec. 399.35 of this chapter.
    (6) Lowered fares, rates, and charges. The prospective lowering of 
fares, rates, or charges to the traveling or shipping public constitutes 
grounds for approving an application for Special Tariff Permission to 
file on less than statutory notice a tariff stating the lowered fares, 
rates, or charges and any rules affecting only them. However, the Board 
will not approve the application if the proposed tariff raises 
significant questions of lawfulness, as set forth in Sec. 399.35 of this 
chapter.
    (c) [Reserved]
    (d) Filing notice required by formal order. When a formal order of 
the Board requires the filing of tariff matter or publications on a 
stated number of days' notice, an application for Special Tariff 
Permission to file on less notice will not be approved. In any such 
instance a petition for modification of the order should be filed in the 
formal docket.

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1038, 43 FR 1323, 
Jan. 9, 1978; ER-1171, 45 FR 20064, Mar. 27, 1980; ER-1322, 48 FR 4270, 
Jan. 31, 1983]



Sec. 221.191  How to prepare and file applications for Special Tariff Permission.

    (a) Form. Except as set forth in Sec. 221.195, each application for 
Special Tariff Permission to file a tariff on less than statutory notice 
shall be prepared in the form prescribed in Sec. 221.241 and shall show 
all of the information required by that section.
    (b) Number of copies and place of filing. The original and one copy 
of each such application for Special Tariff Permission, including all 
exhibits thereto and amendments thereof, shall be sent to the Civil 
Aeronautics Board, Tariffs Section, Washington, D.C. 20428.
    (c) Who may make application. Applications for Special Tariff 
Permission to file rates, fares, or other tariff provisions on less than 
statutory notice shall be made only by the issuing carrier or agent 
authorized to issue and file the proposed tariff publication. Such 
application by the issuing carrier or agent will constitute application 
on behalf of all carriers participating in the proposed rates, fares, or 
other tariff provisions.
    (d) More than one tariff. Where the same special circumstances or 
unusual conditions are relied upon as justifying Special Tariff 
Permission involving amendments of more than one tariff, the applicant 
may file one application covering the proposed amendments of all tariffs 
involved or an individual application for each tariff involved. Since 
one tariff may present a problem not encountered in the other tariffs, 
the filing of individual applications may preclude delay in the 
processing of applications other than the one with respect to the tariff 
to which the problem pertains. Passenger tariff amendments shall not be 
included in the same application with property tariff amendments.
    (e) When notice is required. Notice in the manner set forth in 
paragraph (f) of this section is required when a carrier

[[Page 123]]

files an application for Special Tariff Permission:
    (1) To offer passenger fares that would be outside a Board-
established zone of fare flexibility or, in markets for which the Board 
has not established such a zone, outside the statutory zone of fare 
flexibility; or
    (2) To file any price increase or rule change that the carrier 
believes is likely to be controversial.
    (f) Form of notice. When notice of filing of a Special Tariff 
Permission application affecting passenger fares is required by 
paragraph (e) of this section, the carrier shall, when it files the 
application, give immediate telegraphic notice or other notice approved 
by the Chief of the Tariffs Division, Bureau of International Aviation, 
to all certificated and foreign route carriers authorized to provide 
nonstop or one-stop service in the markets involved, and to civic 
parties that would be substantially affected. When notice of an 
application affecting cargo rates is required by paragraph (e) of this 
section, the carrier shall give the notice as described in the previous 
sentence to readily identifiable representatives of affected shippers. 
The application shall include a list of the parties notified.

(Approved by the Office of Management and Budget under control number 
3024-0038)
[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1038, 43 FR 1323, 
Jan. 9, 1978; ER-1171, 45 FR 20064, Mar. 27, 1980; ER-1205, 45 FR 87009, 
Dec. 31, 1980; ER-1233, 46 FR 35633, July 10, 1981; ER-1271, 46 FR 
63218, Dec. 31, 1981; ER-1322, 48 FR 4270, Jan. 31, 1983]



Sec. 221.192  Special Tariff Permission to be used in its entirety as granted.

    Each Special Tariff Permission to file rates, fares, or other tariff 
provisions on less than statutory notice shall be used in its entirety 
as granted. If it is not desired to use the permission as granted, and 
lesser or more extensive or different permission is desired, a new 
application for Special Tariff Permission conforming with Secs. 221.191 
and 221.241 in all respects and referring to the previous permission 
shall be filed.

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1038, 43 FR 1323, 
Jan. 9, 1978]



Sec. 221.193  Re-use of Special Tariff Permission when publication is rejected.

    If a tariff publication containing matter issued under Special 
Tariff Permission is rejected, the same Special Tariff Permission may be 
used in a tariff publication issued in lieu of such rejected publication 
provided that such re-use (a) is not precluded by the terms of the 
Special Tariff Permission, and (b) is made within the time limit thereof 
or within seven days after the date of the Board's notice of rejection, 
whichever is later, but in no event later than fifteen days after the 
expiration of the time limit specified in the Special Tariff Permission.



Sec. 221.194  Reference to Special Tariff Permission on tariff publications.

    The terms of Special Tariff Permissions require that tariff 
publications filed pursuant thereto shall bear reference to the Special 
Tariff Permission substantially in the following form:
    Issued on ____ days' notice under Special Tariff Permission No. ____ 
of the Civil Aeronautics Board.

At the election of the publisher, the Board's Special Tariff Permission 
number may be omitted from such notation on the tariff publication 
provided that:
    (a) The Special Tariff Permission number is shown in the letter of 
tariff transmittal in connection with the listed tariff publication 
containing matter issued under such permission, and
    (b) The Special Tariff Permission application number of the issuing 
carrier or agent is shown in the notation on the tariff publication in 
the following manner:
    Issued on ____ days' notice under Special Tariff Permission of the 
Civil Aeronautics Board. (Appl. No. ____.)

Publishers should elect to omit the Special Tariff Permission number 
from the tariff publication only when publication and filing will be 
expedited since it is preferable that the Special Tariff Permission 
number be shown on the tariff publication.

[[Page 124]]



Sec. 221.195  Pre-filing tariff approval for fare reductions.

    (a) Carriers obtaining Special Tariff Permission under this section 
are exempt from section 403 (b) and (c) of the Act to the extent 
necessary to charge passenger fares approved by the Board under these 
procedures.
    (1) Applications shall be filed with the Chief, Tariffs Division, 
Bureau of Domestic Aviation, and be entitled ``Special Tariff Permission 
Application No.     --Pre-filing Approval Requested.'' The title page of 
the application shall include the name and telephone number of the 
contact person for the carrier.
    (2) Applications filed with the Board before 12 noon on any business 
day will be acted on the same day. Applications filed with the Board 
after 12 noon will be acted on by the end of the next business day. The 
Chief, Tariffs Division, will inform the carrier by telephone as soon as 
a decision is made on the application.
    (3) The new fare may be put into effect by the carrier at 12:01 a.m. 
on the day following approval of the application.
    (4) Within 7 days after approval of any application under this 
section, the carrier shall file a tariff reflecting the changed fare. 
The tariff shall show the date on which the fare became effective. A 
succession of fare changes in accordance with this section may be 
reflected in a single tariff filing by showing the superseded fares and 
their effective dates in footnotes.
    (b) Applications shall be in easily readable and understandable 
format.
    (1) The application shall describe: (i) the fare for which approval 
is sought, (ii) the tariff to be amended, (iii) the current fare to be 
changed, if any, and (iv) the current page and revision number of the 
affected tariff.
    (2) Extensive or complicated exhibits included with the application 
shall be summarized in a statement explaining the intent of the 
proposal.
    (c) The procedures in this section apply to interstate and overseas 
passenger fares. They shall be used only for proposing either (1) a 
decrease in an existing fare, or (2) a fare that is within the downward 
zone set for interstate and overseas passenger fares in subpart C of 14 
CFR part 399 and does not increase an existing fare. For these purposes 
an increase or decrease in an existing fare means a change in the fare 
amount without changing any of the conditions.
    (d) The procedures in this section do not apply to proposals to 
match other fares already filed on statutory notice set forth in 
Sec. 221.60. Applications proposing fares that raise significant 
questions or lawfulness, as set forth in Sec. 399.35 of this chapter, 
will be denied.
    (e) An application under this section may be filed on a weekend or 
holiday if it proposes to match a fare approved under this section on 
the preceding business day. Such an application shall be filed by 
Western Union TWX (7108229066 CABAIR WSH). Along with the information 
set forth in paragraph (b)(1) of this section, it shall identify the 
fare to be matched, by carrier, fare class, and amount. If the 
application is filed before noon, as indicated on the TWX, the carrier 
may consider it as having been granted on that day and so put the new 
fare into effect at 12:01 a.m. the next day. The application will be 
acted on by the end of the first business day after it is filed. Any 
disapproval will be prospective only.

[ER-1205, 45 FR 87009, Dec. 31, 1980]



                 Subpart Q--Waiver of Tariff Regulations



Sec. 221.200  Applications for waiver of tariff regulations.

    Applications for waiver or modification of any of the requirements 
of this part 221 or for modification of section 403 with respect to the 
filing and posting of tariffs shall be made by the issuing carrier or 
issuing agent.



Sec. 221.201  Form of application for waivers.

    Applications for waivers shall be in the form of a letter addressed 
to the Civil Aeronautics Board, Tariffs Section, Washington, DC 20428, 
and shall:
    (a) Specify (by section and paragraph) the particular regulation 
which the applicant desires the Board to waive.

[[Page 125]]

    (b) Show in detail how the proposed provisions will be published in 
the tariff publication or other document under authority of such waiver 
if granted (submitting exhibits of the proposed publication where 
necessary to clearly show this information).
    (c) Set forth all facts and circumstances on which the applicant 
relies as warranting the Board's granting the authority requested. No 
tariff publication or other documents shall be filed pursuant to such 
application prior to the Board's granting the authority requested.



         Subpart R--Giving and Revoking Concurrences to Carriers



Sec. 221.210  Method of giving concurrence.

    (a) Prescribed form of concurrence. A concurrence prepared in 
accordance with the form set forth in Sec. 221.242 shall be used by a 
carrier to give authority to another carrier to issue and file with the 
Board tariff publications which contain joint rates, fares, or charges, 
including provisions governing such rates, fares, or charges, applying 
to, from, or via points served by the carrier giving the concurrence. A 
concurrence shall not be used as authority to publish joint rates, 
fares, or charges in which the carrier to whom the concurrence is given 
does not participate, and it shall not be used as authority to publish 
local rates, fares, or charges.
    (b) Number of copies. Each concurrence shall be prepared in 
triplicate. The original of each concurrence shall be filed with the 
Board, the duplicate thereof shall be given to the carrier in whose 
favor the concurrence is issued, and the third copy shall be retained by 
the carrier who issued the concurrence.
    (c) Conflicting authority to be avoided. Care should be taken to 
avoid giving authority to two or more carriers which, if used, would 
result in conflicting or duplicate tariff provisions.



Sec. 221.211  Method of revoking concurrence.

    (a) Prescribed form of revocation notice. A concurrence may be 
revoked by filing with the Board in the manner specified in this section 
a Notice of Revocation of Concurrence prepared in accordance with the 
form set forth in Sec. 221.243.
    (b) Sixty days' notice required. Such Notice of Revocation of 
Concurrence shall be filed on not less than sixty days' notice to the 
Board. A Notice of Revocation of Concurrence will be deemed to be filed 
only upon its actual receipt by the Board, and the period of notice 
shall commence to run only from such actual receipt.
    (c) Number of copies. Each Notice of Revocation of Concurrence shall 
be prepared in triplicate. The original thereof shall be filed with the 
Board and, at the same time that the original is transmitted to the 
Board, the duplicate thereof shall be sent to the carrier to whom the 
concurrence was given. The third copy shall be retained by the carrier 
issuing such notice.
    (d) Amendment of tariffs when concurrence revoked. When a 
concurrence is revoked, a corresponding amendment of the tariff or 
tariffs affected shall be made by the issuing carrier of such tariffs on 
not less than statutory notice to become effective not later than the 
effective date stated in the Notice of Revocation of Concurrence. In the 
event of failure to so amend the tariff or tariffs, the provisions 
therein shall remain applicable until lawfully canceled.

(Approved by the Office of Management and Budget under control number 
3024-0038)
[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1038, 43 FR 1323, 
Jan. 9, 1978; ER-1271, 46 FR 63218, Dec. 31, 1981]



Sec. 221.212  Method of withdrawing portion of authority conferred by concurrence.

    If a carrier desires to issue a concurrence conferring less 
authority than a previous concurrence given to the same carrier, the new 
concurrence shall not direct the cancellation of such previous 
concurrence. In such circumstances, such previous concurrence shall be 
revoked by issuing and filing a Notice of Revocation of Concurrence in 
the form and manner prescribed by Sec. 221.211. Such revocation notice 
shall include reference to the new concurrence, ``(set

[[Page 126]]

Concurrence No. ____)'' to be shown at the end of the body of the 
document.

(Approved by the Office of Management and Budget under control number 
3024-0038)
[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1271, 46 FR 63218, 
Dec. 31, 1981]



       Subpart S--Giving and Revoking Powers of Attorney to Agents



Sec. 221.220  Method of giving power of attorney.

    (a) Prescribed form of power of attorney. A power of attorney 
prepared in accordance with the applicable form set forth in 
Sec. 221.244 shall be used by a carrier to give authority to an agent 
and (in the case of the agent being an individual) such agent's 
alternate to issue and file with the Board tariff publications which 
contain local or joint rates, fares, or charges, including provisions 
governing such rates, fares or charges, applicable via and for account 
of such carrier. Agents may be only natural persons or corporations 
(other than incorporated associations of air carriers). The authority 
conferred in a power of attorney may not be delegated to any other 
person.
    (b) Designation of tariff issuing person by corporate agent. When a 
corporation has been appointed as agent it shall forward to the Board a 
certified excerpt of the minutes of the meeting of its Board of 
Directors designating by name and title the person responsible for 
issuing tariffs and filing them with the Board. Only one such person may 
be designated by a corporate agent, and the title of such designee shall 
not contain the word ``Agent''. When such a designee is replaced the 
Board shall be immediately notified in like manner of his successor. An 
officer or employee of an incorporated tariff-publishing agent may not 
be authorized to act as tariff agent in his individual capacity. Every 
tariff issued by a corporate agent shall be issued in its name as agent.
    (c) Number of copies. Each power of attorney shall be prepared in 
triplicate. The original of each power of attorney shall be filed with 
the Board, the duplicate thereof shall be given to the agent in whose 
favor the power of attorney is issued, and the third copy shall be 
retained by the carrier who issued the power of attorney.
    (d) Conflicting authority to be avoided. In giving powers of 
attorney, care should be taken to avoid giving authority to two or more 
agents which, if used, would result in conflicting or duplicate tariff 
provisions.

(Approved by the Office of Management and Budget under control number 
3024-0038)
[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1271, 46 FR 63218, 
Dec. 31, 1981]



Sec. 221.221  Method of revoking power of attorney.

    (a) Prescribed form of revocation notice. A power of attorney may be 
revoked only by filing with the Board in the manner specified in this 
section a Notice of Revocation of Power of Attorney prepared in 
accordance with the form set forth in Sec. 221.245.
    (b) Sixty days' notice required. Such Notice of Revocation of Power 
of Attorney shall be filed on not less than sixty days' notice to the 
Board. A Notice of Revocation of Power of Attorney will be deemed to be 
filed only upon its actual receipt by the Board, and the period of 
notice shall commence to run only from such actual receipt.
    (c) Number of copies. Each Notice of Revocation of Power of Attorney 
shall be prepared in triplicate. The original thereof shall be filed 
with the Board and, at the same time that the original is transmitted to 
the Board, the duplicate thereof shall be sent to the agent in whose 
favor the power of attorney was issued (except, if the alternate agent 
has taken over the tariffs, the duplicate of the Notice of Revocation of 
Power of Attorney shall be sent to the alternate agent). The third copy 
of the notice shall be retained by the carrier.
    (d) Amendment of tariffs when power of attorney is revoked. When a 
power of attorney is revoked, a corresponding amendment of the tariff or 
tariffs affected shall be made by the issuing agent of such tariffs on 
not less than statutory notice to become effective not later than the 
effective date stated in the Notice of Revocation of Power of Attorney. 
In the event of failure to so

[[Page 127]]

amend the tariff or tariffs, the provisions therein shall remain 
applicable until lawfully canceled.

(Approved by the Office of Management and Budget under control number 
3024-0038)
[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1038, 43 FR 1323, 
Jan. 9, 1978; ER-1271, 46 FR 63218, Dec. 31, 1981]



Sec. 221.222  Method of withdrawing portion of authority conferred by power of attorney.

    If a carrier desires to issue a power of attorney conferring less 
authority than a previous power of attorney issued in favor of the same 
agent, the new power of attorney shall not direct the cancellation of 
such previous power of attorney. In such circumstances, such previous 
power of attorney shall be revoked by issuing and filing a Notice of 
Revocation of Power of Attorney in the form and manner prescribed by 
Sec. 221.221. Such revocation notice shall include reference to the new 
power of attorney ``(see Power of Attorney No. ____)'', to be shown at 
the end of the body of the document.

(Approved by the Office of Management and Budget under control number 
3024-0038)
[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1271, 46 FR 63218, 
Dec. 31, 1981]



Sec. 221.223  Procedure for alternate agent to assume the duties of and take over tariffs of the principal agent.

    (a) Alternate may act only upon death or disability of principal 
agent. An alternate agent may exercise the authority granted in the 
power of attorney to the principal agent only in the event of death or 
disability of the principal agent. The term ``disability'' as used here 
and in the power of attorney means resignation, permanent transfer to 
other duties, or other duties, or other permanent absence of the 
principal agent, and does not mean temporary absence of the principal 
agent caused by vacation, illness, or other similar causes. After an 
alternate agent has once exercised the authority granted by the power of 
attorney, the principal agent shall not thereafter act under such 
authority.
    (b) Affidavit to be made by alternate. When an alternate agent 
assumes the duties of the principal agent, upon the death or disability 
of the principal agent, the alternate agent shall submit to the Board a 
sworn statement of the facts which justify his exercising the authority 
in the power of attorney. Such sworn statement shall be submitted to the 
Board on or before the date on which the alternate agent files any 
tariff publications under such authority.
    (c) Take-over supplement to be filed by alternate. When an alternate 
agent assumes the duties of the principal agent, upon the death or 
disability of the principal agent, the alternate agent shall issue and 
file with the Board a supplement to each of the effective tariffs issued 
by the principal agent which shall comply with the following:
    (1) Such supplements shall be filed to loose-leaf tariffs as well as 
book tariffs.
    (2) Such supplement shall consist of a title page prepared in 
accordance with Sec. 221.112(b) except:
    (i) Such supplement shall not bear an effective date.
    (ii) Such supplement shall contain the following statement (to be 
shown immediately below the description of the tariff's contents and 
territory):
    On and after ____________________(show date when principal agent 
ceased to act) this tariff (as amended), which was heretofore issued by 
____________________(show name and title of former agent), shall be 
considered as the issue of ________(show name of alternate), Alternate 
Agent.
    (3) All such supplements to all effective tariffs shall be filed at 
one time under one letter of tariff transmittal.
    (d) Revised title pages to be filed by alternate. Simultaneously 
with the filing of take-over supplements pursuant to Sec. 221.223(c), 
the alternate agent shall file, on lawful notice, a revised title page 
to each effective loose-leaf tariff of the principal agent for the 
purpose of specifically showing the name and title of the alternate 
agent in lieu of the principal agent's name and title wherever the 
latter appears on the title page.
    (e) Alternate agent's title to be shown in tariff publications. The 
title ``Alternate Agent'' shall be shown in connection with the 
alternate agent's name in all tariff publications which he issues and 
files under his authority as alternate agent and in all tariff 
publications

[[Page 128]]

making reference to tariffs of such alternate agent.
    (f) C.A.B. numbers of tariffs issued by alternate. If an alternate 
agent has occasion to issue tariffs, such tariffs shall bear consecutive 
C.A.B. numbers continuing in the same C.A.B. number series of the 
tariffs issued by the principal agent.
    (g) Numbering alternate's letters of tariff transmittal. All letters 
of tariff transmittal prepared by and in the name of an alternate agent 
shall be numbered consecutively continuing in the same tariff 
transmittal number series of the principal agent.
    (h) Numbering alternate's Special Tariff Permission applications. 
Applications for Special Tariff Permission filed by an alternate agent 
shall be consecutively numbered continuing in the same application 
number series of the principal agent.

(Approved by the Office of Management and Budget under control number 
3024-0038)
[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1271, 46 FR 63218, 
Dec. 31, 1981]



Sec. 221.224  Procedure for having new principal agent assume the duties of and take over tariffs of another agent.

    (a) Procedure. When it is desired to transfer authority from the 
current principal agent (or an alternate agent acting in the principal's 
stead) to a new principal agent and have the new agent take over (assume 
the duties of issuing) all of the effective tariffs of the current 
agent, the following procedure shall be observed:
    (1) Each carrier which has issued a power of attorney in favor of 
the current agent (or alternate agent) shall issue a new power of 
attorney in favor of the new principal agent (and his alternate) and 
such new power of attorney shall be prepared and filed in accordance 
with the following:
    (i) Such new power of attorney shall direct the cancellation of the 
power of attorney issued in favor of the principal agent and alternate 
agent from whom the authority is transferred.
    (ii) Such new power of attorney shall bear the following statement 
(in the upper right portion under the date):
    (This power of attorney shall become effective on the date of its 
receipt by the Civil Aeronautics Board.)
    (iii) Such new power of attorney shall not confer less authority 
than the power of attorney which it cancels.
    (iv) Such new power of attorney shall not be transmitted by the 
carrier direct to the Board but shall be transmitted to the new 
principal agent named therein.
    (v) The new principal agent shall secure such powers of attorney 
from all carriers participating in all of the effective tariffs of the 
agent or alternate agent to be superseded and, immediately upon securing 
all such powers of attorney, the new principal agent shall file the 
originals thereof with the Board all at one time. A new corporate agent 
shall also file with the Board a certified excerpt of the minutes of the 
meeting of its Board of Directors showing the name and title of the 
persons designated to issue and file tariffs in the corporation's name.
    (2) At the same time that the new principal agent files with the 
Board the originals of the powers of attorney pursuant to paragraph 
(a)(1)(v) of this section, the new principal agent shall file with the 
Board a take-over supplement, conforming with paragraph (b) of this 
section, to each one of the former agent's effective tariffs.
    (b) Take-over supplement to be filed by new principal agent. The 
take-over supplement to be filed by the new principal agent pursuant to 
paragraph (a)(2) of this section shall conform with the following:
    (1) Such supplements shall be filed to loose-leaf tariffs as well as 
book tariffs.
    (2) The title page of such supplement shall be prepared in 
accordance with Sec. 221.112(b) except that:
    (i) The title page shall not bear an effective date.
    (ii) The title page shall contain the following statement (to be 
shown immediately below the description of the tariff's contents and 
territory):
    On and after (show date when new powers of attorney are filed with 
the Board), this tariff (as amended), which was heretofore issued by 
(show name and title of former issuing agent), shall be considered as 
the issue of (show name and title of new principal agent).
    (3) The page following the title page of such take-over supplement 
shall contain the following amendment of the list of participating 
carriers in the tariff (as amended) for the purpose of

[[Page 129]]

reflecting the changes in the power of attorney numbers and issuing 
agent:
    Refer to page ____ (or Original Page ____ or ____ Revised Page ____, 
if filed to a loose-leaf tariff) of the tariff (as amended) and change 
the List of Participating Carriers in its entirety to read as follows:

                List of Participating Carriers

    This tariff is issued and filed with the Civil Aeronautics Board by 
________________________(Show name of new principal agent) Agent for and 
on behalf of the following participating carriers (under authority of 
their powers of attorney filed with the Civil Aeronautics Board):

------------------------------------------------------------------------
           Participating carrier                Power of attorney No.
------------------------------------------------------------------------
(List alphabetically all carriers participating in the tariff and their
 respective new power of attorney numbers)
------------------------------------------------------------------------


Such amendment shall not attempt to add, change or eliminate 
participating carriers but only show the changes in the power of 
attorney numbers and the issuing agent. If power of attorney numbers 
have been omitted from the tariff pursuant to Sec. 221.34(e), the take-
over supplement may omit such numbers, provided that an accompanying 
statement conforming to Sec. 221.34(e) is submitted to the Board with 
such supplement.
    (4) All such take-over supplements to all of the effective tariffs 
of the predecessor agent shall be filed at one time under one letter of 
tariff transmittal and shall be accompanied by the powers of attorney in 
favor of the new principal agent.
    (c) Revised title pages to be filed by new principal agent. 
Simultaneously with the filing of take-over supplements pursuant to 
Sec. 221.224(b), the new principal agent shall file, on lawful notice, a 
revised title page to each effective loose-leaf tariff of the former 
agent for the purpose of specifically showing the name and title of the 
new principal agent in lieu of the former agent's name and title 
wherever the latter appears on the title page.
    (d) C.A.B. number of tariffs issued by new principal agent. (1) If 
the new principal agent has not filed tariffs with the Board as an 
issuing agent prior to taking over the former agent's tariffs, the new 
agent shall number any tariffs, which he may subsequently issue, 
according to either one of the following two methods:
    (i) The new principal agent shall number his tariffs consecutively 
continuing in the same tariff series of C.A.B. numbers of the former 
agent. In this event, the new principal agent shall notify the Board 
that his tariffs will be so numbered.
    (ii) The new principal agent shall consecutively number his tariffs 
in his own tariff series of C.A.B. numbers commencing with C.A.B. No. 1.
    (2) If the new principal agent has filed tariffs with the Board as 
an issuing agent prior to taking over the former agent's tariffs, the 
new agent shall continue to number any tariffs, which he may 
subsequently issue, consecutively in his own series of C.A.B. numbers.
    (3) If tariffs issued by the new principal agent will be numbered in 
a different C.A.B. number series from those of the former agent, any 
supplements or loose-leaf pages filed to, any amendments directed of, or 
any references to the tariffs of the former agent shall show directly in 
connection with the C.A.B. numbers that they are in the series of the 
former agent, for example:
    (i) When new agent issues a new tariff which is designated C.A.B. 
No. 1 in his series and cancels C.A.B. No. 4 in the series of the former 
agent:

                              C.A.B. No. 1

                                 cancels

                              C.A.B. No. 4

                        (Agent John Does series)

    (ii) When new agent issues a supplement to tariff issued by the 
former agent:

                            Supplement No. 3

                                   to

                              C.A.B. No. 4

                        (Agent John Does series)

    (iii) When new agent issues a revised page to tariff issued by the 
former agent:

[[Page 130]]

                  C.A.B. No. 4 (Agent John Doe series)

                           1st Revised Page 10

                                 cancels

                            Original Page 10

    (e) Numbering tariff transmittal of new principal agent. All letters 
of tariff transmittal of the new principal agent shall be numbered 
consecutively in such agent's series of tariff transmittal numbers, and 
shall not be numbered in the former agent's series.
    (f) Numbering special tariff permission applications of new 
principal agent. Applications for Special Tariff Permission filed by the 
new principal agent shall be numbered consequently in such agent's 
series of application numbers, and shall not be numbered in the former 
agent's series.

(Approved by the Office of Management and Budget under control number 
3024-0038)
[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1271, 46 FR 63218, 
Dec. 31, 1981]



Sec. 221.225  New powers of attorney to be filed within 180 days after death or disability of either principal or alternate.

    Upon the death or disability of either the principal agent or the 
alternate agent named in a power of attorney filed with the Board, a new 
power of attorney canceling the previously effective power of attorney 
and naming a new principal agent or a new alternate agent (as the case 
may be) thereafter to serve shall be filed within 180 days after such 
death or disability. The original thereof shall not be sent direct to 
the Board but shall be forwarded to the principal agent named therein 
who, after securing such instruments from all of the carriers 
participating in the effective tariffs, shall file the originals thereof 
with the Board all at one time. Such new powers of attorney shall become 
effective upon the date of their receipt by the Board and each power of 
attorney shall bear the following statement (in the upper right portion 
under the date):
    (This power of attorney shall become effective on the date of its 
receipt by the Civil Aeronautics Board)

Each such new power of attorney shall not confer less authority than the 
power of attorney which it cancels. If the new powers of attorney name a 
new principal agent, the procedure in Sec. 221.224 shall be followed. If 
the new powers of attorney name a new alternate agent without changing 
the principal agent, the principal agent shall also file amendments of 
the list of participating carriers in his tariffs to show the new power 
of attorney numbers at the same time as he files the new powers of 
attorney with the Board.



 Subpart T--Adoption Publications Required To Show Change in Carrier's 
                  Name or Transfer of Operating Control



Sec. 221.230  Adoption notice.

    (a) Prescribed form of adoption notice to be filed by adopting 
carrier. When the name of a carrier is changed or when its operating 
control is transferred to another carrier (including another company 
which has not previously been a carrier), the carrier which will 
thereafter operate the properties shall immediately issue, file with the 
Board, and post for public inspection an adoption notice prepared in 
accordance with the form set forth in Sec. 221.246. Such adoption notice 
shall contain no matter other than that required by the prescribed form. 
(The carrier under its former name or the carrier from whom the 
operating control is transferred shall be referred to in this subpart as 
the ``former carrier'', and the carrier under its new name or the 
carrier, company, or fiduciary to whom the operating control is 
transferred shall be referred to in this subpart as the ``adopting 
carrier''.)
    (b) Prepared, filed, and posted as a tariff publication. The 
adoption notice shall be prepared, filed, and posted as a tariff 
publication. The adoption notice shall be issued and filed by the 
adopting carrier and not by an agent.
    (c) Copies to be sent to agents and other carriers. At the same time 
that the adoption notice is transmitted to the Board for filing, the 
adopting carrier shall send copies of such adoption notice to each agent 
and carrier to whom

[[Page 131]]

the former carrier has given a power of attorney or concurrence. (See 
Sec. 221.233.)

(Approved by the Office of Management and Budget under control number 
3024-0038)
[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1271, 46 FR 63218, 
Dec. 31, 1981]



Sec. 221.231  Adoption supplements and revised title pages to be filed to former carrier's tariffs.

    At the same time that the adoption notice is issued, posted, and 
filed pursuant to Sec. 221.230, the adopting carrier shall issue, post 
and file with the Board:
    (a) A consecutively numbered supplement to each effective tariff 
(loose-leaf or book) issued by the former carrier which shall be 
prepared in accordance with the form set forth in Sec. 221.247 and shall 
contain no matter other than that required by the prescribed form, and
    (b) A revised title page, on lawful notice, to each effective loose-
leaf tariff issued by the former carrier for the purpose of specifically 
showing the name of the adopting carrier in lieu of the former carrier's 
name wherever the latter appears on the title page.

(Approved by the Office of Management and Budget under control number 
3024-0038)
[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1271, 46 FR 63218, 
Dec. 31, 1981]



Sec. 221.232  Receiver shall file adoption notice and supplements.

    A receiver shall, immediately upon assuming control of a carrier, 
issue and file with the Board an adoption notice and adoption 
supplements as prescribed by Secs. 221.230 and 221.231 and shall comply 
with the requirements of this subpart. An adoption notice filed by a 
receiver shall be numbered consecutively in the tariff series of C.A.B. 
numbers of the former carrier and all subsequent tariffs issued by the 
receiver shall be consecutively numbered in that series. When such 
receivership relationship is terminated, the carrier taking over the 
assets shall file an adoption notice and adoption supplements in 
conformity with Secs. 221.230 and 221.231.



Sec. 221.233  Agents' and other carriers' tariffs shall reflect adoption.

    If the former carrier is shown as a participating carrier under 
concurrence in tariffs issued by other carriers or is shown as a 
participating carrier under power of attorney in tariffs issued by 
agents, the issuing carriers and agents of such tariffs shall, upon 
receipt of the adoption notice, promptly file on statutory notice the 
following amendments to their respective tariffs:
    (a) Cancel the name of the former carrier from the list of 
participating carriers. Such cancellation shall make reference to the 
substitution notice required by paragraph (c) of this section.
    (b) Add the adopting carrier (in alphabetical order) to the list of 
participating carriers. Such addition shall make reference to the 
substitution notice required by paragraph (c) of this section. If the 
adopting carrier already participates in such tariff, reference to the 
substitution notice shall be added in connection with such carrier's 
name in the list of participating carriers.
    (c) Add the following substitution notice (following the list of 
participating carriers):

                           Substitution Notice

____________________ (Show adopting carrier's name) by its Adoption 
Notice C.A.B. No. __ having taken over the tariffs, etc. of 
____________________ (Show former carrier's name) is hereby substituted 
for ____________________ (Show former carrier's name) wherever the 
latter appears in this tariff (as amended).

Where the former carrier is specifically named in other parts of the 
tariff, the adopting carrier's name shall be specifically shown in lieu 
thereof whenever the issuing carrier or agent next has occasion to amend 
such parts of the tariff for other reasons.

[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1038, 43 FR 1323, 
Jan. 9, 1978]



Sec. 221.234  C.A.B. numbers of tariffs issued by adopting carrier and method of publishing reference to C.A.B. numbers of former carrier's tariffs.

    (a) Numbering adopting carrier's tariffs. Except as otherwise 
provided in Sec. 221.232, the adopting carrier shall consecutively 
number its adoption notice and tariffs in its own tariff series of 
C.A.B. numbers, and not in the series of the former carrier. If the 
adopting carrier has not filed tariffs with the

[[Page 132]]

Board previous to its adoption notice, the adoption notice shall be 
designated C.A.B. No. 1 and subsequent tariffs shall be consecutively 
numbered C.A.B. Nos. 2, 3, 4, 5, etc.
    (b) Method of publishing reference to former carrier's tariffs (This 
paragraph is not applicable where adopting carrier is a receiver or 
other fiduciary). Any supplements or loose-leaf pages filed to, any 
amendments directed of, or any references to the tariffs of the former 
carrier shall show directly in connection with the C.A.B. number that 
such number is in the series of the former carrier, for example:
    (1) If the adopting carrier issues and files a tariff which cancels 
a tariff issued by the former carrier, the title page of the new tariff 
shall set forth its C.A.B. number and the cancellation of the former 
tariff in the manner shown in the following example:

                              C.A.B. No. 2

                                 cancels

                              C.A.B. No. 5

                        (John Doe Air Co. series)

    (2) If the adopting carrier issues a supplement to a tariff issued 
by the former carrier, the title page of the supplement shall set forth 
the supplement and C.A.B. numbers in the manner shown in the following 
example:

                            Supplement No. 6

                                   to

                              C.A.B. No. 5

                        (John Doe Air Co. series)

       Supplements Nos. 5 and 6 are the only effective supplements

    (3) If the adopting carrier issues a revised or original page to a 
loose-leaf tariff issued by the former carrier, the page shall set forth 
the C.A.B. number and page reference in the manner shown in the 
following example:

                              C.A.B. No. 5

                        (John Doe Air Co. series)

                           3rd Revised Page 4

                                 cancels

                           2nd Revised Page 4



Sec. 221.235  Concurrences or powers of attorney to be reissued.

    (a) Adopting carrier shall reissue adopted concurrences and powers 
of attorney. Within a period of 120 days after the date on which the 
change in name or transfer of operating control occurs, the adopting 
carrier shall reissue all effective powers of attorney and concurrences 
of the former carrier by issuing and filing new powers of attorney and 
concurrences, in the adopting carrier's name, which shall direct the 
cancellation of the respective powers of attorney and concurrences of 
the former carrier. The adopting carrier shall consecutively number its 
powers of attorney and concurrences in its own series of power of 
attorney numbers and concurrence numbers (commencing with No. 1 in each 
series if it had not previously filed any such instruments with the 
Board), except that a receiver or other fiduciary shall consecutively 
number its powers of attorney or concurrences in the series of the 
former carrier. The cancellation reference shall show that the canceled 
power of attorney or concurrence was issued by the former carrier, for 
example:

                            Concurrence No. 1

                    (cancels Concurrence No. 6 issued

                     by John Doe Airways Co., Inc.)

If such new powers of attorney or concurrences confer less authority 
than the powers of attorney or concurrences which they are to supersede, 
the new issues shall not direct the cancellation of the former issues; 
in such instances, the provisions of Secs. 221.212 and 221.222 shall be 
observed. Concurrences and powers of attorney which will not be

[[Page 133]]

replaced by new issues shall be revoked in the form and manner and upon 
the notice required by Secs. 221.211 and 221.221.
    (b) Reissue of other carriers' concurrences issued in favor of 
former carrier. Each carrier which has given a concurrence to a carrier 
whose tariffs are subsequently adopted shall reissue the concurrence in 
favor of the adopting carrier. If the carrier which issued the 
concurrence to the former carrier desires to revoke it or desires to 
replace it with a concurrence conferring less authority, the provisions 
of Secs. 221.211 and 221.212 shall be observed.

(Approved by the Office of Management and Budget under control number 
3024-0038)
[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1271, 46 FR 63218, 
Dec. 31, 1981]



Sec. 221.236  Numbering adopting carrier's letters of tariff transmittal.

    The adopting carrier (except a receiver or other fiduciary) shall 
consecutively number its letters of tariff transmittal in its own series 
of tariff transmittal numbers (commencing with No. 1 if the adopting 
carrier has not filed tariff publications with the Board prior to its 
adoption notice). A receiver or other fiduciary shall consecutively 
number its letters of tariff transmittal in the former carrier's series 
of tariff transmittal numbers.



Sec. 221.237  Numbering adopting carrier's Special Tariff Permission applications.

    The adopting carrier (except a receiver or other fiduciary) shall 
consecutively number its applications for Special Tariff Permission in 
its own series of application numbers (commencing with No. 1 if the 
adopting carrier has not filed such applications prior to the adoption). 
A receiver or other fiduciary shall consecutively number its 
applications for Special Tariff Permission in the former carrier's 
series of application numbers.



Sec. 221.238  Cessation of operations without successor.

    If a carrier cease operations without having a successor, it shall:
    (a) File a supplement to each tariff of its own issue and cancel 
such tariff in its entirety. Such supplement shall state that operations 
are discontinued and give reference to the Board's order permitting such 
discontinuance.
    (b) Revoke all powers of attorney and concurrences which it has 
issued.

(Approved by the Office of Management and Budget under control number 
3024-0038)
[ER-439, 30 FR 9439, July 29, 1965, as amended by ER-1271, 46 FR 63218, 
Dec. 31, 1981]



                       Subpart U--Prescribed Forms



Sec. 221.240  Letter of tariff transmittal.

    (a) Form. The letter of tariff transmittal required by Sec. 221.163 
shall contain the following information and shall be prepared 
substantially in the following form (on durable paper 8\1/2\ by 11 
inches):
Name __________ (1)_____________________________________________________
Mail address____________________________________________________________
Date____________________________________________________________________
Tariff Transmittal No. ____ (2) ____.

To the Civil Aeronautics Board,
                               Tariffs Section, Washington, D.C., 20428.
    Sent you for filing in compliance with the requirements of the 
Federal Aviation Act of 1958, as amended, is the accompanying tariff 
publication issued by ______ (1) ______and bearing:

(3) Tariff C.A.B. No. ____, effective __.
__ Revised Page __ of C.A.B. No. __, effective __________.
Original Page __ of C.A.B. No. __, effective __________.
Supplement No. __ to C.A.B. No. --, effective __________.
    (4) The above-named publication is concurred in by all carriers 
participating therein under concurrences (or, powers of attorney) which 
are now on file with the Civil Aeronautics Board except that the 
concurrences (or, powers of attorney) of the following named carriers 
are attached hereto:

    Sufficient copies of the above-named publication have been sent to 
each carrier participating in the above-named publication for posting 
purposes in accordance with subpart N of your Economic Regulations, 
where required.
(5)_____________________________________________________________________

Signature ____________ (6)______________________________________________
(Show typed name and title of issuing officer or agent below signature.)

    (For explanations of reference marks shown in above form, see 
paragraph (b) of this section.)
    (b) Explanations of reference marks. Where a reference mark is shown 
in the above letter of tariff transmittal form, the information to be 
shown where

[[Page 134]]

such reference mark appears shall conform to the requirements stated in 
the following explanation of the respective reference mark:

------------------------------------------------------------------------
         Reference mark                         Explanation
------------------------------------------------------------------------
(1).............................  Show name of issuing carrier or agent
                                   exactly as it appears in the tariff
                                   publication. If issued by an agent,
                                   show the agent's title after the
                                   agent's name.
(2).............................  Show consecutive tariff transmittal
                                   number. Each issuing carrier or agent
                                   shall consecutively number its letter
                                   of tariff transmittals (commencing
                                   with Tariff Transmittal No. 1). Only
                                   one series of tariff transmittal
                                   numbers shall be used by each carrier
                                   or agent and separate series of
                                   numbers for passenger tariffs and
                                   property tariffs shall not be used.
(3).............................  Use whichever form of reference shown
                                   is appropriate for listing the
                                   publication filed. Each publication
                                   transmitted for filing shall be
                                   listed.
(4).............................  Omit the paragraph if no carriers
                                   other than the issuing carrier
                                   participate in the publication filed.
                                   Omit the clause beginning with the
                                   word ``except'' if all concurrences
                                   or powers of attorney have been
                                   previously filed with the Board.
(5).............................  Here state the changes and additions
                                   in the publications and the reasons
                                   therefor, or attach such statement
                                   and make reference thereto. (See Sec.
                                    221.165.)
(6).............................  The letter of transmittal shall bear
                                   the signature of the issuing officer
                                   or agent of the tariff publication
                                   filed. In the case of a corporate
                                   agent the signature of the designee
                                   of the corporation authorized by it
                                   to issue and file tariffs with the
                                   Board in its name shall appear at
                                   this point.
------------------------------------------------------------------------


[ER-439, 39 FR 9439, July 29, 1965, as amended at 53 FR 52678, Dec. 29, 
1988]



Sec. 221.241  Application for Special Tariff Permission.

    (a) Form. The application for Special Tariff Permission provided for 
in subpart P of this part shall contain the following information, as 
far as applicable, and shall be prepared substantially in the following 
form (on durable paper 8\1/2\ by 11 inches):
Name __________ (1)_____________________________________________________
Mail address____________________________________________________________
Date____________________________________________________________________
Special Tariff Permission Application No. ____ (2) ____.

To the Civil Aeronautics Board,
                                Tariffs Section, Washington, D.C. 20428.
    ______ (1) ______ hereby petitions the Civil Aeronautics Board that 
your petitioner be permitted under Section 403 of the Federal Aviation 
Act of 1958, as amended, to put in force the following proposed tariff 
provisions to become effective not less than ____ days after the filing 
thereof with the Civil Aeronautics Board:
________________ (3)____________________________________________________
    The proposed tariff provisions will be published in __ (4) __.
    The proposed tariff provisions will supersede and take the place of 
____ (5) ____.
    The following air carriers and foreign air carriers are known to 
maintain competitive ____________________ (Fares, rates, or charges) 
between the points where the proposed tariff provisions will apply (or 
points related thereto): ________(6) ________.
    The basis on which the proposed ____________________ (Fares, rates, 
or charges) are constructed is as follows: ________ (7) ________.
    The following facts are relied upon by your petitioner as 
constituting special circumstances or unusual conditions which justify 
the request made herein: ________(8) ________.
________________ (1) ____________
By ________________ (9) ____________
                                                       (Signature)      
(Show typed name and title of issuing officer or agent under signature)

    (For explanations of reference marks shown in the above form, see 
paragraph (b) of this section.)
    (b) Explanations of reference marks shown in prescribed form. Where 
a reference mark is shown in the above Special Tariff Permission 
application form, the information to be shown where such reference mark 
appears shall conform to the requirements stated in the following 
explanation of the respective reference mark:

------------------------------------------------------------------------
         Reference mark                         Explanation
------------------------------------------------------------------------
(1).............................  Show name of issuing carrier or agent
                                   making the application exactly as it
                                   appears in such carrier's or agent's
                                   tariffs. If application is made by an
                                   agent, it shall state that the
                                   application is filed ``for and on
                                   behalf of all carriers parties to
                                   tariff C.A.B. No. ____''.
(2).............................  Show a consecutive application number.
                                   Each issuing carrier or agent shall
                                   consecutively number its Special
                                   Tariff Permission applications
                                   (commencing with No. 1) in only one
                                   series of application numbers.
(3).............................  The proposed rates, fares, charges,
                                   rules, or other tariff provisions
                                   shall be set forth clearly and
                                   completely, including the points of
                                   origin and destination of proposed
                                   rates, fares, and charges and the
                                   exact wording of proposed rules,
                                   commodity descriptions, routing, and
                                   other provisions. If the proposed
                                   provisions are to be published in a
                                   supplement, the proposed specific
                                   cancellation of the provisions to be
                                   superseded in the tariff and prior
                                   supplements shall be set forth. If
                                   desired, the proposed tariff
                                   provisions may be set forth in an
                                   attached exhibit or exhibits
                                   identified as Exhibits A, B, C, etc.
                                   and, in such instances, the
                                   application shall make reference to
                                   such exhibits substantially in the
                                   following manner:

[[Page 135]]

 
                                  ``The proposed tariff provisions are
                                   as shown in Exhibit A attached hereto
                                   and hereby made a part hereof.''
                                  If the Special Tariff Permission
                                   application is granted by the Board,
                                   only the proposed tariff provisions
                                   specified or referred to in this part
                                   of the application may be published
                                   under authority of the Special Tariff
                                   Permission (except for any portion of
                                   the proposed provisions which is
                                   denied the authority requested).
(4).............................  Show the tariff publication(s) in
                                   which the proposed provisions will be
                                   published and the publication(s) to
                                   be canceled thereby, using whichever
                                   of the following forms of reference
                                   is appropriate:
                                  (i) ``____ Revised Page ____(which
                                   will cancel Original Page ____, or
                                   ______ Revised Page ______) of C.A.B.
                                   No. ____.''
                                  (Or, in lieu of the above form of
                                   reference)
                                  ``Consecutive revision(s) of page(s)
                                   ____ of C.A.B. No. ____.''
                                  (ii) ``Original Page(s) ____ to be
                                   added to C.A.B. No. ____.''
                                  (iii) ``Consecutively numbered
                                   supplement (which will cancel
                                   Supplement No. ____) to C.A.B. No.
                                   ____.''
                                  (iv) ``New tariff C.A.B. No. ____which
                                   will cancel tariff C.A.B. No. ____.''
(5).............................  Show the published rates, fares, or
                                   other tariff provisions which it is
                                   desired to change. This may be done
                                   either by reference to an
                                   accompanying exhibit containing such
                                   information, or by reference to the
                                   number of the page and the item,
                                   rule, or similar unit of the tariff
                                   or supplement in which such tariff
                                   provisions are published.
(6).............................  When applicable show the names of the
                                   carriers known to maintain
                                   competitive rates, fares, and other
                                   tariff provisions together with
                                   reference (by C.A.B. number) to the
                                   respective tariffs containing such
                                   competitive tariff provisions,
                                   regardless of whether the proposed
                                   tariff provisions will result in
                                   greater, less, or the same charges or
                                   services than those maintained by the
                                   competitive carriers.
(7).............................  When applicable describe the specific
                                   basis on which the proposed rates,
                                   fares, or charges were constructed or
                                   determined. For example, if they are
                                   intended to meet competitive rates,
                                   fares, or charges, that fact should
                                   be stated together with reference (by
                                   C.A.B. number) to the tariffs
                                   containing such competitive rates,
                                   fares, or charges. If meeting a
                                   combination rate, fare, or charge,
                                   information shall be stated for each
                                   factor used in constructing such
                                   combination. If the proposed rate,
                                   fare, or charge is not designed to
                                   meet competition, state how the level
                                   or amount of the proposed rate, fare,
                                   or charge was computed or determined.
(8).............................  State the specific facts which are
                                   relied upon as constituting special
                                   circumstances or unusual conditions
                                   justifying the requested permission
                                   together with any related facts or
                                   circumstances which may aid the Board
                                   in determining whether the requested
                                   permission is justified.
(9).............................  The issuing officer or agent of the
                                   proposed tariff publication shall
                                   sign the application for Special
                                   Tariff Permission. In the case of a
                                   corporate agent the signature of the
                                   designee of the corporation
                                   authorized by it to issue and file
                                   tariffs with the Board in its name
                                   shall appear at this point.
------------------------------------------------------------------------

    (c) Telegraphic application. Application may be submitted initially 
by telegraph or cable, provided that:
    (1) All necessary information and references are contained in the 
telegraphic request; and
    (2) The applicant immediately submits written confirmation, in 
duplicate, which shall observe the requirements of paragraphs (a) and 
(b) of this section.



Sec. 221.242  Concurrence.

    (a) Form. The concurrence required by Sec. 221.210 shall be prepared 
in accordance with the following form (on durable, white paper 8\1/2\ by 
11 inches):

                               Concurrence

(1) Concurrence No. ____
(2) (Cancels Concurrence No. ____)
Name ________________ (3) ______
Mail address __________________
Date ____________________
Know All Men by This Instrument:
    That ____ (3) ____ hereby assents to and concurs in the publication 
and filing with the Civil Aeronautics Board of tariffs (including 
supplements thereto and original or revised pages thereof) which ____ 
(4) ____may issue and file and in which ____ (3) ____ is shown as a 
participating carrier, and the latter carrier hereby makes itself a 
party thereto and bound thereby in so far as such tariff publications 
contain joint rates, fares, or charges (including their governing 
provisions) in which the latter carrier is shown as participating.
    Restriction: This concurrence is further restricted to the 
publication and filing of __________________ (5) ________________
____________ (3) ____________
By: __________ (6) ____________
                                                       (Signature)      
(Show typed name and title under signature)
    (7) Attest:
    (Affix corporate seal) ____ (Signature) ____
                                                           (Secretary)  
    Duplicate mailed to: ______ (4) ______
                                                at: ____________________
                                                     (Show full address)
    (For explanations of reference marks shown in above form, see 
paragraph (b) of this section.)

[[Page 136]]

    (b) Explanations of reference marks. Where a reference mark is shown 
in the above concurrence form, the information to be shown where such 
reference mark appears shall conform to the requirements stated in the 
following explanation of the respective reference marks:

------------------------------------------------------------------------
         Reference mark                         Explanation
------------------------------------------------------------------------
(1).............................  Show a consecutive concurrence number.
                                   All concurrencies issued by each
                                   carrier shall be consecutively
                                   numbered 1, 2, 3, 4, etc. in only one
                                   series of concurrence numbers.
(2).............................  A concurrence may only cancel a
                                   previous concurrence given to the
                                   same carrier (or its successor-in-
                                   interest). A concurrence shall not
                                   cancel a previous concurrence which
                                   conferred greater authority (see Sec.
                                    221.212).
(3).............................  Show name of carrier issuing the
                                   concurrence. Such name shall be shown
                                   exactly as it appears in such
                                   carrier's Certificate of Public
                                   Convenience and Necessity, Permit,
                                   Letter of Registration, or other form
                                   of operating authority issued by the
                                   Board, or such other name which has
                                   specifically been authorized by order
                                   of the Board.
(4).............................  Show name of carrier to whom
                                   concurrence is given. Such name shall
                                   be shown exactly as it appears in the
                                   tariffs issued by such carrier. The
                                   term ``successor-in-interest'', as
                                   shown in the concurrence after such
                                   carrier's name, shall mean any
                                   carrier who may adopt the tariffs
                                   issued by the carrier to whom the
                                   concurrence is given.
(5).............................  If no restrictions are to be placed on
                                   the authority conferred in the first
                                   paragraph of the concurrence, the
                                   paragraph captioned ``Restriction''
                                   shall be deleted in its entirety.
                                  If the authority is to be restricted
                                   to the publication and filing of
                                   joint rates, fares, or charges
                                   (including their governing
                                   provisions) applying between
                                   particular points or territories or
                                   on particular traffic or via
                                   particular routes, such joint rates,
                                   fares, or charges shall be specified
                                   in explicit and definite terms in the
                                   paragraph captioned ``Restriction''.
                                   No restriction shall be imposed in
                                   the concurrence with respect to the
                                   amounts or level of rates, fares, or
                                   charges.
                                  If the authority is to be restricted
                                   to the publication and filing of a
                                   particular tariff, the restriction
                                   shall be shown in the following
                                   manner:
                                  ``Restriction: This authority is
                                   restricted to the publication and
                                   filing of ________________________,
                                   (Show exact title of tariff), C.A.B.
                                   No. __, including supplements thereto
                                   and revised or original pages
                                   thereof.''
                                  If the latter authority is to include
                                   successive issues of the tariff named
                                   in the restriction, the restriction
                                   shall be shown in the following
                                   manner:
                                  ``Restriction: This authority is
                                   restricted to the publication and
                                   filing of ________________________,
                                   (Show exact title of tariff) C.A.B.
                                   No. __, and successive issues
                                   thereof, including supplements to and
                                   revised or original pages of said
                                   publications.''
(6).............................  The concurrence shall be signed by the
                                   owner if the carrier is an individual
                                   person and by a partner if the
                                   carrier is a partnership. If the
                                   carrier is a corporation or similar
                                   entity, the concurrence shall be
                                   signed by an officer thereof.
(7).............................  If the carrier is a corporation (or
                                   similar entity), the concurrence
                                   shall be attested by the secretary
                                   (or similar officer) thereof and the
                                   carrier's corporate seal shall be
                                   affixed thereto. If the carrier is a
                                   foreign carrier and, under the laws
                                   of the carrier's native country, such
                                   seal and attestation are not required
                                   to authenticate the concurrence,
                                   affixing the seal and attesting the
                                   concurrence are not required,
                                   provided that such carrier certifies
                                   to the Board in writing that the laws
                                   of the carrier's native country do
                                   not require such attestation and seal
                                   to authenticate such concurrences.
------------------------------------------------------------------------



Sec. 221.243  Notice of Revocation of Concurrence.

    (a) Form. The Notice of Revocation of Concurrence required by 
Sec. 221.211 shall be prepared in accordance with the following form (on 
durable, white paper 8\1/2\ by 11 inches):

                   Notice of Revocation of Concurrence

Name (1)________________________________________________________________
Mail address____________________________________________________________
Date____________________________________________________________________
Know All Men by This Instrument:
    That effective ____________ (2) ____________, Concurrence No. __ 
issued by __ (3) __ in favor of ____ (4) ____ is hereby canceled and 
revoked in its entirety.
                                   ________________ (1) ________________
                                    By ____________ (5) ________________
                                                       (Signature)      
(Show typed name and title under signature.)
    (6) Attest:
    (Affix corporate seal) ____ (Signature) ____
                                                             (Secretary)
    Duplicate mailed to: ________________
                                                               (Officer)
                                                           ____ (7) ____

(Carrier)_______________________________________________________________

(Address)_______________________________________________________________

                                                     on: ____ (8) ______
    (For explanations of reference marks shown in the above form, see 
paragraph (b) of this section.)
    (b) Explanations of reference marks. Where a reference mark is shown 
in the above form of Notice of Revocation of Concurrence, the 
information to be shown where such reference mark appears shall conform 
to the requirements stated in the following explanation of the 
respective reference mark:

[[Page 137]]



------------------------------------------------------------------------
         Reference mark                         Explanation
------------------------------------------------------------------------
(1).............................  Show full name of carrier issuing the
                                   notice of revocation.
(2).............................  Show full date (month, date, and year)
                                   on which the revocation and
                                   cancellation of the concurrence are
                                   to become effective.
(3).............................  Show name of carrier who issued the
                                   concurrence to be revoked. Such name
                                   shall be shown exactly as it appears
                                   in the concurrence.
(4).............................  Show name of carrier in whose favor
                                   the concurrence was issued. Such name
                                   shall be shown exactly as it appears
                                   in the concurrence to be revoked.
(5).............................  The revocation shall be signed by the
                                   individual owner if the carrier is an
                                   individual person and by a partner if
                                   the carrier is a partnership. If the
                                   carrier is a corporation or similar
                                   entity, the revocation shall be
                                   signed by an officer thereof.
(6).............................  If the carrier is a corporation (or
                                   similar entity), the revocation shall
                                   be attested by the secretary (or
                                   similar officer) thereof and the
                                   carrier's corporate seal shall be
                                   affixed thereto. If the carrier is a
                                   foreign carrier and its concurrence
                                   which is being revoked does not bear
                                   such attestation and seal, the
                                   revocation of such concurrence is not
                                   required to bear such attestation and
                                   seal.
(7).............................  Duplicate is to be sent to carrier to
                                   whom the concurrence was given except
                                   that if the tariffs of such carrier
                                   have been adopted by another carrier,
                                   the duplicate shall be sent to the
                                   latter carrier.
(8).............................  Show date on which the duplicate was
                                   mailed to the carrier named.
------------------------------------------------------------------------



Sec. 221.244  Power of attorney.

    (a) Form. The power of attorney required by Sec. 221.220 shall be 
prepared in accordance with the following form (on durable, white paper 
8\1/2\ by 11 inches):

                            Power of Attorney

(1) Power of Attorney No. ____
(2) (Cancels Power of Attorney No. ____)
Name ____________ (3) ____________
Mail address ______________________
Date ______________________
Know All Men by This Instrument:
    That ____ (3) ____, a common carrier by aircraft, hereby makes and 
appoints ____ (4) ____ attorney and agent to publish and file, for such 
carrier, tariffs (including supplements thereto and revised or original 
pages thereof) which such carrier is required or permitted to file with 
the Civil Aeronautics Board by the Federal Aviation Act of 1958, as 
amended, and the regulations of the Civil Aeronautics Board issued 
pursuant thereto, and hereby ratifies and confirms all that said 
attorney and agent may lawfully do by virtue of the authority herein 
granted and hereby assumes full responsibility for the acts and failures 
to act of said attorney and agent.
    Restriction: This authority is restricted to the publication and 
filing of ____ (5) ____.
    And, further, that ____ (3) ____ hereby makes and appoints ____ (6) 
____ alternate attorney and agent to do and to perform the same acts and 
exercise the same authority herein granted to ____ (4) ____ in the 
disability of ____ (4) ____.
                                               __________ (3) __________
                                              By ________ (7) __________
                                                       (Signature)      
(Show typed name and title under signature)
(8) Attest:
    (Show corporate seal) ____ (Signature) ____
                                                           (Secretary)  
    Duplicate mailed to: ______ (4) ______,
Agent at:_______________________________________________________________
                                                 (Show mail address)    
    (For explanations of reference marks shown in above form see 
paragraph (b) of this section.)
    (b) Explanations of reference marks. Where a reference mark is shown 
in the above power of attorney form, the information to be shown where 
such reference mark appears shall conform to the requirements stated in 
the following explanation of the respective reference mark:

------------------------------------------------------------------------
         Reference mark                         Explanation
------------------------------------------------------------------------
(1).............................  Show a consecutive power of attorney
                                   number. All powers of attorney issued
                                   by each carrier shall be
                                   consecutively numbered 1, 2, 3, 4,
                                   etc. in only one series of power of
                                   attorney numbers.
(2).............................  A power of attorney may only cancel a
                                   previous power of attorney given to
                                   the same agent and alternate agent
                                   (except as otherwise provided in
                                   Secs.  221.224 and 221.225). A power
                                   of attorney shall not cancel a
                                   previous power of attorney which
                                   conferred greater authority (see Sec.
                                    221.222).
(3).............................  Show name of carrier issuing the power
                                   of attorney. The name shall be shown
                                   exactly as it appears in such
                                   carrier's Certificate of Public
                                   Convenience and Necessity, Permit,
                                   Letter of Registration, or other form
                                   of operating authority issued by the
                                   Board, or such other name which has
                                   specifically been authorized by order
                                   of the Board.
(4).............................  Show name of agent to whom the power
                                   of attorney is given. The agent's
                                   name shall be shown uniformly in the
                                   same manner in all powers of attorney
                                   given by all carriers to such agent
                                   and shall be shown exactly as it
                                   appears in the tariffs of such agent.
(5).............................  If no restrictions are to be placed on
                                   the authority conferred in the power
                                   of attorney, the paragraph captioned
                                   ``Restriction'' shall be deleted in
                                   its entirety. If the authority is to
                                   be restricted to the publication and
                                   filing of rates, fares, or charges
                                   (including their governing
                                   provisions) applying between
                                   particular points or territories or
                                   on particular traffic or via
                                   particular routes, such rates, fares,
                                   or charges shall be specified in
                                   explicit and definite terms in the
                                   paragraph captioned ``Restriction''.
                                   No restriction shall be imposed in
                                   the power of attorney with respect to
                                   the amounts or level of rates, fares,
                                   or charges. If the authority is to be
                                   restricted to the publication and
                                   filing of a particular tariff, the
                                   restriction shall be shown in the
                                   following manner:

[[Page 138]]

 
                                  ``Restriction: This authority is
                                   restricted to the publication and
                                   filing of
                                   ______________________________(Show
                                   exact title of tariff) C.A.B. No.
                                   ____, including supplements thereto
                                   and revised or original pages
                                   thereof.''
                                  If the latter authority is to include
                                   successive issues of the tariff named
                                   in the restriction, the restriction
                                   shall be shown in the following
                                   manner:
                                  ``Restriction: This authority is
                                   restricted to the publication and
                                   filing of
                                   ______________________________(Show
                                   exact title of tariff) C.A.B. No.
                                   ____, and successive issues thereof,
                                   including supplements to and revised
                                   or original pages of said
                                   publications.''
(6).............................  Show name of alternate agent. Each
                                   principal agent shall have only one
                                   alternate agent. The alternate
                                   agent's name shall be shown uniformly
                                   in the same manner in all carriers'
                                   powers of attorney issued in favor of
                                   such alternate. In the case of a
                                   corporate agent this entire paragraph
                                   of the form shall be omitted.
(7).............................  The power of attorney shall be signed
                                   by the owner if the carrier is an
                                   individual person and by a partner if
                                   the carrier is a partnership. If the
                                   carrier is a corporation or similar
                                   entity, the power of attorney shall
                                   be signed by an officer thereof.
(8).............................  If the carrier is a corporation (or
                                   similar entity), the power of
                                   attorney shall be attested by the
                                   secretary (or similar officer)
                                   thereof and the carrier's corporate
                                   seal shall be affixed thereto. If the
                                   carrier is a foreign carrier and,
                                   under the laws of the carrier's
                                   native country, such seal and
                                   attestation are not required to
                                   authenticate the document, affixing
                                   the seal and attesting the document
                                   is not required, provided that such
                                   carrier or its agent certifies to the
                                   Board in writing that the laws of the
                                   carrier's native country do not
                                   require such attestation and seal to
                                   authenticate such powers of attorney.
------------------------------------------------------------------------



Sec. 221.245  Notice of Revocation of Power of Attorney.

    (a) Form. The Notice of Revocation of Power of Attorney required by 
Sec. 221.221 shall be prepared in accordance with the following form (on 
durable, white paper 8\1/2\ by 11 inches):

                Notice of Revocation of Power of Attorney

Name ____________ (1)___________________________________________________
Mail address____________________________________________________________
Date____________________________________________________________________
Know All Men By This Instrument:
    That effective ____ (2) ____, Power of Attorney No. ____ issued by 
____ (3) ____in favor of ____ (4) ____, attorney and agent, and ____ (5) 
____, alternate attorney and agent, is hereby canceled and revoked in 
its entirety.
                                               __________ (1) __________
                                             By: ________ (6) __________
                                                       (Signature)      
(Show typed name and title under the signature.)
(7) Attest:
(Affix corporate seal) __ (Signature) __
                                                         (Secretary)    
Duplicate mailed to: ________ (8) ________
                                                at: ____________________
                                         on: __________ (9) ____________
    (For explanations of reference marks used in above form, see 
paragraph (b) of this section.)
    (b) Explanations of reference marks. Where a reference mark is shown 
in the above form of Notice of Revocation of Power of Attorney, the 
information to be shown where such reference mark appears shall conform 
to the requirements stated in the following explanation of the 
respective reference mark:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
(1).............................  Show full name of carrier issuing the
                                   notice of revocation.
(2).............................  Show full date (month, date, and year)
                                   on which revocation and cancellation
                                   of power of attorney are to become
                                   effective.
(3).............................  Show full name of carrier who issued
                                   the power of attorney to be revoked.
                                   Such name shall be shown exactly as
                                   it appears in the power of attorney.
(4).............................  Show name of principal agent exactly
                                   as it appears in the power of
                                   attorney to be revoked.
(5).............................  Show name of alternate agent exactly
                                   as it appears in the power of
                                   attorney to be revoked. In the case
                                   of a corporate agent all references
                                   to an alternate attorney as agent
                                   shall be omitted.
(6).............................  The notice of revocation shall be
                                   signed by the owner if the carrier is
                                   an individual person and by a partner
                                   if the carrier is a partnership. If
                                   the carrier is a corporation (or
                                   similar entity), the notice of
                                   revocation shall be signed by an
                                   officer thereof.
(7).............................  If the carrier is a corporation (or
                                   similar entity), the revocation shall
                                   be attested by the secretary (or
                                   similar officer) thereof and the
                                   carrier's corporate seal shall be
                                   affixed thereto. If the carrier is a
                                   foreign carrier and its power of
                                   attorney which is being revoked does
                                   not bear such attestation and seal,
                                   the revocation of such power of
                                   attorney is not required to bear such
                                   attestation and seal.
(8).............................  Show name of principal agent unless
                                   the alternate agent has taken over
                                   the tariffs of the principal agent
                                   upon the death or disability of the
                                   latter. In the latter case, the
                                   alternate agent's name shall be shown
                                   and the duplicate shall be mailed to
                                   the alternate agent.
(9).............................  Show date on which the duplicate was
                                   mailed to the agent or alternate
                                   agent (as the case may be).
------------------------------------------------------------------------



Sec. 221.246  Adoption notice.

    (a) Form. The adoption notice required by Sec. 221.230 shall be 
prepared in accordance with the following form (on durable, white paper 
8\1/2\ by 11 inches

[[Page 139]]

with a clear margin of not less than 1 inch at left side):
[GRAPHIC] [TIFF OMITTED] TC30SE91.002

    (b) Explanations of reference marks. Where a reference mark is shown 
in the above adoption notice form, the information to be shown where 
such reference mark appears shall conform to the requirements stated in 
the following explanation of the respective reference mark:

------------------------------------------------------------------------
         Reference mark                         Explanation
------------------------------------------------------------------------
(1).............................  (i) Except as provided under (ii)
                                   below, the adoption notice shall bear
                                   a consecutive C.A.B. number in the
                                   tariff series of the adopting
                                   carrier. If the adopting carrier has
                                   not filed tariffs with the Board
                                   previous to its adoption notice, the
                                   adoption notice shall be designated
                                   C.A.B. No. 1.
                                  (ii) If the adopting carrier is a
                                   receiver or other fiduciary, its
                                   adoption notice shall bear a
                                   consecutive C.A.B. number in the
                                   tariff series of the former carrier.
(2).............................  Show the name of the adopting carrier.
                                   If the adoption notice is issued by a
                                   receiver or other fiduciary, show the
                                   former carrier's name and,
                                   immediately below such name, show the
                                   name and title of the fiduciary in
                                   parentheses.
(3).............................  Show the former carrier's name.
(4).............................  Show the number of the Board's order.
                                   which approved the change in name or
                                   transfer of operating control.
(5).............................  Show the date on which the adoption
                                   notice is prepared and transmitted to
                                   the Board for filing.

[[Page 140]]

 
(6).............................  Show the date on which the change in
                                   name or transfer of operating control
                                   occurs. If the Board's approval of
                                   such change in name or transfer of
                                   operating control is required, such
                                   date shall not be earlier than the
                                   Board's approval.
------------------------------------------------------------------------



Sec. 221.247  Adoption supplement.

    (a) Form. The adoption supplement required by Sec. 221.231 shall be 
prepared in accordance with the following form (on durable, white paper 
8\1/2\ by 11 inches with a clear margin of not less than 1 inch at left 
side):
[GRAPHIC] [TIFF OMITTED] TC30SE91.003

    (b) Explanations of reference marks. Where a reference mark is shown 
in the above adoption supplement, the information to be shown where such 
reference mark appears shall conform to the requirements stated in the 
following explanation of the respective reference mark:

[[Page 141]]



------------------------------------------------------------------------
         Reference mark                         Explanation
------------------------------------------------------------------------
(1).............................  The supplement number shall be
                                   consecutive to the number of the last
                                   previous supplement issued to the
                                   tariff.
(2).............................  Show the former carrier's name exactly
                                   in the same manner as it appears in
                                   the tariff.
(3).............................  Show the name of the adopting carrier
                                   exactly as it appears in the adoption
                                   notice.
(4).............................  Show the title of the tariff.
(5).............................  Show description of rates, fares, or
                                   other contents of the tariff in the
                                   same manner as such description
                                   appears on the title page of the
                                   tariff as amended.
(6).............................  Show description of territory in the
                                   same manner as it appears on the
                                   title page of the tariff as amended.
(7).............................  Show the number of the Board's order
                                   which approved the change in name or
                                   transfer of operating control.
(8).............................  Show the date on which the adoption
                                   supplement is prepared and
                                   transmitted to the Board for filing.
(9).............................  Show the date on which the change in
                                   name or transfer of operating control
                                   occurs. Such date shall be the same
                                   date as that shown in the adoption
                                   notice (see reference mark (6) in
                                   Sec.  221.246(b)).
------------------------------------------------------------------------



Sec. 221.248  Specimen title page of tariff.

    Set forth below is a specimen title page of a tariff which is shown 
only for the purpose of illustrating the arrangement and location of a 
title page's contents. The parenthetical numbers in the following 
specimen refer to correspondingly numbered paragraphs of Sec. 221.31(a) 
which prescribe the respective information to be shown (such 
parenthetical numbers shall not be shown on the actual title page):

[[Page 142]]

[GRAPHIC] [TIFF OMITTED] TC30SE91.004


[[Page 143]]





                  Subpart V--Complaints Against Tariffs



Sec. 221.250  Complaints against tariffs.

    All complaints against any air carrier's or foreign air carrier's 
tariffs, requests to prevent any foreign air carrier's tariffs from 
taking effect, and matters arising subsequent thereto, shall be governed 
by subpart E and the other pertinent provisions of part 302 of this 
chapter.



                 Subpart W--Electronically Filed Tariffs

    Source: Amdt. 221-68, 54 FR 2095, Jan. 19, 1989, unless otherwise 
noted.



Sec. 221.251  Applicability of the subpart.

    (a) Any carrier, consistent with the provisions of this subpart, and 
part 221 generally, may file its international passenger fares tariffs 
and international passenger rules tariffs electronically in machine-
readable form as an alternative to the filing of printed paper tariffs 
as provided for elsewhere in Part 221. This subpart applies to all 
carriers and tariff publishing agents and may be used by either if the 
carrier or agent complies with the provisions of subpart W. Any carrier 
or agent that files electronically under this subpart must transmit to 
the Department the remainder of the tariff, as applicable, in a form 
consistent with this Part 221, subparts A through V, on the same day 
that the electronic tariff would be deemed received under 
Sec. 221.270(b).
    (b) To the extent that subpart W is inconsistent with the remainder 
of part 221, subpart W shall govern the filing of electronic tariffs. In 
all other respects, part 221 remains in full force and effect.

[Amdt. 221-68, 54 FR 2095, Jan. 19, 1989, as amended by Doc. No. 50355, 
61 FR 18074, Apr. 24, 1996]



Sec. 221.260  Requirements for filing.

    (a) No carrier or filing agent shall file an electronic tariff 
unless, prior to filing, it has signed a maintenance agreement or 
agreements, furnished by the Department of Transportation, for the 
maintenance and security of the on-line tariff database.
    (b) No carrier or agent shall file an electronic tariff unless, 
prior to filing, it has submitted to the Department's Office of 
International Aviation, Tariffs Division, and received approval of, an 
application containing the following commitments:
    (1) The filer shall file tariffs electronically only in such format 
as shall be agreed to by the filer and the Department. (The filer shall 
include with its application a proposed format of tariff. The filer 
shall also submit to the Department all information necessary for the 
Department to determine that the proposed format will accommodate the 
data elements set forth in Sec. 221.283.)
    (2) The filer shall provide, maintain and install in the Public 
Reference Room at the Department (as may be required from time to time) 
one or more CRT devices and printers connected to its on-line tariff 
database. The filer shall be responsible for the transportation, 
installation, and maintenance of this equipment and shall agree to 
indemnify and hold harmless the Department and the U.S. Government from 
any claims or liabilities resulting from defects in the equipment, its 
installation or maintenance.
    (3) The filer shall provide public access to its on-line tariff 
database, at Departmental headquarters, during normal business hours.
    (4) The access required at Departmental headquarters by this subpart 
shall be provided at no cost to the public or the Department.
    (5) The filer shall provide the Department access to its on-line 
tariff database 24 hours a day, 7 days a week, except, that the filer 
may bring its computer down between 6:00 a.m. and 6:00 p.m. Eastern 
Standard Time or Eastern Daylight Saving Time, as the case may be, on 
Sundays, when necessary, for maintenance or for operational reasons.
    (6) The filer shall ensure that the Department shall have the sole 
ability to approve or disapprove electronically any tariff filed with 
the Department and the ability to note, record and retain electronically 
the reasons for approval or disapproval. The carrier or agent shall not 
make any changes in data or delete data after it has been transmitted 
electronically, regardless

[[Page 144]]

of whether it is approved, disapproved, or withdrawn. The filer shall be 
required to make data fields available to the Department in any record 
which is part of the on-line tariff database.
    (7) The filer shall maintain all fares and rules with the Department 
and all Departmental approvals, disapprovals and other actions, as well 
as all Departmental notations concerning such approvals, disapprovals or 
other actions, in the on-line tariff database for a period of two (2) 
years after the fare or rule becomes inactive. After this period of 
time, the carrier or agent shall provide the Department, free of charge, 
with a copy of the inactive date on a machine-readable tape or other 
mutually acceptable electronic medium.
    (8) The filer shall ensure that its on-line tariff database is 
secure against destruction or alteration (except as authorized by the 
Department), and against tampering.
    (9) Should the filer terminate its business or cease filing tariffs 
electronically, it shall provide to the Department on a machine-readable 
tape or any other mutually acceptable electronic medium, 
contemporaneously with the cessation of such business, a complete copy 
of its on-line tariff database.
    (10) The filer shall furnish to the Department, on a daily basis, on 
a machine-readable tape or any other mutually acceptable electronic 
medium, all transactions made to its on-line tariff database.
    (11) The filer shall afford any authorized Departmental official 
full, free, and uninhibited access to its facilities, databases, 
documentation, records, and application programs, including support 
functions, environmental security, and accounting data, for the purpose 
of ensuring continued effectiveness of safeguards against threats and 
hazards to the security or integrity of its electronic tariffs, as 
defined in this subpart.
    (12) The filer must provide a field in the Government Filing File 
for the signature of the approving U.S. Government Official through the 
use of a Personal Identification Number (PIN).
    (13) The filer shall provide a leased dedicated data conditioned 
circuit with sufficient capacity (initially not less than 9.6K baud 
rate) to handle electronic data transmissions to the Department. 
Further, the filer must provide for a secondary or a redundancy circuit 
in the event of the failure of the dedicated circuit. The secondary or 
redundancy circuit must be equal to or greater than 4.8K baud rate. In 
the event of a failure of the primary circuit the filer must notify the 
Chief of the Tariffs Division of the Department's Office of 
International Aviation, as soon as possible, after the failure of the 
primary circuit, but not later than two hours after failure, and must 
provide the name of the contact person at the telephone company who has 
the responsibility for dealing with the problem.
    (c) Each time a filer's on-line tariff database is accessed by any 
user during the sign-on function the following statement shall appear:
    The information contained in this system is for informational 
purposes only, and is a representation of tariff data that has been 
formally submitted to the Department of Transportation in accordance 
with applicable law or a bilateral treaty to which the U.S. Government 
is a party.

[Amdt. 221-68, 54 FR 2095, Jan. 19, 1989, as amended by Doc. No. 50355, 
61 FR 18074, Apr. 24, 1996]



Sec. 221.270  Time for filing and computation of time periods.

    (a) A tariff, or revision thereto, or a special tariff permission 
application may be electronically filed with the Department immediately 
upon compliance with Sec. 221.260, and anytime thereafter, subject to 
Sec. 221.500. The actual date and time of filing shall be noted with 
each filing.
    (b) For the purpose of determining the date that a tariff, or 
revision thereto, filed pursuant to this subpart, shall be deemed 
received by the Department:
    (1) For all electronic tariffs, or revisions thereto, filed before 
5:30 p.m. local time in Washington, DC, on Federal business days, such 
date shall be the actual date of filing.
    (2) For all electronic tariffs, or revisions thereto, filed after 
5:30 p.m. local time in Washington, DC, on Federal business days, and 
for all electronic tariffs, or revisions thereto, filed on days that are 
not Federal business

[[Page 145]]

days, such date shall be the next Federal business day.



Sec. 221.275  Requirement for filing paper tariffs.

    (a) Any tariff, or revision thereto, filed in paper format which 
accompanies, governs, or otherwise affects, a tariff filed 
electronically, must be received by the Department on the same date that 
a tariff or revision thereto, is filed electronically with the 
Department under Sec. 221.270(b). Further, such paper tariff, or 
revision thereto, shall be filed in accordance with the requirements of 
subparts A-V of part 221. No tariff or revision thereto, filed 
electronically under this subpart, shall contain an effective date which 
is at variance with the effective date of the supporting paper tariff, 
except as authorized by the Department.
    (b) Any printed justifications, or other information accompanying a 
tariff, or revision thereto, filed electronically under this subpart, 
must be received by the Department on the same date as any tariff, or 
revision thereto, filed electronically.
    (c) If a filer submits a filing which fails to comply with paragraph 
(a) of this section, or if the filer fails to submit the information in 
conformity with paragraph (b) of this section, the filing will be 
subject to rejection, denial, or disapproval, as applicable.



Sec. 221.280  Content and explanation of abbreviations, reference marks and symbols.

    (a) Content. The format to be used for any electronic tariff must be 
that agreed to in advance as provided for in Sec. 221.260, and must 
include those data elements set forth in Sec. 221.283. Those portions 
that are filed in paper form shall comply in all respects with part 221, 
subparts A-V.
    (b) Explanation of Abbreviations, Reference Marks and Symbols. 
Abbreviations, reference marks and symbols which are used in the tariff 
shall be explained in each tariff.
    (1) The following symbols shall be used:
R--Reduction
I--Increase
N--New Matter
X--Canceled Matter
C--Change in Footnotes, Routings, Rules or Zones
E--Denotes change in Effective Date only.
    (2) Other symbols may be used only when an explanation is provided 
in each tariff and such symbols are consistent throughout all the 
electronically filed tariffs from that time forward.



Sec. 221.282  Statement of filing with foreign governments to be shown in air carrier's tariff filings.

    (a) Every electronic tariff filed by or on behalf of an air carrier 
that contains fares which, by international convention or agreement 
entered into between any other country and the United States, are 
required to be filed with that country, shall include the following 
statement:
    The rates, fares, charges, classifications, rules, regulations, 
practices, and services provided herein have been filed in each country 
in which filing is required by treaty, convention, or agreement entered 
into between that country and the United States, in accordance with the 
provisions of the applicable treaty, convention, or agreement.
    (b) The statement referenced in Sec. 221.282(a) may be included with 
each filing advice by the inclusion of a symbol which is properly 
explained.
    (c) The required symbol may be omitted from an electronic tariff or 
portion thereof if the tariff publication that has been filed with any 
other country pursuant to its tariff regulations bears a tariff filing 
designation of that country in addition to the C.A.B./D.O.T. number 
appearing on the tariff.



Sec. 221.283  The filing of tariffs and amendments to tariffs.

    All electronic tariffs and amendments filed under this subpart, 
including those for which authority is sought to effect changes on less 
than bilateral/statutory notice under Sec. 221.302, shall contain the 
following data elements:
    (a) A Filing Advice Status File--which shall include:
    (1) Filing date and time;
    (2) Filing advice number;
    (3) Reference to carrier;
    (4) Reference to geographic area;
    (5) Effective date of amendment or tariff;
    (6) A place for government action to be recorded; and

[[Page 146]]

    (7) Reference to the Special Tariff Permission when applicable.
    (b) A Government Filing File--which shall include:
    (1) Filing advice number;
    (2) Carrier reference;
    (3) Filing date and time;
    (4) Proposed effective date;
    (5) Justification text; reference to geographic area and affected 
tariff number;
    (6) Reference to the Special Tariff Permission when applicable;
    (7) Government control data, including places for:
    (i) Name of the government analyst, except that this data shall not 
be made public, notwithstanding any other provision in this or any other 
subpart;
    (ii) Action taken and reasons therefor.
    (iii) Remarks, except that internal Departmental data shall not be 
made public, notwithstanding any other provision in this or any other 
subpart;
    (iv) Date action is taken; and
    (v) Personal Identification Number; and
    (8) Fares tariff, or proposed changes to the fares tariffs, 
including:
    (i) Market;
    (ii) Fare code;
    (iii) One-way/roundtrip (O/R);
    (iv) Fare Amount;
    (v) Currency;
    (vi) Footnote (FN);
    (vii) Rule Number, provided that, if the rule number is in a tariff, 
reference shall be made to that tariff containing the rule;
    (viii) Routing (RG) Number(s), provided that the abbreviation MPM 
(Maximum Permissible Routing) shall be considered a number for the 
purpose of this file;
    (ix) Effective date and discontinue date if the record has been 
superseded;
    (x) Percent of change from previous fares; and
    (xi) Expiration date.
    (9) Rules tariff, or proposed changes to the rules tariffs.
    (i) Rules tariffs shall include:
    (A) Title: General description of fare rule type and geographic area 
under the rule;
    (B) Application: Specific description of fare class, geographic 
area, type of transportation (one way, round-trip, etc.);
    (C) Period of Validity: Specific description of permissible travel 
dates and any restrictions on when travel is not permitted;
    (D) Reservations/ticketing: Specific description of reservation and 
ticketing provisions, including any advance reservation/ticketing 
requirements, provisions for payment (including prepaid tickets), and 
charges for any changes;
    (E) Capacity Control: Specific description of any limitation on the 
number of passengers, available seats, or tickets;
    (F) Combinations: Specific description of permitted/restricted fare 
combinations;
    (G) Length of Stay: Specific description of minimum/maximum number 
of days before the passenger may/must begin return travel;
    (H) Stopovers: Specific description of permissible conditions, 
restrictions, or charges on stopovers;
    (I) Routing: specific description of routing provisions, including 
transfer provisions, whether on-line or inter-line;
    (J) Discounts: Specific description of any limitations, special 
conditions, and discounts on status fares, e.g. children or infants, 
senior citizens, tour conductors, or travel agents, and any other 
discounts;
    (K) Cancellation and Refunds: Specific description of any special 
conditions, charges, or credits due for cancellation or changes to 
reservations, or for request for refund of purchased tickets;
    (L) Group Requirements: Specific description of group size, travel 
conditions, group eligibility, and documentation;
    (M) Tour Requirements: Specific description of tour requirements, 
including minimum price, and any stay or accommodation provisions;
    (N) Sales Restrictions: Specific description of any restrictions on 
the sale of tickets;
    (O) Rerouting: Specific description of rerouting provisions, whether 
on-line or inter-line, including any applicable charges; and

[[Page 147]]

    (P) Miscellaneous provisions: Any other applicable conditions.
    (ii) Rules tariffs shall not contain the phrase ``intentionally left 
blank''.
    (10) Any material accepted by the Department for informational 
purposes only shall be clearly identified as ``for information only, not 
part of official tariff'', in a manner acceptable to the Department.
    (c) A Historical File--which shall include:
    (1) Market;
    (2) Fare code;
    (3) One-way/roundtrip (O/R);
    (4) Fare amount;
    (5) Currency;
    (6) Footnote (FN);
    (7) Rule Number, provided that, if the rule number is in a tariff 
other than the fare tariff, reference shall be made to that tariff 
containing the rule;
    (8) Rule text;
    (9) Routing (RG) Numbers, provided that the abbreviation MPM 
(Maximum Permissible Routing) shall be considered a number for the 
purpose of this file;
    (10) Effective Date;
    (11) Discontinue Date;
    (12) Government Action;
    (13) Carrier;
    (14) All inactive fares (two years);
    (15) Any other fare data which is essential; and
    (16) Any necessary cross reference to the Government Filing File for 
research or other purposes.

[Amdt. 221-68, 54 FR 2095, Jan. 19, 1989, as amended by Doc. No. 50355, 
61 FR 18074, 18075, Apr. 24, 1996]



Sec. 221.284  Unique rule numbers required.

    (a) Each ``bundled'' and ``unbundled'' normal economy fare 
applicable to foreign air transportation shall bear a unique rule 
number.
    (b) The unique rule numbers for the fares specified in this section 
shall be set by mutual agreement between the filer and the Department 
prior to the implementation of any electronic filing system.



Sec. 221.285  Adoption of provisions of one carrier by another carrier.

    When one carrier adopts the tariffs of another carrier, the 
effective and prospective fares of the adopted carrier shall be changed 
to reflect the name of the adopting carrier and the effective date of 
the adoption. Further, each adopted fare shall bear a notation which 
shall reflect the name of the adopted carrier and the effective date of 
the adoption, provided that any subsequent revision of an adopted fare 
may omit the notation.



Sec. 221.286  Justification and explanation for certain fares.

    Any carrier or its agent, must provide, as to any new or increased 
bundled or unbundled (whichever is lower) on-demand economy fare in a 
direct-service market, a comparison between, on the one hand, that 
proposed fare, and on the other hand, the ceiling fare allowed in that 
market based on either the pertinent ECAC Zone or SFFL. If, however, the 
carrier's proposed fare is intended to match that already approved for 
another direct-service carrier, the proponent carrier may forego the 
comparison and instead, simply identify the direct competitor's fare it 
claims to match.



Sec. 221.287  Statement of fares.

    All fares filed electronically in direct-service markets shall be 
filed as single factor fares.



Sec. 221.300  Suspension of tariffs.

    (a) A rate, fare, charge, change, rule or other tariff provision 
that is suspended by the Department pursuant to section 1002 of the Act 
(49 U.S.C. 1482) shall be noted by the Department in the Government 
Filing File and the Historical File.
    (b) When the Department vacates a tariff suspension, in full or in 
part, and after notification of the carrier by the Department, such 
event shall be noted by the carrier in the Government Filing File and 
the Historical File.
    (c) When a tariff suspension is vacated or when it becomes effective 
upon termination of the suspension period, the carrier or its agent 
shall refile the tariff showing the effective date.



Sec. 221.301  Cancellation of suspended matter.

    When, pursuant to an order of the Department, the cancellation of 
rules,

[[Page 148]]

fares, charges, or other tariff provision is required, such action shall 
be made by the carrier by appropriate revisions to the tariff.



Sec. 221.302  Special tariff permission.

    (a) When a filer submits an electronic tariff or an amendment to an 
electronic tariff for which authority is sought to effect changes on 
less than bilateral/statutory notice, and no related tariff material is 
involved. The submission shall bear a sequential filing advice number. 
The submission shall appear in the Government Filing File and the Filing 
Advice Status File, and shall be referenced in such a manner to clearly 
indicate that such changes are sought to be made on less than bilateral/
statutory notice.
    (b) When a filer submits an electronic tariff or an amendment to the 
electronic tariff for which authority is sought to effect changes on 
less than bilateral/statutory notice, and it contains related paper 
under Sec. 221.275, the paper submission must bear the same filing 
advice number as that used for the electronic submission. Such paper 
submission shall be in the form of a revised tariff page as prescribed 
by subpart H of 14 CFR part 221, rather than as a separate request for 
Special Tariff Permission. All material being submitted on a paper 
tariff page as part of an electronic submission, will clearly indicate 
the portion(s) of such tariff page that is being filed pursuant to, and 
in conjunction with, the electronic submission on less than bilateral/
statutory notice.
    (c) Departmental action on the Special Tariff Permission request, 
both electronic and paper, shall be noted by the Department in the 
Government Filing File and the Filing Advice Status File.
    (d) When the paper portion of a Special Tariff Permission that has 
been filed with the Department pursuant to paragraph (b) of this section 
is disapproved or other action is taken by the Department, such 
disapproval or other action will be reflected on the next consecutive 
revision of the affected tariff page(s) in the following manner:
    (1) The portion(s) of ____ Revised Page ____ filed under EFA No. 
____ was/were disapproved by DOT.
    (2) Example of other action: the portion(s) ____ Revised Page ____ 
filed under EFA No. ____ was/were required to be amended by DOT.
    (e) When the Department disapproves in whole or in part or otherwise 
takes an action against any page filed under this section the filer must 
revise and refile a revised page within two business days following the 
disapproval or notice of other action.
    (f) All submissions under this section shall comply with the 
requirements of Sec. 221.283.



Sec. 221.400  Discontinuation of electronic tariff system.

    In the event that the electronic tariff system is discontinued, or 
the source of the data is changed, or a filer discontinues its business, 
all electronic data records prior to such date shall be provided 
immediately to the Department, free of charge, on a machine-readable 
tape or other mutually acceptable electronic medium.



Sec. 221.500  Filing of paper tariffs required.

    (a) After approval of any application filed under Sec. 221.260 of 
this subpart to allow a filer to file tariffs electronically, the filer 
in addition to filing electronically must continue to file printed 
tariffs as required by subparts A-V of part 221 for a period of 90 days, 
or until such time as the Department shall deem such filing no longer to 
be necessary: Provided, That during the period specified by this section 
the filed printed tariff shall continue to be the official tariff.
    (b) Upon notification to the filer that it may commence to file its 
tariffs solely in an electronic mode, concurrently with the 
implementation of filing electronically the filer shall:
    (1) Furnish the Department with a copy of all the existing effective 
and prospective records on a machine-readable tape or other mutually 
acceptable electronic medium accompanied by an affidavit attesting to 
the accuracy of such records; and
    (2) Simultaneously cancel such records from the paper tariff in the

[[Page 149]]

manner prescribed by subparts A-V of part 221.



Sec. 221.600  Transmission of electronic tariffs to subscribers.

    (a) Each filer that files an electronic tariff under this subpart 
shall make available to any person so requesting, a subscription service 
meeting the terms of paragraph (b) of this section.
    (b) Under the required subscription service, remote access shall be 
allowed to any subscriber to the on-line tariff database, including 
access to the justification required by Sec. 221.286. The subscription 
service shall not preclude the offering of additional services by the 
filer or its agent.
    (c) The filer at its option may establish a charge for providing the 
required subscription service to subscribers: Provided, That the charge 
may not exceed a reasonable estimate of the added cost of providing the 
service.
    (d) Each filer shall provide to any person upon request, a copy of 
the machine-readable data (raw tariff data) of all daily transactions 
made to its on-line tariff database. The terms and prices for such 
value-added service may be set by the filer: Provided, That such terms 
and prices shall be non-discriminatory, i.e., that they shall be 
substantially equivalent for all similarly-situated persons.



Sec. 221.650  Copies of tariffs made from filer's printer(s) located in Department's public reference room.

    Copies of information contained in a filer's on-line tariff database 
may be obtained by any user at Departmental Headquarters from the 
printer or printers placed in Tariff Public Reference Room by the filer. 
The filer may assess a fee for copying, provided it is reasonable and 
that no administrative burden is placed on the Department to require the 
collection of the fee or to provide any service in connection therewith.



Sec. 221.700  Actions under assigned authority and petitions for review of staff action.

    When an electronically filed record which has been submitted to the 
Department under this subpart, is disapproved (rejected), or a special 
tariff permission is approved or denied, under authority assigned by the 
Department of Transportation's Regulations, 14 CFR 385.13, such actions 
shall be understood to include the following provisions:
    Applicable to a Record or Records Which is/are Disapproved 
(rejected):
    The record(s) disapproved (rejected) is/are void, without force or 
effect, and must not be used.
    Applicable to a record or records which is/are disapproved 
(rejected), and to special tariff permissions which are approved or 
denied:
    This action is taken under authority assigned by the Department of 
Transportation in its Organization Regulations, 14 CFR 385.13. Persons 
entitled to petition for review of this action pursuant to the 
Department's Regulations, 14 CFR 385.50, may file such petitions within 
seven days after the date of this action. This action shall become 
effective immediately, and the filing of a petition for review shall not 
preclude its effectiveness.



PART 222--INTERMODAL CARGO SERVICES BY FOREIGN AIR CARRIERS--Table of Contents




Sec.
222.1  Applicability.
222.2  Scope of permissible intermodal cargo services.
222.3  Application for Statement of Authorization.
222.4  Procedure on receipt of application for Statement of 
          Authorization.
222.5  Cancellation or conditioning of a Statement of Authorization.

Appendix A to Part 222--CAB Form 222

    Authority: Secs. 204, 402, Pub. L. 85-726, as amended, 72 Stat. 743, 
757; 49 U.S.C. 1324, 1372.

    Source: ER-1228, 46 FR 32556, June 24, 1981, unless otherwise noted.



Sec. 222.1  Applicability.

    This part applies to all air transportation of property that 
includes both air movement by a direct foreign air carrier and surface 
transportation to or from any point within the United States (hereafter 
referred to as ``intermodal cargo services'').



Sec. 222.2  Scope of permissible intermodal cargo services.

    (a) Under its foreign air carrier permit, a direct foreign air 
carrier may provide or control the surface portion of intermodal cargo 
services within a zone extending 35 miles from the

[[Page 150]]

boundary of the airport or city it is authorized to serve. A direct 
foreign air carrier shall not provide or control the surface portion of 
intermodal cargo services outside of this 35-mile zone unless authorized 
to do so by the Board in accordance with Secs. 222.3, 222.4 and 222.5.
    (b) A direct foreign air carrier shall be considered to control the 
surface portion of intermodal cargo services if it has or publicly 
represents that it has any responsibility for or control over the 
movement of, or has any ownership, controlling or exclusive dealing 
relationship with, the carrier actually providing the surface 
transportation.
    (c) Except as provided in paragraphs (a) and (b) of this section 
with respect to control by a direct foreign air carrier, any U.S. or 
foreign indirect air carrier, surface carrier or surface freight 
forwarder may provide the surface portion of intermodal cargo services 
without limitation as to geographic area within the United States.
    (d) The Board may withdraw the authority of an indirect foreign air 
carrier to provide the surface portion of intermodal cargo services, or 
the authority of a direct foreign air carrier to offer intermodal cargo 
services pursuant to joint fares with other carriers providing the 
surface transportation, at any time, with or without hearing, if the 
Board finds it in the public interest.



Sec. 222.3  Application for Statement of Authorization.

    (a) Application for a Statement of Authorization shall be filed with 
the Board's Regulatory Affairs Division, Bureau of International 
Aviation, in duplicate, on CAB Form 222 (obtainable from the Civil 
Aeronautics Board, Publications Services Division, Washington, D.C. 
20428), attached as Appendix A. In most cases the Board will act upon 
applications for Statements of Authorization within 60 days.
    (b) Persons objecting to an application for a Statement of 
Authorization shall file their objections with the Regulatory Affairs 
Division, Bureau of International Aviation, within 28 days of the filing 
date of the application. The Board will list the names and nationalities 
of all persons applying for Statements of Authorization in its Weekly 
Summary of Filings.
    (c) An application shall include a copy of any bilateral agreement, 
memorandum of consultations, or diplomatic note or letter, in support of 
the authority requested. Documents that appear in official U.S. 
publications may be incorporated by reference.

(Approved by the Office of Management and Budget under control number 
3024-0045)
[ER-1228, 46 FR 32556, June 24, 1981, as amended by ER-1348, 48 FR 
31635, July 11, 1983]



Sec. 222.4  Procedure on receipt of application for Statement of Authorization.

    (a) After review of an application form filed under Sec. 222.3, the 
Board will take one or more of the following actions:
    (1) Indicate by stamp on CAB Form 222 the effective date of the 
Statement of Authorization, and return to the carrier the duplicate copy 
of Form 222 as evidence of approval under this part;
    (2) Request additional information from the applicant;
    (3) Set the application for notice and hearing procedures;
    (4) Disapprove the application or approve it subject to such terms, 
conditions, or limitations as may be required by the public interest; or
    (5) Reject the application on the grounds that there is no agreement 
by the United States authorizing the proposed services.
    (b) An order disapproving an application or subjecting it to 
conditions or limitations shall be transmitted to the President for stay 
or disapproval. If the President does not stay or disapprove the Board's 
order, it shall become effective on the 31st day after transmittal to 
the President, or within any longer time period established in the 
order.



Sec. 222.5  Cancellation or conditioning of a Statement of Authorization.

    A Statement of Authorization may be canceled or made subject to 
additional terms, conditions, or limitations, at any time, with or 
without hearing, if the Board finds that it is in the public interest to 
do so. An order

[[Page 151]]

canceling or conditioning a Statement of Authorization shall be 
submitted to the President for stay or disapproval and shall become 
effective on the 31st day after transmittal or within any longer time 
period established by the Board.
[GRAPHIC] [TIFF OMITTED] TC30SE91.005


[[Page 152]]


[GRAPHIC] [TIFF OMITTED] TC30SE91.006


[[Page 153]]





PART 223--FREE AND REDUCED-RATE TRANSPORTATION--Table of Contents




                      Subpart A--General Provisions

Sec.
223.1  Definitions.
223.2  Exemption from section 401 of the Act.
223.3  Mandatory free transportation.
223.4  Transferability of passes.
223.5  Responsibility of agencies.
223.6  Carrier's rules.

                       Subpart B--Domestic Travel

223.11  Free and reduced-rate transportation permitted.

                     Subpart C--International Travel

223.21  Free and reduced-rate transportation authorized by statute or 
          regulation.
223.22  Other persons to whom free and reduced-rate transportation may 
          be furnished.
223.23  Applications for authority to carry other persons.
223.24  Transportation of empty mail bags.
223.25  List of affiliates.

    Authority: Secs. 204, 403, 404, 405(j), 407, 416, Pub. L. 85-726, as 
amended, 72 Stat. 743, 758, 760, 766, 771, 49 U.S.C. 1325, 1373, 1374, 
1375, 1377, 1386, sec. 2 of the Postal Reorganization Act, 84 Stat. 767, 
39 U.S.C. 5007.

    Source: ER-1371, 48 FR 57118, Dec. 28, 1983, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 223.1  Definitions.

    As used in this part, unless the context otherwise requires:
    An affiliate of a carrier means a person:
    (a) Who controls that carrier, or is controlled by that carrier or 
by another person who controls or is controlled by that carrier; and
    (b) Whose principal business in purpose or in fact is:
    (1) The holding of stock in one or more carriers;
    (2) Transportation by air or the sale of tickets therefor;
    (3) The operation of one or more airports, one or more of which are 
used by that carrier or by another carrier who controls or is controlled 
by that carrier or that is under common control with that carrier by 
another person; or
    (4) Activities related to the transportation by air conducted by 
that carrier or by another carrier that controls or is controlled by 
that carrier or which is under common control with that carrier by 
another person.
    Air carrier means the holder of a certificate of public convenience 
and necessity issued by the Board under section 401 of the Act 
authorizing the carriage of persons.
    Attendant means any person required by a handicapped person in order 
to travel, whether or not that person's services are required while the 
handicapped passenger is in an aircraft.
    Carrier means:
    (a) An air carrier;
    (b) An all-cargo air carrier operating under section 401 or section 
418 of the Act;
    (c) A foreign air carrier;
    (d) An intrastate carrier;
    (e) An air taxi (including a commuter air carrier) operating under 
parts 294 or 298 of this chapter; and
    (f) Any person operating as a common carrier by air, or in the 
carriage of mail by air, or conducting transportation by air, in a 
foreign country.
    Control, as used in this section, means the beneficial ownership of 
more than 40 percent of outstanding capital stock unless, ownership of 
more than 40 percent of outstanding capital stock unless, in a specific 
case, the Board determines under section 408 of the Act that control 
does not exist. Control may be direct or by or through one or more 
intermediate subsidiaries likewise controlled or controlling through 
beneficial ownership of more than 40 percent of outstanding voting 
capital stock.
    Delivery flight means a flight from a point in the United States 
where a carrier has taken delivery of a newly manufactured aircraft to 
any point or points on its route system.
    Foreign air carrier means the holder of a permit issued by the Board 
under section 402 of the Act authorizing the carriage of persons.
    Free transportation means the carriage by an air carrier or foreign 
air carrier of any person or property (other than property owned by that 
carrier) in air transportation without compensation therefor.
    Handicapped passenger means any person who has a physical or mental

[[Page 154]]

impairment (other than drug addiction or alcoholism), that substantially 
limits one or more major life activities.
    Inaugural flight means a flight on an aircraft type being introduced 
by a carrier for the first time on a route, even if that aircraft type 
has been used by that carrier on other routes or on that route by other 
carriers.
    Pass means a written authorization, other than actual ticket stock, 
issued by a carrier for free or reduced-rate transportation of persons 
or property.
    Reduced-rate transportation means the carriage by an air carrier or 
foreign air carrier of any person or property (other than property owned 
by such carrier) in air transportation for a compensation less than that 
specified in the tariffs of that carrier on file with the Board and 
otherwise applicable to such carriage.
    Retired means:
    (a) With respect to carrier directors, officers, and employees, 
persons receiving retirement benefits from any carrier;
    (b) With respect to the general public, persons not regularly 
working at a full-time paying job, and not intending to do so in the 
future.



Sec. 223.2  Exemption from section 401 of the Act.

    (a) Any all-cargo carrier is exempted from section 401 of the Act to 
the extent necessary to carry, for purposes of in-flight observation, 
technical representatives of companies that have been engaged in the 
manufacture, development, or testing of aircraft or aircraft equipment.
    (b) Every carrier providing transportation under this section shall 
also comply with the applicable regulations of the Federal Aviation 
Administration such as regulations pertaining to admission of persons to 
the aircraft flight deck.



Sec. 223.3  Mandatory free transportation.

    Every air carrier shall carry, without charge, on any aircraft that 
it operates, the following persons:
    (a) Security guards who have been assigned to the duty of guarding 
such aircraft against unlawful seizure, sabotage or other unlawful 
interference, upon the exhibition of such credentials as may be 
prescribed by the Administrator of the Federal Aviation Administration;
    (b) Safety inspectors of the National Transportation Safety Board or 
of the Federal Aviation Administration who have been assigned to the 
duty of inspecting during flight such aircraft or its equipment, route 
facilities, operational procedures, or airman competency upon the 
exhibition of credentials or a certificate from the agency involved in 
authorizing such transportation; and
    (c) Postal employees on duty in charge of the mails or traveling to 
or from such duty, upon the exhibition of the credentials issued by the 
Postmaster General.



Sec. 223.4  Transferability of passes.

    Any pass authorizing free or reduced-rate transportation issued by a 
carrier may be made transferable to the extent specified by the granting 
carrier.



Sec. 223.5  Responsibility of agencies.

    The Federal Aviation Administration, National Transportation Safety 
Board, National Weather Service, and the Postal Service shall be 
responsible for the following:
    (a) The issuance of any credentials or certificates to their 
personnel eligible for free or reduced-rate transportation under this 
part; and
    (b) The promulgation of any internal rules that are necessary to 
obtain compliance by such personnel with this part.



Sec. 223.6  Carrier's rules.

    (a) Each air carrier and foreign air carrier shall maintain at its 
principal office either a copy or all instructions to its employees and 
of all company rules governing its practice in connection with the 
issuance and interchange of free and reduced-rate transportation passes 
or a statement describing those practices.
    (b) The rules or statement required by this section shall, at a 
minimum, include the following:
    (1) The titles of its officials upon whose authorizations passes may 
be issued;
    (2) The titles of other officials who are authorized by these 
officials to

[[Page 155]]

countersign passes on their behalf, and the extent of the authority 
granted to them; and
    (3) The titles of persons who are authorized to request passes from 
other carriers.
    (c) The rules, instructions, or statement required by this section 
shall be furnished to the Board upon request or to a member of the 
public upon payment of a reasonable charge for this service.

(Approved by the Office of Management and Budget under control number 
3024-0002)



                       Subpart B--Domestic Travel



Sec. 223.11  Free and reduced-rate transportation permitted.

    Air carriers may charge any rate or fare for interstate and overseas 
air transportation.



                     Subpart C--International Travel



Sec. 223.21  Free and reduced-rate transportation authorized by statute or regulation.

    (a) Any air carrier or foreign air carrier may provide free or 
reduced-rate foreign air transportation to any classes of persons 
specifically named in section 403(b) of the Act or free transportation 
to those named in Sec. 375.35 of this chapter.
    (b) Air carriers and foreign air carriers may offer reduced fares 
for foreign air transportation to ministers of religion, the elderly, 
retired, and handicapped passengers, and to attendants required by 
handicapped passengers, but shall file tariffs for such fares. Carriers 
may establish reasonable tariff rules to assist in identifying those who 
qualify for reduced fares.



Sec. 223.22  Other persons to whom free and reduced-rate transportation may be furnished.

    Air carriers and foreign air carriers are exempted from sections 403 
and 404(b) of the Act and part 221 of this chapter to the extent 
necessary to provide free or reduced-rate foreign air transportation, 
including passes, to the following:
    (a) Directors, officers, employees, and retirees and members of 
their immediate families, of any carrier or of any affiliate of such 
carrier, subject to the requirements of Sec. 223.25.
    (b) Persons to whom the carrier is required to furnish such 
transportation by law or government directive or by a contract or 
agreement between the carrier and the government of any country served 
by the carrier. The Board may, without prior notice, direct the carrier 
to file a tariff covering such transportation if it finds that the law 
or government directive in question requires the provision of such 
transportation. This transportation may be provided only if:
    (1) The contract or agreement is filed with the Board, and it is not 
disapproved by the Board; and
    (2) The law or government directive does not require the furnishing 
of such transportation to the general public or any segment thereof.
    (c) Technical representatives of companies that have been engaged in 
the manufacture, development or testing of a particular type of aircraft 
or aircraft equipment, when the transportation is provided for the 
purposes of in-flight observation, and subject to applicable regulations 
of the Federal Aviation Administration such as regulations pertaining to 
admission of persons to the aircraft flight deck.
    (d) Any person in return for goods or services provided by such 
person whether the transportation is used by that person or any designee 
of such person;
    (e) Persons engaged in promoting transportation and their immediate 
families, when such transportation is undertaken for a promotional 
purpose;
    (f) Persons being transported on an inaugural flight or delivery 
flight of the carrier except that, in the case of delivery flights, this 
exemption extends only to free, and not reduced-rate, transportation;
    (g) Any law-enforcement official, including any person who has the 
duty of guarding government officials traveling on official business 
against unlawful interference;
    (h) As compensation to persons that file a complaint or claim 
against the carrier;
    (i) Charitable organizations; and
    (j) Any person in an aviation-related occupation when the 
transportation is

[[Page 156]]

provided for the purpose of technical in-flight observation.



Sec. 223.23  Applications for authority to carry other persons.

    (a) Any air carrier or foreign air carrier desiring special 
authorization to provide free or reduced-rate foreign air transportation 
to persons to whom the carrier would not otherwise be authorized to 
furnish such transportation under the previous provisions of this part 
may apply to the Board, by letter or other writing, for such 
authorization.
    (b) The application shall include the following information:
    (1) The identity of the persons to whom the transportation is to be 
furnished;
    (2) The points between which the transportation is to be furnished;
    (3) The approximate time of departure; and
    (4) The carrier's reasons for desiring to furnish such 
transportation.
    (c) No transportation for which approval is required shall be 
furnished by the carrier until that approval is received by the carrier.

(Approved by the Office of Management and Budget under control number 
3024-0002)



Sec. 223.24  Transportation of empty mail bags.

    Any carrier authorized to engage in foreign air transportation may 
transport in foreign air transportation empty air mail bags from any 
country to the country of origin of such bags, free of charge, on a 
voluntary space-available basis.



Sec. 223.25  List of affiliates.

    (a) Each carrier shall maintain at its principal office a list 
containing all of that carrier's affiliates, showing the exact 
relationship of each affiliate to the carrier.
    (b) No pass may be issued under Sec. 223.22(a) to a director, 
officer, employee, or members of their immediate family, of any 
affiliate, unless that affiliate is on the list required by paragraph 
(a) of this section.
    (c) The list required by paragraph (a) of this section shall be 
furnished to the Board upon request.

(Approved by the Office of Management and Budget under control number 
3024-0002)



PART 232--TRANSPORTATION OF MAIL, REVIEW OF ORDERS OF POSTMASTER GENERAL--Table of Contents




Sec.
232.1  Applications for review.
232.2  Answers to applications for review.
232.3  Replies to answers to applications for review.
232.4  Applications to postpone the effective date of an order of the 
          Postmaster General; answers thereto.
232.5  Filing and service of applications, answers, and replies.

    Authority: 49 U.S.C. Chapters 401, 419.

    Source: 41 FR 49479, Nov. 9, 1976, unless otherwise noted.



Sec. 232.1  Applications for review.

    (a) Any person who would be aggrieved by an order of the Postmaster 
General issued under and within the meaning of section 41902 of the 
Statute may, within not more than 10 days after the issuance of such 
order, apply to the Department for a review thereof.
    (b) An application for review filed under this part shall be made in 
writing and shall be conspicuously entitled Application for Review of 
Order of the Postmaster General under section 41902 of the Statute. 
Except as otherwise provided in paragraph (c) of this section, such 
application for review shall specify:
    (1) The schedule affected and identity of the order complained of;
    (2) The manner in which the applicant is or would be aggrieved by 
the order;
    (3) The relief sought;
    (4) The facts relied upon to establish that the public convenience 
and necessity require that such order be amended, revised, suspended, or 
canceled by the Department;
    (5) An estimate of the total economic impact (including nonmail 
revenues) on the carrier of complying with the Postmaster General's 
order;
    (6) A history of the flight or flights in question and any 
predecessor flights cooperated in the market at or about

[[Page 157]]

the same hours, including when they were first operated and whether they 
have been operated continuously since that time: Provided, That this 
history need not extend beyond the last three years;
    (7) A detailed statement of the reasons for the schedule change, 
including copies of any economic data considered by carrier management 
in reaching that determination;
    (8) Any other schedule changes in the affected market which 
accompany the schedule change in question, or a statement to the effect 
that there are no such changes;
    (9) Monthly load-factor data on the flight or flights in question 
for the most recent twelve-month period;
    (10) Profit and loss data for the flight or flights in question for 
the most recent twelve-month period, provided that the data be submitted 
on a fully allocated cost by functional account number or by some other 
method in which costs are determined on a fully allocated basis and 
which is explained in complete detail; and
    (11) A statement indicating whether the carrier is willing to 
seatload sack mail on the flight or flights in question.
    (c) Where the application is for review of an order which does not 
involve disapproval, alteration, or amendment of a change or changes 
which a carrier sought to make in its own schedule(s), the application 
need not include items 6 through 11, inclusive, specified in paragraph 
(b) of this section.

[41 FR 49479, Nov. 9, 1976, as amended by Docket No. 47939, 57 FR 40102, 
Sept. 2, 1992; 60 FR 43524, Aug. 22, 1995]



Sec. 232.2  Answers to applications for review.

    (a) Any interested person may, within not more than ten days after 
the filing of an application for review, serve and file with the 
Department an answer in opposition to, or in support of, such 
applications. Such answer shall set forth the economic data and other 
facts upon which it is based.
    (b) An answer of the Postmaster General or U.S. Postal Service shall 
contain the following particular information, where applicable:
    (1) The Postal Service's critical time frame for the movement of the 
mail in question together with a detailed explanation of the operational 
factors which support that estimate;
    (2) The alternate air and surface services (including air taxi 
service) available in the market in question together with a statement 
of the costs of using such alternate services and, where appropriate, an 
explanation of why such services are unacceptable;
    (3) An estimate of the average amount and expected actual density of 
mail which will be tendered to the carrier if the order in question is 
upheld;
    (4) An estimate of the amount and type of containers which will be 
tendered to the carrier if the order in question is upheld;
    (5) The volume (including density of mail, amount and types of 
containers) of mail historically carried on the flight or flights in 
question;
    (6) An estimate of the volume (including density of mail, amount and 
types of containers) of mail historically carried on the flight or 
flights in question which could be accommodated on other flights serving 
the market without significant impairment of service under the mail 
delivery time standards of the Postal Service, together with an 
explanation of how that estimate was computed; and
    (7) An estimate of the impact of the flight or flights in question 
on mail delivery time standards of the Postal Service, together with an 
explanation of how that estimate was computed.

[41 FR 49479, Nov. 9, 1976, as amended by Docket No. 47939, 57 FR 40102, 
Sept. 2, 1992]



Sec. 232.3  Replies to answers to applications for review.

    Any interested person may, within not more than seven days after the 
filing of an answer to an application for review, serve and file with 
the Department a reply in opposition to, or in support of, such answer.

[41 FR 49479, Nov. 9, 1976, as amended by Docket No. 47939, 57 FR 40102, 
Sept. 2, 1992]



Sec. 232.4  Applications to postpone the effective date of an order of the Postmaster General; answers thereto.

    (a) Any person who would be aggrieved by an order of the Postmaster

[[Page 158]]

General within the meaning of section 41902 of the Statute may, within 
not more than four calendar days after the issuance of such order, apply 
to the Department for a postponement of the effective date of that order 
pending review: Provided, That if the final day of the four day period 
is a Saturday, Sunday, or holiday for the Department, the application 
may be filed with the Department no later than the end of the next day 
which is neither a Saturday, Sunday, or holiday.
    (b) An application for postponement of the effective date filed 
under this part may be made in writing or by telegram, and shall be 
conspicuously entitled Application for Postponement of the Effective 
Date of Order of the Postmaster General Pending Review Under section 
41902 of the Statute. Such application for postponement shall specify:
    (1) The schedule affected and identity of the order complained of;
    (2) The manner in which the applicant is or would be aggrieved by 
the order;
    (3) The relief which will be sought;
    (4) That the applicant intends to file a timely application for 
review of the order under Sec. 232.1; and
    (5) A summary of the justification and facts relied upon to 
establish that the stay should be granted.
    (c) Any interested person may, within not more than four calendar 
days after the service of an application for postponement of the 
effective date, serve and file with the Department an answer in 
opposition to, or in support of, the application: Provided, That if the 
final day of the four day period is a Saturday, Sunday, or holiday for 
the Department, the application may be filed with the Department no 
later than the end of the next day which is neither a Saturday, Sunday, 
or holiday: Provided further, however, That the Department need not 
consider any answer filed later than eight calendar days after issuance 
of the Postmaster General's order.

[41 FR 49479, Nov. 9, 1976, as amended by Docket No. 47939, 57 FR 40102, 
Sept. 2, 1992; 60 FR 43524, Aug. 22, 1995]



Sec. 232.5  Filing and service of applications, answers, and replies.

    (a) An application, answer or reply filed hereunder shall be deemed 
to have been filed on the date on which it is actually received by the 
Department at its offices in Washington, D.C.
    (b) At the time a written or telegraphic application, answer, or 
reply is filed under this part, a copy thereof shall be served by 
personal service, registered mail, or telegraph upon the Postmaster 
General and upon the air carrier operating or ordered to operate the 
mail service in question. Except in the case of telegraphic delivery 
each copy so served shall be accompanied by a letter of transmittal 
stating that such service is being made pursuant to this section. In the 
case of telegraphic delivery the copy shall be accompanied by a 
telegraphic statement that service is being made pursuant to this 
section.
    (c) The execution, number of copies, and verification of a written 
application, answer, or reply filed under this part, and the formal 
specifications of papers included in such application, answer, or reply 
shall be in accordance with the requirements of the Rules of Practice 
relating to applications generally (see part 302 of this chapter).

[41 FR 49479, Nov. 9, 1976, as amended by Docket No. 47939, 57 FR 40102, 
Sept. 2, 1992]



PART 234--AIRLINE SERVICE QUALITY PERFORMANCE REPORTS--Table of Contents




Sec.
234.1  Purpose.
234.2  Definitions.
234.3  Applicability.
234.4  Reporting of on-time performance.
234.5  Form of reports.
234.6  Baggage-handling statistics.
234.7  Voluntary reporting.
234.8  Calculation of on-time performance codes.
234.9  Reporting of on-time performance codes.
234.10  Voluntary disclosure of on-time performance codes.
234.11  Disclosure to consumers.
234.12  Waivers.

    Authority: 49 U.S.C. 329 and chapters 401, 417.

    Source: Amdt. No. 234-1, 52 FR 34071, Sept. 9, 1987, unless 
otherwise noted.
    Note: The reporting requirements contained in this part have been 
approved by the

[[Page 159]]

Office of Management and Budget under control number 2138-0041.



Sec. 234.1  Purpose.

    The purpose of this part is to set forth required data that certain 
air carriers must submit to the Department and to computer reservations 
system vendors in computerized form, except as otherwise provided, so 
that information on air carriers' quality of service can be made 
available to consumers of air transportation. This part also requires 
that service quality data be disclosed directly to consumers.



Sec. 234.2  Definitions.

    For the purpose of this part:
    Cancelled flight means a flight operation that was not operated, but 
was listed in a carrier's computer reservation system within seven 
calendar days of the scheduled departure.
    Discontinued flight means a flight dropped from a carrier's computer 
reservation system more than seven calendar days before its scheduled 
departure.
    Diverted flight means a flight which is operated from the scheduled 
origin point to a point other than the scheduled destination point in 
the carrier's published schedule. For example, a carrier has a published 
schedule for a flight from A to B to C. If the carrier were to actually 
fly an A to C operation, the A to B segment is a diverted flight, and 
the B to C segment is a cancelled flight.
    Extra-section flight means a flight conducted as an integral part of 
scheduled passenger service, that has not been provided for in published 
schedules and is required for transportation of traffic that cannot be 
accommodated on the regularly scheduled flight.
    Flight means any nonstop scheduled passenger flight segment with a 
specific flight number scheduled to be operated pursuant to a published 
schedule within a specific origin-destination city pair, other than 
transborder or foreign air transportation. In the case of reporting to 
computer reservations system vendors, flight also means one-stop or 
multi-stop single plane scheduled operations that include any flight 
segments for which performance is reported pursuant to this part.
    Late or late flight means a flight that arrives at the gate 15 
minutes or more after its published arrival time.
    Mishandled-baggage report means a report filed with a carrier by or 
on behalf of a passenger that claims loss, delay, damage or pilferage of 
baggage.
    New flight means a flight added to a carrier's schedule to operate 
in a specific origin-destination city pair and not scheduled to depart 
within 30 minutes of any discontinued flight that was contained in the 
carrier's published schedules for the same city pair during the previous 
month.
    On-time means a flight that arrives less than 15 mintues after its 
published arrival time.
    On-time performance means the percentage of scheduled operations of 
a specific flight that an air carrier operates on-time during a month.
    On-time performance code means a single character determined in 
accordance with the provisions of this part that reflects the monthly 
on-time performance of certain nonstop flights and single plane one-stop 
or multi-stop flights, the schedule and availability of which are listed 
in a computer reservation system (CRS) regulated by 14 CFR part 255.
    Reportable flight means any nonstop flight, including a mechanically 
delayed flight, to or from any airport within the contiguous 48 states 
that accounts for at least 1 percent of domestic scheduled-passenger 
enplanements in the previous calendar year, as reported to the 
Department pursuant to part 241 of this title. Qualifying airports will 
be specified periodically in accounting and reporting directives issued 
by the Office of Airline Information.
    Reporting carrier means an air carrier certificated under 49 U.S.C. 
41102 that accounted for at least 1 percent of domestic scheduled-
passenger revenues in the 12 months ending March 31 of each year, as 
reported to the Department pursuant to part 241 of this title. Reporting 
carriers will be identified periodically in accounting and reporting 
directives issued by the Office of Airline Information.

[[Page 160]]

    Wet-leased flight means a flight operated with a leased aircraft and 
crew.

[Amdt. 234-1, 52 FR 34071, Sept. 9, 1987, as amended by Docket No. 
48524, 59 FR 49797, Sept. 30, 1994; 60 FR 66722, Dec. 26, 1995]



Sec. 234.3  Applicability.

    This part applies to certain domestic scheduled passenger flights 
that are held out to the public by certificated air carriers that 
account for at least 1 percent of domestic scheduled passenger revenues. 
Certain provisions also apply to voluntary reporting to on-time 
performance by carriers.



Sec. 234.4  Reporting of on-time performance.

    (a) Each reporting carrier shall file BTS Form 234 ``On-Time Flight 
Performance Report'' with the Office of Airline Information on a monthly 
basis, setting forth the information for each of its reportable flights 
held out in the Official Airline Guide (OAG), in the computer 
reservations systems (CRS), or in other schedule publications. The 
reportable flights include, but are not limited to, cancelled flights, 
mechanically cancelled flights, diverted flights, new flights and wet-
leased flights. The report shall be made in the form and manner set 
forth in accounting and reporting directives issued by the Director, 
Office of Airline Statistics, and shall contain the following 
information:
    (1) Carrier and flight number.
    (2) Aircraft tail number.
    (3) Origin and Destination airport codes.
    (4) Published OAG departure and arrival times for each scheduled 
operation of the flight.
    (5) CRS scheduled arrival and departure time for each scheduled 
operation of the flight.
    (6) Actual departure and arrival time for each operation of the 
flight.
    (7) Difference in minutes between OAG and CRS scheduled arrival 
times.
    (8) Difference in minutes between OAG and CRS scheduled departure 
times.
    (9) Actual wheels-off and wheels-on times for each operation of the 
flight.
    (10) Date and day of week of scheduled flight operation.
    (11) Scheduled elapsed time, according to CRS schedule.
    (12) Actual elapsed time.
    (13) Amount of departure delay, if any.
    (14) Amount of arrival delay, if any.
    (15) Amount of elapsed time difference, if any.
    (b) When reporting the information specified in paragraph (a) of 
this section for a diverted flight, a reporting carrier shall use the 
original scheduled flight number and the original scheduled origin and 
destination airport codes.
    (c) A reporting carrier shall report the information specified in 
paragraph (a) of this section for a new flight beginning with the first 
day of the new scheduled operation.
    (d) A reporting carrier shall not report the information specified 
in paragraph (a) of this section for any discontinued or extra-section 
flight.
    (e) Actual arrival, departure and elapsed times shall be measured by 
the times at which the aircraft arrived at and departed from the gate or 
passenger loading area.
    (f) The published arrival time and departure time of a flight shall 
be, respectively, the scheduled arrival and departure times in effect on 
the date of the scheduled operation of the flight, as shown in the most 
recent Official Airline Guide, and in computer reservations systems. 
Each carrier shall designate a single computer reservations system in 
addition to the Official Airline Guide as the sources of scheduled 
arrival time and departure time data in its reports to the Department 
and shall report the scheduled arrival times and departure times listed 
in those sources for each flight. Scheduled elapsed times, amount of 
departure and/or arrival delay, and elapsed time difference shall be 
calculated using the scheduled times shown in the designated CRS source.

[Amdt. 234-1, 52 FR 34071, Sept. 9, 1987, as amended by Docket No. 
48524, 59 FR 49797, Sept. 30, 1994; 60 FR 66722, Dec. 26, 1995]



Sec. 234.5  Form of reports.

    Except where otherwise noted, all reports required by this part 
shall be filed within 15 days of the end of the month for which data are 
reported. The

[[Page 161]]

reports must be submitted to the Office of Airline Information on ADP 
computer tape in the format specified in accounting and reporting 
directives issued by the Director of that office.

[Docket No. 48524, 59 FR 49798, Sept. 30, 1994, as amended at 60 FR 
66722, Dec. 26, 1995]



Sec. 234.6  Baggage-handling statistics.

    Each reporting carrier shall report monthly to the Department on a 
domestic system basis, excluding charter flights, the total number of 
passengers enplaned systemwide, and the total number of mishandled-
baggage reports filed with the carrier. The information shall be 
submitted to the Department within 15 days of the end of the month to 
which the information applies and must be submitted with the transmittal 
letter accompanying the data for on-time performance in the form and 
manner set forth in accounting and reporting directives issued by the 
Director, Office of Airline Information.

[Docket No. 48524, 59 FR 49798, Sept. 30, 1994, as amended at 60 FR 
66722, Dec. 26, 1995]



Sec. 234.7  Voluntary reporting.

    (a) In addition to the data for each reportable flight required to 
be reported by this part, a reporting carrier may report to DOT for 
every other nonstop domestic flight that it schedules, the reportable 
flight data specified in this part.
    (b) Any air carrier that is not a reporting carrier may file the 
data specified in this part for every reportable flight that it 
schedules, or for every nonstop domestic flight that it schedules.
    (c) Voluntary reports containing information not required to be 
filed (1) must be submitted in the same form and manner, and at the same 
time, as reports containing data required to be filed, and (2) must be 
accompanied by a written statement describing in detail the information 
that is being voluntarily submitted. A carrier that files a voluntary 
report must continue to do so for a period of not less than 12 
consecutive months.



Sec. 234.8  Calculation of on-time performance codes.

    (a) Each reporting carrier shall calculate an on-time performance 
code in accordance with this section and as provided in more detail in 
accounting and reporting directives issued by the Director, Office of 
Airline Information. The calculations shall be performed for each 
reportable flight, except those scheduled to operate three times or less 
during a month. In addition, each reporting carrier shall assign an on-
time performance code to each of its single plane one-stop or multi-stop 
flights, or portion thereof, that the carrier holds out to the public 
through a CRS, the last segment of which is a reportable flight.
    (b) The on-time performance code shall be calculated as follows:
    (1) Based on reportable flight data provided to the Department, 
calculate the percentage of on-time arrivals of each nonstop flight. 
Calculations shall not include discontinued or extra-section flights for 
which data are not reported to the Department.
    (2) Based upon the on-time performance percentage calculated in 
paragraph (b)(1) of this section, assign a single digit code to each 
flight that reflects the percentile of on-time performance achieved by 
the flight, as set forth in the following table:

                           On Time Performance
------------------------------------------------------------------------
                          Code:                             Percentage
------------------------------------------------------------------------
        9...............................................          90-100
        8...............................................         80-89.9
        7...............................................         70-79.9
        6...............................................         60-69.9
        5...............................................         50-59.9
        4...............................................         40-49.9
        3...............................................         30-39.9
        2...............................................         20-29.9
        1...............................................         10-19.9
        0...............................................           0-9.9
------------------------------------------------------------------------

    (3) For a one-stop or multi-stop flight, or portion thereof, listed 
in a CRS, the performance code for the nonstop flight segment arriving 
at the destination listed in the CRS shall be used.
    (4) In the case of a new flight, carriers shall assign a performance 
code consisting of the letter ``N.'' A flight

[[Page 162]]

that is not a new flight shall be assigned the performance code 
calculated for the flight that it replaces, even if the two flights do 
not have the same flight number. In the case of a flight scheduled to 
operate three times or less during a month, carriers shall assign a 
performance code consisting of the letter ``U.''
    (c) Carriers shall calculate on-time performance percentages and 
assign on-time performance codes on a monthly basis. This process shall 
be completed no later than the 15th day of each month, when the reports 
required by this part are due to the Department, and the codes shall 
reflect the previous month's operations.

[Amdt. No. 234-1, 52 FR 34071, Sept. 9, 1987, as amended by Amdt. No. 
234-3, 52 FR 48397, Dec. 22, 1987; 53 FR 27677, July 22, 1988; Docket 
No. 48524, 59 FR 49798, Sept. 30, 1994; 60 FR 66722, Dec. 26, 1995]



Sec. 234.9  Reporting of on-time performance codes.

    No later than the 15th day of each month, each reporting carrier 
shall deliver, or arrange to have delivered, to each system vendor, as 
defined in 14 CFR part 255, the on-time performance codes required to be 
determined above. Carriers may report the codes by insuring that they 
are included in basic schedule tapes provided to CRS vendors or by 
providing a separate tape that will permit the CRS vendors to match the 
performance codes with basic schedule tapes.



Sec. 234.10  Voluntary disclosure of on-time performance codes.

    (a) Any air carrier may determine, in accordance with the provisions 
of Sec. 234.8 of this part, the on-time performance codes for the 
flights for which it voluntarily provides flight information to the 
Department pursuant to Sec. 234.7 of this part.
    (b) A carrier may supply these additional on-time performance codes 
to system vendors at the same time and in the same manner as the 
required disclosures are made to system vendors, provided that voluntary 
disclosures must continue for a period of not less than 12 consecutive 
months, and must be supplied either
    (1) For each of the carrier's reportable flights and each of its 
single plane one-stop or multi-stop flights, or portions thereof, that 
it holds out to the public through a CRS, the last segment of which is a 
reportable flight or
    (2) For each of the carrier's domestic flights.



Sec. 234.11  Disclosure to consumers.

    During the course of reservations or ticketing discussions or 
transactions, or inquiries about flights, between a carrier's employees 
and the public, the carrier shall disclose upon reasonable request the 
on-time performance code for any flight that has been assigned a code 
pursuant to this part.



Sec. 234.12  Waivers.

    Any carrier may request a waiver from the reporting requirements of 
this part. Such a request, at the discretion of the Director, Bureau of 
Transportation Statistics may be granted for good cause shown. The 
requesting party shall state the basis for such a waiver.

[Docket No. 48524, 59 FR 49798, Sept. 30, 1994, as amended at 60 FR 
66722, Dec. 26, 1995]



PART 240--INSPECTION OF ACCOUNTS AND PROPERTY--Table of Contents




Sec.
240.1  Interpretation.
240.2  Obligation of air carriers, foreign air carriers, and ticket 
          agents.



Sec. 240.1  Interpretation.

    (a) In the exercise of the authority granted by section 407(e) of 
the Act, the authority of any special agent or auditor to inspect and 
examine lands, buildings, equipment, accounts, records, memorandums, 
papers or correspondence shall include the authority to make such notes 
and copies thereof as he deems appropriate.
    (b) The term ``special agent'' and ``auditor'' are construed to mean 
any employee of the Bureau of Enforcement and any other employee of the 
Board specifically designated by it or by the Director, Office of 
Facilities and Operations.
    (c) The issuance in the form set forth below of an identification 
card and credentials to any such employee shall be

[[Page 163]]

construed to be an order and direction of the Board to such individual 
to inspect and examine lands, buildings, equipment, accounts, records, 
and memorandums in accordance with the authority conferred on the Board 
by the Act.

   United States of America, Civil Aeronautics Board, Washington, D.C.

Number__________________________________________________________________
Expires_________________________________________________________________

                                 [photo]

                                Signature

This is to certify that____________, whose signature and photograph 
appear hereon is a duly designated______________________________________

of the Civil Aeronautics Board and is authorized and directed to perform 
the duties of said office in accordance with the laws of the United 
States and regulations thereunder, and his authority will be respected 
accordingly.
By authority of the Civil Aeronautics Board.

                                Secretary

                         Civil Aeronautics Board

Name____________________________________________________________________
Date Issued_____________________________________________________________
Number__________________________________________________________________
Height__________________________________________________________________
Weight__________________________________________________________________
Hair____________________________________________________________________
Eyes____________________________________________________________________
Date of Birth___________________________________________________________
    The holder hereof is authorized to investigate violations of the 
Federal Aviation Act, as amended, collect evidence in cases in which the 
regulatory authority of the Civil Aeronautics Board is or may be 
involved and perform other duties imposed upon him by law.
    Under the Federal Aviation Act and part 240 of the Economic 
Regulations of the Civil Aeronautics Board (14 CFR part 240), the duly 
accredited special agents and auditors of the Board are empowered at all 
times to obtain access to all lands, buildings and equipment of any air 
carrier or foreign air carrier and to inspect, examine, and make notes 
and copies of all accounts, records, memorandums, documents, papers and 
correspondence kept or required to be kept by any air carrier, foreign 
air carrier or ticket agent.
    The issuance of these credentials to the holder hereof constitutes 
an order and direction on the part of the Civil Aeronautics Board to 
such individual to carry out these duties as aforesaid and as more fully 
described in part 240 of the Board's Economic Regulations.
    Failure to honor these credentials will result in penalties as 
provided by law.
                                               United States of America,
                                                Civil Aeronautics Board,
                                                        Washington, D.C.
(Secs. 204, 407, 701, 72 Stat. 743; 49 U.S.C. 1324, 1377, 1441)

[ER-822, 38 FR 26601, Sept. 24, 1973, as amended by ER-914, 40 FR 27017, 
June 26, 1975; ER-941, 40 FR 58850, Dec. 19, 1975]



Sec. 240.2  Obligation of air carriers, foreign air carriers, and ticket agents.

    Upon the demand of a special agent or auditor of the Board, and upon 
the presentation of the identification card and credentials issued to 
him in accordance with this part: (a) Any air carrier or foreign air 
carrier shall forthwith permit such special agent or auditor to inspect 
and examine all lands, buildings and equipment; (b) any air carrier, 
foreign air carrier or ticket agent shall forthwith permit such special 
agent or auditor to inspect and examine all accounts, records, 
memorandums, documents, papers and correspondence now or hereafter 
existing, and kept or required to be kept by the air carrier, foreign 
air carrier, or ticket agent, and shall permit such special agent or 
auditor to make such notes and copies thereof as he deems appropriate.

(Sec. 204(a), Federal Aviation Act of 1958, as amended, 72 Stat. 743; 
(49 U.S.C. 1324))

[ER-914, 40 FR 27017, June 26, 1975]



PART 241--UNIFORM SYSTEM OF ACCOUNTS AND REPORTS FOR LARGE CERTIFICATED AIR CARRIERS--Table of Contents




Sec.
01  Authority Under Which Accounting and Reporting Rules and Regulations 
          are Prescribed and Administered.
02  [Reserved]
03  Definitions for Purposes of This System of Accounts and Reports.
04  Air Carrier Groupings.

[[Page 164]]

                      General Accounting Provisions

1  Introduction to System of Accounts and Reports.
1-1  Applicability of system of accounts and reports.
1-2  Waivers from this system of accounts and reports.
1-3  General description of system of accounts and reports.
1-4  System of accounts coding.
1-5  Records.
1-6  Accounting entities.
1-7  Interpretation of accounts.
1-8  Address for reports and correspondence.
2  General Accounting Policies.
2-1  Generally accepted accounting principles.
2-2  Basis of allocation between entities.
2-3  Distribution of revenues and expenses within entities.
2-4  Accounting period.
2-5  Revenue and accounting practices.

                      Balance Sheet Classifications

3  Chart of Balance Sheet Accounts.
4  General.
5  [Reserved]
6  Objective Classification of Balance Sheet Elements.

                     Profit and Loss Classification

7  Chart of Profit and Loss Accounts.
8  General.
9  Functional Classification--Operating Revenues.
10  Functional Classification--Operating Expenses of Group I Air 
          Carriers.
11  Functional Classification--Operating Expenses of Group II and Group 
          III Air Carriers.
12  Objective Classification--Operating Revenues and Expenses.
14  Objective Classification--Nonoperating Income and Expense.
15  Objective Classification--Income Taxes for Current Period.
16  Objective Classification--Discontinued Operations.
17  Objective Classification--Extraordinary Items.
18  Objective Classification--Cumulative Effect of Changes in Accounting 
          Principles.

                  Operating Statistics Classifications

19  Uniform Classification of Operating Statistics.
19-1  Applicability.
19-2  Maintenance of data.
19-3  Accessibility and transmittal of data.
19-4  Service classes.
19-5  Air transport traffic and capacity elements.
19-6  Public disclosure of traffic data.
19-7  Passenger origin-destination survey.

      General Reporting Provisions--Large Certificated Air Carriers

21  Introduction to System of Reports.
22  General Reporting Instructions.

                    Financial Reporting Requirements

23  Certification and Balance Sheet Elements.
24  Profit and Loss Elements.

                     Traffic Reporting Requirements

25  Traffic and Capacity Elements.

    Authority: 49 U.S.C. 329 and chapters 401, 411, 417.

    Source: ER-755, 37 FR 19726, Sept. 21, 1972, unless otherwise noted.



  Section 01--Authority Under Which Accounting and Reporting Rules and 
               Regulations are Prescribed and Administered

    This Uniform System of Accounts and Reports for Large Certificated 
Air Carriers is issued, prescribed and administered under the following 
provisions of the Federal Aviation Act of 1958, as amended (72 Stat. 
731, 49 U.S.C. 1301):

                             general powers

    Sec. 204. (a) The Board is empowered to perform such acts, to 
conduct such investigations, to issue and amend such orders, and to make 
and amend such general or special rules, regulations, and procedure, 
pursuant to and consistent with the provisions of this Act, as it shall 
deem necessary to carry out the provisions of, and to exercise and 
perform its powers and duties under, this Act.

                            filing of reports

    Sec. 407. (a) The Board is empowered to require annual, monthly, 
periodical, and special reports from any air carrier; to prescribe the 
manner and form in which such reports shall be made; and to require from 
any air carrier specific answers to all questions upon which the Board 
may deem information to be necessary. Such reports shall be under oath 
whenever the Board so requires. The Board may also require any air 
carrier to file with it a true copy of each or any contract, agreement, 
understanding, or arrangement, between such air carrier and any other 
carrier or person, in relation to any traffic affected by the provisions 
of this Act.

[[Page 165]]

                      disclosure of stock ownership

    Sec. 407. (b) Each air carrier shall submit annually, and at such 
other times as the Board shall require, a list showing the names of each 
of its stockholders or members holding more than 5 per centum of the 
entire capital stock or capital, as the case may be, of such air 
carrier, together with the name of any person for whose account, if 
other than the holder, such stock is held; and a report setting forth a 
description of the shares of stock, or other interest, held by such air 
carrier, or for its account, in persons other than itself.

                            form of accounts

    Sec. 407. (d) The Board shall prescribe the forms of any and all 
accounts, records, and memoranda to be kept by air carriers, including 
the accounts, records, and memoranda of the movement of traffic, as well 
as of the receipts and expenditures of money, and the length of time 
such accounts, records, and memoranda shall be preserved; and it shall 
be unlawful for air carriers to keep any accounts, records, or memoranda 
other than those prescribed or approved by the Board: Provided, That any 
air carrier may keep additional accounts, records, or memoranda if they 
do not impair the integrity of the accounts, records, or memoranda 
prescribed or approved by the Board and do not constitute an undue 
financial burden on such air carrier.

                   inspection of accounts and property

    Sec. 407. (e) The Board shall at all times have access to all lands, 
buildings, and equipment of any carrier and to all accounts, records, 
and memoranda, including all documents, papers, and correspondence, now 
or hereafter existing, and kept or required to be kept by air carriers; 
and it may employ special agents or auditors, who shall have authority 
under the orders of the Board to inspect and examine any and all such 
lands, buildings, equipment, accounts, records, and memoranda. The 
provisions of this section shall apply, to the extent found by the Board 
to be reasonably necessary for the administration of this Act, to 
persons having control over any air carrier, or affiliated with any air 
carrier within the meaning of section 5(8) of the Interstate Commerce 
Act, as amended.

                             classification

    Sec. 416. (a) The Board may from time to time establish such just 
and reasonable classifications or groups of air carriers for the 
purposes of this title as the nature of the services performed by such 
air carriers shall require; and such just and reasonable rules and 
regulations, pursuant to and consistent with the provisions of this 
title, to be observed by each such class or group, as the Board finds 
necessary in the public interest.

                  safety, economic and postal offenses

    Sec. 901. (a)(1) Any person who violates (A) any provision of Title 
III, IV, V, VI, VII, or XII of this Act, or any rule, regulation, or 
order issued thereunder, or under section 1002(i), or any term, 
condition or limitation of any permit or certificate issued under Title 
IV, or (B) any rule or regulation issued by the Postmaster General under 
this Act, shall be subject to a civil penalty of not to exceed $1,000 
for each such violation. If such violation is a continuing one, each day 
of such violation shall constitute a separate offense: Provided, That 
this subsection shall not apply to members of the Armed Forces of the 
United States, or those civilian employees of the Department of Defense 
who are subject to the provisions of the Uniform Code of Military 
Justice, while engaged in the performance of their official duties; and 
the appropriate military authorities shall be responsible for taking any 
necessary disciplinary action with respect thereto and for making to the 
Administrator or Board, as appropriate, a timely report of any such 
action taken.
    (2) Any such civil penalty may be compromised by the Administrator 
in the case of violations of Titles III, V, VI, or XII, or any rule, 
regulation, or order issued thereunder, or by the Board in the case of 
violations of Titles IV or VII, or any rule, regulation or order issued 
thereunder, or under section 1002(i), or any term, condition, or 
limitation of any permit or certificate issued under Title IV, or by the 
Postmaster General in the case of regulations issued by him. The amount 
of such penalty, when finally determined, or the amount agreed upon in 
compromise, may be deducted from any sums owing by the United States to 
the person charged.

            failure to file reports; falsification of records

    Sec. 902. (e) Any air carrier, or any officer, agent, employee, or 
representative thereof, who shall, knowingly and willfully, fail or 
refuse to make a report to the Board or Administrator as required by 
this Act, or to keep or preserve accounts, records, and memoranda in the 
form and manner prescribed or approved by the Board or Administrator, or 
shall, knowingly and willfully, falsify, mutilate, or alter any such 
report, account, record, or memorandum, or shall knowingly and willfully 
file any false report, account, record, or memorandum, shall be deemed 
guilty of a misdemeanor and, upon conviction thereof, be subject for 
each offense to a fine of not less than $100 and not more than $5,000.

[[Page 166]]

                           refusal to testify

    Sec. 902. (g) Any person who shall neglect or refuse to attend and 
testify, or to answer any lawful inquiry, or to produce books, papers, 
or documents, if in his power to do so, in obedience to the subpena or 
lawful requirement of the Board or Administrator, shall be guilty of a 
misdemeanor and, upon conviction thereof, shall be subject to a fine of 
not less than $100 nor more than $5,000, or imprisonment for not more 
than one year, or both.

                     filing of complaints authorized

    Sec. 1002. (a) Any person may file with the Administrator or the 
Board, as to matters within their respective jurisdictions, a complaint 
in writing with respect to anything done or omitted to be done by any 
person in contravention of any provisions of this Act, or of any 
requirement established pursuant thereto. If the person complained 
against shall not satisfy the complaint and there shall appear to be any 
reasonable ground for investigating the complaint, it shall be the duty 
of the Administrator or the Board to investigate the matters complained 
of. Whenever the Administrator or the Board is of the opinion that any 
complaint does not state facts which warrant an investigation or action, 
such complaint may be dismissed without hearing. In the case of 
complaints against a member of the Armed Forces of the United States 
acting in the performance of his official duties, the Administrator or 
the Board, as the case may be, shall refer the complaint to the 
Secretary of the department concerned for action. The Secretary shall, 
within ninety days after receiving such a complaint, inform the 
Administrator or the Board of his disposition of the complaint, 
including a report as to any corrective or disciplinary actions taken.

         investigations on initiative of administrator or board

    Sec. 1002. (b) The Administrator or Board, with respect to matters 
within their respective jurisdictions, is empowered at any time to 
institute an investigation, on their own initiative, in any case and as 
to any matter or thing within their respective jurisdictions, concerning 
which complaint is authorized to be made to or before the Administrator 
or Board by any provision of this Act, or concerning which any question 
may arise under any of the provisions of this Act, or relating to the 
enforcement of any of the provisions of this Act. The Administrator or 
the Board shall have the same power to proceed with any investigation 
instituted on their own motion as though it had been appealed to by 
complaint.

                 entry or orders for compliance with act

    Sec. 1002. (c) If the Administrator or the Board finds, after notice 
and hearing, in any investigation instituted upon complaint or upon 
their own initiative, with respect to matters within their jurisdiction, 
that any person has failed to comply with any provision of this Act or 
any requirement established pursuant thereto, the Administrator or the 
Board shall issue an appropriate order to compel such person to comply 
therewith.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1400, 50 FR 11, 
Jan. 2, 1985]



                         Section 02  [Reserved]



  Section 03--Definitions for Purposes of This System of Accounts and 
                                 Reports

    Account, clearing. An account used as a medium for the temporary 
accumulation of costs that are redistributed to appropriate applicable 
accounts.
    Acquisition, date of. The date on which the title to owned property 
or equipment (or the right to use or control the reassignment of leased 
property or equipment) passes to the air carrier.
    Act. The Federal Aviation Act of 1958, as amended.
    Addition, property. Additional equipment, land, structures, and 
other tangible property; extensions of fuel, water, and oil distribution 
equipment; additions to buildings and other structures; and additional 
safety devices applied to equipment not previously thus equipped. (See 
also Modification.)
    Affiliated group. A combination of companies comprised of the air 
carrier, any person controlling the air carrier or under common control 
with the air carrier, and organizational divisions (as defined in 
sections 1-6) of and persons controlled by the air carrier.
    Agency, cargo. Any person (other than the air carrier preforming the 
direct air transportation or one of its bona fide regular employees or 
an indirect air carrier lawfully engaged in air transportation under 
authority conferred by any applicable part of the Economic Regulations 
of the Department) who for compensation or profit: (1) Solicits, 
obtains, receives or furnishes directly or indirectly property or 
consolidated shipments of property

[[Page 167]]

for transportation upon the aircraft of an air carrier subject to this 
part, or (2) procures or arranges for air transportation of property 
upon aircraft of an air carrier subject to this part by charter, lease, 
or any other arrangement.
    Agent, ticket. Any person (other than the air carrier performing the 
direct air transportation or one of its bona fide regular employees, or 
an air carrier which subcontracts the performance of charter air 
transportation which it has contracted to perform) who for compensation 
or profit: (1) Solicits, obtains, receives, or furnishes directly or 
indirectly passengers or groups of passengers for transportation upon 
the aircraft of an air carrier subject to this part, or (2) procures or 
arranges for air transportation of passengers or groups of passengers 
upon aircraft of an air carrier subject to this part by charter, lease, 
or any other arrangement.
    Agreement. Any oral or written agreement, contract, understanding, 
or arrangement, and any amendment, revision, modification, renewal, 
extension, cancellation or termination thereof.
    Air carrier. Any citizen of the United States who undertakes, 
whether directly or indirectly or by a lease or any other arrangement, 
to engage in air transportation.
    Air carrier, charter. An air carrier holding a certificate issued 
under 49 U.S.C. 41102(a)(3).
    Air carrier, large certificated. An air carrier holding a 
certificate issued under 49 U.S.C. 41102, as amended, that: (1) Operates 
aircraft designed to have a maximum passenger capacity of more than 60 
seats or a maximum payload capacity of more than 18,000 pounds; or (2) 
conducts operations where one or both terminals of a flight stage are 
outside the 50 states of the United States, the District of Columbia, 
the Commonwealth of Puerto Rico and the U.S. Virgin Islands.
    Air carrier, surviving. An entity (air carrier) which, as the result 
of a business combination, has acquired the net assets, and carries on 
the operations of, one or more predecessor air carriers, and which may 
be newly organized at the time of the combination or may be one of the 
predecessor air carriers.
    Aircraft. Any contrivance now known or hereafter invented, used or 
designed for navigation of or flight in the air.
    Aircraft days assigned to service--carrier's equipment. The number 
of days that aircraft owned or acquired through rental or lease (but not 
interchange) are in the possession of the reporting air carrier and are 
available for service on the reporting carrier's routes plus the number 
of days such aircraft are in service on routes of others under 
interchange agreements. Includes days in overhaul, or temporarily out of 
service due to schedule cancellations. Excludes days that newly acquired 
aircraft are on hand but not available for productive use, days rented 
or leased to others (for other than interchange) and days in possession 
but formally withdrawn from air transportation service.
    Aircraft days assigned to service-- carrier routes--same as aircraft 
days assigned to service-carrier's equipment but excluding the number of 
days owned or rented equipment are in the possession of others under 
interchange agreements and including the number of days aircraft of 
others are in the possession of the air carrier under interchange 
agreements.
    Aircraft, leased (rented). Aircraft obtained from (or furnished to) 
others under lease or rental arrangements. Leased and rented aircraft do 
not include those used under interchange agreements designed to provide 
oneplane service over the routes of the air carriers involved.
    Aircraft type. A distinctive model as designated by the 
manufacturer.
    Airport. A landing area regularly used by aircraft for receiving or 
discharging passengers or cargo.
    Airport, alternate. An approved airport to which a flight may 
proceed if a landing at the airport to which the flight was dispatched 
becomes inadvisable.
    Airport-to-airport distance. The great circle distance between 
airports, measured in statute miles in accordance with part 247 of this 
chapter.
    Air transportation. The carriage by aircraft of persons, property, 
or mail.
    Air transportation, charter. Air transportation authorized pursuant 
to section 401(d)(3).

[[Page 168]]

    Airworthiness (or Airworthy). When applied to a particular aircraft 
or component part, it denotes the ability of such aircraft or component 
part to perform its function satisfactorily through a range of 
operations determined by the Federal Aviation Administration.
    Allocate. To assign an item or group of items of investment, 
revenue, or cost to an object, activity, process, or operation, in 
accordance with cost responsibilities, benefits received, or other 
measure of apportionment.
    Allocation, bases of. Bases of distribution whereby revenues, 
expenses, and/or costs are equitably apportioned among revenue, expense, 
property and equipment, and other accounts.
    Amortization. The gradual extinguishment of an amount in an account 
by distributing such amount over a fixed period, over the life of the 
asset or liability to which it applies or over the period during which 
it is anticipated the benefit will be realized.
    Asset, contingent. An asset the existence, value, or ownership of 
which depend upon the occurrence or nonoccurrence of a specific event or 
upon the performance or nonperformance of a specified act.
    Associated company. A company in which the accounting air carrier 
holds 5 percent or more of the outstanding proprietary interest; or a 
company which holds 5 percent or more of the outstanding proprietary 
interest of the accounting air carrier; or a company that, directly or 
through one or more intermediaries, controls or is controlled by, or is 
under common control with the accounting air carrier. Companies owned or 
controlled jointly with other air carriers shall be regarded as 
associated companies for purposes of this system of accounts. (See also 
Control.)
    Betterment. Any improvement to property or equipment through the 
substitution of superior parts for inferior parts retired, the object of 
which is to make such property more useful or of greater capacity than 
at the time of acquisition or installation. (See also Modification.)
    BTS. The Bureau of Transportation Statistics.
    Cargo. All traffic other than passengers.
    Cargo transported. Cargo on board each flight stage.
    Certificated point. A city, place or population center authorized to 
receive scheduled air service under a Certificate of Public Convenience 
and Necessity or under an exemption issued to an air carrier.
    Certificate of Public Convenience and Necessity. A certificate 
issued to an air carrier under 49 U.S.C. 41102, by the Department of 
Transportation authorizing the carrier to engage in air transportation.
    Company, predecessor. An air carrier whose net assets and operations 
have been taken over by one or more other air carriers.
    Compensation (of personnel). Remuneration to air carrier employees 
for personal services. Includes salaries, wages, overtime pay, cost-of-
living differentials, bonuses, etc., as distinguished from per diem 
allowances or reimbursement for expenses incurred by personnel for the 
benefit of the air carrier.
    Continental United States. The 48 contiguous States and the District 
of Columbia.
    Control (including the terms Controlling, Controlled by, and Under 
common control). The possession, directly or indirectly, of the power 
positively to direct, or cause the direction of or negate the direction 
of, the management and policies of a company, whether such power is 
through one or more intermediary companies or alone or in conjunction 
with or pursuant to an agreement, and whether such power is established 
through a majority or minority ownership or voting of securities, common 
directors, officers, or stockholders, voting trusts, holding trusts, 
associated companies, contract, or any other direct or indirect means.
    Controlling person. (See Person Controlling an air carrier)
    Cost. The amount of cash (or its equivalent) actually paid for 
property, materials and supplies, and services, including that amount 
paid to put the property or materials and supplies in readiness for use. 
It includes such items as transportation charges, installation charges, 
and customs duties, less any cash or other discounts.

[[Page 169]]

    Cost, book. The amount at which an asset is recorded in an account 
without the deduction of amounts in related allowances or other 
accounts.
    Cost, depreciated. The cost of property and equipment less the 
related allowances for depreciation.
    Cost, removal. The cost of demolishing, dismantling, tearing down, 
or otherwise removing property and equipment, including the cost of 
related transportation and handling.
    Debt, expense on. Expenses incurred by or for the air carrier in 
connection with the issuance and sale of evidences of debt (exclusive of 
the sale of reacquired securities), such as fees for drafting mortgages 
and trust deeds; fees and taxes for issuing or recording evidences of 
debt; cost of engraving and printing bonds, certificates of 
indebtedness, and other commercial paper; specific costs of obtaining 
governmental authority for issuance and filing notices thereunder; fees 
for legal services; fees and commissions paid underwriters, brokers, and 
salesmen for marketing such evidences of debt; fees and expenses of 
listing on exchanges; and other like costs.
    Deferred taxes. Tax effects which are deferred for allocation to 
income tax expense of future periods.
    Department. Department of Transportation.
    Departures completed, percent scheduled. The percent of scheduled 
departures that were performed.
    Departures completed, scheduled. The number of takeoffs performed at 
each airport pursuant to published schedules, exclusive of extra 
sections to scheduled departures.
    Departure performed. A takeoff made at an airport.
    Departure, scheduled. A takeoff scheduled at an airport, as set 
forth in published schedules.
    Depreciation (of depreciable property and equipment). The loss in 
service value, not restored by current maintenance, incurred in the 
course of service from causes known to be in current operation, against 
which the carrier is not protected by insurance, and the effect of which 
can be forecast with reasonable accuracy. The causes of depreciation 
include wear and tear, decay, action of the elements, inadequacy, 
obsolescence, changes in the art, changes in demand, and requirements of 
public authorities.
    Discount (of securities issued or assumed by the air carrier). The 
excess of (1) the par or stated value of securities over (2) the then 
current money value of the consideration received from their sale less 
the amount included for dividends or for interest accrued.
    DOT. Department of Transportation.
    Equipment. Tangible property other than land, structures, and 
improvements.
    Equity security. Any instrument representing ownership shares (for 
example, common, preferred, and other capital stock), or the right to 
acquire (for example, warrants, rights, and call options) or dispose of 
(for example, put options) ownership shares in an enterprise at fixed or 
determinable prices. The term does not encompass preferred stock that by 
its terms either must be redeemed by the issuing enterprise or is 
redeemable at the option of the investor, nor does it include treasury 
stock or convertible bonds.
    Equivalent unit. A new unit substituted for an existing unit that is 
worn out, is damaged beyond repair, or has become inadequate in service, 
the substituted unit having substantially no greater capacity than the 
unit for which substituted.
    Estimated economic life of leased property. The estimated remaining 
period during which the property is expected to be economically usable 
by one or more users, with normal repairs and maintenance, for the 
purpose for which it was intended at the inception of the lease, without 
limitation by the lease term.
    Expense, capital stock. Expenses incurred by or for the air carrier 
in connection with the initial issuance and sale of capital stock 
(exclusive of the sale of reacquired capital stock), such as fees and 
commissions paid to promoters, underwriters, brokers, and salesmen; fees 
for legal services; cost of soliciting subscriptions for capital stock; 
including fees, commissions, and advertising; specific costs of 
obtaining governmental authority for issuance and filing notices 
thereunder; fees and taxes for issuance of capital stock and listing on 
exchanges; and the cost of

[[Page 170]]

preparing, engraving, printing, issuing, and distributing prospectuses 
and stock certificates.
    Flight, developmental. A flight for (1) the development of a new 
route either prior or subsequent to certification by the Department of 
Transportation; (2) the extension of an existing route; or (3) the 
integration of a new type of aircraft or service.
    Flight, extra section. A flight, conducted as an integral part of 
scheduled service, that has not been provided for in published schedules 
and is required for transportation of traffic that cannot be 
accommodated on a regularly scheduled flight. Flights made in ferrying 
aircraft to meet schedules, or for similar operational reasons, are not 
extra sections and are classified as nonrevenue flights even if an 
occasional shipment, as a matter of special accommodation, is on board.
    Flight, ferry. A flight for the purpose of returning an aircraft to 
base, equipment equalization, or moving an aircraft to and from a 
maintenance base.
    Flight, paid positioning. A flight for the purpose of positioning an 
empty aircraft in connection with a charter flight for which a specific 
charge is set forth in a tariff or contract for application directly to 
the positioning miles operated. Such flights are considered revenue 
flights for Form 41 reporting purposes.
    Flight, personnel training. A flight for the purpose of obtaining 
flying time for flight personnel or a flight in connection with a 
personnel training program.
    Flight stage. The operation of an aircraft from takeoff to landing. 
For purposes of classifying flight stages as between ``domestic'', 
``territorial'', and ``international'', technical stops are disregarded. 
(See Stops, technical.)
    Freight. Property, other than mail, transported by air.
    Generally accepted accounting principles (GAAP). The body of 
authoritative accounting knowledge governing the recording, presenting 
and disclosing of financial transactions, as incorporated in the 
pronouncements of the Financial Accounting Standards Board.
    Group basis (in depreciation accounting). A plan under which (1) 
depreciation is based upon the application of a single depreciation rate 
to the total book cost of all property included in a given depreciable 
property and equipment account or class, despite differences in service 
life of individual items of property and equipment, (2) the full 
original cost, less any salvage realized, of an item of depreciable 
property or equipment retired is charged to the allowance for 
depreciation regardless of the age of the item, and (3) no gain or loss 
is recognized on the retirement of individual items of property or 
equipment.
    Horsepower, maximum continuous for reciprocating engines. The brake 
horsepower developed in standard atmosphere at a specified altitude and 
under the maximum conditions of crankshaft rotational speed and engine 
manifold pressure, and approved for use during periods of unrestricted 
duration.
    Horsepower, maximum continuous for turbine engines. The brake 
horsepower developed at specified altitudes, atmospheric temperatures, 
and flight speeds and under the maximum conditions of rotor shaft 
rotational speed and gas temperature, and approved for use during 
periods of unrestricted duration.
    Thrust, maximum continuous for turbine engines. The jet thrust 
developed at specified altitudes, atmospheric temperatures, and flight 
speeds and under the maximum conditions of rotor shaft rotational speed 
and gas temperature, and approved for use during periods of unrestricted 
duration.
    Hours, aircraft. The airborne hours of aircraft computed from the 
moment an aircraft leaves the ground until it touches the ground at the 
end of a flight.
    Hours flown, revenue aircraft. The aircraft hours of flights 
performed in revenue service.
    Hours in capitalized projects, aircraft. Aircraft hours applicable 
to ferrying newly acquired aircraft from the factory, to capitalized 
extension and development preoperating projects and to other costs which 
have been capitalized.
    Hours per aircraft per day--carrier's equipment, revenue. Average 
hours of productive use per day in revenue service of reporting 
carrier's equipment determined by dividing (1) Aircraft days

[[Page 171]]

assigned to service--carrier's equipment into (2) Revenue aircraft hours 
minus Revenue hours on other carrier's interchange equipment plus Total 
hours by others on the carrier's interchange equipment.
    Hours per aircraft per day--carrier's routes, revenue. Average hours 
of productive use per day in revenue service on reporting carrier's 
routes determined by dividing (1) Aircraft days assigned to service-
carrier's routes into (2) Revenue aircraft hours.
    Hours, ramp-to-ramp. The aircraft hours computed from the moment the 
aircraft first moves under it own power for purposes of flight, until it 
comes to rest at the next point of landing.
    Improvement. An addition or alteration to land, a building, or a 
unit of equipment that results in a better piece of property, in the 
sense of greater durability, or in increased productivity or efficiency. 
(See also Modification.)
    Income tax expense. The amount of income taxes (whether or not 
currently payable or refundable) allocable to a period in the 
determination of net income.
    Income taxes. Taxes based on income determined under provisions of 
the United States Internal Revenue Code and foreign, State, and other 
taxes (including franchise taxes) based on income.
    Insurance, self. The assumption by an air carrier of a risk of loss 
or liability arising from an accident or other contingent event.
    Interchange agreement. An agreement under which aircraft of one air 
carrier are utilized to provide one-plane service over its own routes 
and the routes of other air carriers.
    Interperiod tax allocation. The process of apportioning income taxes 
among periods.
    Inventory, perpetual. A book inventory kept in continuous agreement 
with stock on hand by means of a detailed record.
    Investor controlled company (for purposes of applying the equity 
method of accounting). Any business entity in which the accounting air 
carrier is able to exercise significant influence over operating and 
financial policies of the issuing company. Significant influence will be 
presumed, unless established to the contrary by waiver request, with 
ownership of 20 percent or more of the outstanding voting capital stock. 
Ability to exercise influence may be indicated in several ways, such as 
representation on the Board of Directors, participation in policy-making 
processes, material intercompany transactions, interchange of managerial 
personnel, or technological dependency. Investor controlled companies 
shall also be regarded as associated companies for purposes of this 
system of accounts (see also Associated company).
    Item, delayed. An item relating to transactions that occurred during 
a prior accounting period and that requires further accounting treatment 
for a true statement of financial condition or operating results. It 
includes adjustments of errors in the operating revenue, operating 
expense, and other income accounts for prior periods.
    Liability, contingent. A possible source of obligation of an air 
carrier dependent upon the fulfillment of conditions regarded as 
uncertain.
    Load, available. Represents the maximum salable load. It is the 
allowable gross weight less the empty weight, less all justifiable 
aircraft equipment, and less the operating load (consisting of minimum 
fuel load, oil, flight crew, steward's supplies, etc.). For passenger 
aircraft, the available load must not exceed the weight of the maximum 
number of passengers who can be accommodated in the seats installed in 
the aircraft plus the weight of the traffic that can be accommodated in 
the cargo space.
    Load, average revenue. The average total revenue tons carried in 
revenue services, determined by dividing total revenue ton-miles by 
aircraft miles flown in revenue services.
    Load, average revenue passenger. Average number of revenue 
passengers carried in passenger services, determined by dividing revenue 
passenger-miles by aircraft miles flown in revenue passenger services.
    Load factor, over-all revenue. The percent that total revenue ton-
miles (passenger plus nonpassenger) are of available ton-miles in 
revenue services.
    Load factor, revenue passenger. The percent that revenue passenger-
miles

[[Page 172]]

are of available seat-miles in revenue passenger services.
    Load, minimum fuel. The minimum quantity of fuel with which an 
aircraft may be dispatched in accordance with the safety operating needs 
of the air carrier.
    Load, salable. (See Load, available.)
    Mail, nonpriority. All mail for which transportation by air is 
provided on a space available basis.
    Mail, priority. All mail for which transportation by air is provided 
on a priority basis.
    Mile. A statute mile (5,280 feet).
    Miles completed, percent scheduled aircraft. The percent of 
scheduled aircraft miles which were performed.
    Miles completed, scheduled aircraft. The aircraft miles performed on 
scheduled flights computed between only those scheduled points actually 
served.
    Miles flown, aircraft. The miles (computed in airport-to-airport 
distances) for each flight stage actually completed, whether or not 
performed in accordance with the scheduled pattern. For this purpose, 
operation to a flag stop is a stage completed even though a landing is 
not actually made. In cases where the interairport distances are 
inapplicable, aircraft miles flown are determined by multiplying the 
normal crusing speed for the aircraft type by the airborne hours.
    Miles flown, nonrevenue aircraft. The aircraft miles flown on 
nonrevenue flights, such as ferry (including empty backhauls to MAC one-
way charters), personnel training, extension and development, and 
abortive revenue flights.
    Miles, revenue aircraft. The aircraft miles flown in revenue 
service.
    Miles, scheduled aircraft. The sum of the airport-to-airport 
distances of all flights scheduled to be performed over the air 
carrier's certificated routes pursuant to published flight schedules. 
Flights listed in the published schedules for operation only as extra 
sections, when traffic warrants, are excluded.
    Modification. An alteration in a structure or unit of equipment that 
changes its design and is made to correct an error, increase production, 
improve efficiency of operation, or for some other reason.
    Obsolescence. The process of becoming out of date due to progress of 
the arts and sciences, changed economic conditions, legislation, etc., 
which ultimately results in the retirement or other disposition of 
property.
    Off-Line. Installations maintained or facilities used for other than 
scheduled certificated air services.
    On-Line. Installations maintained or facilities used in conducting 
scheduled certificated air services.
    Domestic. Flight stages with both terminals within the 50 States of 
the United States and the District of Columbia.
    Territorial. Flight stages with both terminals within territory 
under U.S. jurisdiction where at least one of the terminals is not 
within a State or the District of Columbia.
    International. Flight stages with one or both terminals outside of 
territory under U.S. jurisdiction.
    Operations, systems. The over-all operations of an air carrier 
including all of the operating entities of an air carrier having 
multiple operations.
    Passenger-mile. One passenger transported 1 mile. Passenger-miles 
are computed by multiplying the aircraft miles flown on each flight 
stage by the number of passengers transported on that stage.
    Passenger-mile, nonrevenue. One nonrevenue passenger transported one 
mile.
    Passenger-mile, revenue. One revenue passenger transported one mile.
    Passenger, nonrevenue. Person receiving air transportation from the 
air carrier for which remuneration is not received by the air carrier. 
Air carrier employees or others receiving air transportation against 
whom token service charges are levied are considered nonrevenue 
passengers. Infants for whom a token fare is charged are not counted as 
passengers.
    Passenger, revenue. Person receiving air transportation from the air 
carrier for which remuneration is received by the air carrier. Air 
carrier employees or others receiving air transportation against whom 
token service charges are levied are considered nonrevenue passengers. 
Infants for whom a token fare is charged are not counted as passengers.

[[Page 173]]

    Passengers transported. Passengers on board each flight stage.
    Person controlling an air carrier. Any person, as defined in 49 
U.S.C. 40102, whom the Department has found, in any proceeding, to 
control an air carrier, or who holds, directly or indirectly, the legal 
or beneficial ownership of more than 50 percent of the outstanding 
voting capital stock or capital of an air carrier, and who does not make 
a proper showing to the Department that he or she does not control the 
carrier despite such stock ownership, shall be deemed to be a person 
controlling the carrier for the purpose of this part. A brokerage firm 
which holds record ownership of securities merely for the convenience of 
the customer beneficially owning the stock shall not be deemed a person 
controlling an air carrier.
    Premium (as applied to securities issued or assumed by the air 
carrier). The excess of (1) the then current money value of the 
consideration received from their sale, less the amount included therein 
for dividends or interest accrued, over (2) their par or stated value.
    Pretax accounting income. Income or loss for a period exclusive of 
related income tax expense.
    Property (as applied to traffic). (See Cargo.)
    Replacement. Substitution of new for existing facilities that are 
worn out, damaged beyond repair, or have become inadequate in service.
    Residual value. The predetermined portion of the cost of a unit of 
property or equipment excluded from depreciation. It shall represent a 
fair and reasonable estimate of recoverable value as at the end of the 
service life over which the property or equipment is depreciated and 
shall give due consideration to the proceeds anticipated from 
disposition of the property or equipment and the extent to which costs 
attaching to property or equipment are otherwise recoverable through 
charges against income.
    Retirement. The permanent withdrawal of assets from services of the 
corporate entity through sale, abandonment, demolition, or other 
disposal.
    Retirement, date of. The date on which property or equipment is 
permanently withdrawn from services of the corporate entity.
    Route, certificated. The route(s) over which an air carrier is 
authorized to provide air transportation by a Certificate of Public 
Convenience and Necessity issued by the Department of Transportation 
pursuant to section 401(d) (1) or (2) of the Act.
    Salvage value. The amount received for property retired, less the 
expenses incurred in connection with the sale or in the preparation of 
the property for sale; or, if retained, the amount at which the material 
recovered is charged to materials and supplies or other appropriate 
account.
    Seats available. Installed seats in an aircraft (including seats in 
lounges) exclusive of any seats not offered for sale to the public by 
the carrier; provided that in no instance shall any seat sold be 
excluded from the count of available seats.
    Seats, average available. The average number of seats available for 
passengers, determined by dividing available seat-miles by revenue 
aircraft miles flown in passenger service.
    Seat-miles available, revenue. The aircraft miles flown on each 
flight stage multiplied by the number of seats available for revenue use 
on that stage.
    Section 41103 cargo operations. The carriage, pursuant to 49 U.S.C. 
41103, by aircraft of property and/or mail as a common carrier for 
compensation or hire in commerce between a place in any State of the 
United States, or the District of Columbia, or Puerto Rico, or the U.S. 
Virgin Islands, and a place in any other of those entities, or between 
places in the same State or other entity through the air-space over any 
place outside thereof, or between places within the District of 
Columbia, Puerto Rico, or the U.S. Virgin Islands. This includes 
commerce moving partly by aircraft and partly by other forms of 
transportation, as well as commerce moving wholly by aircraft.
    Segment, service. A pair of points served or scheduled to be served 
by a single stage of at least one flight within any given time period.
    Service, charter. Nonscheduled air transport service in which the 
party receiving transportation obtains exclusive use of an agreed upon 
portion of

[[Page 174]]

the total capacity of an aircraft with the remuneration paid by the 
party receiving transportation accruing directly to, and the 
responsibility for providing transportation is that of, the accounting 
air carrier.
    Service, coach (tourist). Transport service specifically established 
for the carriage of passengers at special reduced passenger fares that 
are predicated on both the operation of specifically designated aircraft 
space and a reduction in the quality of service regularly and ordinarily 
provided.
    Service, first class. Transport service established for the carriage 
of passengers moving at either standard fares or premium fares, or at 
reduced fares not predicated upon the operation of specifically 
allocated aircraft space, and for whom standard or premium quality 
services are provided.
    Service life. The period between the date of installation of 
property or equipment and its date of retirement.
    Service, mixed. Transport service for the carriage of both first-
class and coach passengers on the same aircraft.
    Service, nonpassenger. Transport service established for the 
carriage of traffic other than passengers.
    Service, nonscheduled. Includes transport service between points not 
covered by Certificates of Public Convenience and Necessity issued by 
the Department of Transportation to the air carrier; services pursuant 
to the charter or hiring of aircraft; other revenue services not 
constituting an integral part of the services performed pursuant to 
published schedules; and related nonrevenue flights.
    Service, passenger-cargo. Transport service established for the 
carriage of passengers which may also be used jointly for the 
transportation of cargo.
    Service, scheduled. Transport service operated pursuant to published 
flight schedules, including extra sections and related nonrevenue 
flights.
    Service, transport. The operation of facilities for the carriage of 
traffic by air.
    Services, all. The total of scheduled and nonscheduled transport 
services.
    Stop, flag. A point on an air carrier's operating system that is 
scheduled to be served only when traffic is to be picked up or 
discharged.
    Stops, technical. Aircraft landing made for purposes other than 
enplaning or deplaning traffic. For purposes of identifying reporting 
entities, landings made for stopover passengers are regarded as 
technical stops.
    Tariff, published. A publication containing fares and rates 
applicable to the transportation of persons or cargo and rules relating 
to or affecting such fares or rates of transportation, filed with the 
Department of Transportation.
    Taxable income. The excess of revenues over deductions or the excess 
of deductions over revenues to be reported for income tax purposes for a 
period.
    Tax effects. Differentials in income taxes of a period attributable 
to (1) revenue or expense transactions which enter into the 
determination of pretax accounting income in one period and into the 
determination of taxable income in another period, (2) deductions or 
credits that may be carried backward or forward for income tax purposes, 
and (3) adjustments of prior periods (or of the opening balance of 
retained earnings) and direct entries to other stockholders' equity 
accounts which enter into the determination of taxable income in a 
period but which do not enter into the determination of pretax 
accounting income of that period. A permanent difference does not result 
in a ``tax effect'' as the term is used in this System of Accounts and 
Reports.
    Ton. A short ton (2,000 pounds).
    Ton-mile. One ton transported 1 mile. Ton-miles are computed by 
multiplying the aircraft miles flown on each flight stage by the number 
of tons transported on that stage.
    Ton-mile, nonrevenue. One ton of nonrevenue traffic transported 1 
mile.
    Ton-mile, passenger. One ton of passenger weight (including all 
baggage) transported 1 mile. (See also Weight, passenger.)
    Ton-mile, revenue. One ton of revenue traffic transported 1 mile.
    Ton-miles available, revenue. The aircraft miles flown on each 
flight stage multiplied by the ton capacity available for use on that 
stage.
    Traffic, deplaned. A count of the number of passengers getting off 
and tons

[[Page 175]]

of cargo unloaded from an aircraft. For this purpose, passengers an 
cargo on aircraft leaving a carrier's system on interchange flights are 
considered as deplaning and the interchange point; and passengers and 
cargo moving from one operation to another operation of the same 
carrier, for which separate reports are required by the Department of 
Transportation, are considered as deplaning at the junction point.
    Traffic, enplaned. A count of the number of passengers boarding and 
tons of cargo loaded on an aircraft. For this purpose, passengers and 
cargo on aircraft entering a carrier's system on interchange flights are 
considered as enplaning at the interchange point; and passengers and 
cargo moving from one operation to another operation of the same 
carrier, for which separate reports are required by the Department of 
Transportation, are considered as enplaning at the junction point.
    Traffic, nonrevenue. Passengers and cargo transported by air for 
which no remuneration or token service charges are received by the air 
carrier. Airline employees, officers and directors, or other persons, 
except for ministers of religion, who are traveling under reduced-rate 
transportation authorized by 49 U.S.C. 41511(a) and 14 CFR part 223, as 
well as travel agents, cargo agents, and tour conductors traveling at 
reduced fares are also considered nonrevenue traffic.
    Traffic office. A facility where air transportation is sold, and 
related processes of documentation and reservation confirmation are 
performed.
    Traffic, revenue. Passengers and cargo transported by air for which 
remuneration is received by the air carrier. Airline employees, officers 
and directors, or other persons, except for ministers of religion, who 
are traveling under reduced-rate transportation authorized by 49 U.S.C. 
41511(a) and 14 CFR part 223, travel agents, cargo agents, and tour 
conductors traveling at reduced fares, and other passengers and cargo 
carried for token service charges, are not considered as revenue 
traffic.
    Transportation, free. The carriage of any person or cargo (other 
than cargo owned by the air carrier) without compensation.
    Unit basis (in depreciation accounting). A plan under which 
depreciation expenses is accrued upon the basis of the book cost of the 
individual item of property in relation to the service life and salvage 
value of the particular item.
    Value, service. The difference between the book cost and the 
residual value of property and equipment.
    Weight, allowable gross. The maximum gross weight (of the aircraft 
and its contents) which an aircraft is licensed to carry into the air on 
each flight stage.
    Weight, average available. The average capacity available for 
revenue traffic, determined by dividing available ton-miles by aircraft 
miles in revenue service.
    Weight, empty. The weight of the airframe, engines, propellers, and 
fixed equipment of an aircraft. Empty weight excludes the weight of the 
crew and payload, but includes the weight of all fixed ballast, unusable 
fuel supply, undrainable oil, total quantity of engine coolant, and 
total quantity of hydraulic fluid.
    Weight, passenger. For the purposes of this part, a standard weight 
of 200 pounds per passenger (including all baggage) is used for all 
civil operations and classes of service. Other weights may be prescribed 
in specific instances upon the initiative of the Department of 
Transportation or upon a factually supported request by an air carrier.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by Amdt. 241-58, 54 FR 
5590, Feb. 89, 1989]

    Editorial Note: For Federal Register citations affecting Section 03, 
see the List of CFR Sections Affected in the Finding Aids section of 
this volume.



                    Section 04--Air Carrier Groupings

    (a) All large certificated air carriers are placed into three basic 
air carrier groupings based upon their level of operations and the 
nature of these operations. In order to determine the level of 
operations, total operating revenues for a twelve-month period are used. 
The following operating revenue ranges are used to establish air carrier 
groupings:

[[Page 176]]



------------------------------------------------------------------------
         Carrier Group               Total Annual Operating Revenues
------------------------------------------------------------------------
I..............................  0-$100,000,000
II.............................  $100,000,001-$1,000,000,000
III............................  $1,000,000,001 +
------------------------------------------------------------------------

    For reporting purposes, Group I air carriers are further divided 
into two subgroups: (1) Air carriers with total annual operating 
revenues from $20,000,000 to $100,000,000 and (2) Air carriers with 
total annual operating revenues below $20,000,000.
    (b) Both the criteria for establishing air carrier groupings and the 
assignment of each air carrier to a specific group of carriers will be 
reviewed periodically by the Director, Office of Airline Information, to 
assure the maintenance of appropriate standards for the grouping of 
carriers. When an air carrier's level of operations passes the upper or 
lower limit of its currently assigned carrier grouping, the carrier is 
not automatically transferred to a different group and a new level of 
reporting. The Office of Airline Statistics will issue an updated 
listing of the carrier groups on an annual basis. A carrier may petition 
for reconsideration of its assigned carrier grouping or request a waiver 
from the accounting and reporting requirements that are applicable to a 
particular group under the provisions of section 1-2 of this Uniform 
System of Accounts and Reports.

[Amdt. 241-60, 56 FR 12658, Mar. 27, 1991, as amended at 60 FR 66723, 
Dec. 26, 1995]



                      GENERAL ACCOUNTING PROVISIONS



        Section 1--Introduction to System of Accounts and Reports



Sec. 1-1  Applicability of system of accounts and reports.

    Each large certificated air carrier shall keep its books of account, 
records and memoranda and make reports to the BTS in accordance with 
this system of accounts and reports. The BTS reserves the right, 
however, under the provisions of sections 49 U.S.C. 41701 and 41708, to 
expand or otherwise modify the classes of carriers subject to this 
system of accounts and reports.

[ER-1400, 50 FR 11, Jan. 2, 1985, as amended at 60 FR 66723, Dec. 26, 
1995]



Sec. 1-2  Waivers from this system of accounts and reports.

    A waiver from any provision of this system of accounts or reports 
may be made by the BTS upon its own initiative or upon the submission of 
written request therefor from any air carrier, or group of air carriers, 
provided that such a waiver is in the public interest and each request 
for waiver expressly demonstrates that: existing peculiarities or 
unusual circumstances warrant a departure from a prescribed procedure or 
technique; a specifically defined alternative procedure or technique 
will result in a substantially equivalent or more accurate portrayal of 
operating results or financial condition, consistent with the principles 
embodied in the provisions of this system of accounts and reports; and 
the application of such alternative procedure will maintain or improve 
uniformity in substantive results as between air carriers.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 
26, 1995]



Sec. 1-3  General description of system of accounts and reports.

    (a) This system of accounts and reports is designed to permit 
limited contraction or expansion to reflect the varying needs and 
capacities of different air carriers without impairing basic accounting 
comparability as between air carriers. In its administration three air 
carrier groups, designated Group I, Group II, and Group III, 
respectively (see section 04), are established by the BTS. This grouping 
will be reviewed from time to time upon petition of individual air 
carriers or by initiative of the BTS with the view of a possible 
regrouping of the air carriers.
    (b) Under the system of accounts prescribed, balance sheet elements 
are accounted for by all air carrier groups within a fixed uniform 
pattern of specific accounts. All profit and loss elements are accounted 
for within specific objective accounts established for each air carrier 
group resulting from dual classifications, designated for each air 
carrier group, which are descriptive of both basic areas of financial 
activity, or functional operation, and objective served. The profit and 
loss elements of

[[Page 177]]

the three air carrier groups can be reduced to broad objectives and 
general or functional classifications which are comparable for all air 
carrier groups. Both balance sheet and profit and loss accounts and 
account groupings are designed, in general, to embrace all activities, 
both air transport and other than air transport, in which the air 
carrier engages and provide for the separation of elements identifiable 
exclusively with other than air transport activities. Profit and loss 
elements which are recorded during the current accounting year are 
subclassified as between (1) those which relate to the current 
accounting year and adjustments of a recurrent nature applicable to 
prior accounting years, and (2) extraordinary items of material 
magnitude.
    (c) In order to afford air carriers as much flexibility and freedom 
as possible in establishing ledger and subsidiary accounts to meet their 
individual needs, a minimum number of account subdivisions have been 
prescribed in this Uniform System of Accounts. It is intended, however, 
that each air carrier, in maintaining its accounting records, will 
provide subaccount and subsidiary account segregations of accounting 
elements which differ in nature of accounting characteristics, in a 
manner which will render individual elements readily discernible and 
traceable throughout the accounting system, and will provide for 
relating profit and loss elements to applicable balance sheet 
counterparts.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 
26, 1995]



Sec. 1-4  System of accounts coding.

    (a) A four digit control number is assigned for each balance sheet 
and profit and loss account. Each balance sheet account is numbered 
sequentially, within blocks, designating basic balance sheet 
classifications. The first two digits of the four digit code assigned to 
each profit and loss account denote a detailed area of financial 
activity or functional operation. The first two digits, thus assigned to 
each profit and loss account, are numbered sequentially within blocks, 
designating more general classifications of financial activity and 
functional operation. The second two digits assigned to profit and loss 
accounts denote objective classifications.
    (b) A fifth digit, appended as a decimal, has been assigned for 
internal control by the BTS of prescribed subdivisions of the primary 
objective balance sheet and profit and loss classifications. A different 
fifth digit code number from that assigned by the BTS may be adopted for 
internal recordkeeping by the air carrier provided the prescribed 
subclassification of objective accounts is not impaired and the code 
number assigned by the BTS is employed in reporting to the BTS on Form 
41 Reports.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 
26, 1995]



Sec. 1-5  Records.

    (a) The general books of account and all books, records, and 
memoranda which support in any way the entries therein shall be kept in 
such manner as to provide at any time full information relating to any 
account. The entries in each account shall be supported by such detailed 
information as will render certain the identification of all facts 
essential to a verification of the nature and character of each entry 
and its proper classification under the prescribed Uniform System of 
Accounts. Registers, or other appropriate records, shall be maintained 
of the history and nature of each note receivable and each note payable.
    (b) The books and records referred to herein include not only 
accounting records in a limited technical sense, but all other records 
such as organization tables and charts, internal accounting manuals and 
revisions thereto, minute books, stock books, reports, cost 
distributions and other accounting work sheets, correspondence, 
memoranda, etc., which may constitute necessary links in developing the 
history of, or facts regarding, any accounting or financial transaction.
    (c) All books, records and memoranda shall be preserved and filed in 
such manner as to readily permit the audit and examination thereof by 
representatives of the DOT. All books, records, and memoranda shall be 
housed or stored in such manner as to afford protection from loss, 
theft, or damage by fire, flood or otherwise and no such

[[Page 178]]

books and records shall be destroyed or otherwise disposed of, except in 
conformance with 14 CFR part 249 for the preservation of records.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 
26, 1995]



Sec. 1-6  Accounting entities.

    (a) Separate accounting records shall be maintained for each air 
transport entity for which separate reports to the BTS are required to 
be made by sections 21(g) and for each separate corporate or 
organizational division of the air carrier. For purposes of this Uniform 
System of Accounts and Reports, each nontransport entity conducting an 
activity which is not related to the air carrier's transport activities 
and each transport-related activity or group of activities qualifying as 
a nontransport venture pursuant to paragraph (b) of this section, 
whether or not formally organized within a distinct organizational unit, 
shall be treated as a separately operated organizational division; 
except that provisions of this paragraph and paragraph (b) shall not 
apply to leasing activities.
    (b) As a general rule, any activity or group of activities 
comprising a transport-related service provided for in transport-related 
revenue and expense accounts 09 through 18 shall be considered a 
separate nontransport venture under circumstances in which either: (1) A 
separate corporate or legal entity has been established to perform such 
services, (2) the aggregate annual revenue rate, as determined in 
section 2-1(d), during either of the prior two years exceeds the greater 
of $1 million per annum or one percent of the air carrier's total annual 
transport revenues, or (3) the aggregate annual expense rate, as 
determined in section 2-1(d), during either of the prior two years 
exceeds the greater of $1 million or one percent of the carrier's total 
annual operating expenses: Provided, That revenues and expenses from in-
flight sales, and interchange sales shall be considered related to air 
transportation and accounted for accordingly, regardless of the revenue 
or expense standard set forth above.
    (c) The records for each required accounting entity shall be 
maintained with sufficient particularity to permit a determination that 
the requirements of section 2-1 have been complied with.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-841, 39 FR 11994, 
Apr. 2, 1974; ER-1022, 42 FR 46495, Sept. 15, 1977; ER-1027, 42 FR 
60127, Nov. 25, 1977; 60 FR 66723, Dec. 26, 1995]



Sec. 1-7  Interpretation of accounts.

    To the end that uniform accounting may be maintained, questions 
involving matters of accounting significance which are not clearly 
provided for should be submitted to the Director, Office of Airline 
Information, K-25, Bureau of Transportation Statistics, for explanation, 
interpretation, or resolution.

[Amdt. 241-58, 54 FR 5591, Feb. 6, 1989, as amended at 60 FR 66723, Dec. 
26, 1995]



Sec. 1-8  Address for reports and correspondence.

    All reports required under this part and related correspondence 
shall be addressed to: Office of Airline Information, K-25, Room 4125, 
U.S. Department of Transportation, 400 Seventh St., SW., Washington, DC 
20590.

[Amdt. 241-58, 54 FR 5592, Feb. 6, 1989, as amended at 60 FR 66723, Dec. 
26, 1995]



                 Section 2--General Accounting Policies



Sec. 2.1  Generally accepted accounting principles.

    (a) The accounting provisions contained in this part are based on 
generally accepted accounting principles (GAAP). Persons subject to this 
part are authorized to implement, as prescribed by the Financial 
Accounting Standards Board, newly issued GAAP pronouncements until and 
unless the Director, Office of Airline Information (OAI), issues an 
Accounting Directive making an initial determination that implementation 
of a new pronouncement would adversely affect the Department's programs.
    (b) The Director, OAI, shall review each newly issued GAAP 
pronouncement to determine its affect on the Department's regulatory 
programs. If adopting a specific change in GAAP would adversely affect 
the Department's programs, the Director will

[[Page 179]]

issue the results of the review in the form of an Accounting Directive. 
The directive will state the reasons why the particular change should 
not be incorporated in the uniform system of accounts and contain 
accounting guidance for maintaining the integrity of the Department's 
air carrier accounting provisions.
    (c) Objections and comments relating to the Department's decision 
not to implement a change in generally accepted principles may be 
addressed to Director, Office of Airline Information, K-25, Room 4125, 
U.S. Department of Transportation, 400 Seventh St., SW., Washington, DC 
20590. If significant objections are raised urging adoption of a 
particular GAAP pronouncement, the Department will institute a 
rulemaking.

[Amdt. 241-58, 54 FR 5592, Feb. 6, 1989, as amended at 60 FR 66723, Dec. 
26, 1995]



Sec. 2-2  Basis of allocation between entities.

    (a) The provisions of this section shall apply to each person 
controlling an air carrier, each person controlled by the air carrier, 
as well as each transport entity and organizational division of the air 
carrier for which separate records must be maintained pursuant to 
section 1-6.
    (b) Each transaction shall be recorded and placed initially under 
accounting controls of the particular air transport entity or 
organizational division of the air carrier or member of an affiliated 
group to which directly traceable. If applicable to two or more 
accounting entities, a proration shall be made from the entity of 
original recording to other participating entities on such basis that 
the statements of financial condition and operating results of each 
entity are comparable to those of distinct legal entities. The 
allocations involved shall include all debits and credits associated 
with each entity.
    (c) For purposes of this section, investments by the air carrier in 
resources or facilities used in common by the regulated air carrier and 
those transport-related revenue services defined as separate 
nontransport ventures under section 1-6(b) shall not be allocated 
between such entities but shall be reflected in total in the appropriate 
accounts of the entity which predominately uses those investments. Where 
the entity of predominate use is a nontransport venture, the air carrier 
shall reflect the investment in account 1510.3, Advances to Associated 
Companies.
    (d) For purposes of this Uniform System of Accounts and Reports, all 
revenues shall be assigned to or apportioned between accounting entities 
on bases which will fully recognize the services provided by each 
entity, and expenses, or costs, shall be apportioned between accounting 
entities on such bases as will result: (1) With respect to transport-
related services, in the assignment thereto of proportionate direct 
overheads, as well as direct labor and materials, of the applicable 
expense functions prescribed by this system of accounts and reports, and 
(2) with respect to separate ventures, in the assignment thereto of 
proportional general and administrative overheads as well as the direct 
overheads, labor, and materials.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-841, 39 FR 11994, 
Apr. 2, 1974; ER-1401, 50 FR 238, Jan. 3, 1985. Redesignated and further 
amended by Amdt. 241-58, 54 FR 5592, Feb. 6, 1989]



Sec. 2-3  Distribution of revenues and expenses within entities.

    (a) Revenues and expenses attributable to a single natural objective 
account or functional classification shall be assigned accordingly.
    (b) Revenue and expense items which are common to two or more 
natural objective accounts shall be recorded in the objective accounts 
to which they predominantly relate.
    (c) Expense items contributing to more than one function shall be 
charged to the general overhead functions to which applicable except 
that where only incidental contribution is made to more than a single 
function an item may be included in the function to which primarily 
related, provided such function is not distorted by including an 
aggregation of amounts applicable to other functions. When assignment of 
expense items on the basis of the primary activity to which related does 
not in the aggregate result

[[Page 180]]

in a fair presentation of the expenses applicable to each function, 
apportionment shall be made between functions based upon a study of the 
contribution to each function during a representative period.

[ER-755, 37 FR 19726, Sept. 21, 1972. Redesignated by Amdt. 241-58, 54 
FR 5592, Feb. 6, 1989]



Sec. 2-4  Accounting period.

    (a) The accounting year of each air carrier subject to this Uniform 
System of Accounts shall be the calendar year unless otherwise approved 
by the BTS.
    (b) Each air carrier shall keep its financial accounts and records 
on a full accrual basis for each quarter so that all transactions, as 
nearly as may reasonably be ascertained, shall be fully reflected in the 
air carrier's books for the quarter in which revenues have been earned 
and the costs attaching to the revenues so earned in each quarter have 
been incurred independently of the incidence of sales or purchases and 
settlement with debtors or creditors.
    (c) Expenditures incurred during the current accounting year which 
demonstrably benefit operations to be performed during subsequent 
accounting years to a significant extent shall be deferred and amortized 
to the period in which the related operations are performed when of 
sufficient magnitude to distort the accounting results of the year in 
which incurred.
    (d) Expenditures charged directly or amortized to operations within 
one accounting year shall not be reversed in a subsequent accounting 
year and reamortized or charged directly against operations of 
subsequent years except that retroactive adjustments are permitted where 
necessary to conform with adjustments required by the DOT for ratemaking 
purposes.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1027, 42 FR 
60127, Nov. 25, 1977; ER-1188, 45 FR 48870, July 22, 1980; 60 FR 66723, 
66725, Dec. 26, 1995]



Sec. 2-5  Revenue and accounting practices.

    (a) Revenue accounting practices shall conform to the provisions of 
account 2160, Air Traffic Liability.
    (b) Each route air carrier shall physically verify the reliability 
of its passenger revenue accounting practice at least once each 
accounting year.
    (c) For those carriers who use the yield or average-fare method to 
determine earned revenue, the analysis supporting the verification shall 
include:
    (1) The cutoff date for the liability to be verified; such cutoff 
date shall be at the end of a calendar month.
    (2) The number of months after the cutoff date during which 
documents were examined to verify the liability; the number of months 
after the cutoff date during which documents are examined shall not 
exceed the maximums set forth below:

------------------------------------------------------------------------
                                                                Maximum
                      Class of carrier                        months \1\
------------------------------------------------------------------------
TWA.........................................................          18
Trunks (except TWA).........................................          12
All other route air carriers................................           6
------------------------------------------------------------------------
\1\ Applies only to carriers on a yield or average-fare basis.

    (3) The nature of the documents which were examined for purposes of 
the verification.
    (4) The totals for each of the various types of documents examined, 
on actual or sampling basis.
    (5) A description of the sampling technique and conversion to 
totals, if sampling was employed.
    (6) The amount and basis for all estimates employed in the 
verification.
    (7) The amount of resulting adjustments and the quarter in which 
such adjustments were, or are to be, made in the accounts.
    (d) For those carriers who use the sales-lift match method to 
determine earned revenue, the analysis supporting the physical inventory 
verification shall include:
    (1) The cutoff date for the liability to be verified; such cutoff 
date shall be at the end of a calendar month.
    (2) A trial balance as of the cutoff date of all subaccounts 
supporting the Air Traffic Liability control account; the subsidiary 
trial balance must agree with the Air Traffic Liability control account 
or a reconciliation statement furnished.
    (3) A statement to the effect that a sales listing of the value of 
all unmatched auditor coupons has been compiled and compared to the 
general

[[Page 181]]

ledger control figure; the statement required by this subparagraph shall 
indicate whether or not the value of the unmatched coupons is in 
agreement with the general ledger. If the sales listing is not in 
agreement with the Air Traffic Liability control account, the amount of 
such difference shall be shown on such statement.

[ER-948, 41 FR 12290, Mar. 25, 1976, as amended by ER-1401, 50 FR 238, 
Jan. 3, 1985. Redesignated at Amdt. 241-58, 54 FR 5592, Feb. 6, 1989; 60 
FR 66725, Dec. 26, 1995]



BALANCE SHEET CLASSIFICATIONS--Table of Contents






               Section 3--Chart of Balance Sheet Accounts

                     [See footnotes at end of table]
------------------------------------------------------------------------
                                                General classification
               Name of account               ---------------------------
 
------------------------------------------------------------------------
Current assets:
  Cash......................................  ............        1010
  Short-term investments....................  ............        1100
  Notes receivable..........................  ............        1200
  Accounts receivable.......................  ............        1270
  Allowance for uncollectible accounts......  ............        1290
  Spare parts and supplies..................  ............        1300
  Allowance for obsolescence--Spare parts     ............        1311
   and supplies.............................
  Prepaid items.............................  ............        1410
  Other current assets......................  ............        1420
Investments and special funds:
  Investments in associated companies.......  ............        1510
  Investments in investor controlled          ............        1510.1
   companies................................
  Investments in other associated companies.  ............        1510.2
  Advances to associated companies..........  ............        1510.3
  Other investments and receivables.........  ............        1530
  Special funds.............................  ............        1550
Property and equipment......................  ............   1600-1700
 
                                             ---------------------------
                                               Operating    Nonoperat-
                                              ............         ing
 
                                             ---------------------------
Airframes...................................        1601          1701
  Airframes.................................        1601.1        1701.1
  Unamortized airframe overhauls............        1601.2        1701.2
Aircraft engines............................        1602          1702
  Aircraft engines..........................        1602.1        1702.1
  Unamortized aircraft engine overhauls.....        1602.2        1702.2
Improvements to leased flight equipment.....        1607          1707
Flight equipment rotable parts and                  1608          1708
 assemblies.................................
  Airframe parts and assemblies.............    \1\ 1608.1    \1\ 1708.1
  Aircraft engine parts and assemblies......    \1\ 1608.5    \1\ 1708.5
  Other parts and assemblies................    \1\ 1608.9    \1\ 1708.9
Flight equipment............................        1609          1709
Allowance for depreciation:
  Airframes.................................        1611          1711
  Aircraft engines..........................        1612          1712
  Improvements to leased flight equipment...        1617          1717
  Flight equipment rotable parts and                1618          1718
   assemblies...............................
Flight equipment airworthiness allowance....    \2\ 1629      \2\ 1729
Equipment...................................        1630          1730
Furniture, fixtures and office equipment....        1636          1736
Improvements to leased buildings and                1639          1739
 equipment..................................
 
                                             ---------------------------
                                                General classification
 
                                             ---------------------------
Buildings...................................        1640          1740
  Maintenance buildings and improvements....        1640.1        1740.1
  Other buildings and improvements..........        1640.9        1740.9
Ground property and equipment...............        1649          1749
Allowance for depreciation:
  Equipment.................................        1650          1750
  Improvements to leased buildings and              1654          1754
   equipment................................
  Furniture, fixtures, and office equipment.        1656          1756
  Buildings.................................        1660          1760
    Maintenance buildings and improvements..        1660.1        1760.1
    Other buildings and improvements........        1660.9        1760.9
Allowance for depreciation of flight                1668          1768
 equipment and ground property and
 equipment, and amortization of overhaul and
 airworthiness costs........................
Land........................................        1679          1779
Equipment purchase deposits and advance             1685          1785
 payments...................................
Construction work in progress...............        1689          1789
Leased property under capital leases........        1695          1795
  Capital leases--flight equipment..........        1695.1        1795.1
  Capital leases--other property and                1695.2        1795.2
   equipment................................
Leased property under capital leases,               1696          1796
 accumulated amortization...................
  Accumulated amortization--capitalized             1696.1        1796.1
   flight equipment.........................
  Accumulated amortization--capitalized             1696.2        1796.2
   other property and equipment.............
Property on operating-type lease to others    ............        1797
 and property held for lease................

[[Page 182]]

 
Property on operating-type lease to others    ............        1798
 and property held for lease, accumulated
 depreciation...............................
Other assets:
  Long-term prepayments.....................  ............        1820
  Unamortized developmental and preoperating  ............        1830
   costs....................................
  Other assets and deferred charges.........  ............        1890
Current liabilities:
  Current maturities of long-term debt......  ............        2000
  Notes payable:
    Banks...................................  ............        2005
    Other...................................  ............        2015
  Trade accounts payable....................  ............        2021
  Accounts payable--other...................  ............        2025
  Current obligations under capital leases..  ............        2080
  Accrued salaries, wages...................  ............        2110
  Accrued vacation liability................  ............        2120
  Accrued interest..........................  ............        2125
  Accrued taxes.............................  ............        2130
  Dividends declared........................  ............        2140
  Air traffic liability.....................  ............        2160
  Other current liabilities.................  ............        2190
Noncurrent liabilities:
  Long-term debt............................  ............        2210
  Advances from associated companies........  ............        2240
  Pension liability.........................  ............        2250
  Noncurrent obligations under capital        ............        2280
   leases...................................
  Other noncurrent liabilities..............  ............        2290
Deferred credits:
  Deferred income taxes.....................  ............        2340
  Deferred investment tax credits...........  ............        2345
  Other deferred credits....................  ............        2390
Stockholders' equity:
  Preferred stock...........................  ............        2820
  Common stock..............................  ............        2840
  Additional capital invested...............  ............        2890
  Premium on capital stock..................  ............        2890.1
  Discount on capital stock.................  ............        2890.2
  Other capital stock transactions..........  ............        2890.3
  Retained earnings.........................  ............        2900
  Subscribed and unissued stock.............        2860
  Treasury stock............................  ............        2990
------------------------------------------------------------------------
\1\ Prescribed for group II and group III air carriers only.
\2\ At the option of the air carrier, these accounts may be assigned
  Nos. 2629 and 2729, respectively, for accounting purposes.
 
Note: Digits to right of decimals and italicized codes established for
  BTS control purposes only.


[ER-1401, 50 FR 239, Jan. 3, 1985, as amended by Amdt. 248-58, 54 FR 
5592, Feb. 6, 1989; 60 FR 66723, Dec. 26, 1995]



                           Section 4--General

    (a) The balance sheet accounts are designed to show the financial 
condition of the air carrier as at a given date, reflecting the asset 
and liability balances carried forward subsequent to the closing or 
constructive closing of the air carrier's books of account.
    (b) The balance sheet accounts prescribed in this system of accounts 
for each air carrier group are set forth in Section 3, Chart of Balance 
Sheet Accounts. The balance sheet elements to be included in each 
account are presented in section 6.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by Amdt. 241-58, 54 FR 
5592, Feb. 6, 1989]



                          Section 5  [Reserved]



      Section 6--Objective Classification of Balance Sheet Elements

    Source: ER-980, 42 FR 29, Jan. 3, 1977, unless otherwise noted.

                             Current Assets



1010  Cash.

    (a) Record here all general and working funds available on demand as 
of the date of the balance sheet which are not formally restricted or 
earmarked for specific objectives. Funds deposited for special purposes 
which are to be satisfied within one year shall be included in account 
1100 Short-term Investments and funds restricted as to general 
availability, which are not offset by current liabilities, shall be 
included in account 1550 Special Funds.
    (b) Each air carrier shall subdivide this account in such manner 
that the balance can be readily segregated as between balances in United 
States currency and the balances in each foreign currency.



1100  Short-term Investments.

    (a) Record here the cost of short-term investments such as special 
deposits and United States Government securities, any other temporary 
cash investments, and the allowance for unrealized gain or loss on 
current marketable equity securities.
    (b) Special deposits for more than one year, not offset by current 
liabilities, shall not be included in this account but in account 1550 
Special Funds.

[[Page 183]]

    (c) This account should be charged or credited for discount or 
premium on United States Government securities or other securities which 
should be amortized to profit and loss account 80 Interest Income.



1200  Notes Receivable.

    (a) Record here current notes receivable including those from 
associated companies, company personnel, and all other sources.
    (b) Balances of notes payable to associated companies shall not be 
offset against amounts carried in this account. Balances with associated 
companies which are not normally settled currently shall not be included 
in this account but in balance sheet account 1510.3 Advances to 
Associated Companies.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 241, Jan. 
3, 1985]



1270  Accounts Receivable.

    (a) Record here current accounts receivable including those due from 
the United States Government, foreign governments, associated companies, 
company personnel, and other amounts due for the performance of air 
transportation.
    (b) Amounts due from the United States Government shall be 
maintained in such fashion as will clearly and separately identify 
service mail pay receivables, subsidy receivables and other than mail 
transportation receivables.
    (c) Amounts due for the performance of air transportation shall 
include gross amounts due whether settled through airline clearing 
houses or with individual carriers. Amounts payable collected as agent 
shall not be credited to this account, but should be included in account 
2190 Other Current Liabilities.
    (d) Balances payable to associated companies shall not be offset 
against amounts carried in this account. Balances with associated 
companies which are not normally settled currently shall not be included 
in this account but in balance sheet account 1510.3 Advances to 
Associated Companies.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 241, Jan. 
3, 1985]



1290  Allowance for Uncollectible Accounts.

    (a) Record here accruals for estimated losses from uncollectible 
accounts.
    (b) All accounts against which allowances have been established 
shall be examined quarterly for the purpose of redetermining the basis 
of accruals to be applied to subsequent accounting periods and the 
reasonableness of allowances already provided.



1300  Spare parts and supplies.

    (a) Record here the cost of:
    (1) Flight equipment replacement parts of a type which ordinarily 
would be recurrently expended and replaced rather than repaired and 
reused;
    (2) Unissued fuel inventories for use in the overall or system 
operations of the carrier. Adjustments of inventories for aircraft fuel 
due to retroactive price increases and decreases shall not be entered in 
this account but in profit and loss account 45, Aircraft Fuels and Oils; 
and
    (3) Unissued and unapplied materials and supplies held in stock such 
as unissued shop materials, expendable tools, stationery and office 
supplies, passenger service supplies, and restaurant and food service 
supplies.
    (b) Costs paid by the air carrier such as transportation charges and 
customs duties; excise, sales, use and other taxes; special insurance; 
and other charges applicable to the cost of spare parts and supplies 
shall be charged to this account when they can be definitely allocated 
to specific items or units of property. If such costs cannot be so 
allocated, or if of minor significance in relation to the cost of such 
property, such amounts may be charged to balance sheet account 1890 
Other Assets and Deferred Charges and cleared either by a suitable 
``loading charge'' as the parts are used or by current charges to 
appropriate expense or property accounts; so long as the method of 
application does not cause material distortion in operating expenses 
from one accounting period to another.

[[Page 184]]

    (c) Reusable spare parts and supplies recovered in connection with 
construction, maintenance, or retirement of property and equipment shall 
be included in this account at fair and reasonable values but in no case 
shall such values exceed original cost. Recoveries of normally reparable 
and reusable parts of a type for which losses in value may be covered on 
a practical basis through valuation allowance provisions shall be 
included in this account on an original cost basis. Scrap and nonusable 
parts, expensed from this account and recovered, shall be included at 
net amounts realizable therefrom with contra credit to the expense 
accounts initially charged.
    (d) The cost of rotable parts and assemblies of material value 
included in this account which ordinarily are repaired and reused and 
possess a service life approximating that of the primary property types 
to which related shall not be recorded in this account but in balance 
sheet account 1608 Flight Equipment Rotable Parts and Assemblies. For 
purposes of identifying rotable parts and assemblies of insignificant 
unit value which may be included in this account, a reasonable maximum 
unit value limitation may be established.
    (e) Any losses sustained or gains realized upon the abandonment or 
other disposition of flight equipment expendable parts shall be taken up 
as capital gains or losses in the periods in which sustained or 
realized. (See balance sheet account 1311.)
    (f) Items in this account shall be charged to appropriate expense 
accounts as issued for use. Profit and loss on sales of inventory items 
as a routine service to others shall be included in profit and loss 
accounts 14 General Service Sales--Associated Companies, or 16 General 
Service Sales--Outside, and the parts sold shall be removed from this 
accounts at full cost.
    (g) Materials and supplies held in small supply and purchased 
currently may be charged to appropriate expense accounts when purchased.
    (h) An allowance for inventory adjustment applicable to materials 
and supplies is prohibited. Items in this account shall be charged to 
appropriate expense accounts as issued for use.
    (i) Subaccounts shall be established within this account for the 
separate recording of each class or type of spare parts and supplies.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 241, Jan. 
3, 1985]



1311  Allowance for Obsolescence--Spare Parts and Supplies.

    (a) Accruals shall be made to this account when allowances are 
established for losses in the value of expendable parts. The accruals to 
this account shall be made by charges to profit and loss account 73 
Provisions for Obsolescence and Deterioration--Expendable Parts. Records 
shall be maintained with sufficient detail to permit association of the 
allowances with each class or type of expendable parts.
    (b) The accruals to this account shall be based upon a 
predetermination by the air carrier of that portion of the total 
inventory of each class and type of expendable parts against which an 
allowance for loss is to be accrued. Expendable parts issued for use in 
operations shall be charged to operating expenses as issued and shall 
not be charged to this account. If at the end of any calendar year the 
amount of the allowance exceeds the product of the applicable inventory 
for the year determined consistently on a year-end or average basis, and 
the sum of the standard percentage accrual rates for all prior years 
including the current, the allowance shall be adjusted downward by the 
amount of the excess. Such adjustments shall be charged to this account 
and credited to profit and loss account 73 Provisions for Obsolescence 
and Deterioration--Expendable Parts.
    (c) Where changing conditions necessitate a revision or adjustment 
in rates of accrual, such revision or adjustment shall be made 
applicable to current and subsequent accounting periods and shall not be 
applied retroactively to prior accounting periods. Following retirement 
of airframe or aircraft engine types to which related, any balance 
remaining in this account shall be offset against related balances 
carried in balance sheet account 1300 Spare Parts and Supplies and the 
net cleared to profit and loss accounts 88.5 Capital Gains and Losses--
Operating Property

[[Page 185]]

or 88.6 Capital Gains and Losses--Other.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 241, Jan. 
3, 1985]



1410  Prepaid Items.

    Record here prepayments of obligations which if not paid in advance 
would require the expenditure of working capital within one year, such 
as prepaid rent, insurance, taxes, interest, etc. Unexpired insurance 
and miscellaneous prepayments applicable to periods extending beyond one 
year where significant in amount shall be charged to balance sheet 
account 1820 Long-Term Prepayments.



1420  Other Current Assets.

    Record here current assets not provided for in balance sheet 
accounts 1010 to 1410, inclusive.

                      Investments and Special Funds



1510  Investments in Associated Companies.

    (a) Record here net investments in associated companies.
    (b) [Reserved]
    (c) This account shall be subdivided by all air carrier groups as 
follows:

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1027, 42 FR 60128, 
Nov. 25, 1977; ER-1188, 45 FR 48870, July 22, 1980]



1510.1  Investments in Investor Controlled Companies.

    Record here the cost of investments in investor controlled companies 
except that permanent impairment in the value of securities may be 
reflected through charges to profit and loss classification 8100, 
Nonoperating Income or Expense--Net. This account shall also include the 
equity in undistributed earnings or losses since acquisition. In the 
event dividends are declared by such companies, the air carrier shall 
credit this account for its share in dividends declared and debit 
balance sheet account 1270 Accounts Receivable. This account shall 
separately state: (a) The cost of such investments at date of 
acquisition and (b) the equity in undistributed earnings or losses since 
acquisition.

[Amdt. 241-58, 54 FR 5592, Feb. 6, 1989]



1510.2  Investments in Other Associated Companies.

    Record here the cost of investments in associated companies other 
than investor controlled companies. Cost shall represent the amount paid 
at the date of acquisition without regard to subsequent changes in the 
net assets through earnings or losses of such associated companies. 
However, permanent impairment in the value of securities may be 
reflected through charges to profit and loss classification 8100, 
Nonoperating Income or Expense--Net.

[Amdt. 241-58, 54 FR 5592, Feb. 6, 1989]



1510.3  Advances to Associated Companies.

    (a) Record here advances, loans, and other amounts not settled 
currently with investor controlled and other associated companies and 
nontransport divisions. Balances receivable from and payable to 
different associated companies and different nontransport divisions 
shall not be offset.
    (b) In the case of nontransport divisions three subaccounts shall be 
maintained:
    (1) Net investment;
    (2) current net profit or loss; and
    (3) current accounts receivable or payable between the air carrier 
and the nontransport division.
    (c) Each nontransport division shall be accounted for separately in 
net amounts receivable which shall be included in this account or net 
amounts payable which shall be included in balance sheet account 2240 
Advances from Associated Companies.

[ER-980, 42 FR 29, Jan. 3, 1977. Redesignated by ER-1401, 50 FR 241, 
Jan. 3, 1985]



1530  Other Investments and Receivables.

    Record here notes and accounts receivable not due within one year, 
investments in securities issued by others, investments in leveraged 
leases, the noncurrent net investment in direct financing and sales-type 
leases, and the allowance for unrealized gain or loss on noncurrent 
marketable equity securities. Securities held as temporary cash 
investments shall not be included in this account but in balance

[[Page 186]]

sheet account 1100 Short-Term Investments. Investments in and 
receivables from associated companies which are not settled currently 
shall be included in balance sheet account 1510 Investments in 
Associated Companies.

[Amdt. 241-58, 54 FR 5592, Feb. 6, 1989]



1550  Special Funds.

    Record here special funds not of a current nature and restricted as 
to general availability. Include items such as sinking funds, cash and 
securities posted with courts of law, employee's funds for purchase of 
capital stock, pension funds under the control of the air carrier and 
equipment purchase funds.

                    Operating Property and Equipment

    ``Operating Property and Equipment'' shall encompass items used in 
air transportation services and services related thereto.



1601  Airframes.

    (a) Record here the total cost to the air carrier of airframes of 
all types and classes together with the full complement of instruments, 
appurtenances and fixtures comprising complete airframes including 
accessories necessary to the installation of engines and flight control 
and transmission systems, except as specifically provided otherwise in 
accounts 1602 and 1607. Also record here in separate subaccounts the 
costs of airframes overhauls accounted for on a deferral and 
amortization basis.
    (b) Airframes designed to permit multiple payload configurations 
shall be recorded in this account at the total cost of the maximum 
complement of instruments, appurtenances, and fixtures used in the air 
carrier's operations.
    (c) This account shall be subdivided as follows by all air carriers:
1601.1  Airframes.
1601.2  Unamortized Airframe Overhauls.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5593, 
Feb. 6, 1989]



1602  Aircraft Engines.

    (a) Record here the total cost to the air carrier of complete units 
of aircraft engines of all types and classes together with a full 
complement of accessories, appurtenances, parts and fixtures comprising 
fully assembled engines as delivered by the engine manufacturer ready 
for operation in test but without the accessories necessary to its 
installation in airframes. Also record here in separate subaccounts the 
costs of aircraft engine overhauls accounted for on a deferral and 
amortization basis.
    (b) This account shall be subdivided as follows by all air carriers:
1602.1  Aircraft Engines.
1602.2  Unamortized Aircraft Engine Overhauls.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5593, 
Feb. 6, 1989]



1607  Improvements to Leased Flight Equipment.

    Record here the total cost incurred by the air carrier for 
modification, conversion or other improvements to leased flight 
equipment. Also record here, in separate subaccounts, the costs of 
airframe and aircraft engine overhauls of leased aircraft accounted for 
on a deferral and amortization basis.

[Amdt. 241-58, 54 FR 5593, Feb. 6, 1989]



1608  Flight Equipment Rotable Parts and Assemblies.

    (a) Record here the total cost to the air carrier of all spare 
instruments, parts, appurtenances and subassemblies related to the 
primary components of flight equipment units provided for in balance 
sheet accounts 1601 through 1607, inclusive. This account shall include 
all parts and assemblies of material value which are rotable in nature, 
are generally reserviced or repaired, are used repeatedly and possess a 
service life approximating that of the property type to which they 
relate. Items of an expendable nature which generally may not be 
repaired and reused, shall not be recorded in this account but in 
account 1300 Spare Parts and Supplies. Except for recurrent service 
sales, flight equipment parts recorded in this account shall not be 
charged to operating expenses as retired. Profit or loss on sales of 
parts as a routine service to others shall be included in profit and 
loss account 14 General Service Sales, and parts sold shall be removed 
from this account at full cost irrespective of any allowance

[[Page 187]]

for depreciation which has been provided.
    (b) This account shall be subdivided as follows by Group II and 
Group III air carriers:
1608.1  Airframe Parts and Assemblies.
1608.5  Aircraft Engine Parts and Assemblies.
1608.9  Other Parts and Assemblies.

[ER-980, 42 FR 29, Jan. 3. 1977, as amended by Amdt. 241-58, 54 FR 5593, 
Feb. 6, 1989]



1609  Flight Equipment.

    This classification is established only for purposes of control by 
the BTS and shall reflect the total cost of property and equipment of 
all types and classes used in the in-flight operations of aircraft.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended at 60 FR 66723, Dec. 26, 
1995]



1629  Flight Equipment Airworthiness Allowances.

    (a) Record here accumulated provisions for overhauls of flight 
equipment.
    (b) Separate subaccounts shall be established for recording 
accumulated provisions related to each type of airframe and aircraft 
engine, respectively.
    Note: At the option of the air carrier, the number ``2629'' may be 
assigned to this account for accounting purposes. However, for purposes 
of reporting on BTS Form 41, the balance in this account shall be 
reported under account ``1629.''

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5593, 
Feb. 6, 1989; 60 FR 66723, Dec. 26, 1995]



1630  Equipment.

    Record here the total cost to the air carrier of ground equipment to 
include the following:
    (a) Equipment assigned to aircraft or active line operations as 
opposed to items held in stock for servicing passengers such as 
broilers, bottleware, dishes, food boxes, thermos jugs, blankets, first 
aid kits, etc. Spare items shall be carried in balance sheet account 
1300 Spare Parts and Supplies and shall be charged directly to expense 
upon withdrawal from stock for replacing original complements.
    (b) Equipment used in restaurants and kitchens.
    (c) Equipment of all types and classes used in enplaning and 
handling traffic and in handling aircraft while on ramps, including 
motorized vehicles used in ramp service. Classes of equipment used 
interchangeably between handling aircraft on ramps and in maintaining 
aircraft may be classified in accordance with normal predominant use.
    (d) Nonairborne equipment of all types and classes used in 
meteorological and communication services which is not a part of 
buildings.
    (e) Equipment of all types and classes including motorized vehicles 
used in engineering and drafting services and in maintaining, 
overhauling, repairing and testing other classes of property and 
equipment.
    (f) Property and equipment of all types and classes used in ground 
and marine transportation services.
    (g) Property and equipment of all types and classes used in storing 
and distributing fuel, oil and water, such as fueling trucks, tanks, 
pipelines, etc.
    (h) All other ground equipment of all types and classes such as 
medical, photographic, employees' training equipment, and airport and 
airway lighting equipment.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5593, 
Feb. 6, 1989]



1636  Furniture, Fixtures, and Office Equipment.

    Record here the total cost to the air carrier of furniture, fixtures 
and office equipment of all types and classes wherever used or located.

[Amdt. 241-58, 54 FR 5593, Feb. 6, 1989]



1639  Improvements to Leased Buildings and Equipment.

    Record here the total cost to the air carrier incurred in connection 
with modification, conversion, or other improvements to leased buildings 
and equipment.



1640  Buildings.

    Record here the total cost to the air carrier of owned buildings, 
structures and equipment and related improvements. Each air carrier 
shall maintain the following subaccounts in which the values fairly 
assignable to maintenance and other operations shall be separately 
recorded:

[[Page 188]]

1640.9  Other Buildings and Improvements.
1640.1  Maintenance Buildings and Improvements.

[Amdt. 241-58, 54 FR 5593, Feb. 6, 1989]



1649  Ground Property and Equipment.

    This classification is established only for purposes of control by 
the BTS and shall reflect the total cost of property and equipment of 
all types and classes other than flight equipment, equipment purchase 
deposits and advance payments, land, and work in progress.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended at 60 FR 66723, Dec. 26, 
1995]



1668  Allowance for Depreciation of Flight Equipment and Ground Property and Equipment and Amortization of Overhaul and Airworthiness Costs.

    (a) Record in accounts 1611 and 1618, inclusive, and 1650 through 
1660, inclusive, accruals for depreciation of flight equipment and 
ground property and equipment.
    (b) As set forth in section 3, Chart of Balance Sheet Accounts, 
separate accounts shall be established for depreciation allowances to 
parallel balance sheet accounts 1601 through 1608 established for 
recording the cost of flight equipment and accounts 1630 through 1640 
established for recording the cost of ground property and equipment.
    (c) This account shall be used as a control account and shall 
reflect the total amounts recorded in balance sheet accounts 1611 
through 1618 and 1650 through 1660 in addition to account 1629 Flight 
Equipment Airworthiness Allowance.



1679  Land.

    Record here the initial cost and the cost of improving land.

[Amdt. 241-58, 54 FR 5593, Feb. 6, 1989]



1685  Equipment Purchase Deposits and Advance Payments.

    Record here the amount of purchase deposits and advance payments 
made to acquire operating property and equipment under outstanding 
purchase commitments. Funds set aside but not deposited or used as 
advance payments should not be included in this account but in Account 
1550 Special Funds.



1689  Construction Work in Progress.

    (a) Record here all direct and indirect costs of the air carrier 
that are expended for constructing and readying property and equipment 
of all types and classes for installation in operations. The amount 
reported shall reflect all such expenses that are accumulated to the 
balance sheet date. Where properly includable in the property and 
equipment classification, record here also the accumulated costs for 
uncompleted overhauls of airframes, aircraft engines, or other material 
units of property.
    (b) At the option of the air carrier this account may be used as a 
clearing account for recording the cost of property and equipment 
acquisitions prior to a distribution thereof to the appropriate property 
accounts, whether or not conditioning or modification is necessary 
before placing in service.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5594, 
Feb. 6, 1989]



1695  Leased Property Under Capital Leases.

    (a) Record here the total costs to the air carrier for all property 
obtained under capital leases.
    (b) This account shall be subdivided by all air carrier groups as 
follows:
1695.1  Capital Leases--Flight Equipment.
1696.2  Capital Leases--Other Property and Equipment.

[ER-1401, 50 FR 241, Jan. 3, 1985, as amended by Amdt. 241-58, 54 FR 
5594, Feb. 6, 1989]



1696  Leased Property Under Capital Leases--Accumulated Amortization.

    (a) Record here accruals for amortization of leased property 
obtained under capital leases.
    (b) This account shall be subdivided by all air carrier groups as 
follows:
1696.1  Accumulated Amortization--Capitalized Flight Equipment.
1696.2  Accumulated Amortization--Capitalized Other Property and 
          Equipment.

[ER-1401, 50 FR 241, Jan. 3, 1985, as amended by Amdt. 241-58, 54 FR 
5594,]

                  Non-operating Property and Equipment

    ``Nonoperating Property and Equipment'' includes investments in 
property and equipment not separately accounted for within a 
nontransport division but assigned to other

[[Page 189]]

than air transportation and transport-related services, and property and 
equipment held for future use.



1700  Non-operating Property and Equipment.

    The total cost to the air carrier of nonoperating property and 
equipment and related allowances for depreciation shall be recorded in 
balance sheet accounts 1701 through 1796 which, as set forth in section 
3, Chart of Balance Sheet Accounts, parallel balance sheet accounts 1601 
through 1689, for recording the cost of operating property and 
equipment. In addition to these accounts, Account 1797 has been 
established for recording the cost of property on operating-type leases 
to others and property held for lease; any accumulated depreciation 
applicable to the assets contained in Account 1797 shall be recorded in 
Account 1798.

[ER-1013, 42 FR 37515, July 21, 1977]



1797  Property on Operating-type Lease to Others and Property Held for Lease.

    Record here the total cost to the air carrier of property on 
operating-type lease to others and property held for lease.

[Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]



1798  Property on Operating-type Lease to Others and Property Held for Lease--Accumulated Depreciation.

    Record here accruals for depreciation of property on operating-type 
leases to others and property held for lease.

[Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]

                              Other Assets



1820  Long-Term Prepayments.

    Record here prepayments of obligations applicable to periods 
extending beyond one year such as payments on leased property and 
equipment and other payments and advances for rents, rights, or other 
privileges.



1830  Unamortized Developmental and Preoperating Costs.

    (a) Record here costs accumulated and deferred by the air carrier 
pertaining to the development of new routes or extension of existing 
routes, preparation for operation of new routes subsequent to 
certification by the DOT, the integration of new types of aircraft or 
services, and other preparations for substantial alterations in 
operational characteristics.
    (b) Costs chargeable to this account shall include items directly 
related to each specific developmental or preoperating project, such as 
travel and incidental expenses, legal expenses, flight crew training 
expenses, and regulatory proceedings expenses. Expenses which would be 
otherwise incurred in the normal air transport operations conducted by 
the air carrier during the current accounting period shall not be 
allocated to developmental or preoperating projects and charged to this 
account. Nor shall this account be credited for revenues from aircraft 
flights of a developmental or preoperating character the operating costs 
of which are charged to this account. Any such revenues shall be 
included in the profit and loss account for the respective type of 
revenue. This account shall include charges for only those costs 
associated with projects directed at obtaining new operating authority 
or expanding the physical capacity of the air carrier and shall not 
include costs incurred for the purpose of generating revenues through 
rate adjustment. Accordingly, costs associated with regulatory 
proceedings involving route awards or amendments, whether successful or 
unsuccessful to the carrier, shall be included in this account whereas 
costs associated with regulatory proceedings involving rate or other 
revenue generation matters shall be charged to appropriate expense 
accounts.
    (c) Records shall be established for new routes or extensions of 
existing routes to record separately: (1) Costs incurred in acquiring or 
applying for the routes, including all costs incurred prior to 
certification by the DOT and inauguration of service by the air carrier, 
and (2) costs incurred after revenue operations begin over the new 
routes or extensions.
    (d) Subclassifications shall be established to record for each 
developmental project the period covered and the purpose of each item of 
expense. Each air carrier shall classify the costs of all

[[Page 190]]

projects included in this account between: (1) Those related and 
contributing to the normal air transportation services currently 
conducted by the air carrier; (2) those related to services conducted by 
the air carrier which are extraneous to or are not otherwise related to 
the air transportation services currently conducted; and (3) those held 
in suspense pending status determination in terms of possible 
contribution to the air transportation services and inauguration of the 
service or operation to which related.
    (e) Amounts included in this account which contribute to or protect 
the position of the normal air transportation services currently 
conducted by the carrier shall be amortized to profit and loss account 
74 Amortization, unless otherwise approved or directed by the DOT. Other 
amounts included in this account shall be amortized or charged to profit 
and loss account 89.9 Other Miscellaneous Nonoperating Debits.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended at 60 FR 66723, Dec. 26, 
1995]



1890  Other Assets and Deferred Charges.

    (a) Record here other assets and deferred charges not provided for 
elsewhere.
    (b) Record here debits, the proper final disposition of which cannot 
be determined until additional information has been received. This 
account shall include the accumulated cost of labor, materials and 
outside services used in the process of manufacturing flight equipment 
expendable parts and materials and supplies for stock, the accumulated 
cost of jobs in process for others, projects to be charged to expense 
upon completion. This account shall also include unamortized debt 
expense, property acquisition adjustments and intangible assets.
    (c) This account shall be charged with property loss and other costs 
related to casualties and credited with recoveries from purchased 
insurance and salvage. A debit or credit balance in this account related 
to property retired as a result of a casualty shall be recorded in 
profit and loss account 88.5 Capital Gains and Losses--Operating 
Property or 88.6 Capital Gains and Losses--Other; however, any balances 
related to property not retired or to other casualties shall be recorded 
in profit and loss account 58 Injuries, Loss and Damage. Proceeds from 
purchased insurance for property damage, received prior to repair of 
such damage, shall not be credited to this account but to balance sheet 
account 2390 Other Deferred Credits pending repair. The records for each 
major casualty shall be kept in such manner as to clearly disclose 
insurance recoveries and the total costs, which shall include charges 
for the depreciated cost of property damaged or destroyed, costs for 
clearing wrecks and damaged property and equipment, including salaries 
and wages for the repair thereof, and payments for damages to property 
of others. The cost of casualties shall not be charged directly against 
retained earnings or appropriations thereof, but shall be cleared 
through the applicable profit and loss accounts in accordance with the 
foregoing.
    (d) Record here the unamortized debt expense related to the 
assumption by the air carrier of debt of all types and classes. Amounts 
recorded shall be amortized to profit and loss account 84 Amortization 
of Debt Discount, Premium and Expense.
    (e) Unamortized debt expense shall not include the excess of the par 
value of debt securities over the cash value of consideration received. 
Instead, discounts shall be recorded in a subaccount of the related 
liability.
    (f) Record here the cost of patents, copyrights and other intangible 
properties, rights and privileges acquired as a part of a business from 
other air carriers and other intangibles not provided for elsewhere. 
This account shall be subdivided to reflect the nature of each 
intangible asset included in this account.
    (g) Record here the difference between the purchase price to the air 
carrier of property and equipment acquired as a part of a business from 
another air carrier through consolidation, merger, or reorganization, 
pursuant to a plan approved by the DOT, and the depreciated cost to the 
predecessor company at date of acquisition. Record here also such 
differences relating to purchases of property and equipment from 
associated companies unless other

[[Page 191]]

treatment is approved by the BTS. Separate subaccounts shall be 
established to record the amounts applicable to each such acquisition.
    (h) Balances in this account relating to property acquisition 
adjustments shall be amortized by charges to profit and loss account 
89.9 Other Miscellaneous Nonoperating Debits unless otherwise directed 
or approved by the BTS.

[ER-1401, 50 FR 242, Jan. 3, 1985, as amended at 60 FR 66723, Dec. 26, 
1995]

                           Current Liabilities



2000  Current Maturities of Long-term Debt.

    Record here the face value or principal amount of debt securities 
issued or assumed by the air carrier which is payable within 12 months 
of the balance sheet date unless such debt is to refinance, or where 
payment is to be made from assets of a type not properly classifiable as 
current.



2005  Notes Payable--Banks.

    Record here the face value of all notes, drafts, acceptances, or 
other similar evidences of indebtedness payable on demand or within one 
year to a bank or another financial institution with the exception of 
current maturities of long-term debt which should be included in account 
2000.



2015  Notes Payable--Other.

    Record here the face value of all notes, drafts, acceptances, or 
other similar evidences of indebtedness payable on demand or within one 
year to an associated company or party other than a financial 
institution.



2021  Trade Accounts Payable.

    Record here all accounts payable within one year which accrued from 
generally recognized trade practices.



2025  Accounts Payable--Other.

    Record here all accounts payable within one year which are not 
provided for in accounts 2000 to 2021, inclusive.



2080  Current Obligations Under Capital Leases.

    Record here the total current liability applicable to property 
obtained under capital leases.

[ER-1013, 42 FR 37515, July 21, 1977; 42 FR 38555, July 29, 1977; Amdt. 
241-58, 54 FR 5594, Feb. 6, 1989]



2110  Accrued Salaries, Wages.

    Record here amounts accrued for unpaid compensation to personnel, 
which have been charged to profit and loss or capitalized, as 
compensation for the period in which accrued.



2120  Accrued Vacation Liability.

    (a) Record here accruals of liabilities for personnel vacations. All 
vacation policies, plans, or agreements whether oral or written shall be 
accounted for on an accrual basis whenever a lag exists between 
vacations earned and vacations taken, thereby resulting in a liability 
against the carrier under the applicable policy, plan or agreement.
    (b) This account shall be credited and the applicable personnel 
compensation expense account concurrently charged with the cost of any 
lag between vacations accrued and vacations taken. Accruals may be based 
upon standard rates of lag, if such standard rates are verified by 
physical inventory and adjusted accordingly at least once each calendar 
year. Adjustments of balances in this account shall be cleared to 
applicable compensation expense accounts.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1027, 42 FR 60128, 
Nov. 25, 1977; ER-1188, 45 FR 48870, July 22, 1980; Amdt. 241-58, 54 FR 
5594, Feb. 6, 1989]



2125  Accrued Interest.

    Record here interest payable within one year for all outstanding 
obligations.



2130  Accrued Taxes.

    (a) Record here accruals for currently payable income and other 
forms of taxes which constitute a charge borne by the air carrier as 
opposed to those collected as an agent for others.

[[Page 192]]

    (b) Each air carrier shall disclose in the footnotes of its BTS Form 
41 for each calendar quarter whether utilized credits are accounted for 
by the flow-through method or the deferred method. The method selected 
shall be consistently followed by the carrier.

[Amdt. 241-58, 54 FR 5594, Feb. 6, 1989, as amended at 60 FR 66723, Dec. 
26, 1995]



2140  Dividends Declared.

    Record here in separate subdivisions for each class and series of 
capital stock, all dividends declared but unpaid on capital stock.



2160  Air Traffic Liability.

    (a) Record here balances representing the value of unused 
transportation sold. Transportation sold includes both sales for 
transportation to be provided by the air carrier and transportation to 
be provided by another air carrier.
    (b) Earned revenue, determined by the yield or average fare method 
or by the sales-lift-match method, shall be consistently and 
periodically cleared by debit to this account, and by credit to the 
appropriate profit and loss revenue account. Amounts receivable for 
transportation to be provided by the air carrier shall be debited to 
balance sheet account 1270 Accounts Receivable.
    (c) Carriers who determine earned revenue on a yield or average fare 
method may not accrue income during the accounting year in anticipation 
of a favorable annual physical inventory determination, nor for unused 
or unpresented tickets.
    (d) Subaccounts to this account shall be established to record 
balances pertaining to passenger and cargo transportation sold, 
respectively, and separately to sales in scheduled and non-scheduled 
services.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 242, Jan. 
3, 1985]



2190  Other Current Liabilities.

    Record here current and accrued liabilities, including amounts 
payable collected as an agent, not provided for in accounts 2110 to 
2160, inclusive.

                         Non-current Liabilities



2210  Long-Term Debt.

    (a) Record here the face value of principal amount of debt 
securities issued or assumed by the air carrier and held by other than 
associated companies, which has not been retired or cancelled and is not 
payable within 12 months of the balance sheet date.
    (b) In cases where debt coming due within 12 months is to be 
refunded, or where payment is to be made from assets of a type not 
properly classifiable as current, the amount payable shall not be 
removed from this account. In addition, this account shall include 
short-term debt obligations when both the intent to refinance the short-
term obligations on a long-term basis is established and the ability to 
consummate this refinancing can be demonstrated.

[Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]



2240  Advances from Associated Companies.

    Record here net amounts due associated companies and nontransport 
divisions for notes, loans and advances which are not settled currently. 
Balances payable to and receivable from different associated companies 
shall not be offset.



2250  Pension Liability.

    Record here the liability of the air carrier under employee pension 
plans, to which either or both employees and the air carrier contribute, 
if the plan is administered by the air carrier.



2280  Noncurrent Obligations under Capital Leases.

    Record here the total noncurrent liability applicable to property 
obtained under capital leases.

[ER-1013, 42 FR 37515, July 21, 1977, as amended by Amdt. 241-58, 54 FR 
5594, Feb. 6, 1989]



2290  Other Noncurrent Liabilities.

    Record here noncurrent liabilities not provided for in balance sheet 
accounts 2210 to 2280, inclusive, such as the liability for installments 
received on capital stock from company personnel who are not bound by 
legally

[[Page 193]]

enforceable subscription contracts, accruals for personnel dismissal 
liability, and accruals of other demonstrable miscellaneous noncurrent 
liabilities.

[ER-1401, 50 FR 242, Jan. 3, 1985]

                            Deferred Credits



2340  Deferred Income Taxes.

    Record here credits and debits representing the net tax effect of 
material timing differences originating and reversing in the current 
accounting period, giving appropriate recognition to the portion of 
investment tax credits which would have been allowed if taxes were based 
on pretax accounting income by a reduction of the deferred tax 
provision.

[Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]



2345  Deferred Investment Tax Credits.

    Record here investment tax credits utilized as reduction of tax 
liabilities, when the carrier exercises the option to defer such credits 
for amortization over the service life of the related equipment.

[Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]



2390  Other Deferred Credits.

    Record here credits, not provided for elsewhere, the proper final 
disposition of which cannot be effected until additional information has 
been received.

                          Stockholders' Equity



2820  Preferred Stock.

    Record here in separate subdivisions for each class and series, the 
par or stated value of preferred capital stock issued or in the case of 
no-par stock without stated value, the full consideration received.



2840  Common Stock.

    Record here in separate subdivisions for each class and series, the 
par or stated value of common stock issued or in case of no-par stock 
without stated value, the full consideration received.



2860  Subscribed and Unissued Stock.

    Record here in separate subdivisions for each class and series, the 
par or stated value, or the subscription price in the case of stock 
without par or stated value, of legally enforceable subscriptions to the 
capital stock of the air carrier.



2890  Additional Capital Invested.

    (a) Record herein separate subdivisions for each class and series, 
the difference between the price at which capital stock is sold and the 
par or stated value of the stock; gains or losses arising from the 
reacquisition and the resale or retirement of each class and series of 
capital stock; donations; the excess of retained earnings capitalized 
over par or stated value of capital stock issued; adjustments in capital 
resulting from reorganization or recapitalization; and proceeds 
attributable to detachable stock purchase warrants related to debt 
issues. This account shall also include balances of contributions to the 
business enterprise of individual proprietors or partners.
    (b) Each air carrier shall maintain the following subaccounts:
    2890.1 Premium on capital stock. Record here in separate 
subdivisions for each class and series of capital stock issued the 
excess of the cash value of consideration received over the par or 
stated value and accrued dividends of stock issued together with 
assessments against stockholders representing payments required in 
excess of par or stated value.
    2890.2 Discount on capital stock. Record here in separate 
subdivisions for each class and series of capital stock issued, the 
excess of the par or stated value over the cash value of consideration 
received, less accrued dividends. Discounts applicable to a particular 
class and series of capital stock may be offset against premiums from 
the same class and series of capital stock. Discounts and premiums on 
different classes and series of capital stock shall not be offset. The 
air carrier may, at its option, record in this subaccount commissions 
and expenses incurred in the issuance of capital stock and may charge 
balance sheet account 2900 Retained Earnings to the extent capital stock 
expense may exceed any existing balance of paid-in capital over the par 
or stated value of capital stock.
    2890.3 Other Capital Stock Transactions. Record here in separate 
subdivisions for each class and series, the balance of credits arising 
from the reacquisition and resale or cancellation of capital stock, 
credits arising from a reduction in the par or stated value of capital 
stock or the net balance of credits or debits resulting from other paid-
in capital transactions such as proceeds attributable to detachable 
stock purchase warrants related to debt issues, not provided for 
elsewhere,

[[Page 194]]

which is identified with a particular class and series of capital stock.



2900  Retained Earnings.

    (a) Record here the net income or loss from operations of the air 
carrier and dividends declared on capital stock.
    (b) This account shall not be charged with dividends on treasury 
stock. If a dividend is not payable in cash, the values entered in this 
account shall be completely described.
    (c) Delayed credits or charges to income shall not be entered in 
this account directly but in appropriate profit and loss accounts.
    (d) Net income or loss accounted for during the current fiscal year 
shall not be entered in this account until the close of the fiscal year. 
Individual proprietorships or partnerships may clear net income or loss 
accounted for during the year directly to balance sheet account 2890 
Additional Capital Invested, or optionally, to this account for 
subsequent transfer to balance sheet account 2890 Additional Capital 
Invested.
    (e) A separate subaccount to this account shall be maintained to 
record changes in the valuation of marketable equity securities included 
in noncurrent assets. Such changes shall be reflected in this subaccount 
to the extent the balance in this subaccount represents a net unrealized 
loss as of the current balance sheet date.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by ER-1401, 50 FR 242, Jan. 
3, 1985]



2990  Treasury Stock.

    (a) Record here the cost of capital stock issued by the air carrier 
reacquired by it and not retired or canceled.
    (b) Separate records shall be established for each class and series 
of capital stock held in this account.

[ER-980, 42 FR 29, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5594, 
Feb. 6, 1989]

                     PROFIT AND LOSS CLASSIFICATION

                                  Section 7--Chart of Profit and Loss Accounts
----------------------------------------------------------------------------------------------------------------
                                                  Functional or financial activity to which applicable (00)
Objective classification of profit and loss --------------------------------------------------------------------
                  elements                      Group I carriers      Group II carriers      Group III carriers
----------------------------------------------------------------------------------------------------------------
      operating revenues and expenses
 
Transport revenues:
01  Passenger:
  01.1  Passenger--first class.............  31, 32...............  31, 32...............  31, 32.
  01.2  Passenger--coach...................  31, 32...............  31, 32...............  31, 32.
05  Mail:
  05.1  Priority...........................  31, 32...............  31, 32...............  31, 32.
  05.2  Nonpriority........................  31, 32...............  31, 32...............  31, 32.
  05.3  Foreign............................  31, 32...............  31, 32...............  31, 32.
06  Property:
  06.1  Freight............................  31, 32...............  31, 32...............  31, 32.
  06.2  Excess passenger baggage...........  31, 32...............  31, 32...............  31, 32.
07  Charter:
  07.1  Passenger..........................  32...................  32...................  32.
  07.2  Property...........................  32...................  32...................  32.
19  Air transport--other:
  19.1  Reservation cancellation fees......  31, 32...............  31, 32...............  31, 32.
  19.2  Miscellaneous operating revenues...  31, 32...............  31, 32...............  31, 32.
08  Public service revenues (subsidy)......  48...................  48...................  48.
 
Transport-related revenues and expenses:
09  In-flight sales:
  09.1  Liquor and food--gross revenues....  48...................  48...................  48.
  09.2  Movies and stereo--gross revenues..  48...................  48...................  48.
  09.3  Other--gross revenues..............  48...................  48...................  48.
  09.4  Liquor and food--depreciation        71...................  71...................  71.
   expense.
  09.5  Liquor and food--other expense.....  71...................  71...................  71.
  09.6  Movies and stereo--depreciation      71...................  71...................  71.
   expense.
  09.7  Movies and stereo--other expense...  71...................  71...................  71.
  09.8  Other--depreciation expense........  71...................  71...................  71.

[[Page 195]]

 
  09.9  Other--expense.....................  71...................  71...................  71.
10  Restaurant and food service (ground):
  10.1  Gross revenues.....................  48...................  48...................  48.
  10.2  Depreciation expense...............  71...................  71...................  71.
  10.3  Other expenses.....................  71...................  71...................  71.
11  Rents:
  11.1  Gross revenues.....................  48...................  48...................  48.
  11.2  Depreciation expense...............  71...................  71...................  71.
  11.3  Other expenses.....................  71...................  71...................  71.
12  Limousine service:
  12.1  Gross revenues.....................  48...................  48...................  48.
  12.2  Depreciation expense...............  71...................  71...................  71.
  12.3  Other expenses.....................  71...................  71...................  71.
13  Interchange sales:
  13.1  Associated companies--gross          48...................  48...................  48.
   revenues.
  13.2  Outside--gross revenues............  48...................  48...................  48.
  13.3  Associated companies--depreciation   71...................  71...................  71.
   expense.
  13.4  Associated companies--other expense  71...................  71...................  71.
  13.5  Outside--depreciation expense......  71...................  71...................  71.
  13.6  Outside--other expense.............  71...................  71...................  71.
14  General service sales:
  14.1  Associated companies--gross          48...................  48...................  48.
   revenues.
  14.2  Outside--gross revenues............  48...................  48...................  48.
  14.3  Associated companies--depreciation   71...................  71...................  71.
   expense.
  14.4  Associated companies--other expense  71...................  71...................  71.
  14.5  Outside--depreciation expense......  71...................  71...................  71.
  14.6  Outside--other expense.............  71...................  71...................  71.
16  Substitute (replacement) service:
  16.1  Gross revenues.....................  48...................  48...................  48.
  16.2  Expense............................  71...................  71...................  71.
17  Air cargo service:
  17.1  Gross revenues.....................  48...................  48...................  48.
  17.2  Depreciation expense...............  71...................  71...................  71.
  17.3  Other expense......................  71...................  71...................  71.
18  Other transport related items:
  18.1  Gross revenues.....................  48...................  48...................  48.
  18.2  Depreciation expense...............  71...................  71...................  71.
  18.3  Other expense......................  71...................  71...................  71.
19  Other operating revenues:
  19.1  Reservations cancellation fees.....  31, 32...............  31, 32...............  31, 32.
  19.9  Miscellaneous operating revenues...  31, 32, 41...........  31, 32, 41...........  31, 32, 41.
 
Transport expenses:
21  General management personnel...........  53, 69...............  53, 55, 64, 67, 68...  53, 55, 61, 62, 63,
                                                                                            65, 66, 68.
23  Pilots and copilots....................  51...................  51...................  51.
24  Other flight personnel.................  51, 69...............  51, 55...............  51, 55.
25  Maintenance labor:
  25.1  Labor--airframes and other flight    .....................  52...................  52.
   equipment.
  25.2  Labor--aircraft engines............  .....................  52...................  52.
  25.6  Labor--flight equipment............  52...................  .....................  .....................
  25.9  Labor--ground property and           52, 53...............  52, 53...............  52, 53.
   equipment.
26  Aircraft and traffic handling personnel  69...................  .....................  .....................
  26.1  General aircraft and traffic         .....................  64, 67...............  61, 62, 63, 65.
   handling personnel.
  26.2  Aircraft control personnel.........  .....................  64...................  61.
  26.3  Passenger handling personnel.......  .....................  64, 67...............  62, 65.
  26.4  Cargo handling personnel...........  .....................  64, 67...............  62, 65.
28  Trainees, instructors and unallocated
 shop labor:
  28.1  Trainees and instructors...........  51, 53, 69...........  51, 53, 55, 64,67, 68  51, 53, 55, 61, 62,
                                                                                            63, 65, 66, 68.
  28.2  Unallocated shop labor.............  53...................  53...................  53.
30  Communications personnel...............  53, 69...............  53, 55, 64, 67, 68...  53, 55, 61, 62, 63,
                                                                                            65, 66, 68.
31  Recordkeeping and statistical personnel  53, 69...............  53, 55, 64, 67, 68...  53, 55, 61, 62, 63,
                                                                                            65, 66, 68.

[[Page 196]]

 
32  Lawyers and law clerks.................  69...................  68...................  68.
33  Traffic solicitors.....................  69...................  67...................  65.
34  Purchasing personnel...................  53, 69...............  53, 68...............  53, 68.
35  Other personnel........................  53, 69...............  53, 55, 64, 67, 68...  53, 55, 61, 62, 63,
                                                                                            65, 66, 68.
36  Personnel expenses.....................  51, 53, 69...........  51, 53, 55, 64, 67,    51, 53, 55, 61, 62,
                                                                     68.                    63, 65, 66, 68.
37  Communications purchased...............  53, 69...............  53, 55, 64, 67, 68...  53, 55, 61, 62, 63,
                                                                                            65, 66, 68.
38  Light, heat, power, and water..........  53, 69...............  53, 55, 64, 67, 68...  53, 55, 61, 62, 63,
                                                                                            65, 66, 68.
39  Traffic commissions....................  69...................  .....................  .....................
  39.1  Commissions--passenger.............  .....................  67...................  65.
  39.2  Commissions--property..............  .....................  67...................  65.
40  Legal fees and expenses................  69...................  68...................  68.
41 Professional and technical fees and       51, 53, 69...........  51, 53, 55, 64, 67,    51, 53, 55, 61, 62,
 expenses.                                                           68.                    63, 65, 66, 68
43 General services purchased:
  43.1 Airframe and other flight equipment   .....................  52...................  52
   repairs.
  43.2 Aircraft engine repairs.............  52...................  52...................  .....................
  43.6 Flight equipment repairs............  52...................  .....................  .....................
  43.7 Aircraft interchange charges........  51, 52...............  51, 52...............  51, 52
  43.8 General interchange service charges.  52, 69...............  52, 55, 64, 67, 68...  52, 55, 61, 62, 63,
                                                                                            65, 66, 68
  43.9 Other services......................  52, 53, 69...........  52, 53, 55, 64, 67,    52, 53, 55, 61, 62,
                                                                     68.                    63, 65, 66, 68
44  Landing fees...........................  69...................  64...................  61.
45  Aircraft fuels and oils................  51...................  .....................  .....................
  45.1  Aircraft fuels.....................  .....................  51...................  51.
  45.2  Aircraft oils......................  .....................  51...................  51.
46  Maintenance materials:
  46.1  Airframes and other flight           .....................  52...................  52
   equipment.
  46.2  Aircraft engines...................  .....................  52...................  52.
  46.6  Flight equipment...................  52...................  .....................  .....................
  46.9  Ground property and equipment......  52, 53...............  52, 53...............  52, 53.
47  Rentals................................  51, 53, 69...........  51, 53, 55, 64, 67,    51, 53, 55, 61, 62,
                                                                     68.                    63, 65, 66, 68.
49  Shop and servicing supplies............  53, 69...............  53, 64...............  53, 61.
50  Stationery, printing, and office         53, 69...............  53, 55, 64, 67, 68...  53, 55, 61, 62, 63,
 supplies.                                                                                  65, 66, 68.
51  Passenger food expense.................  69...................  55...................  55.
53  Other supplies.........................  51, 53, 69...........  51, 53, 55, 64, 67,    51, 53, 55, 61, 62,
                                                                     68.                    63, 65, 66, 68.
54  Inventory adjustments..................  53, 69...............  53, 55...............  53, 55.
55  Insurance--general.....................  51, 53, 69...........  51, 53, 68...........  51, 53, 68.
56  Insurance--traffic liability...........  69...................  55, 64...............  55, 62.
57  Employee benefits and pensions.........  51, 53, 69...........  51, 53, 55, 64, 67,    51, 53, 55, 61, 62,
                                                                     68.                    63, 65, 66, 68.
58  Injuries, loss and damage..............  51, 53, 69...........  51, 53, 55, 64, 67,    51, 53, 55, 61, 62,
                                                                     68.                    63, 65, 66, 68.
59  Schedules and timetables...............  69...................  67...................  65, 66.
60  Advertising............................  69...................  67...................  66.
61  Foreign exchange gains and losses......  69...................  68...................  68.
62  Other promotional and publicity          69...................  67...................  66.
 expenses.
63  Interrupted trips expense..............  69...................  55...................  55.

[[Page 197]]

 
64  Memberships............................  53, 69...............  53, 55, 64, 67, 68...  53, 55, 61, 62, 63,
                                                                                            65, 66, 68.
65  Corporate and fiscal expenses..........  69...................  68...................  68.
66  Uncollectible accounts.................  69...................  68...................  68.
67  Clearance, customs and duties..........  69...................  64...................  61, 62.
68  Taxes--payroll.........................  51, 53, 69...........  51, 53, 55, 64, 67,    51, 53, 55, 61, 62,
                                                                     68.                    63, 65, 66, 68.
69  Taxes--other than payroll..............  51, 69...............  51, 68...............  51, 68.
71  Other expenses.........................  51, 53, 69...........  51, 53, 55, 64, 67,    51, 53, 55, 61, 62,
                                                                     68.                    63, 65, 66 68.
72  Aircraft overhauls.....................  52, 53...............  52, 53...............  52, 53.
  72.1  Airworthiness allowance provisions-- 52, 53...............  52, 53...............  52, 53.
   airframes.
  72.3  Airframe overhauls deferred........  52, 53...............  52, 53...............  52, 53.
  72.6  Airworthiness allowance provisions-- 52, 53...............  52, 53...............  52, 53.
   aircraft engines.
  72.8  Aircraft engine overhauls deferred.  52, 53...............  52, 53...............  52, 53.
73  Provisions for obsolescence and
 deterioration--expendable parts:
  73.1  Current provisions.................  70...................  70...................  70.
  73.2  Inventory decline credits..........  70...................  70...................  70.
74  Amortizations:
  74.1  Developmental and preoperating       70...................  70...................  70.
   expenses.
  74.2  Other intangibles..................  70...................  70...................  70.
75  Depreciation:
  75.1  Airframes..........................  70...................  70...................  70.
  75.2  Aircraft engines...................  70...................  70...................  70.
  75.3  Airframe parts.....................  70...................  70...................  70.
  75.4  Aircraft engine parts..............  70...................  70...................  70.
  75.5  Other flight equipment.............  70...................  70...................  70.
  75.6  Flight equipment...................  70...................  70...................  70.
  75.8  Maintenance equipment and hangars..  70...................  70...................  70.
  75.9  General ground property............  70...................  70...................  70.
76  Amortization expense, capital leases:
  76.1  Amortization--capitalized flight     70...................  70...................  70
   equipment.
  76.2  Amortization--capitalized other      70...................  70...................  70
   property and equipment.
77  Uncleared expense credits:
  77.8  Uncleared interchange expense        53, 69...............  53, 55, 64, 67, 68...  53, 55, 61, 62, 63,
   credits.                                                                                 65, 66, 68.
  77.9  Other uncleared expense credits....  53, 69...............  53, 55, 64, 67, 68...  53, 55, 61, 62, 63,
                                                                                            65, 66, 68.
78  Direct maintenance--flight equipment...  52...................  52...................  52.
79  Applied burden Dr/Cr:
  79.6  Flight equipment...................  52 Dr, 53 Cr.........  52 Dr, 53 Cr.........  52 Dr, 53 Cr.
  79.8  General ground property............  52 Dr, 53 Cr.........  52 Dr, 53 Cr.........  52 Dr, 53 Cr.
 
      nonoperating income and expense
 
81  Interest on long-term debt and capital
 leases:
  81.1  Interest expense, long-term debt...  81...................  81...................  81
  81.2  Interest expense, capital leases...  81...................  81...................  81
82  Other interest:
  82.1  Interest expense, short-term debt..  81...................  81...................  81
  83.1  Imputed interest capitalized--       81...................  81...................  81
   credit.
  83.2  Imputed interest deferred--debit...  81...................  81...................  81
  83.3  Imputed interest deferred--credit..  81...................  81...................  81
  83.4  Interest capitalized--credit.......  81...................  81...................  81
  84.1  Amortization of discount and         81...................  81...................  81
   expense on debt.
  84.2  Amortization of premium on debt....  81...................  81...................  81
85  Foreign exchange gains and losse.......  81...................  81...................  81
89  Other nonoperating income and expense-
 net:
  80.0  Interest income....................  81...................  81...................  81
  86.0  Income from nontransport ventures..  81...................  81...................  81
  87.0  Equity in income of investor         81...................  81...................  81
   controlled companies.
  88.1  Intercompany transaction adjustment- 81...................  81...................  81
   credit.
  88.2  Dividend income....................  81...................  81...................  81
  88.3  Net unrealized gain or loss on       81...................  81...................  81.
   marketable equity securities.

[[Page 198]]

 
  88.4  Net realized gain or loss on         81...................  81...................  81.
   marketable equity securities.
  88.5  Capital gains and losses--operating  81...................  81...................  81.
   property.
  88.6  Capital gains and losses--other....  81...................  81...................  81.
  88.7  Unapplied cash discounts...........  81...................  81...................  81.
  88.9  Other miscellaneous nonoperating     81...................  81...................  81.
   credits.
  89.1  Intercompany transaction             81...................  81...................  81.
   adjustment--debit.
  89.9  Other miscellaneous nonoperating     81...................  81...................  81.
   debits.
 
                income taxes
 
91  Provision for income taxes:
  91.1  Income taxes before investment tax   91...................  91...................  91.
   credits.
  91.2  Investment tax credits utilized....  91...................  91...................  91.
92  Provisions for deferred income taxes:
  92.1  Current provisions for deferred      91...................  91...................  91.
   taxes.
  92.2  Application of deferred taxes......  91...................  91...................  91.
  92.3  Adjustment of deferred taxes.......  91...................  91...................  91.
93  Investment tax credits deferred and
 amortized:
  93.1  Investment tax credits deferred....  91...................  91...................  91.
  93.2  Amortization of deferred investment  91...................  91...................  91.
   tax credits.
94  Excess profits taxes...................  91...................  91...................  91.
 
          discontinued operations
 
95  Discontinued operations:
  95.1  Income from discontinued operations  96...................  96...................  96.
  95.2  Loss on disposal of discontinued     96...................  96...................  96.
   operations.
 
            extraordinary items
 
96  Extraordinary items....................  97...................  97...................  97.
97  Income taxes applicable to               97...................  97...................  97.
 extraordinary items.
 
      changes in accounting principles
 
98  Cumulative effects of change in          98...................  98...................  98.
 accounting principles.
----------------------------------------------------------------------------------------------------------------

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-781, 37 FR 25223, 
Nov. 29, 1972; 37 FR 28277, Dec. 22, 1972; ER-797, 38 FR 10926, May 3, 
1973; ER-841, 39 FR 11995, Apr. 2, 1974; ER-948, 41 FR 12295, Mar. 25, 
1976; ER-980, 42 FR 35, Jan. 3, 1977; ER-1013, 42 FR 37515, July 21, 
1977; ER-1401, 50 FR 242, Jan. 3, 1985; Amdt. 241-56, 52 FR 9129, Mar. 
23, 1987; Amdt. 241-58, 54 FR 5594, Feb. 6, 1989]



                           Section 8--General

    (a) The profit and loss accounts are designed to reflect, through 
natural groupings, the elements entering into the derivation of income 
or loss accruing to the proprietary interests during each accounting 
period.
    (b) The prescribed system of accounts provides for the co-ordinate 
grouping of all revenues and expenses in terms of both major natural 
objectives and functional activities and for subdivision of both to 
provide varying degrees of detail for air carriers of differing 
accounting capacities and/or requirements.
    (c) The detailed objective accounts established for each air carrier 
group, by the dual subdivision of profit and loss elements in terms of 
both natural objectives and functional activities, are set forth in 
section 7, Chart of Profit and Loss Accounts.
    (d) The prescribed system of accounts provides generally that profit 
and loss elements shall be grouped in accordance with their inherent 
characteristics within the following primary classifications:
    (1) Operating revenues. (i) This primary classification shall 
include revenues of a character usually and ordinarily derived from the 
performance of

[[Page 199]]

air transportation and air transportation-related services, which relate 
to services performed during the current accounting year, and 
adjustments of a recurrent nature applicable to services performed in 
prior accounting years.
    (ii) Operating revenues shall be subclassified in terms of 
functional activities as provided in section 9.
    (2) Operating expenses. (i) This primary classification shall 
include expenses of a character usually and ordinarily incurred in the 
performance of air transportation and air transportation-related 
services, which relate to services performed during the current 
accounting year, and adjustments of a recurring nature attributable to 
services performed in prior accounting years.
    (ii) Operating expenses shall be subclassified in terms of 
functional activities as provided in sections 10 and 11.
    (3) Nonoperating income and expense--net. This primary 
classification (8100) shall include income and loss incident to 
commercial ventures not inherently related to the performance of the 
common carrier air transport services of the accounting entity; other 
revenues and expenses attributable to financing or other activities 
which are extraneous to and not an integral part of air transportation 
or its incidental services; and special recurrent items of a nonperiod 
nature.
    (4) Income taxes for current period. This primary classification 
(9100) shall include provisions for Federal, state, local, and foreign 
taxes which are based upon the net income of the air carrier for the 
current period together with refunds for excess profits credits or 
carryback of losses and increases or reductions of income taxes of prior 
years of a magnitude which will not distort net income of the current 
accounting year. Income taxes applicable to special income credits or 
debits recorded in profit and loss classification 9700 Extraordinary 
Items, and other material income tax items not allocable to income of 
the current accounting year, shall not be included in this 
classification but in profit and loss classification 9700 Extraordinary 
Items.
    (5) Discontinued operations. This primary classification (9600) 
shall include earnings and losses of discontinued nontransport 
operations and gains or losses from the disposal of nontransport 
operations the result of which are customarily accounted for through 
profit and loss objective accounts 86, 87 and 88.2.
    (6) Extraordinary items. This primary classification (9700) shall 
include material items characterized by their unusual nature and 
infrequent occurrence.
    (7) Cumulative effect of changes in accounting principles. This 
primary classification (9800) shall include the cumulative effect of 
material changes in accounting principles.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-841, 39 FR 11997, 
Apr. 2, 1974; ER-980, 42 FR 36, Jan. 3, 1977, Amdt. 241-58, 54 FR 5594, 
Feb. 6, 1989]



        Section 9--Functional Classification--Operating Revenues



3900  Transport Revenues.

    This classification is prescribed for all air carrier groups and 
shall include all revenues from the air transportation of traffic of all 
classes. It shall consist of the following subclassifications:
3100  Scheduled Services.
    This subclassification shall include revenues from the 
transportation by air of individual passengers or cargo shipments (as 
opposed to charter flights) pursuant to published schedules, including 
extra sections and other flights performed as an integral part of 
published flight schedules.
3200  Nonscheduled Services.
    This subclassification shall include revenues from the 
transportation by air of traffic applicable to the performance of 
aircraft charters, and other air transportation services not part of 
services performed pursuant to published flight schedules (but shall not 
include data applicable to flights performed as extra sections to 
published flight schedules, which shall be reported in the 
subclassification 3100 Scheduled Services).

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1401, 50 FR 243, 
Jan. 3, 1985]



4800  Transport-Related Revenues.

    (a) This classification is prescribed for all air carrier groups and 
shall include all revenues from the United States Government as direct 
grants or aids for providing air transportation

[[Page 200]]

facilities and all revenues from services which grow from and are 
incidental to the air transportation services performed by the air 
carrier.
    (b) Revenues related to services of a magnitude or scope beyond an 
incidental adjunct to air transportation services shall not be included 
in this classification (see section 1-6(b)). Revenues applicable to such 
services shall be included in profit and loss classification 8100, 
Nonoperating Income and Expense-Net, and the accounting modified to 
conform with that of a nontransport division whether or not the service 
is organized as a nontransport division.

[ER-841, 39 FR 11997, Apr. 2, 1974]



Section 10--Functional Classification--Operating Expenses of Group I Air 
                                Carriers



5100  Flying Operations.

    (a) This function shall include expenses incurred directly in the 
in-flight operation of aircraft and expenses attaching to the holding of 
aircraft and aircraft operational personnel in readiness for assignment 
to an in-flight status.
    (b) This function shall not include expenses incurred in repairing, 
servicing or storing aircraft, expenses incurred on the ground in 
protecting and controlling the inflight movement of aircraft, or the 
compensation of ground personnel and other expenses incurred in 
scheduling or preparing aircraft or aircraft operational personnel for 
flight assignment. Such expenses shall be included in function 5400 
Maintenance or function 6900 General Services and Administration.



5400  Maintenance.

    (a) This function shall include all expenses, both direct and 
indirect, specifically identifiable with the repair and upkeep of 
property and equipment as may be required to meet operating and safety 
standards; in inspecting or checking property and equipment in 
accordance with prescribed operational standards; and in polishing or 
cleaning property and equipment when such polishing or cleaning is not 
an incidental routine in connection with the normal productive use of 
property and equipment.
    (b) This function shall include the cost of direct labor, materials, 
and outside services and maintenances overhead or other costs 
specifically associated with maintenance operations regardless of the 
location at which incurred.
    (c) This function shall not include costs incurred in the 
construction, improvement, or modification of property and equipment 
even when necessitated to meet new or changed operating or safety 
standards. Such costs shall be charged to appropriate property and 
equipment accounts.
    (d) Costs incurred by aircraft handling personnel in visual 
inspection, minor check and servicing of aircraft, while in line 
service, shall not be included in this function when performed as an 
incidental routine during the normal productive use of aircraft but 
shall be included in function 6900 General Services and Administration.
    (e) Each Group I air carrier shall maintain the following 
subfunctions:
5200  Direct Maintenance.
    a. This subfunction shall include the costs of labor, materials and 
outside services consumed directly in periodic maintenance operations 
and the maintenance and repair of property and equipment, of all types 
and classes, regardless of the location at which incurred, exclusive of 
costs specifically identified with maintenance property and equipment 
expenses in balance sheet accounts 1630 Equipment, 1639 Improvements to 
Leased Buildings and Equipment, and 1640.1 Maintenance Buildings and 
Improvements which shall be included in subfunction 5300 Maintenance 
Burden.
    b. The cost of direct labor, materials and supplies, as well as 
outside repairs, used in the maintenance and repair of property and 
equipment shall be recorded on running job orders or tickets covering 
repairs and periodic inspections except servicing. Where a number of 
like items are maintained on a group basis, it will be necessary to 
maintain only one job order for each group.
    c. When supervisory personnel such as crew chiefs, inspectors and 
foremen are engaged in direct labor in connection with equipment 
maintenance, a proportionate part of their salaries and wages shall be 
charged to the appropriate direct labor accounts. The cost of 
transporting property to and from shops for repair and maintenance shall 
be included as a part of the cost of the materials and supplies used in 
the repair or maintenance of

[[Page 201]]

such property and equipment. Transportation charges, customs and duties, 
etc.; shall be included in the cost of repairs and maintenance 
operations when made by outside parties.
5300  Maintenance Burden.
    a. This subfunction shall include all overhead or general expenses 
which are specifically identified with activities involved in periodic 
maintenance operations and the maintenance and repair of property and 
equipment of all types and classes, including the cost of direct labor, 
materials and outside services identified with the maintenance and 
repair of maintenance property and equipment included in balance sheet 
accounts 1630 Equipment, 1639 Improvements to Leased Buildings and 
Equipment, and 1604.1 Maintenance Buildings and Improvements. It shall 
include expenses specifically related to the administration of 
maintenance stocks and stores, the keeping of pertinent maintenance 
operations records, and the scheduling, controlling, planning and 
supervision of maintenance operations.
    b. This subfunction shall not include expenses related to financial 
accounting, purchasing or other overhead activities which are of general 
applicability to all operating functions. Such expenses shall be 
included in function 6900 General Services and Administration.
    c. This subfunction shall include only those expenses attributable 
to the current air transport operations of the air carrier. Maintenance 
burden associated with capital projects of the air carrier, other than 
overhauls of airframes and aircraft engines shall be allocated to such 
projects. Maintenance burden incurred in common with services to other 
companies and operating entities shall be allocated to such services on 
a pro rata basis unless the services are so infrequent in performance or 
small in volume as to result in no appreciable demands upon the air 
carrier's maintenance facilities. When overhauls of airframes or 
aircraft engines are as a consistent practice accounted for on an 
accrual basis instead of being expensed directly, maintenance burden 
shall be allocated to such overhauls on a pro rata basis. Standard 
burden rates may be employed for quarterly allocations of maintenance 
burden provided the rates are reviewed at the close of each calendar 
year. When the actual burden rate for the year differs materially from 
the standard burden rate applied, adjustment shall be made to reflect 
the actual cost incurred for the full accounting year. Allocations of 
maintenance burden to capital projects, and service sales to others 
shall be made through the individual maintenance burden objective 
accounts, except that the air carrier may make such allocations by 
credits to profit and loss account 77 Uncleared Expense Credits provided 
that use of that account will not undermine the significance of the 
individual maintenance burden objective accounts in terms of the expense 
levels associated with the air carrier's air transport services. 
Maintenance burden allocated to overhauls shall be credited to profit 
and loss subaccounts 5372.1 or 5372.6 Airworthiness Allowance 
Provisions.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 36, 
Jan. 3, 1977; ER-1027, 42 FR 60128, Nov. 25, 1977; ER-1188, 45 FR 48870, 
July 22, 1980; Amdt. 241-58, 54 FR 5595, Feb. 6, 1989]



6900  General Services and Administration.

    This function shall include expenses incurred on the ground in 
controlling and protecting the in-flight movement of aircraft; landing, 
handling, or servicing aircraft on the ground; selling transportation; 
servicing and handling traffic of all classes; promoting the development 
of traffic; administering operations generally; and all other expenses 
not otherwise provided for in functions 5100 Flying Operations, 5400 
Maintenance and 7000 Depreciation and Amortization.



7000  Depreciation and Amortization.

    This function shall include all charges to expense to record losses 
suffered through current exhaustion of the serviceability of property 
and equipment due to wear and tear from use and the action of time and 
the elements, which are not replaced by current repairs, as well as 
losses in serviceability caused by obsolescence, supersession, 
discoveries, change in demand or actions by public authority. It shall 
also include charges for the amortization of capitalized developmental 
and preoperating costs, leased property under capital leases and other 
intangible assets applicable to the performance of air transportation. 
(See sections 6-1696, 1830 and 1890.)

[Amdt. 241-58, 54 FR 5595, Feb. 6, 1989]



7100  Transport-Related Expenses.

    (a) This function shall include all expense items applicable to the 
generation of transport-related revenues included in section 9, Function 
4800.
    (b) Such expense related to services of a magnitude or scope beyond 
an incidental adjunct to air transportation services shall not be 
included in this

[[Page 202]]

function (see section 1-6(b)). Expenses applicable to the generation of 
such revenues shall be included in profit and loss classification 8100, 
Nonoperating Income and Expense-Net, and the accounting modified to 
conform with that of a nontransport division whether or not the service 
is organized as a nontransport division.
    (c) This function shall also include expenses representing increases 
in costs incurred in common with the air transport service, to the 
extent such increases result from the added transport-related services, 
as well as a pro rata share of the costs incurred by the air carrier in 
operating facilities which are used jointly with others. As a general 
rule, this function shall not include those expenses, other than joint 
facilities costs, which would remain as an essential part of the air 
transport services if the transport-related services were terminated.

[ER-841, 39 FR 11997, Apr. 2, 1974, as amended by ER-1401, 50 FR 243, 
Jan. 3, 1985]



 Section 11--Functional Classification--Operating Expenses of Group II 
                       and Group III Air Carriers



5100  Flying Operations.

    (a) This function shall include expenses incurred directly in the 
in-flight operation of aircraft and expenses attaching to the holding of 
aircraft and aircraft operational personnel in readiness for assignment 
to an in-flight status.
    (b) This function shall not include expenses incurred in repairing, 
servicing or storing aircraft, expenses incurred on the ground in 
protecting and controlling the in-flight movement of aircraft, or 
compensation of ground personnel and other expenses incurred in 
scheduling or preparing aircraft or aircraft operational personnel for 
flight assignment. Such expenses shall be included in function 5400 
Maintenance, or function 6400 Aircraft and Traffic Servicing.



5400  Maintenance.

    (a) This function shall include all expenses, both direct and 
indirect, incurred in the repair and upkeep of property and equipment as 
may be required to meet operating and safety standards; in inspecting or 
checking property and equipment in accordance with prescribed 
operational standards; and in polishing or cleaning property and 
equipment when such polishing or cleaning is not an incidental routine 
in connection with the normal productive use of property and equipment.
    (b) This function shall include the cost of direct labor, materials, 
and outside services and maintenance overhead or other costs associated 
with maintenance operations regardless of the location at which 
incurred.
    (c) This function shall not include costs incurred in the 
construction, improvement, or modification of property and equipment 
even when necessitated to meet new or changed operating or safety 
standards. Such costs shall be charged to appropriate property and 
equipment accounts.
    (d) Costs incurred by aircraft handling personnel in visual 
inspection, minor check and servicing of aircraft, while in line 
service, shall not be included in this function when performed as an 
incidental routine during the normal productive use of aircraft but 
shall be included in function 6400 Aircraft and Tariff Servicing.
    (e) Both Group II air carriers and Group III air carriers shall 
maintain the following subfunctions:
5200  Direct Maintenance.
    a. This subfunction shall include the costs of labor, materials and 
outside services consumed directly in periodic maintenance operations 
and the maintenance and repair of property and equipment of all types 
and classes, regardless of the location at which incurred, exclusive of 
maintenance property and equipment included in balance sheet accounts 
1630 Equipment, 1639 Improvements to Leased Buildings and Equipment, and 
1640.1 Maintenance Buildings and Improvements, which shall be included 
in subfunction 5300 Maintenance Burden.
    b. The cost of direct labor, materials and supplies, as well as 
outside repairs, used in the maintenance and repair of property and 
equipment shall be recorded on running job orders or tickets covering 
repairs and periodic inspections except servicing. Where a number of 
like items are maintained on a group basis, it will be necessary to 
maintain only one job order for each group.
    c. When supervisory personnel such as crew chiefs, inspectors and 
foremen are engaged in direct labor in connection with equipment

[[Page 203]]

maintenance, a proportionate part of their salaries and wages shall be 
charged to the appropriate direct labor accounts. The cost of 
transporting property to and from shops for repair and maintenance shall 
be included as a part of the cost of the materials and supplies used in 
the repair or maintenance of such property and equipment. Transportation 
charges, customs and duties, etc., shall be included in the cost of 
repairs and maintenance operations when made by outside parties.
5300  Maintenance Burden.
    a. This subfunction shall include all overhead or general expenses 
used directly in the activities involved in periodic maintenance 
operations and the maintenance and repair of property and equipment of 
all types and classes, including the cost of direct labor, materials and 
outside services used in the maintenance and repair of maintenance 
property and equipment included in balance sheet accounts 1630 
Equipment, 1639 Improvements to Leased Buildings and Equipment, and 
1640.1 Maintenance Buildings and Improvements. It shall include expenses 
related to the administration of maintenance stocks and stores, the 
keeping of pertinent maintenance operation records, and the scheduling, 
controlling, planning and supervision of maintenance operations.
    b. This subfunction shall not include expenses related to financial 
accounting, purchasing or other overhead activities which are of general 
applicability to all operating functions. Such expenses shall be 
included in function 6800 General and Administrative.
    c. This subfunction shall include only those expenses attributable 
to the current air transport operations of the air carrier. Maintenance 
burden associated with capital projects of the air carrier, other than 
overhauls of airframes and aircraft engines, shall be allocated to such 
projects. Maintenance burden incurred in common with services to other 
companies and operating entities shall be allocated to such services on 
a pro rata basis unless the services are so infrequent in performance or 
small in volume as to result in no appreciable demands upon the air 
carrier's maintenance facilities. When overhauls of airframes or 
aircraft engines are as a consistent practice accounted for on an 
accrual basis instead of being expensed directly, maintenance burden 
shall be allocated to such overhauls on a pro rata basis. Standard 
burden rates may be employed for quarterly allocations of maintenance 
burden provided the rates are reviewed at the close of each calendar 
year. When the actual burden rate for the year differs materially from 
the standard burden rate applied, adjustment shall be made to reflect 
the actual costs incurred for the full accounting year. Allocations of 
maintenance burden to capital projects, and service sales to others 
shall be made through the individual maintenance burden objective 
accounts, except that the air carrier may make such allocations by 
credits to profit and loss account 77 Uncleared Expense Credits under 
such circumstances in which the use of that account will not undermine 
the significance of the individual maintenance burden objective accounts 
in terms of the expense levels associated with the air carrier's air 
transport services. Maintenance burden allocated to overhauls shall be 
credited to profit and loss subaccounts 5372.1 or 5372.6 Airworthiness 
Allowance Provisions.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 36, 
Jan. 3, 1977; ER-1401, 50 FR 244, Jan. 3, 1985; Amdt. 241-58, 54 FR 
5595, Feb. 6, 1989]



5500  Passenger Service.

    This function shall include all expenses chargeable directly to 
activities contributing to the comfort, safety and convenience of 
passengers while in flight and when flights are interrupted. It shall 
not include expenses incurred in enplaning or deplaning passengers, or 
in securing and selling passenger transportation and caring for 
passengers prior to entering a flight status. Such expenses shall be 
included in functions 6400 Aircraft and Traffic Servicing and 6700 
Promotion and Sales, respectively.



6400  Aircraft and Traffic Servicing.

    (a) This function shall include the compensation of ground personnel 
and other expenses incurred on the ground incident to the protection and 
control of the in-flight movement of aircraft, scheduling and preparing 
aircraft operational crews for flight assignment, handling and servicing 
aircraft while in line operation, servicing and handling traffic on the 
ground, subsequent to the issuance of documents establishing the air 
carrier's responsibility to provide air transportation, and in-flight 
expenses of handling and protecting all nonpassenger traffic including 
passenger baggage.
    (b) This function shall include only those aircraft servicing and 
cleaning expenses which are incurred as an incidental routine during the 
normal productive use of aircraft in line operations. It shall not 
include expenses incurred in the repair and maintenance of property and 
equipment, or in checking or inspecting property and

[[Page 204]]

equipment in accordance with prescribed operational standards when such 
activities are not an incidental routine during the normal productive 
use of aircraft. Such expenses shall be included in function 5400 
Maintenance.
    (c) This function shall not include expenses incurred in securing 
traffic, arranging aircraft space for traffic sold or in issuing 
documents confirming traffic sales and establishing the air carrier's 
responsibilities to provide air transportation. Such expenses shall be 
included in function 6700 Promotion and Sales. However, for purposes of 
this system of accounts, expenses attributable to the operation of 
airport traffic offices, excluding reservation centers, shall be 
included in this function. Expenses attributable to the operation of 
reservation or aircraft space control centers shall be included in 
function 6700 Promotion and Sales regardless of the location at which 
incurred.
    (d) Group III air carriers shall further subdivide this function as 
follows:
6100  Aircraft Servicing.
    a. This subfunction shall include the compensation of ground 
personnel and other expenses incurred on the ground incident to the 
protection and control of the in-flight movement of aircraft; scheduling 
or preparing aircraft operational crews for flight assignment; landing 
and parking aircraft; visual inspection, routine checking, servicing and 
fueling of aircraft; and other expenses incurred on the ground incident 
to readying for arrival and takeoff of aircraft.
6200  Traffic Servicing.
    a. This subfunction shall include the compensation of ground 
personnel and other expenses incurred on the ground incident to handling 
traffic of all types and classes on the ground subsequent to the 
issuance of documents establishing the air carrier's responsibility to 
provide air transportation. Expenses attributable to the operation of 
airport traffic offices shall also be included in this subfunction; 
expenses attributable to reservations centers shall be excluded. It 
shall include expenses incurred in both enplaning and deplaning traffic 
as well as expenses incurred in preparation for enplanement and all 
expenses subsequent to deplanement.
    b. This subfunction shall also include costs incurred in handling 
and protecting all nonpassenger traffic while in flight. It shall not 
include expenses incurred in contributing to the comfort, safety and 
convenience of passengers while in flight or when flights are 
interrupted. Such expenses shall be included in function 5500 Passenger 
Service.
6300  Servicing Administration.
    a. This subfunction shall include expenses of a general nature 
incurred in performing supervisory or administrative activities relating 
solely and in common to subfunctions 6100 Aircraft Servicing and 6200 
Traffic Servicing.
    b. This subfunction shall not include supervisory or administrative 
expenses which can be charged directly to subfunction 6100 Aircraft 
Servicing or subfunction 6200 Traffic Servicing. Nor shall this 
subfunction include expenses of a general administrative character and 
of significant amount regularly contributing to operating functions 
generally. Such expenses shall be included in function 6800 General and 
Administrative.
    c. The expenses in this subfunction shall be recorded separately for 
each geographic location at which incurred.



6700  Promotion and Sales.

    (a) This function shall include expenses incurred in creating public 
preference for the air carrier and its services; stimulating the 
development of the air transport market; and promoting the air carrier 
or developing air transportation generally.
    (b) It shall also include the compensation of personnel and other 
expenses incident to documenting sales; expenses incident to controlling 
and arranging or confirming aircraft space for traffic sold; expenses 
incurred in direct sales solicitation and selling of aircraft space; and 
expenses incurred in developing tariffs and schedules for publication.
    (c) This function shall not include expenses incurred in handling 
traffic subsequent to the issuance of documents establishing the air 
carrier's responsibility to provide air transportation which shall be 
included in functions 5500 Passenger Service and 6400 Aircraft and 
Traffic Servicing. However, for purposes of this system of accounts, 
expenses attributable to the operation of airport traffic offices, 
excluding reservation centers, shall be included in function 6400 
Aircraft and Traffic Servicing. Expenses attributable to the operation 
of reservation or aircraft space control centers shall be included in 
function 6700 Promotion and Sales regardless of the location at which 
incurred.
    (d) Group III air carriers shall subdivide this function as follows:

[[Page 205]]

6500  Reservations and Sales.
    This subfunction shall include expenses incident to direct sales 
solicitation, documenting sales, controlling and arranging or confirming 
aircraft space sold, and in developing tariffs and schedules for 
publication. It shall also include expenses attributable to the 
operation of city traffic offices. Expenses incurred in stimulating 
traffic and promoting the air carrier or air transportation generally 
shall not be included in this subfunction but in subfunction 6600 
Advertising and Publicity.
6600  Advertising and Publicity.
    a. This subfunction shall include expenses incurred in creating 
public preference for the air carrier and its services; stimulating 
development of the air transport market; and promoting the air carrier 
or developing air transportation generally.
    b. This subfunction shall not include expenses incurred in direct 
sales solicitation and selling of aircraft space. Such costs shall be 
included in subfunction 6500 Reservations and Sales.



6800  General and Administrative.

    (a) This function shall include expenses of a general corporate 
nature and expenses incurred in performing activities which contribute 
to more than a single operating function such as general financial 
accounting activities, purchasing activities, representation at law, and 
other general operational administration, which are not directly 
applicable to a particular function.
    (b) This function shall not include expenses incurred directly in 
promoting traffic or in promoting relations of the air carrier generally 
with the public which shall be included in function 6700 Promotion and 
Sales. Nor shall this function include expenses, regularly applicable in 
large part to a specific function, which contribute only incidentally, 
or in small amount, to various other functions. Such expenses when of 
such size as will not distort the function to which predominantly 
related, shall be included in the specific function to which regularly 
related. However, expenses of a general administrative character and of 
significant amount regularly contributing to operating functions 
generally shall be included in this function.



7000  Depreciation and Amortization.

    This function shall include all charges to expense to record losses 
suffered through current exhaustion of the serviceability of property 
and equipment due to wear and tear from use and the action of time and 
the elements, which are not replaced by current repairs, as well as 
losses in serviceability occasioned by obsolescence, supersession, 
discoveries, change in popular demand or action by public authority. It 
shall also include charges for the amortization of capitalized 
developmental and preoperating costs, leased property under capital 
leases, and other intangible assets applicable to the performance of air 
transportation. (See sections 6-1696, 1830 and 1890.)

[Amdt. 241-58, 54 FR 5595, Feb. 6, 1989]



7100  Transport-Related Expenses.

    (a) This function shall include all expense items applicable to the 
generation of transport-related revenues included in section 9, Function 
4800.
    (b) Such expense related to services of a magnitude or scope beyond 
an incidental adjunct to air transportation services shall not be 
included in this function (see section 1-6(b)). Expenses applicable to 
the generation of such revenues shall be included in profit and loss 
classification 8100, Nonoperating Income and Expense-Net, and the 
accounting modified to conform with that of a nontransport division 
whether or not the service is organized as a nontransport division.
    (c) This function shall also include expenses representing increases 
in costs incurred in common with the air transport service, to the 
extent such increases result from the added transport-related services, 
as well as a pro rata share of the costs incurred by the air carrier in 
operating facilities which are used jointly with others. As a general 
rule, this function shall not include those expenses, other than joint 
facilities, costs, which would remain as an essential part of the air 
transport services if the transport-related services were terminated.

[ER-841, 39 FR 11997, Apr. 2, 1974, as amended by ER-1401, 50 FR 244, 
Jan. 3, 1985]

[[Page 206]]



  Section 12--Objective Classification--Operating Revenues and Expenses



00  General Instructions.

    (a) Basic objective accounts, applicable to all air carrier groups, 
are established for recording all revenue and expense elements. These 
basic accounts are in certain areas subdivided to provide greater detail 
for indicated air carrier groups.
    (b) Each air carrier shall credit the gross revenues accruing from 
services ordinarily associated with air transportation and 
transportation-related services to the appropriate account established 
for each revenue source. Expenses incident to transport and transport-
related services shall be charged to the accounts established in this 
section in accordance with the objectives served by each expenditure. 
However, direct costs of forwarding traffic as a result of interrupted 
trips, and refunds of sales, shall be charged to the applicable revenue 
account.
    (c) To the end that the integrity of the prescribed objective 
accounts shall not be impaired, each air carrier shall:
    (1) Charge the appropriate account prescribed for each service 
purchased or expense element incurred expressly for the benefit of the 
air carrier regardless of whether incurred directly by the air carrier 
or through an agent or other intermediary, and (2) except as provided in 
objective account 77, Uncleared Expense Credits, credit or charge, as 
appropriate, the account prescribed for each expense element which may 
be involved in distributions of expenses between (i) separate operating 
entities of the air carrier, (ii) transport-related services and 
transport services, or transport functions, (iii) balance sheet and 
profit and loss elements, and (iv) the air carrier and others, when the 
expenses are incurred initially by or for the benefit of the air 
carrier. At the option of the air carrier, standard rates applicable to 
each objective account comprising a particular pool of expenses subject 
to assignment between two or more activities, may be established for 
proration purposes, provided the rates established are predicated upon 
the experience of the air carrier and are reviewed and modified as 
appropriate at least once each year.

                           Transport Revenues



01  Passenger.

    (a) Record here revenue from the transportation of passengers by 
air, including infants transported at reduced fares, berth charges, 
surcharges for premium services and other similar charges. Revenue from 
airline employees, officers and directors, or other persons, except for 
ministers of religion, who are traveling under reduced-rate 
transportation authorized by 49 U.S.C. 41511(a) and 14 CFR part 223, as 
well as revenue from travel agents, cargo agents and tour conductors 
traveling at reduced fares, and revenues from service charges for 
passengers traveling on a nonrevenue basis shall be recorded in 
objective account 19 Air Transport--Other.
    (b) This account shall be subdivided as follows by all air carrier 
groups:
01.1  Passenger--First Class.
    Record here revenue from the air transportation of passengers moving 
at either standard fares or premium fares, or at reduced fares not 
predicated upon the use of aircraft space specifically separated from 
first class, and for whom standard or premium quality services are 
provided.
01.2  Passenger--Coach.
    Record here revenue from the air transportation of passengers moving 
at special fares reduced from the first class or premium fares which are 
predicated upon both the operation of specifically designated aircraft 
space and a reduction in the quality of service regularly and ordinarily 
provided.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 36, 
Jan. 3, 1977; 60 FR 66723, Dec. 26, 1995]



05  Mail.

    (a) Record here revenue from the transportation by air of both 
United States and foreign mail.
    (b) Fines and penalties imposed by the United States Government and 
foreign governments in connection with the carriage of mail shall not be 
charged to this account but to profit and loss account 89.9 Other 
Miscellaneous Nonoperating Debits.
    (c) This account shall be subdivided as follows by all air carrier 
groups:
05.1  Priority.

[[Page 207]]

    Record here revenue from United States mail for which transportation 
by air is provided on a priority basis.
05.2  Nonpriority.
    Record here revenue from United States mail for which transportation 
by air is provided on a space available basis.
05.3  Foreign.
    Record here revenue from the transportation by air of mail other 
than United States mail.

[ER-980, 42 FR 36, Jan. 3, 1977, as amended by Amdt. 241-58, 54 FR 5595, 
Feb. 6, 1989]



06  Property.

    (a) Record here revenue from the transportation by air of property 
including excess passenger baggage.
    (b) Revenues resulting from services incidental to the 
transportation services such as collection of shipper's interest 
insurance premiums and charges and fees for service such as pick-up and 
delivery, assembly and distribution, storage and handling, and C.O.D. 
collection shall not be credited to this account but to profit and loss 
account 17 Air Cargo Services.
    (c) This account shall be subdivided as follows by all air carrier 
groups:
06.1  Freight.
    Record here revenue from the transportation by air of property other 
than passenger baggage.
06.2  Excess Passenger Baggage.
    Record here revenue from the transportation by air of passener 
baggage in excess of fixed free allowance.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1401, 50 FR 244, 
Jan. 3, 1985]



07  Charter.

    (a) Record here the revenue from nonscheduled air transport services 
(except as otherwise required by profit and loss Account 86 Income from 
Nontransport Ventures) where the party receiving the transportation 
obtains exclusive use of an aircraft at either published tariff or other 
contractual rates and the remuneration paid by the party receiving 
transportation accrues directly to, and the responsibility for providing 
transportation is that of, the accounting air carrier. This account 
shall also include revenues from air transport services other than 
inter-airport services, whether scheduled or nonscheduled, where each 
passenger or shipment receiving transportation is individually 
documented and does not obtain exclusive use of an aircraft.
    (b) This account shall not include revenues or fees received from 
other air carriers for flight facilities furnished or operated by the 
accounting air carrier where the remuneration paid by the party 
receiving transportation accrues directly to, and the responsibility for 
providing transportation is that of other air carriers. Such revenues 
and related expenses shall be included in profit and loss accounts 11, 
Rents; 13, Interchange Sales; or 18, Other Transport-Related Revenues 
and Expenses.
    (c) This account shall be subdivided as follows by all air carrier 
groups:
07.1  Passenger.
    Record here revenue from the transportation of passengers and their 
personal baggage.
07.2  Property.
    Record here revenue from the transportation of property.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 37, 
Jan. 3, 1977; ER-1401, 50 FR 244, Jan. 3, 1985]

                 Transport Related Revenues and Expenses



08  Public Service Revenues (Subsidy).

    Record here amounts of compensation received pursuant to the 
provisions of 49 U.S.C. 41733 under rates established by the Department 
of Transportation for the provision of essential air service to small 
communities.

[Amdt. 241-58, 54 FR 5595, Feb. 6, 1989, as amended at 60 FR 66723, Dec. 
26, 1995]



09  In-Flight Sales.

    (a) Record here revenues from and expenses related to transport-
related services performed while in flight.
    (b) This account shall be subdivided as follows by all air carrier 
groups:
09.1  Liquor and food--gross revenues.
09.2  Movies and stereo--gross revenues.
09.3  Other--gross revenues.
09.4  Liquor and food--depreciation expense.
09.5  Liquor and food--other expense.
09.6  Movies and stereo--depreciation expense.
09.7  Movies and stereo--other expense.
09.8  Other--depreciation expense.
09.9  Other--expense.

[[Page 208]]



10  Restaurant and Food Service (Ground).

    (a) Record here revenues from and expenses related to the operation 
of restaurants and similar facilities, and from sales of food. (See 
section 12-51.)
    (b) This account shall be subdivided as follows by all air carrier 
groups.
10.1  Gross revenues.
10.2  Depreciation expense.
10.3  Other expense.



11  Rents.

    (a) Record here revenues from and expenses related to property and 
equipment owned or leased which has been rented or subleased to others 
exclusive of associated companies. This account shall not include fees 
from the use by others of air carrier aircraft under aircraft 
interchange agreements.
    (b) This account shall be subdivided as follows by all air carrier 
groups:
11.1  Gross Revenues.
11.2  Depreciation Expense.
11.3  Other Expenses.



12  Limousine Service.

    (a) Record here revenues from and expenses related to the operation 
of passenger limousine surface transportation services.
    (b) This account shall be subdivided as follows by all air carrier 
groups:
12.1  Gross Revenues.
12.2  Depreciation Expense.
12.3  Other Expenses.



13  Interchange Sales.

    (a) Record here the revenues or fees from and the expenses related 
to services provided associated companies and other than associated 
companies by the air carrier under aircraft interchange agreements. This 
account shall be charged and the applicable operating expense objective 
accounts shall be credited, except as provided in operating expense 
objective account 77, Uncleared Expense Credits, with the expenses 
attaching to services provided all companies under aircraft interchange 
agreements.
    (b) This account shall not include revenues or expenses related to 
air transportation services performed in the name of and for the account 
of the accounting air carrier. Such revenues shall be included in 
applicable transport revenue and operating expense objective accounts.
    (c) This account shall be subdivided as follows by all air carrier 
groups:
13.1  Associated companies--gross revenues.
13.2  Outside--gross revenues.
13.3  Associated companies--depreciation expense.
13.4  Associated companies--other expense.
13.5  Outside--depreciation expense.
13.6  Outside--other expense.



14  General Service Sales.

    (a) Record here the revenues, commissions or fees from and expenses 
related to other than air transportation and aircraft interchange 
services provided to associated and outside companies by the air 
carrier. This account shall include the contractual fees or other 
revenues from and expenses related to services provided to associated 
and other companies in the operation of facilities which are used 
jointly with associated and other companies as well as revenues from and 
the costs related to the sale of supplies, parts and repairs sold 
directly or furnished as a part of services to associated and other 
companies.
    (b) This account shall not include consideration received from sales 
of property, equipment, materials or supplies when disposed of as a part 
of a program involving retirement of property and equipment as opposed 
to routine sales and services to associated and other companies unless 
such disposition is conducted as a normal part of the incidental sales 
activity. Such retirement gain or loss shall be included in capital 
gains and losses accounts. Maintenance parts, materials or supplies sold 
as a service to others shall be charged to this account at cost without 
adjustment of related obsolescence or depreciation allowances.
    (c) This account shall be subdivided as follows by all air carrier 
groups:
14.1  Associated companies--gross revenues.
14.2  Outside--gross revenues.
14.3  Associated companies--depreciation expense.
14.4  Associated companies--other expense.
14.5  Outside--depreciation expense.
14.6  Outside--other expense.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 37, 
Jan. 3, 1977]

[[Page 209]]



16  Substitute (replacement) Service.

    (a) Record here revenues from and expenses related to substitute 
service. This account shall include as revenues all monies received from 
substitute carriers and as expense all monies paid to substitute 
carriers.
    (b) This account shall be subdivided as follows by all air carrier 
groups:
16.1  Gross revenue.
16.2  Expense.



17  Air Cargo Services.

    (a) Record here fees and other revenues from and expenses related to 
incidental services performed in connection with cargo shipments such as 
pickup and delivery fees, shipper's interest insurance charges, storage 
and handling fees, etc.
    (b) This account shall be subdivided as follows by all air carrier 
groups:
17.1  Gross Revenues.
17.2  Depreciation Expense.
17.3  Other Expenses.



18  Other Transport-Related Revenues and Expenses.

    (a) Record here revenues from and expenses related to transport-
related services not provided for in profit and loss accounts 10 through 
17, inclusive, such as revenues and expenses incident to the operation 
of flight facilities by the accounting air carrier, except those 
operated under aircraft interchange agreements, where the remuneration 
paid by the party receiving transportation accrues directly to, and the 
responsibility for providing transportation is that of, other air 
carriers; and the revenues and expenses incident to vending machines, 
parcel rooms, storage facilities, etc.
    (b) [Reserved]
    (c) Revenues from the renting or leasing of property and equipment 
to others shall not be included in this account but in profit and loss 
account 11 Rents.
    (d) This account shall be subdivided as follows by all air carrier 
groups:
18.1  Gross Revenues.
18.2  Depreciation Expense.
18.3  Other Expenses.



19  Air Transport--Other.

    (a) Record here revenues associated with air transportation 
conducted by the air carrier, not provided for in profit and loss 
accounts 01 through 09, inclusive, such as revenue from (1) airline 
employees, officers and directors, or other persons, except for 
ministers of religion, who are traveling under reduced-rate 
transportation authorized by 49 U.S.C. 41511(a) and 14 CFR part 223, as 
well as travel agents, cargo agents and tour conductors traveling at 
reduced fares, (2) service charges for failure to cancel or for late 
cancellation of air transportation reservations, and (3) 
nontransportation service charges collected on both revenue and 
nonrevenue flights.
    (b) Revenues derived from sightseeing, aerial photography, 
advertising, or other special flights shall not be included in this 
account but in account 07 Charter.
    (c) This account shall be subdivided as follows by all air carrier 
groups:
19.1  Reservations Cancellation Fees.
19.9  Miscellaneous Operating Revenue.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-820, 38 FR 24352, 
Sept. 7, 1973; ER-841, 39 FR 11997, Apr. 2, 1974; ER-980, 42 FR 37, Jan. 
3, 1977; 60 FR 66723, Dec. 26, 1995]

                           Transport Expenses



20  General Instructions.

    (a) Each element of expense ordinarily associated with air 
transportation services shall be charged to the accounts established in 
this section in accordance with the objectives served by each 
expenditure. Basic objective accounts, applicable to all air carrier 
groups, are established for recording all expense elements. These basic 
accounts are in certain areas subdivided to provide greater detail for 
indicated air carrier groups.
    (b) To the end that the integrity of the prescribed objective 
accounts shall not be impaired, each air carrier shall:
    (1) Charge the appropriate account prescribed for each service 
purchased or expense element incurred expressly for the benefit of the 
air carrier regardless of whether incurred directly by the air carrier 
or through an agent or other intermediary, and (2) except as provided in 
objective account 77 Uncleared Expense Credits, credit or charge, as 
appropriate, the account prescribed for

[[Page 210]]

each expense element which may be involved in distributions of expenses 
between (i) separate operating entities of the air carrier, (ii) 
incidental and transport services or transport functions, (iii) balance 
sheet and profit and loss elements and (iv) the air carrier and others, 
when the expenses are incurred initially by or for the benefit of the 
air carrier. At the option of the air carrier, standard rates applicable 
to each objective account comprising a particular pool of expenses 
subject to assignment between two or more activities, may be established 
for proration purposes, provided the rates established are predicated 
upon the experience of the air carrier and are reviewed and modified as 
appropriate at least once each year.



21  General Management Personnel.

    Record here the compensation, including vacation and sick leave pay, 
of general officers and supervisors, and immediate assistants regardless 
of locality at which based, responsible for an activity not provided for 
in profit and loss accounts 25 through 35, inclusive, or an activity 
involving two or more such accounts.



23  Pilots and Copilots.

    Record here the compensation, including vacation and sick leave pay, 
of pilots and copilots assigned or held inactive awaiting assignment to 
flight duty.



24  Other Flight Personnel.

    Record here the compensation, including vacation and sick leave pay, 
of other flight personnel assigned or held inactive awaiting assignment 
to flight status, not responsible for the in-flight management of 
aircraft, such as engineers, navigation officers and cabin attendants.



25  Maintenance Labor.

    (a) Record here the compensation for time of personnel spent 
directly on specific property and equipment maintenance projects. (See 
sections 10 and 11-5200.) Vacation and sick leave pay shall be charged 
to profit and loss account 28 Trainees, Instructors and Unallocated Shop 
Labor.
    (b) This account shall be subdivided as follows:

                   Group II and Group III Air Carriers

25.1  Labor--Airframes and Other Flight Equipment.
    Record here the direct labor expended upon airframes, spare parts 
related to airframes, and other flight equipment (Other than aircraft 
engines and spare parts related to aircraft engines). Other flight 
equipment shall include instruments, which encompass all gauges, meters, 
measuring devices, and indicators, together with appurtenances thereto 
for installation in aircraft and aircraft engines which are maintaned 
separately from airframes and aircraft engines.
25.2  Labor--Aircraft Engines.
    Record here the direct labor expended upon aircraft engines and 
spare parts related to aircraft engines.

                          Group I Air Carriers

25.6  Labor--Flight Equipment.

    Record here the direct labor expended upon flight equipment of all 
types and classes.

                         All Air Carrier Groups

25.9  Labor--Ground Property and Equipment.

    Record here the direct labor expended upon ground property and 
equipment of all types and classes. Direct labor expended upon general 
ground properties shall be charged to subfunction 5200 Direct 
Maintenance; and direct labor expended upon maintenance buildings and 
equipment shall be charged to subfunction 5300 Maintenance Burden.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1401, 50 FR 244, 
Jan. 3, 1985]



26  Aircraft and Traffic Handling Personnel.

    (a) Record here the compensation, including vacation and sick leave 
pay, of personnel of all types and classes, including direct supervisory 
personnel, assigned to ground activities, engaged directly in protecting 
and controlling aircraft in flight, scheduling and preparing flight 
crews for flight assignment, parking and servicing aircraft incidental 
to line operations, and of personnel of all types and classes engaged in 
servicing and handling traffic of all types and classes on the ground.
    (b) This account shall be subdivided as follows by Group II and 
Group III air carriers:
26.1  General Aircraft and Traffic Handling Personnel.

[[Page 211]]

    Record here compensation of personnel handling or controlling 
aircraft and generally servicing or handling traffic of all types and 
classes whose activities are not identifiable with the particular 
activities provided for in subaccounts 26.2, 26.3, or 26.4, inclusive.
26.2  Aircraft Control Personnel.
    Record here compensation of personnel whose activities are 
identifiable with the protection and control of aircraft in flight and 
in scheduling or preparing flight crews for flight assignment.
26.3  Passenger Handling Personnel.
    Record here compensation of personnel whose activities are 
identifiable with the handling of passengers.
26.4  Cargo Handling Personnel.
    Record here compensation of personnel whose activities are 
identifiable with the handling of passenger baggage, mail, express, or 
freight.



28  Trainees, Instructors, and Unallocated Shop Labor.

    (a) Record here the compensation, including vacation and sick leave 
pay, of instructors and personnel in an off-the-job training status; 
direct maintenance personnel compensation not assigned to specific 
projects; and vacation or sick leave pay of direct maintenance 
personnel.
    (b) This account shall be subdivided as follows by all air carrier 
groups:
28.1  Trainees and Instructors.
    Record here the compensation of instructors and personnel in a 
training status.
28.2  Unallocated Shop Labor.
    Record here the pay of direct maintenance personnel which has not 
been assigned to profit and loss account 25 Maintenance Labor for time 
spent on specific maintenance projects, and vacation or sick leave pay 
of direct maintenance personnel.



30  Communications Personnel.

    Record here the compensation, including vacation and sick leave pay, 
of personnel of all types and classes, including direct supervisory 
personnel, engaged in local, interstation, or groundair communication 
activities. This account shall include compensation of personnel such as 
radio operators, telephone operators, switchboard operators, teletype 
operators, messengers, etc.



31  Recordkeeping and Statistical Personnel.

    Record here the compensation, including vacation and sick leave pay, 
of personnel including supervisory personnel, whose primary duties 
relate to maintaining records or conducting economic or other analyses 
required for general management controls, such as accountants, 
economists, statisticians, maintenance record clerks, stores record 
clerks, stores receiving and issuing clerks and file clerks. The account 
shall not include personnel engaged in documentation or other activities 
constituting an integral part of activities encompassed by other 
objective accounts.



32  Lawyers and Law Clerks.

    Record here the compensation, including vacation and sick leave pay, 
of air carrier personnel engaged in law research or representing the air 
carrier in matters of law.



33  Traffic Solicitors.

    Record here the compensation, including vacation and sick leave pay, 
of personnel engaged directly in solicitation of traffic of all types 
and classes. This account shall not include compensation of traffic 
office personel engaged in soliciting activities incidental to the 
documenting of sales and assigning aircraft space which shall be 
included in profit and loss account 26 Aircraft and Traffic Handling 
Personnel.



34  Purchasing Personnel.

    (a) Record here the compensation, including vacation and sick leave 
pay, of personnel, including direct supervisory personnel, engaged in 
purchasing activities.
    (b) This account shall include compensation of personnel engaged in 
maintaining purchasing records but shall not include compensation of 
personnel responsible for the control of inventories or stores which 
shall be included in objective account 31 Record Keeping and Statistical 
Personnel. In cases where the responsibility for maintaining purchasing 
and stores records are inseparable, the related compensation may be 
accounted for in accordance with dominant responsibilities.

[[Page 212]]



35  Other Personnel.

    Record here the compensation, including vacation and sick leave pay, 
of personnel whose activities are not identifiable with activities 
provided for in profit and loss accounts 21 through 34, inclusive.



36  Personnel Expenses.

    (a) Record here expenses incurred by officers, executives, directors 
and other personnel, whether for the benefit of the air carrier or for 
the private benefit of such persons, which are directly or indirectly 
borne by the air carrier.
    (b) This account shall include allowances in lieu of expenses as 
well as expenses incurred for travel, lodgings, meals, entertainment of 
individuals or groups of individuals, and membership fees and dues in 
professional or social clubs and associations.
    (c) Records shall be maintained in a conveniently accessible form 
which will separately and clearly document each charge to this account 
in terms of its natural characteristics and contribution to the 
performance of the air carrier's transport operations. The records shall 
be maintained in such manner as will identify specifically the persons 
incurring the cost. Costs for standby hotel or other facilities 
maintained for the air carrier's personnel generally need not be 
allocated among the individuals using such facilities; however, 
sufficiently detailed records are required to identify the use made of 
such facilities by each individual.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-948, 41 FR 12295, 
Mar. 25, 1976]



37  Communications Purchased.

    Record here expenses, including related taxes, incurred for rental 
of communication services and for communication services of all types 
and classes not provided by personnel of the air carrier, such as 
telegraph, telephone, teletype, private line services, and charges for 
communication services from organizations operated jointly with 
associated companies or others.



38  Light, Heat, Power and Water.

    Record here charges related to the provision of light, heat, power 
and water including related taxes.



39  Traffic Commissions.

    (a) Record here charges by others, including associated companies, 
for commissions arising from sales of transportation. Commissions, fees 
or other charges incurred for general agency services, as opposed to 
commissions arising from sales of transportation, shall not be included 
in this account but in profit and loss account 43 General Services 
Purchased.
    (b) This account shall be subdivided as follows by Group II and 
Group III air carriers.
39.1  Commissions--Passenger.
    Record here charges for commissions arising from sales of passenger 
transportation.
39.2  Commissions--Property.
    Record here charges for commissions arising from sales of 
nonpassenger transportation.



40  Legal Fees and Expenses.

    Record here expenditures incurred for legal services by counsel 
retained on a fee basis and related expenses reimbursed or borne 
directly by the air carrier and other expenses incurred directly by the 
air carrier for legal supplies not obtainable from the air carrier's 
general stationery stock. This account shall not be charged with legal 
fees or expenses incurred in connection with claims occasioned by 
accidents or other casualties. Such charges shall be accumulated in 
balance sheet account 1890 Other Assets and cleared to profit and loss 
account 58 Injuries, Loss and Damage upon settlement of insurance 
claims. Nor should this account include fees or expenses related to 
developmental projects. Such expenses shall be included, as appropriate, 
in profit and loss account 89.9 Other Miscellaneous Nonoperating Debits 
or balance sheet account 1830 Unamortized Developmental and Preoperating 
Costs.

[ER-980, 42 FR 37, Jan. 3, 1977]



41  Professional and Technical Fees and Expenses.

    Record here fees and expenses, other than legal fees and expenses, 
incurred for outside professional and technical services which are 
reimbursed or borne directly by the air carrier. This account shall not 
include fees or expenses related to developmental projects.

[[Page 213]]

Such expenses shall be included, as appropriate, in profit and loss 
account 89.9 Other Miscellaneous Nonoperating Debits or balance sheet 
account 1830 Unamortized Developmental and Preoperating Costs.

[ER-980, 42 FR 37, Jan. 3, 1977]



43  General Services Purchased.

    (a) Record here charges for services performed for the air carrier 
by outside and associated companies which are not identifiable with 
services provided for in profit and loss accounts 37 through 41, 
inclusive, or which are not expressly identified with other objective 
expense accounts.
    (b) Charges from outside and associated companies for services 
provided the air carrier under aircraft interchange agreements or other 
agreements embracing a complete activity or service, such as the 
operating of jointly used ground facilities, shall be included in this 
account for each operating function to which the services contribute. 
Charges for providing aircraft capacity, including charges for 
depreciation and interest on the capital related to the flight equipment 
provided, shall be included in function 5100 Flying Operations.
    (c) This account shall be subdivided by each air carrier group, as 
follows:

                   Group II and Group III Air Carriers

           43.1  Airframe and Other Flight Equipment Repairs.

    Record here charges for maintenance or repair of airframes and spare 
parts related to airframes owned or leased by the air carrier. Charges 
for maintenance or repair of other flight equipment (including 
instruments) owned or leased by the air carrier, excluding aircraft 
engines and spare parts related to aircraft engines, shall also be 
recorded here. Instruments shall include all gauges, meters, measuring 
devices, and indicators, together with appurtenances thereto for 
installation in aircraft and aircraft engines, which are maintained 
separately from airframes and aircraft engines. Charges by outside and 
associated companies for maintenance of flight equipment provided under 
aircraft interchange agreements shall not be included in this subaccount 
but in subaccount 43.7 Aircraft Interchange Charges.

                     43.2  Aircraft Engine Repairs.

    Record here charges for maintenance of repair or aircraft engines, 
including spare parts related to aircraft engines owned or leased by the 
air carrier. Charges by outside and associated companies for maintenance 
of aircraft engines provided under aircraft interchange agreements shall 
not be included in this subaccount but in subaccount 43.7 Aircraft 
Interchange Charges.

                          Group I Air Carriers

                     43.6  Flight Equipment Repairs.

    Record here charges for maintenance or repair of flight equipment of 
all types and classes owned or leased by the air carrier. Charges by 
outside and associated companies for maintenance of flight equipment 
provided under aircraft interchange agreements shall not be included in 
this subaccount but in subaccount 43.7 Aircraft Interchange Charges.

                         All Air Carrier Groups

                   43.7  Aircraft Interchange Charges.

    Record here charges by outside and associated companies for 
providing aircraft capacity or services related to the direct operation 
or maintenance of flight equipment under aircraft interchange 
agreements.

               43.8  General Interchange Service Charges.

    Record here charges by outside and associated companies for services 
provided the air carrier under aircraft interchange agreements, other 
than charges related to the direct operation or maintenance of flight 
equipment, including all charges for maintenance and repair of group 
properties, as well as fees or charges for traffic solicitation and 
sales, or supervision and administration covered by the aircraft 
interchange agreements. Charges for depreciation or interest on capital 
related to flight equipment provided under interchange agreements shall 
not be included in this subaccount but in subaccount 43.7 Aircraft 
Interchange Charges.

                          43.9  Other Services.

    Record here charges for maintenance and repair of ground property 
and equipment of all types and classes and other charges for services 
performed by outside and associated companies not provided for 
elsewhere. This subaccount shall include only those charges for services 
not provided for elsewhere in profit and loss accounts 37 to 41, 
inclusive, and subaccounts 43.1 to 43.8, inclusive, embracing a complete 
activity or service provided by outside and associated companies such as 
the operation of traffic offices or other facilities used jointly with 
the air carrier which do not represent reimbursement of specific expense 
elements incurred expressly for the benefit of the air carrier. 
Reimbursement of expenses incurred expressly

[[Page 214]]

for the benefit of the air carrier shall be entered in appropriate 
personnel compensation or other objective expense accounts. The cost of 
services received in the repair of general ground properties shall be 
charged to subfunction 5200 Direct Maintenance; and services received in 
the repair of maintenance buildings and equipment shall be charged to 
subfunction 5300 Maintenance Burden.

[Amdt. 241-56, 52 FR 9129, Mar. 23, 1987]



44  Landing Fees.

    Record here the charges and fees incurred for landing of aircraft 
while in line operation.



45  Aircraft Fuels and Oils.

    (a) Record here the cost of fuels and oils issued from stocks of the 
air carrier, or delivery directly by others, to aircraft for use in 
flight operations. Adjustments of inventories of aircraft fuel and oil 
shall also be entered in this account. The cost of fuels and oils used 
in repairs and maintenance services and nonrefundable fuel and oil taxes 
shall not be included in this account but in profit and loss accounts 49 
Shop and Servicing Supplies and 69 Taxes--Other than Payroll, 
respectively.
    (b) This account shall be subdivided as follows by Group II and 
Group III air carriers:
45.1  Aircraft Fuels.
    Record here the cost of fuels used in flight operations.
45.2  Aircraft Oils.
    Record here the cost of oils used in flight operations.



46  Maintenance Materials.

    (a) Record here the cost of materials and supplies consumed directly 
in specific property and equipment maintenance projects.
    (b) This account shall be subdivided as follows:

                   Group II and Group III Air Carriers

46.1  Materials--Airframes and Other Flight Equipment.
    Record here the cost of materials and supplies consumed directly in 
maintenance of airframes and spare parts related to airframes. Other 
flight equipment (including instruments), excluding aircraft engines and 
spare parts related to aircraft engines, shall also be recorded here. 
Instruments shall include all gauges, meters, measuring devices, and 
indicators, together with appurtenances thereto for installation in 
aircraft and aircraft engines, which are maintained separately from 
airframes and aircraft engines.
46.2  Materials--Aircraft Engines.
    Record here the cost of materials and supplies consumed directly in 
maintenance of aircraft engines and spare parts related to aircraft 
engines.

                          Group I Air Carriers

46.6  Materials--Flight Equipment.

    Record here the cost of materials and supplies consumed directly in 
the maintenance of flight equipment of all types and classes.

                         All Air Carrier Groups

46.9  Materials--Ground Property and Equipment.

    Record here the cost of materials and supplies consumed directly in 
the maintenance of ground property and equipment of all types and 
classes. The cost of materials and supplies consumed in the repair of 
general ground properties shall be charged to subfunction 5200 Direct 
Maintenance and materials and supplies consumed in the repair of 
maintenance buildings and equipment shall be charged to subfunction 5300 
Maintenance Burden.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-1401, 50 FR 245, 
Jan. 3, 1985]



47  Rentals.

    Record here rentals, fee, or charges incurred in the use of property 
and equipment provided by others. When a lease arrangement provides that 
the amounts paid include charges for maintenance, insurance, or taxes, 
the amounts related thereto shall not be recorded in this account but in 
the appropriate expense account to which related.



49  Shop and Servicing Supplies.

    Record here the cost of supplies and expendable small tools and 
equipment used in maintaining, servicing and cleaning property or 
equipment the cost of which cannot be directly assigned to a specific 
job or type of work.



50  Stationery, Printing and Office Supplies.

    Record here the cost of stationery and forms used by the air carrier 
including the cost of engineering and shipping supplies.



51  Passenger Food Expense.

    (a) Record here the cost of food and refreshments served passengers 
except

[[Page 215]]

food costs arising from interrupted trips.
    (b) If the air carrier prepares its own food, the initial cost and 
expenses incurred in the preparation thereof shall be accumulated in a 
clearly identified clearing account through which the cost of food shall 
be cleared to this account, to profit and loss account 36 Personnel 
Expenses, and to profit and loss account 10 Hotel, Restaurant and Food 
Service on bases which appropriately allocate the cost of food served 
passengers, the cost of food provided employees without charge and the 
cost of food sold.



53  Other Supplies.

    Record here the cost of supplies consumed and not provided for 
otherwise.



54  Inventory Adjustments.

    Record here adjustments for overage, shortage or shrinkage of 
inventories carried in balance sheet account 1300 Spare Parts and 
Supplies. Adjustment of aircraft fuel and oil inventories due to 
retroactive price increases and decreases shall not be included in this 
account but in profit and loss account 45 Aircraft Fuels and Oils. Gains 
or losses from retirements of materials and supplies shall not be 
recorded in this account but in profit and loss account 88.5 Capital 
Gains and Losses--Operating Property.

[ER-980, 42 FR 37, Jan. 3, 1977]



55  Insurance--General.

    Record here the cost of public liability and property damage 
insurance and all other general insurance except insurance covering 
liability for injuries, loss, and damage to passengers and cargo, and 
insurance carried for the protection or welfare of employees.

[ER-948, 41 FR 12295, Mar. 25, 1976]



56  Insurance--Traffic Liability.

    Record here the cost of purchased insurance covering liability for 
injuries, loss and damage to passengers and cargo.

[ER-980, 42 FR 37, Jan. 3, 1977]



57  Employee Benefits and Pensions.

    (a) Record here all costs for the benefit or protection of employees 
including all pension expenses whether for payments to or on behalf of 
retired employees or for accruals or annuity payments to provide for 
pensions; and all expenses for accident, sickness, hospital, and death 
benefits to employees or the cost of insurance to provide these 
benefits. Include, also, expenses incurred in medical, educational, or 
recreational activities for the benefit of employees. Do not include 
vacation and sick leave pay, or salaries of doctors, nurses, trainees, 
or instructors, which shall be recorded in the regular salary accounts.
    (b) [Reserved]

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 37, 
Jan. 3, 1977; ER-1188, 45 FR 48871, July 22, 1980]



58  Injuries, Loss and Damage.

    Record here the remainder of gains, losses or costs resulting from 
accidents, casualties or mishandlings, after offsetting insurance 
recoveries, as accumulated until finally determined in balance sheet 
account 1890 Other Assets and Deferred Charges. This account shall not 
include gains or losses from retirement of property and equipment 
resulting from casualties. Such gains or losses shall be recorded in 
appropriate capital gains or losses accounts.

[Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]



59  Schedules and Timetables.

    Record here the production and distribution cost, excluding 
compensation of air carrier personnel, of all operating schedules, 
timetables, circulars and related quick reference charts.

[ER-1401, 50 FR 245, Jan. 3, 1985]



60  Advertising.

    Record here the cost, excluding compensation of air carrier 
personnel, of all space, direct mail, spot and other advertising for the 
purpose of increasing air travel, disseminating air travel information 
and publicizing services offered by the air carrier.

[[Page 216]]



61  Foreign Exchange Gains and Losses.

    Record here gains or losses from transactions involving currency 
translations resulting from normal, routine, current fluctuations in 
rates of foreign exchange. Gains or losses of a nonroutine abnormal 
character and gains or losses which arise from long-term debt principal 
and interest transactions shall not be entered in this account but in 
profit and loss account 85, Foreign Exchange Gains and Losses.

[Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]



62  Other Promotional and Publicity Expenses.

    Record here the costs, excluding compensation of air carrier 
personnel, of producing and distributing publicity releases and other 
expenses, not chargeable to profit and loss accounts 59 and 60, incurred 
for the purpose of publicizing or improving the public relations of the 
air carrier generally.



63  Interrupted Trips Expense.

    Record here expenses allowed or paid for the care and serving of 
passengers because of unscheduled interruptions in passenger journeys. 
Transportation refunds and the cost of forwarding traffic by surface 
common carrier or otherwise as a result of such interruptions shall not 
be charged to this account but to the appropriate operating revenue 
account.



64  Memberships.

    Record here the cost of membership dues in trade associations, 
chambers of commerce, or other business associations and organizations 
together with special assessments related thereto.



65  Corporate and Fiscal Expenses.

    Record here corporate and fiscal fees and expenses of the air 
carrier and all expenses in connection with exchange and transfer of 
capital stock excluding expenses in connection with original issuance of 
capital stock.



66  Uncollectible Accounts.

    Record here losses from uncollectible accounts and allowance 
provisions and adjustments thereto, for such losses. When allowances for 
uncollectible accounts are established, losses as realized shall be 
charged against such allowances and shall not be charged to this 
account.

[ER-980, 42 FR 37, Jan. 3, 1977]



67  Clearance, Customs and Duties.

    Record here clearance, customs, duties and brokerage fees and 
charges applicable to clearing aircraft and traffic.



68  Taxes--Payroll.

    Record here all taxes levied against the air carrier based upon or 
directly relating to compensation of personnel.



69  Taxes--Other Than Payroll.

    (a) Record here all taxes levied against the air carrier not 
otherwise provided for including nonrefundable aircraft fuel and oil 
taxes. Interest and penalties on delinquent taxes shall not be charged 
to this account but to profit and loss accounts 82 Other Interest and 
89.9 Other Miscellaneous Nonoperating Debits, respectively.
    (b) Entries to this account shall clearly reveal each kind of tax 
and the governmental agency to which paid or payable.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 37, 
Jan. 3, 1977]



71  Other Expenses.

    Record here all expenses ordinarily associated with air 
transportation and its incidental services not provided for otherwise.



72  Aircraft Overhauls.

    (a) Record here airframe and aircraft engine overhauls of the 
current period which are transferred to balance sheet subaccounts 1601.2 
Unamortized Airframe Overhauls or 1602.2 Unamortized Aircraft Engine 
Overhauls. This account shall also include the amount of deferred 
overhauls costs being amortized for the current period. For carriers 
which elect to continue accruing for aircraft overhauls for aircraft 
types acquired before January 1, 1976, as well as for other aircraft of 
the same type acquired after January 1, 1976, the related provisions and 
charges shall be recorded in the appropriate subaccounts of this 
account.

[[Page 217]]

    (b) This account shall be subdivided as follows by all carrier 
groups:
72.1  Airworthiness Allowance Provisions--Airframes.
    Record here current provisions for effecting an equitable 
distribution of airframe overhaul costs between different accounting 
periods. Record here also credits for airframe overhaul costs incurred 
in the current period which have been charged against related 
airworthiness allowances.
72.3  Airframe Overhauls Deferred.
    Record here airframe overhauls of the current period transferred to 
subaccount 1601.2, Unamortized Airframe Overhauls, and the amount of 
deferred airframe overhaul costs amortized for the current period.
72.6  Airworthiness Allowance Provisions--Aircraft Engines.
    Record here current provisions for effecting an equitable 
distribution of aircraft engine overhauls costs between different 
accounting periods. Record here also credits for aircraft engine 
overhaul costs incurred in the current period which have been charged 
against related airworthiness allowances.
72.8  Aircraft Engine Overhauls Deferred.
    Record here airframe overhauls of the current period transferred to 
subaccount 1602.2, Unamortized Aircraft Engine Overhauls, and the amount 
of deferred aircraft engine overhaul costs amortized for the current 
period.

[ER-948, 41 FR 12295, Mar. 25, 1976, as amended by ER-1401, 50 FR 245, 
Jan. 3, 1985]



73  Provisions for Obsolescence and Deterioration--Expendable Parts.

    (a) Where allowances for loss in value of flight equipment 
expendable parts are established, provisions for accruals to such 
allowances shall be charged to this account and credited to balance 
sheet account 1311 Allowance for Obsolescence in accordance with the 
provisions of that account.
    (b) This account shall be subdivided as follows by all air carrier 
groups:
73.1  Current provisions. Record here provisions during the current 
          period for losses in value of expendable parts.
73.2  Inventory decline credits. Record here credits applicable to the 
          current period for any adjustments for excess inventory 
          allowance levels determined pursuant to section 6-1311.

[ER-980, 42 FR 37, Jan. 3, 1977]



74  Amortization.

    (a) Record here amortization of deferred changes attaching to the 
air transportation services conducted by the air carrier which are not 
prepayments of recurrent expenses ordinarily requiring expenditures of 
working capital within one year.
    (b) This account shall be subdivided as follows by all air carrier 
groups:
74.1  Developmental and Preoperating Expenses
    Record here amortization of the cost of projects carried in balance 
sheet account 1830 Unamortized Developmental and Preoperating Costs.
74.2  Other Intangibles. 
    Record here mortization of the cost of intangibles not provided for 
otherwise.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 38, 
Jan. 3, 1977; Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]



75  Depreciation.

    (a) Record here provisions for depreciation of property and 
equipment carried in balance sheet accounts 1601 through 1640, 
inclusive.
    (b) This account shall be subdivided as follows:

                         All Air Carrier Groups

75.1  Depreciation--Airframes.
    Record here provisions for depreciation of property and equipment 
carried in balance subaccount 1601.1 Airframes.
75.2  Depreciation--Aircraft Engines.
    Record here provisions for depreciation of property and equipment 
carried in balance sheet subaccount 1602.1 Aircraft Engines.

                   Group II and Group III Air Carriers

75.3  Depreciation--Airframe Parts.

    Record here provisions for depreciation of spare airframe 
instruments and parts carried in balance sheet subaccount 1608.1 
Airframe Parts and Assemblies.
75.4  Depreciation--Aircraft Engine Parts.
    Record here provisions for depreciation of spare aircraft engine 
instruments and parts carried in balance sheet subaccount 1608.5 
Aircraft Engine Parts and Assemblies.

                         All Air Carrier Groups

75.5  Depreciation--Other Flight Equipment.

    Record here provisions for depreciation of property and equipment 
carried in balance sheet account 1607 Improvements to Leased Flight 
Equipment (exclusive of capitalized overhauls accounted for on a 
deferral and amortization basis) and balance sheet subaccount 1608.9 
Other Parts and Assemblies. Group I air carriers shall also include in 
this subaccount provisions for depreciation of property carried in 
balance sheet account 1608 Flight Equipment Rotable Parts and 
Assemblies.
75.6  Depreciation--Flight Equipment.

[[Page 218]]

    This classification is established only for purposes of control by 
the BTS and shall include all charges to operating expenses for 
depreciation of flight equipment of all types and classes.
75.8  Depreciation--Maintenance Equipment and Hangars.
    Record here provisions for depreciation of maintenance property and 
equipment included in balance sheet accounts 1630 Equipment, 1639 
Improvements to Leased Buildings and Equipment, and 1640.1 Maintenance 
Buildings and Improvements.
75.9  Depreciation--General Ground Property.
    Record here provisions for depreciation of property and equipment 
included in balance of property and equipment included in balance sheet 
accounts 1630 through 1640, exclusive of provision for depreciation of 
maintenance property and equipment included in account 75.8.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-948, 41 FR 12296, 
Mar. 25, 1976; ER-980, 42 FR 38, Jan. 3, 1977; 60 FR 66723, Dec. 26, 
1995]



76  Amortization Expense--Capital Leases.

    (a) Record here amortization charges applicable to assets recorded 
under capital leases in Account 1695 -- Leased Property under Capital 
Leases.
    (b) This account shall be subdivided as follows by all air carrier 
groups:
76.1  Amortization--Capitalized Flight Equipment.
    Record here amortization charges applicable to flight equipment 
acquired under capital leases.
76.2  Amortization--Capitalized Other Property and Equipment.
    Record here the amortization charges applicable to property and 
equipment, other than flight equipment, acquired under capital leases.

[ER-1401, 50 FR 245, Jan. 3, 1985]



77  Uncleared Expense Credits.

    (a) Record here credits to operating expenses, which have not been 
cleared to the objective accounts to which applicable.
    (b) Each air carrier shall credit, or charge as appropriate, the 
objective account prescribed for each expense element which may be 
involved in distribution of expenses between separate reporting entities 
or nontransport divisions of the air carrier. At the option of the air 
carrier, either the individual applicable objective accounts or this 
account may be credited with amounts capitalized, charged against 
incidental services, or otherwise assigned to other than separate 
operating entities of the air carrier provided the aggregate credits to 
this account in each function do not, for any accounting year, distort 
the individual objective accounts of the function to which related and 
all expense credits applicable to complete individual transactions are 
consistently credited either to this account or the individual objective 
accounts to which related. Each air carrier using this account shall 
establish such standard practices as may be prescribed by the BTS or, in 
the absence of such action by the Civil Aeronautics Board, such standard 
practices as will prevent credits to this account from significantly 
distorting the individual objective accounts of each function to which 
related.
    (c) This account shall not be credited with amounts applicable to 
objective accounts of the Flying Operations, Depreciation, and Direct 
Maintenance functions. Credits applicable to such functions shall be 
carried to the individual objective accounts to which applicable.
    (d) This account shall be subdivided as follows by all air carrier 
groups:
77.8  Uncleared Interchange Expense Credits.
    Record here credits to operating expenses, from operations performed 
for others under aircraft interchange agreements, which have not been 
cleared to the objective accounts to which applicable.
77.9  Other Uncleared Expense Credits.
    Record here credits to operating expenses, from other than 
operations under aircraft interchange agreements, which have not been 
cleared to the objective accounts to which applicable.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 
26, 1995]



78  Direct Maintenance--Flight Equipment.

    This classification is established for purposes of control by the 
BTS and shall include all charges to operating expenses for maintenance 
of flight equipment of all types and classes.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended at 60 FR 66723, Dec. 
26, 1995]



79  Applied Burden Debit/Credit.

    (a) This classification is established only for purposes of control 
by the BTS

[[Page 219]]

and reporting on Form 41 by air carriers, and shall reflect all 
maintenance burden applied in accordance with the provisions of section 
24, schedule P-5 of this system of accounts and reports.
    (b) This classification shall be subdivided as follows by all air 
carrier groups:
79.6  Applied Burden--Flight Equipment.
79.8  Applied Burden--General Ground Property.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-979, 38 FR 10926, 
May 3, 1973; 60 FR 66723, Dec. 26, 1995]



  Section 14--Objective Classification--Nonoperating Income and Expense



80  Interest Income.

    Included under account 89 Other Nonoperating Income and Expense--
Net.

[ER-1401, 50 FR 245, Jan. 3, 1985]



81  Interest on Long-term Debt and Capital Leases.

    (a) Record here interest expense applicable to long-term debt and 
capitalized leases.
    (b) This account shall be subdivided as follows by all air carrier 
groups:
81.1  Interest expense--long-term debt.
    Record here interest on all classes of long-term debt. This includes 
interest expense applicable to all portions of long-term debt which are 
classified as either current (Account 2000) or long-term (Account 2210) 
for balance sheet classification purposes.
81.2  Interest expense--capital leases.
    Record here for all capitalized leases, that portion of each lease 
payment which represents interest expense.

[ER-1013, 42 FR 37516, July 21, 1977]



82  Other Interest.

    (a) This account shall be subdivided as follows by all air carrier 
groups:
82.1  Interest Expense--Short-Term Debt.
    Record here interest on all classes of short-term debt.
83.1  Imputed Interest Capitalized--Credit.
    Record here credits related to imputed interest capitalized and 
recorded in asset accounts.
83.2  Imputed Interest Deferred--Debit. 
    Record here debits related to imputed interest deferred in balance 
sheet account 2390, Other deferred credits.
83.3  Imputed Interest Deferred--Credit.
    Record here periodic credits for imputed interest, cleared to this 
account as the amount of such interest in the asset accounts is 
amortized.
83.4  Interest Capitalized--Credit.
    Record here interest which is capitalized and recorded in asset 
accounts.
84.1  Amortization of discount and expense on debt.

    Record here for all classes of debt the amortizations of discount 
and expense on short-term and long-term obligations.
84.2  Amortization of premium on debt.
    Record here for all classes of debt the amortizations of premium on 
short-term and long-term obligations.
    (b) [Reserved]

[ER-1401, 50 FR 245, Jan. 3, 1985, as amended by Amdt. 241-58, 54 FR 
5596, Feb. 6, 1989]



83  Capitalized Interest.

    Included under account 82 Other Interest.

[ER-1401, 50 FR 245, Jan. 3, 1985]



84  Amortization of Debt Discount, Premium and Expense.

    Included under account 82 Other Interest.

[ER-1401, 50 FR 245, Jan. 3, 1985]



85  Foreign exchange gains and losses.

    Record here gains and losses from transactions involving currency 
translations resulting from nonroutine abnormal changes in rates of 
foreign exchange and gains or losses which arise from translations of 
long-term debt principal and interest transactions.

[Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]



86  Income from Nontransport Ventures.

    Included under account 89 Other Non-Operating Income and Expense--
Net.

[ER-980, 42 FR 38, Jan. 3, 1977]



87  Equity in Income of Investor Controlled Companies.

    Included under account 89 Other Nonoperating Income and Expense--
Net.

[ER-1401, 50 FR 245, Jan. 3, 1985]



89  Other Nonoperating Income and Expense--Net.

    (a) Record here all debits and credits of a nonoperating character 
which are not otherwise provided for in this section.

[[Page 220]]

    (b) This account shall be subdivided as follows by all air carrier 
groups:
80.0  Interest Income.
    (a) Record here interest income from all sources. This account shall 
include as an increase or reduction of interest received the 
proportionate amortization of any discount or premium on the purchase 
price of securities of others held by the air carrier.
    (b) This account shall not include interest on securities issued or 
assumed by the air carrier and subsequently reacquired.
86.0  Income from Nontransport Ventures.
    (a) Record here the gross revenues and expenses applicable to 
operations not reasonably considered as incidental to the commercial air 
transport services of the accounting entity; rents from nonoperating 
properties used by others; income or loss from nontransport divisions; 
and other income or loss from activities of the air carrier which are 
extraneous to the air transport and incidental services of the 
accounting entity.
    (b) This account shall include revenues and expenses applicable to 
nonscheduled transport services performed for the defense establishment 
when separate reports for such services are required in accordance with 
section 21 ``Introduction to System of Reports.'' Where the foregoing 
transport services are not required to be separately reported, gross 
revenues from such services shall be included in profit and loss account 
07 Charter, or other appropriate revenue account, and gross expenses 
shall be included in the appropriate operating expense functions.
87.0  Equity in Income of Investor Controlled Companies.
    Record here the equity in the current earnings or losses of investor 
controlled companies. Dividends declared on the stock of such companies 
shall not be included in this account as income but shall be entered in 
balance sheet subaccount 1510.1 Investments in Investor Controlled 
Companies as a return on investment.
88.1  Intercompany Transaction Adjustment--Credit.
    Record here all intercompany credits for any differences between 
amounts at which transactions between the air carrier and its 
nontransport divisions or associated companies are initially recorded 
and are to be settled.
88.2  Dividend income.
    Record here income from dividends declared on stocks of other than 
investor controlled companies. Dividends declared on stock of investor 
controlled companies shall not be included in this account but shall be 
entered in balance sheet subaccount 1510.1 Investments in Investor 
Controlled Companies.
88.3  Net Unrealized Gain or Loss on Marketable Equity Securities.
    Record here the net unrealized gain or loss on the valuation of 
marketable equity securities.
88.4  Net Realized Gain or Loss on Marketable Equity Securities.

    Record here the net realized gain or loss on the valuation of 
marketable equity securities.
88.5  Capital gains and losses--operating property.
    Record here gains or losses on retirements of operating property and 
equipment, flight equipment expendable parts, or miscellaneous materials 
and supplies sold or otherwise retired in connection with a general 
retirement program as opposed to incidental sales performed as a service 
to others.
88.6  Capital gains and losses--other.
    Record here gains or losses not required to be reported in accounts 
88.3, 88.4 and 88.5 such as gains or losses on retirement of 
nonoperating property and equipment, investments in other than 
marketable equity securities, and the transfer of assets in a troubled 
debt restructuring.
88.7  Unapplied cash discounts.
    Record here cash discounts on routine purchases of materials, repair 
parts or supplies. Cash discounts on classes of assets included in 
property and equipment accounts shall not be recorded in this account 
but shall be applied as a reduction of the cost of such accounts.
88.9  Other miscellaneous nonoperating credits.
    Record here all credits of a nonoperating character not provided for 
otherwise, such as royalties from patents, gains from reacquisition and 
retirement or resale of debt securities issued by the air carrier, and 
gains resulting from troubled debt restructurings.
89.1  Intercompany Transaction Adjustment--Debit.
    Record here all intercompany debits for any differences between 
amounts at which transactions between the air carrier and its 
nontransport divisions or associated companies are initially recorded 
and are to be settled.
89.9  Other Miscellaneous Nonoperating Debits.
    Record here all debits of a nonoperating character not provided for 
otherwise, such as the following:
    (a) Fines or penalties imposes by governmental authorities;
    (b) Costs associated with employment discrimination that include the 
following:
    (1) Fines or penalties paid by the carrier as a result of a judicial 
or administrative decree; or the amount paid to the complainant in 
settling or securing a consent decree;
    (2) Back pay awards as a result of a judicial or administrative 
decree or a compromise settlement regardless of admission of guilt;

[[Page 221]]

    (3) Attorneys' fees or court costs awarded to the complainant by a 
judicial or administrative decree or as a result of a compromise 
settlement regardless of admission of guilt;
    (4) The fees of outside legal counsel or of experts retained in the 
unsuccessful defense of a discrimination suit or in securing a 
compromise settlement or consent decree, unless the amounts attributable 
to the discrimination are not reasonably identifiable; or
    (5) Any other expenses, such as employee salaries, resulting from 
employment practices that were found to be discriminatory or that were 
the subject of a compromise settlement or consent decree where the 
amounts attributable to discrimination are reasonably identifiable.
    (c) Amortization expense attributable to capital leases recorded in 
balance sheet Account 1795, Leased Property under Capital Leases;
    (d) Costs related to property held for future use;
    (e) Donations for charitable, social or community welfare purposes;
    (f) Losses on reacquired and retired or resold debt securities of 
the air carrier;
    (g) Losses resulting from troubled debt restructurings;
    (h) Losses on uncollectible nonoperating receivables; or
    (i) Accruals to allowance for uncollectible nonoperating 
receivables.

(Secs. 204, 404, 407, and 1002 of the Federal Aviation Act of 1958, as 
amended, 72 Stat. 743, 760, 766, 788, (49 U.S.C. 1324, 1374, 1377, 
1482))

[ER-980, 42 FR 38, Jan. 3, 1977, as amended by ER-1013, 42 FR 37516, 
July 21, 1977; ER-1027, 42 FR 60128, Nov. 25, 1977; ER-1076, 43 FR 
46296, Oct. 6, 1978; ER-1401, 50 FR 245, Jan. 3, 1985; Amdt. 241-58, 54 
FR 5596, Feb. 6, 1989]



  Section 15--Objective Classification--Income Taxes for Current Period



91  Provision for Income Taxes.

    (a) Record here quarterly provisions for accruals of Federal, State, 
local, and foreign taxes based upon net income, computed at the normal 
tax and surtax rates in effect during the current accounting year. In 
general, this account shall reflect provisions within each period for 
currently accruing tax liabilities as actually or constructively 
computed on tax returns, and any subsequent adjustments. This account 
shall include credits for refund claims arising from the carryback of 
losses in the year in which the loss occurs, credits for the carry-
forward of losses in the year to which the loss is carried, and 
investment tax credits in the year in which each credit is utilized to 
reduce the liability for income taxes.
    (b) Income taxes shall be allocated among the transport entities of 
the air carrier, its nontransport divisions, and members of an 
affiliated group. Under circumstances in which income taxes are 
determined on a consolidated basis by an air carrier and other members 
of an affiliated group, the income tax expense to be recorded by the air 
carrier shall be the same as would result if determined for the air 
carrier separately for all time periods, except that the tax effect of 
carryback and carryforward operating losses, investment tax credits, or 
other tax credits generated by operations of the air carrier shall be 
recorded by the air carrier during the period in which applied in 
settlement of the taxes otherwise attributable to any member, or 
combination of members, of the affiliated group. Any difference between 
the income tax so recorded and the amount at which settlement is to be 
made shall be recorded in subaccount 88.1 Intercompany Transaction 
Adjustment--Credit or in subaccount 89.1 Intercompany Transaction 
Adjustment--Debit, as is appropriate.
    (c) This account shall be subdivided as follows by all carrier 
groups:
91.1  Income Taxes Before Investment Tax Credits.
    Record here accruals of income taxes based upon taxable income of 
the period.
91.2  Investment Tax Credits Utilized.
    Record here investment tax credits utilized to reduce the accrued 
liability for income taxes.

[Amdt. 241-58, 54 FR 5596, Feb. 6, 1989]



92  Provisions for Deferred Income Taxes.

    (a) Record here income tax debits and credits deferred in accordance 
with the provisions of balance sheet account 2340 Deferred Income Taxes 
for all material timing differences.
    (b) This account shall be subdivided as follows by all air carrier 
groups:
92.1  Current Provisions for Deferred Taxes.
92.2  Application of Taxes Deferred.
92.3  Adjustments of Deferred Taxes.

[ER-948, 41 FR 12296, Mar. 25, 1976]

[[Page 222]]



93  Investment Tax Credits Deferred and Amortized.

    (a) Record here investment tax credits of the current period which 
are transferred to balance sheet account 2345 Deferred Investment Tax 
Credits in accordance with the provisions of balance sheet account 2130 
Accrued Taxes. This account shall also include amounts for previously 
deferred investment tax credits amortized during the current period.
    (b) This account shall be subdivided as follows by all carrier 
groups:
93.1  Investment Tax Credits Deferred.
93.2  Amortization of Deferred Investment Tax Credits.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by ER-980, 42 FR 39, 
Jan. 3, 1977]



      Section 16--Objective Classification--Discontinued Operations



95  Discontinued Operations.

    (a) Record here the earnings (losses) of discontinued nontransport 
operations. For the purposes of this system of accounts and reports 
discontinued operations shall refer to the disposal of investor 
controlled companies and nontransport ventures whether sold, abandoned, 
spun off, or otherwise disposed of. This account shall not include 
earnings or losses from discontinued transport or transport-related 
operations.
    (b) This account shall be subdivided as follows by all air carrier 
groups:
95.1  Income from Discontinued Operations.
    Record here the results of operations of the discontinued 
operations.
95.2  Loss of Disposal of Discontinued Operations.
    Record here the gain or loss on the disposal of an operation. If 
loss is anticipated it should be provided for at the measurement date. 
If gain is anticipated it should be recognized when realized.

[ER-948, 41 FR 12296, Mar. 25, 1976]



        Section 17--Objective Classification--Extraordinary Items



96  Extraordinary Items.

    Record here material items characterized by their unusual nature and 
infrequent occurrence. Events or transactions which are material and 
either unusual or nonrecurring, but not both, shall be recorded in the 
profit and loss accounts to which they relate and disclosed on BTS Form 
41 Schedule P-2 with identification as to their nature and financial 
effects.

[Amdt. 241-58, 54 FR 5596, Feb. 6, 1989, as amended at 60 FR 66723, Dec. 
26, 1995]



97  Income Taxes Applicable to Extraordinary Items.

    Record here income taxes allocable to items of income included in 
profit and loss account 96 Extraordinary Items and income tax 
assessments that do not constitute ordinary adjustments of a recurrent 
nature. Records supporting entries to this account shall be maintained 
with sufficient particularity to identify the nature and gross amount of 
each extraordinary credit and each extraordinary debit.

[ER-948, 41 FR 12296, Mar. 25, 1976]



 Section 18--Objective Classification--Cumulative Effect of Changes in 
                          Accounting Principles



98  Cumulative Effect of Changes in Accounting Principles.

    Record here the difference between the amount of retained earnings 
at the beginning of the period of a change in accounting principle and 
the amount of retained earnings that would have been reported at that 
date if the new accounting principle had been applied retroactively for 
all periods which would have been affected and by recognizing only the 
direct effects of a change and the related income tax effect.

[ER-948, 41 FR 12296, Mar. 25, 1976]



                  OPERATING STATISTICS CLASSIFICATIONS



       Section 19--Uniform Classification of Operating Statistics



Sec. 19-1  Applicability.

    (a) United States air carrier: Each large certificated U.S. air 
carrier shall file with the Department, on a monthly basis, Form 41 
Schedule T-100 ``U.S. Air Carrier Traffic and Capacity Data By Nonstop 
Segment and On-flight

[[Page 223]]

Market,'' and summary data as prescribed in this section and in sections 
22 and 25 of this part. A carrier conducting only domestic all-cargo 
operations under 49 U.S.C. 41103 is not required to file Schedule T-100. 
The ``Instructions to U.S. Air Carriers for Reporting Traffic and 
Capacity Data on Form 41 Schedules T-100, T-1, T-2 and T-3'' 
(Instructions-U.S. Air Carriers) are contained in the Appendix to 
section 25 of this part.
    (b) Foreign (non-U.S.) air carrier: Each foreign air carrier as 
required by part 217 of this chapter shall file Form 41 Schedule T-
100(f) ``Foreign Air Carrier Traffic Data by Nonstop Segment and On-
flight Market.'' The ``Instructions to Foreign Air Carriers for 
Reporting Traffic Data on Form 41 Schedule T-100(f),'' (Instructions-
Foreign Air Carriers) are included in the Appendix to Sec. 217.10 of 
this chapter.
    (c) Each U.S. air carrier shall use magnetic computer tape or 
``floppy disc'' for transmitting the prescribed data to the Department. 
Upon good cause shown, OAI may approve the request of a U.S. air 
carrier, under section 1-2 of this part, to use hardcopy data input 
forms.
    (d) On-flight market and nonstop segment detail data by carrier 
shall be made public only as provided in section 19-6.

[53 FR 46305, Nov. 16, 1988; 53 FR 52404, Dec. 28, 1988, as amended at 
60 FR 66723, Dec. 26, 1995]



Sec. 19-2  Maintenance of data.

    (a) Each air carrier required to file Form 41 Schedule T-100 data 
shall maintain its operating statistics, covering the movement of 
traffic in accordance with the uniform classifications prescribed. Codes 
are prescribed for each operating element and service class. All traffic 
statistics shall be compiled in terms of each flight stage as actually 
performed.
    (b) Each carrier shall maintain data applicable to the specified 
traffic and capacity elements prescribed in section 19-5 and section 25, 
and by general service classes prescribed in section 19-4 of this part.
    (c) Operating statistics shall be maintained in accordance with the 
type of record, either nonstop segment or on-flight market.



Sec. 19-3  Accessibility and transmittal of data.

    (a) Each reporting air carrier shall maintain its prescribed 
operating statistics in a manner and at such locations as will permit 
ready accessability for examination by representatives of the 
Department. The record retention requirements are prescribed in part 249 
of this chapter.
    (b) Individual nonstop segment and on-flight market data for section 
418 domestic all-cargo, domestic charter and military charter operations 
are not required to be reported on the Schedule T-100, but summary data 
for such operations shall be included in the T-1, T-2 and T-3 schedules 
that each U.S. air carrier shall transmit to the Department on a monthly 
or quarterly basis as prescribed in sections 22 and 25. For 
international military charters, only the U.S. airports are reported on 
Schedule T-3, and the foreign airports are combined and reported on a 
single line, as Airport ``NON.'' International civilian charter and 
civilian all-cargo operations shall be reported in the T-100 data 
format, by nonstop segment and on-flight market.
    (c) Form 41 Schedule T-100 reports shall be transmitted in 
accordance with the standard practices established by the Department, 
and must be received by the Department within 30 days following the end 
of each reporting month.



Sec. 19-4  Service classes.

    The statistical classifications are designed to reflect the 
operating elements attributable to each distinctive class of service 
offered. The operating elements shall be grouped in accordance with 
their inherent characteristics as follows:
    (a) Scheduled services. Scheduled services shall include traffic and 
capacity elements applicable to air transportation provided pursuant to 
published schedules and extra sections to scheduled flights. Scheduled 
Passenger/Cargo (Service Class F) is a composite of first class, coach, 
and mixed passenger/cargo service. The following

[[Page 224]]

classifications shall be reported, as applicable:

U.S. Air Carriers:
  K--Scheduled Services (F+G)
  F--Scheduled Passenger/Cargo
  G--Scheduled All-Cargo
Foreign Air Carriers:
  F--Scheduled Passenger/Cargo
  G--Scheduled All-Cargo

    (b) Nonscheduled services. Nonscheduled services shall include all 
traffic and capacity elements applicable to the performance of 
nonscheduled aircraft charters, and other air transportation services 
not constituting an integral part of services performed pursuant to 
published flight schedules. The following classifications shall be 
reported, as applicable:

U.S. Air Carriers:
  V--Nonscheduled Services (L+N+P+R)
  L--Nonscheduled Civilian Passenger/Cargo
  P--Nonscheduled Civilian Cargo
  N--Nonscheduled Military Passenger/Cargo
  R--Nonscheduled Military Cargo
Foreign Air Carriers:
  L--Nonscheduled Civilian Passenger Cargo
  P--Nonscheduled Civilian All-Cargo Charters
  Q--Nonscheduled Services (Other than Charter)

    (c) All Services. This classification shall reflect, for the 
applicable elements, the aggregate amounts for all services performed by 
the operating entity:

U.S. Air Carriers:
  Z--All Services (V+K)



Sec. 19-5  Air transport traffic and capacity elements.

    (a) Within each of the service classifications prescribed in section 
  19-4, data shall be reported as applicable to specified air transport 
traffic and capacity elements.
    (b) These reported items are as follows:

------------------------------------------------------------------------
                                 Type of Record
 Code        Description     ----------------------  Applicable Form 41
                               Segment     Market      Schedule Number
------------------------------------------------------------------------
  ....  Carrier, carrier      S          M          T-100(f)1,2,3
         entity code.
  ....  Reporting period      S          M          T-100(f)1,2,3
         date.
  ....  Origin airport code.  S          M          T-100(f)3
  ....  Destination airport   S          M          T-100(f)
         code.
  ....  Service class code..  S          M          T-100(f)1,2,3
  ....  Aircraft type code..  S          .........  T-100(f)1,2,3
110...  Revenue passengers    .........  M          T-100(f)1,3
         enplaned.
111...     Total psgrs. in    .........  M          T-100
            market--first
            cabin.
113...     Total psgrs. in    .........  M          T-100
            market--middle
            cabin.
112...     Total psgrs. in    .........  M          T-100
            market--coach
            cabin.
130...  Revenue passengers    S          .........  T-100(f)
         transported.
131...     Passengers         S          .........  T-100
            transported--fir
            st cabin.
133...     Passengers         S          .........  T-100
            transported--mid
            dle cabin.
132...     Passengers         S          .........  T-100
            transported--coa
            ch cabin.
140...  Revenue passenger-    .........  .........  CFD* 1,2
         miles.
210...  Revenue cargo tons    .........  .........  CFD*
         enplaned.
217...     Enplaned freight.  .........  M          T-100(f),3
219...     Enplaned mail....  .........  M          T-100 3
230...  Revenue tons          .........  .........  CFD*
         transported.
237...     Transported        S          .........  T-100(f)
            freight.
239...     Transported mail.  S          .........  T-100
240...  Revenue ton-miles...  .........  .........  CFD* 1,2
241...     Revenue ton-miles  .........  .........  CFD* 1
            passenger.
247...     Revenue ton-miles  .........  .........  CFD* 1,2
            freight.
249...     Revenue ton-miles  .........  .........  CFD* 1,2
            mail.
270...  Available capacity    S          .........  T-100
         payload.
280...  Available ton-miles.  .........  .........  CFD* 1,2
310...  Available seats,      S          .........  T-100
         total.
311...     Available seats--  S          .........  T-100
            first cabin.
313...     Available seats--  S          .........  T-100
            middle cabin.
312...     Available seats--  S          .........  T-100
            coach cabin.
320...  Available seat-miles  .........  .........  CFD* 1,2
410...  Revenue aircraft      .........  .........  CFD* 1,2
         miles flown.
430...  Revenue aircraft      .........  .........  CFD* 1
         miles scheduled.
501...  Interairport          .........  .........  CFD* 2
         distance.
510...  Revenue aircraft      S          .........  T-100(f)1,2,3
         departures
         performed.
520...  Revenue aircraft      S          .........  T-100 3
         departures
         scheduled.

[[Page 225]]

 
610...  Revenue aircraft      S          .........  T-100 1,2
         hours (airborne).
630...  Aircraft hours (ramp- S          .........  T-100 1,2
         to-ramp).
650...  Total aircraft hours  .........  .........  2
         (airborne).
810...  Aircraft days         .........  .........  2
         assigned to service-
         equip..
820...  Aircraft days         .........  .........  2
         assigned to service-
         routes.
921...  Aircraft fuels        .........  .........  2
         issued (U.S.
         gallons).
------------------------------------------------------------------------
*CFD = Computed by DOT from detail Schedule T-100 and T-100(f) data.
T-100 = Form 41 Schedule T-100 for U.S. air carriers
(f) = Form 41 Schedule T-100(f) for foreign air carriers
1  = Form 41 Schedule T-1; 2 = Schedule T-2; 3 = Schedule T-3
Note: Cabin data are reported only in Group III international
  operations; in all other instances, totals are reported in items 110,
  130 and 310.

    (c) These reported items are further described as follows:
    (1) Reporting period date. The year and month or quarter to which 
the reported data are applicable.
    (2) Carrier, Carrier entity code. Each foreign air carrier shall 
report its name and code (assigned by DOT). Each U.S. air carrier shall 
report its name and entity code (a five digit code assigned by DOT that 
identifies both the carrier and its entity) for its particular 
operations. The Office of Airline Information (OAI) will assign or 
confirm codes upon request; OAI's address is in the Appendix to section 
25 of this part and the Appendix to Sec. 217.10 of this chapter.
    (3) Service class code. The service class codes are prescribed in 
section 19-4 of this part. In general, classes are divided into two 
broad categories, either K (scheduled) or V (nonscheduled), where K=F+G 
for all carriers and V=L+N+P+R for U.S. air carriers and comprises L+P 
and Q for foreign air carriers. Refer to section 19-4 for the more 
information on service class codes F, G, L, N, P, R and Q.
    (4) Record type code. This code indicates whether the data pertain 
to nonstop segment (record type S) or on-flight market (record type M).
    (5) Aircraft type code. This code represents the aircraft types, as 
described in the Appendix to section 25 of this part.
    (6) Origin, Destination airport code(s). These codes represent the 
industry designators described in the Appendix to section 25 of this 
part. A common private industry source of these industry designator 
codes is the Official Airline Guides (OAG). OAI will assign codes upon 
request if not listed in the OAG.
    (7) 110 Revenue passengers enplaned. The total number of revenue 
passengers enplaned at the origin point of a flight, boarding the flight 
for the first time; an unduplicated count of passengers in a market. 
Under the T-100 system of reporting, these enplaned passengers are the 
sum of the passengers in the individual on-flight markets. Report only 
the total revenue passengers enplaned in item 110. For all air carriers 
and all entities, item 110 revenue passengers enplaned is reported on 
Form 41 Schedule T-100 in column C-1, as follows:

------------------------------------------------------------------------
                                               All carrier groups and
                                Col.                  entities
------------------------------------------------------------------------
C-1....................  110..............  Revenue passengers enplaned.
------------------------------------------------------------------------

    (8) 130 Revenue passengers transported. The total number of revenue 
passengers transported over single flight stage, including those already 
on board the aircraft from a previous flight stage. Report only the 
total revenue passengers transported in item 130. For all air carriers 
and all entities, item 130 revenue passengers transported is reported on 
Form 41 Schedule T-100 in Column B-7, as follows:

------------------------------------------------------------------------
                                               All carrier groups and
                                Col.                  entities
------------------------------------------------------------------------
B-7....................  130..............  Revenue passengers
                                             transported.
------------------------------------------------------------------------

    (9) 140 Revenue passenger-miles. Computed by multiplying the 
interairport distance of each flight stage by the number of passengers 
transported on that flight stage.
    (10) 210 Revenue cargo tons enplaned. The total number of cargo tons 
enplaned. This data element is a sum of the individual on-flight market 
figures for each of the following categories: 217

[[Page 226]]

Freight and 219 mail. This element represents an unduplicated count of 
the revenue traffic in a market.
    (11) 230 Revenue tons transported. The number of tons of revenue 
traffic transported. This element is the sum of the following elements: 
231 Passengers transported-total, 237 Freight, and 239 Mail.
    (12) 240 Revenue ton-miles--total. Ton-miles are computed by 
multiplying the revenue aircraft miles flown (410) on each flight stage 
by the number of tons transported on that stage. This element is the sum 
of 241 through 249.
    (13) 241 Revenue ton-miles--passenger. Equals the number of 
passengers times 200, times interairport distance, divided by 2000. A 
standard weight of 200 pounds per passenger, including baggage, is used 
for all operations and service classes.
    (14) 247 Revenue ton-miles--freight. Equals the volume of freight in 
whole tons times the interairport distance.
    (15) 249 Revenue ton-miles--mail. Equals the volume of mail in whole 
tons times the interairport distance.
    (16) 270 Available capacity-payload. The available capacity is 
collected in pounds. This figure shall reflect the payload or total 
available capacity for passengers, mail and freight applicable to the 
aircraft with which each flight stage is performed.
    (17) 280 Available ton-miles. The aircraft miles flown on each 
flight stage multiplied by the available capacity on the aircraft in 
tons.
    (18) 310 Available seats. The number of seats available for sale. 
This figure reflects the actual number of seats available, excluding 
those blocked for safety or operational reasons. Report the total 
available seats in item 310. For all air carriers and all entities, item 
310 available seats, total is reported on Form 41 Schedule T-100 in 
column B-4, as follows.

------------------------------------------------------------------------
                                               All carrier groups and
                                Col.                  entities
------------------------------------------------------------------------
B-4....................  310..............  Available seats, total.
------------------------------------------------------------------------

    (19) 320 Available seat-miles. The aircraft miles flown on each 
flight stage multiplied by the seat capacity available for sale.
    (20) 410 Revenue aircraft miles flown. Revenue aircraft miles flown 
are computed in accordance with the airport pairs between which service 
is actually performed; miles are generated from the data for scheduled 
aircraft departures (Code 520) times the interairport distances (Code 
501).
    (21) 430 Revenue aircraft miles scheduled. The number of revenue 
aircraft miles scheduled. All such data shall be maintained in 
conformity with the airport pairs between which service is scheduled, 
whether or not in accordance with actual performance.
    (22) 501 Interairport distance. The great circle distance, in 
official statute miles as prescribed in part 247 of this chapter, 
between airports served by each flight stage. Official interairport 
mileage may be obtained from the Office of Airline Information at the 
address included in section 25 of this part.
    (23) Revenue aircraft departures performed. The number of revenue 
aircraft departures performed.
    (24) 520 Revenue aircraft departures scheduled. The number of 
revenue aircraft departures scheduled, whether or not actually 
performed.
    (25) 610 Revenue aircraft hours (airborne). The elapsed time, 
computed from the moment the aircraft leaves the ground until its next 
landing.
    (26) 630 Aircraft hours (ramp-to-ramp). The elapsed time, computed 
from the moment the aircraft first moves under its own power from the 
boarding ramp at one airport to the time it comes to rest at the ramp 
for the next point of landing. This data element is also referred to as 
``block'' and block-to-block aircraft hours.
    (27) 650 Total aircraft hours (airborne). The elapsed time, computed 
from the moment the aircraft leaves the ground until it touches down at 
the next landing. This includes flight training, testing, and ferry 
flights.
    (28) 810 Aircraft days assigned to service--carrier's equipment. The 
number of days that aircraft owned or acquired through rental or lease 
(but not interchange) are in the possession of the reporting air carrier 
and are available for service on the reporting carrier's routes plus the 
number of days such aircraft are in service on routes of others under 
interchange agreements. Includes days in overhaul, or temporarily

[[Page 227]]

out of service due to schedule cancellations. Excludes days that newly 
acquired aircraft are on hand, but not available for productive use, 
days rented or leased to others (for other than interchange) and days in 
possession but formally withdrawn from air transportation service.
    (29) 820 Aircraft days assigned to service--carrier's routes. The 
same as ``aircraft days assigned to service--carrier's equipment,'' but 
excluding the number of days that the reporting carrier's owned or 
rented equipment are in the possession of others under interchange 
agreements and including the number of days aircraft of others are in 
the possession of the reporting air carrier under interchange 
agreements.
    (30) 921 Aircraft fuels issued (gallons). The amount of aircraft 
fuels issued, in U.S. gallons, during the reporting period for both 
revenue and nonrevenue flights.

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by Amdt. 241-58, 54 FR 
7184, Feb. 17, 1989; 60 FR 66723, Dec. 26, 1995; 62 FR 6718, Feb. 13, 
1997]



Section 19-6  Public disclosure of traffic data.

    (a) Detailed domestic on-flight market and nonstop segment data in 
Schedule T-100 shall be made publicly available after processing. 
Domestic data are defined as data from air transportation operations 
from a place in any State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico and the Virgin Islands, or a 
U.S. territory or possession to a place in any State of the United 
States, the District of Columbia, the Commonwealth of Puerto Rico and 
the Virgin Islands, or a U.S. territory or possession.
    (b) Detailed international on-flight market and nonstop segment data 
in Schedule T-100 and Schedule T-100(f) reports shall be publicly 
available immediately following the Department's determination that the 
database is complete, but no earlier than six months after the date of 
the data. Data for on-flight markets and nonstop segments involving no 
U.S. points shall not be made publicly available for three years. 
Industry and carrier summary data may be made public before the end of 
six months or the end of three years, as applicable, provided there are 
three or more carriers in the summary data disclosed. The Department 
may, at any time, publish international summary statistics without 
carrier detail. Further, the Department may release nonstop segment and 
on-flight market detail data by carrier before the end of the 
confidentiality periods as follows:
    (1) To foreign governments as provided in reciprocal arrangements 
between the foreign country and U.S. Government for exchange of on-
flight market and/or nonstop segment data submitted by air carriers of 
that foreign country and U.S. carriers serving that foreign country;
    (2) To parties to any proceeding before the Department under Title 
IV of the Federal Aviation Act of 1958, as amended, as required by the 
Administrative Law Judge or other decisionmaker of the Department. 
Parties may designate agents or consultants to receive the data in their 
behalf, provided the agents or consultants agree to abide by the 
disclosure restrictions. Any data to which access is granted pursuant to 
this provision may be introduced into evidence, subject to the normal 
rules of admissibility of evidence.
    (3) To agencies and other components of the U.S. Government for 
their internal use only.

[Amdt. 241-59, 56 FR 2845, Jan 25, 1991, as amended at 62 FR 6719, Feb. 
13, 1997]



Sec. 19-7  Passenger origin-destination survey.

    (a) All U.S. large certificated air carriers conducting scheduled 
passenger operations (except helicopter carriers) shall participate in a 
Passenger Origin-Destination ( O & D) Survey covering domestic and 
international operations, as described in the instructions manual 
entitled, Instructions to Air Carriers for Collecting and Reporting 
Passenger Origin-Destination Survey Statistics (Appendix A to this 
section), and in Passenger Origin-Destination Directives issued by the 
Department's Bureau of Transportation Statistics (BTS), Office of 
Airline Information (OAI). Copies of these Instructions and Directives 
are provided to each large carrier participating in

[[Page 228]]

the Survey. Copies are also available from the Office of Airline 
Information, K-25, Room 4125, U.S. Department of Transportation, 400 
Seventh St., SW., Washington, DC 20590.
    (b) Those participating air carriers that have access to automatic 
data processing (ADP) services shall utilize magnetic tape, cartridge, 
floppy diskette or other ADP media for transmitting the prescribed data. 
Those carriers without ADP capability should contact the Office of 
Airline Information for further instructions ((202) 366-4373).
    (c) A statistically valid sample of light coupons shall be selected 
for reporting purposes. The sample shall consist of at least 1 percent 
of the total lifted ticket flight coupons for all large domestic markets 
listed in the Instructions and 10 percent for all others--including 
domestic and international markets. The sample shall be selected and 
reported in accordance with the requirements of paragraph (a) of their 
section, except that the participating O & D carriers with nonstandard 
ticketing procedures, or other special operating characteristics, may 
propose alternative procedures. Such departures from standard O & D 
Survey practices shall not be authorized unless approved in writing by 
the Director, Office of Airline Information under the procedures in Sec. 
1-2 of 14 CFR part 241. The data to be recorded and reported from 
selected lifted ticket flight coupons, as stipulated in the Instructions 
and Directives shall include the following data elements: Point of 
origin, carrier on each flight-coupon stage, fare-basis code for each 
flight-coupon stage, points of stopover or connection (interline and 
intraline), point of destination, number of passengers, and total dollar 
value of ticket (fare plus tax).
    (d) Data covering the operations of foreign air carriers that are 
similar to the information collected in the Passenger Origin-Destination 
Survey are generally not available to the Department, the U.S. carriers, 
or U.S. interests. Therefore, because of the damaging competitive impact 
on U.S. carriers and the adverse effect upon the public interest that 
would result from unilateral disclosure of the U.S. survey data, the 
Department has determined its policy to be that the international data 
in the Passenger Origin-Destination Survey shall be disclosed only as 
follows:
    (1) To an air carrier directly participating in and contributing 
input data to the Survey or to a legal or consulting firm designated by 
an air carrier to use on its behalf O & D data in connection with a 
specific assignment by such carrier.
    (2) To parties to any proceeding before the Department to the extent 
that such data are relevant and material to the issues in the proceeding 
upon a determination to this effect by the Administrative Law Judge or 
by the Department's decision-maker. Any data to which access is granted 
pursuant to this section may be introduced into evidence subject to the 
normal rules of admissability of evidence.
    (3) To agencies and other components of the U.S. Government.
    (4) To other persons upon a showing that the release of the data 
will serve specifically identified needs of U.S. users which are 
consistent with U.S. interests.
    (5) To foreign governments and foreign users as provided in formal 
reciprocal arrangements between the foreign and U.S. governments for the 
exchange of comparable O & D data.
    (e) The Department reserves the right to make such other disclosures 
of the O & D data as is consistent with its regulatory functions and 
responsibilities.

Appendix A to Sec. 19-7--Instructions to Air Carriers for Collecting and 
        Reporting Passenger Origin-Destination Survey Statistics

    All questions, comments, extension and waiver requests should be 
addressed to:

Office of Airline Information, K-25, Room 4125, U.S. Department of 
Transportation, 400 Seventh St., SW., Washington, DC 20590, Telephone 
(202) 366-9059.

[[Page 229]]

[GRAPHIC] [TIFF OMITTED] TC30SE91.007

                        B. Narrative Description

    A single O&D Survey is conducted continuously by the large U.S. 
certificated air carriers. Foreign air carriers do not directly 
participate in the Survey, although some of their data are captured in 
the Survey, since passengers who share a ticketed itinerary between a 
U.S. carrier and a foreign carrier may be sampled by the U.S. carrier. 
The authority for these instructions is found in 14 CFR part 241, 
section 19-7, and in the CAB Sunset Act of 1984 (Pub. L. 94-443).
    The Survey samples revenue passenger trips moving in whole or in 
part on domestic and/or international scheduled services of the carriers 
participating in the Survey. In general, these requirements do not apply 
to small certificated, all-cargo and all charter carriers.
    The source documents for the Survey data are passenger tickets. 
These data are collected from the ``lifted'' flight coupons of tickets 
(a portion of a multi-part ticket booklet of three \1\ or more coupons, 
including one for each stage of the passenger's trip itinerary which is 
lifted by the carrier as the passenger boards a particular flight 
segment).
---------------------------------------------------------------------------

    \1\ Each ticket booklet is comprised of one or more flight coupons 
for passenger travel in a city-pair market, plus a passenger coupon (the 
traveler's receipt) and the auditor coupon (for the carrier's internal 
controls).
---------------------------------------------------------------------------

    The Survey data are taken from the coupon that is lifted by a 
participating carrier, unless it is apparent from the lifted coupon that 
another participating carrier has already recorded and reported the 
data, in which instance the ticket coupon is non-reportable for the 
second honoring/participating carrier. The complete passenger itinerary, 
and related data on type of fare and dollar value of the ticket, is 
recorded as

[[Page 230]]

one entry from the sampled, reportable flight coupon.
    The recording of data from the sampled flight coupon normally 
consists of transcribing the information exactly as indicated on the 
ticket. The detail recorded for each trip shows the complete routing 
from the origin city (airport code) to the destination city (airport 
code) including, in sequence from the origin, each point of transfer and 
stopover (intraline and interline), the summarized fare-basis code shown 
for each flight coupon stage of the itinerary, and the total dollar 
value of the fare and tax for the entire ticket.
    Prior to 1987, the Survey was generally based on a 10-percent sample 
of passenger tickets. Beginning July 1, 1987, the Survey is collected 
primarily on the basis of a stratified, scientific sample of at least 1 
percent of tickets in domestic major markets and 10 percent of tickets 
in all other domestic and in all international city-pair markets. The 
Survey data are taken from the selected flight coupons of the tickets 
sampled: single-coupon or double-coupon round trips in domestic major 
markets where the ticket serial number ends in double zero (00) and all 
other ticket coupons ending in zero (0). This procedure yields a ``two-
tiered'' stratified sample.
    Group tickets are included on the basis of a 10-percent sample when 
the number of passengers on such a group ticket is 10 or less. Group 
tickets with more than 10 passengers on each ticket are included on the 
basis of a 100 percent census, i.e., all such tickets are sampled, 
regardless of serial number, and the total data listed are conformed to 
a 10 percent sample for inclusion in the O&D Survey.
    Following the selection of reportable flight coupons and the 
recording of data, each participating carrier shall edit and summarize 
\2\ the data into a quarterly report to the Department.
---------------------------------------------------------------------------

    \2\ These summarization procedures include showing two or more 
passengers with the same itinerary as one O&D record and compressing 
extremely lengthy itineraries (such as around-the-world tickets) into a 
standard trip stage length limit (which may be either seven or twenty-
three stages, at the carrier's option), as explained in Section V.D.
---------------------------------------------------------------------------

                   II. Effective Date of Instructions

    These data collection and reporting instructions are effective on 
and after July 1, 1987 and apply to all flight coupons lifted on or 
after July 1, 1987.

                  III. Carriers Participating in Survey

    A. Participating carriers. As defined in section 19-7 of the 
Department's Economic Regulations (14 CFR part 241), the participants in 
the O&D Survey include all large certificated air carriers conducting 
scheduled passenger services (except helicopter carriers). These 
participating carriers collect and report data in accordance with these 
Instructions, and supplemental Passenger Origin-Destination Directives 
that may be issued periodically. The list of participating carriers will 
be issued by reporting directive under the authority in 14 CFR 
385.27(b).
    B. Amendments to list of participating carriers. As new carriers 
begin service, they will be required to file O&D Survey Data. These 
carriers will not be added to the participating carrier list 
automatically, but will be added when the next annual review is made.

                        IV. Submission of Reports

    A. Period covered by reports. Reports are to be filed for each 
calendar quarter of the year as shown below:

------------------------------------------------------------------------
               Report                         Time period covered
------------------------------------------------------------------------
1st quarter.........................  Jan. 1 through Mar. 31.
2nd quarter.........................  Apr. 1 through June 30.
3rd quarter.........................  July 1 through Sept. 30.
4th quarter.........................  Oct. 1 through Dec. 31.
------------------------------------------------------------------------

    B. Filing date for reports. Reports are to be filed with the 
Department on or before the dates listed below. The mailing address is 
on the inside cover to these instructions.

------------------------------------------------------------------------
                  Report                            Due date \1\
------------------------------------------------------------------------
1st quarter..............................  May 15
2nd quarter..............................  Aug. 15
3rd quarter..............................  Nov. 15
4th quarter..............................  Feb. 15
------------------------------------------------------------------------
\1\ Due dates falling on Saturday, Sunday or national holiday will
  become effective the first following work day.

    C. Format of report. The report may be submitted in any one of the 
following formats:
    (1) ADP media including magnetic tapes and floppy discs.\3\
---------------------------------------------------------------------------

    \3\ Magnetic tapes, floppy discs and similar media will be returned 
to the carriers, upon request, following completion of the processing 
cycle by the Department.
---------------------------------------------------------------------------

    (2) Hard copy BTS Form 2787, in typewritten form, for carriers that 
lack computer capability. Sample formats of the required data appear in 
Sections IX and XII. Supplies of blank Form 2787 are available, upon 
request, from the Director, Office of Airline Information (address on 
inside cover). Any reasonable facsimile of Form 2787 will be acceptable 
in lieu of Form 2787, if approved in advance by the Director.
    D. Number of copies of report to be filed. A participating carrier 
shall file with the Department a single copy of its quarterly O&D data 
report. When ADP submissions are transmitted, the package is to contain 
a transmittal letter describing the contents, and stating the overall 
record and passenger

[[Page 231]]

counts included in the submission. Each submission is to be labeled 
externally as to submitting carrier and time period of the O&D Survey 
data.
    E. Address for filing reports. Reports should be submitted to the 
Director, Office of Airline Information (address on inside cover).

            V. Selection of Sample and Recording of Data.\4\

      
---------------------------------------------------------------------------

    \4\ Upon approval of the Director, Office of Airline Information, 
carriers may continue current reporting procedures (up to twenty-three 
stages of a passenger flight) and may report a uniform 10 percent sample 
of tickets lifted (each zero ending lifted coupon) without reducing the 
sample size from 10 percent to 1 percent for domestic major markets. 
Note that the domestic major markets will be reviewed each year at June 
30, based on the prior 12 months O&D data, and the list amended as 
necessary. The list could remain static for more than a year, although 
it will be reviewed annually. Necessary amendments will be effective on 
January 1 of the following year.
---------------------------------------------------------------------------

    A. Sampling Basis. Each participating carrier in this O&D Survey 
shall search all listed flight coupons, whether the coupons are its own 
ticket stock or on the ticket stock of another U.S. or foreign carrier 
(either standard IATA and ARC ticket stock or nonstandard ticket stock), 
and is to select for reporting purposes the following flight coupons:
    (1) Major domestic markets. All single-passenger flight coupons that 
are either a single flight coupon ticket or part of a round trip, two 
coupon ticket where the ticket serial number ends in the digits double-
zero (00). Note.--The list of major domestic markets will be issued by 
reporting directive under the authority in 14 CFR 385.27(b).
    (2) International markets and all other domestic markets. (a) All 
single-passenger flight coupons with ticket serial numbers ending with 
the digit zero (0);
    (b) Those group-ticket flight coupons with 10 or fewer passengers 
with ticket serial numbers ending with the digit zero (0);
    (c) Those group-ticket flight coupons with 11 or more passengers 
without regard to serial number; and
    (d) Itineraries in major domestic markets that comprise more than 
two coupons are sampled on a uniform 10 percent basis, by selecting all 
ticket serial numbers ending with the digit zero (0).
    B. Selection of Reportable Flight Coupons. The flight coupons 
identified above are to be examined to isolate the reportable flight 
coupons, i.e. coupons from which data are to be recorded. Flight coupon 
data are reported only by the first honoring and participating carrier 
(operating carrier). Such carriers shall report the required data for 
the entire ticketed itinerary.
    If a participating carrier has preceded an examining carrier on any 
stage in the trip itinerary, including any stage in a conjunction 
itinerary and any stage in a reissued ticket (either before or after 
reissue) that coupon is not reportable.
    For conjunction tickets, the ticket number for the first ticket 
booklet determines if the conjunction tickets should be reported in the 
Survey. Otherwise, conjunction tickets do not require special treatment 
and are governed by the rules for regular tickets.
    No adjustment is made in the Survey for alterations or changes in 
the trip itinerary subsequent to the stage covered by the reportable 
coupon.
    C. Optional Use of Other Sampling Procedures.
    (1) Alternative sampling procedures or alternative O&D data systems 
may be proposed by participating carriers with nonstandard ticketing 
procedures, or other special operating characteristics. Data reported 
under proposed alternative procedures must approximate the usefulness 
and statistical validity of the O&D Survey.
    (2) Such departures from the prescribed O&D Survey practices shall 
not be authorized unless approved in writing by the Director, Office of 
Airline Information (address inside front cover). The proposed 
alternative O&D Survey procedures must be described in detail in the 
letter requesting the waiver.
    D. Recording of Data from Reportable Flight Coupons. (1) The 
following items are to be reported from the reportable flight coupons:
    (a) Point of origin,
    (b) Operating carrier on each flight stage (if unknown, identify 
ticketed carrier),
    (c) Ticketed carrier on each flight stage,
    (d) Fare-basis on each flight coupon, C, D, F, G, X or Y,
    (e) Points of stopover or connection (interline and intraline),
    (f) Point of destination,
    (g) Number of passengers, and
    (h) Total dollar value of ticket (fare plus tax and other charges, 
such as Passenger Facility Charges).
    (2) The individual items are to be recorded in the sequence of 
occurrence in the itinerary as follows:
    (a) All entries for points (airport codes \5\) in an itinerary are 
to be recorded in three-letter airport code data to fit into the stage-
length limitation (seven or twenty-three stages at the carrier's 
option), all airport codes are to be reported, including data on

[[Page 232]]

commuter, foreign, intra-state and other carriers' portions of 
itineraries. Normally codes are recorded as they appear on the ticket. 
However, if a code is obviously incorrect, record the correct code. For 
instance, if a ticket is coded DCA-NYC or Washington/National to New 
York when the flight stage actually operated from Washington, Dulles to 
Newark (EWR), record the correct airport code. When only name spellings 
of a city appear on the ticket for multi-airport cities (such as 
Washington, New York, San Francisco, or Los Angeles), record the 
specific three letter airport code. In cases where two airport codes are 
shown on the ticket for a point, such as when the passenger arrives at 
an airport such as San Francisco and departs from another local airport 
such as Oakland, record the code for the arrival airport, enter a 
surface segment indicator (--) to the departure airport, and record the 
departure airport code. (When the surface portion is at the beginning or 
end of an itinerary, the surface indicator is to be omitted). For 
example:
---------------------------------------------------------------------------

    \5\ Codes to be used are those appearing in the Official Airline 
Guide at the time the data are being recorded. If a code is not found in 
the OAG, contact the Director, Office of Airline Information (address 
inside front cover).

[[Page 233]]



--------------------------------------------------------------------------------------------------------------------------------------------------------
   000001         UCA             YV                UA                  Y                  JFK               TW                TW               X
--------------------------------------------------------------------------------------------------------------------------------------------------------
Passenger(s  Utica         Mesa              United            Fare Code            New York          TWA               TWA              Fare Code
 )                         Operating         Ticketed                               Kennedy           Operating         Ticketed
                           Carrier           Carrier                                Airport           Carrier           Carrier
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                 Surface Transportation
--------------------------------------------------------------------------------------------------------------------------------------------------------
                  SFO                                                                                                                (Blank space)
--------------------------------------------------------------------------------------------------------------------------------------------------------
San Francisco                           Operating Carrier                              Ticketed Carrier                        Fare Code
--------------------------------------------------------------------------------------------------------------------------------------------------------


--------------------------------------------------------------------------------------------------------------------------------------------------------
     OAK               UA                  UA                 G                  LAX                   DL                  DL                  F
--------------------------------------------------------------------------------------------------------------------------------------------------------
Oakland        United              United              Fare             Los Angeles            Delta               Delta               Fare Code
               Operating           Ticketed                                                    Operating           Operating
               Carrier             Carrier                                                     Carrier             Carrier
--------------------------------------------------------------------------------------------------------------------------------------------------------


--------------------------------------------------------------------------------------------------------------------------------------------------------
    SLC             NW                NW                 D               PHX              AA               AA               C                 LAX
--------------------------------------------------------------------------------------------------------------------------------------------------------
Salt Lake    Northwest         Northwest         Fare Code         Phoenix         American         American         Fare Code        Los Angeles
 City        Operating         Ticketed                                            Operating        Ticketed
             Carrier           Carrier                                             Carrier          Carrier
--------------------------------------------------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                             JL                                                  JL                              C                       NRT                              04596
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Japan Air Lines                                               Japan Air Lines                           Fare Code            Tokyo Narita                Dollars of Fare + Tax
Operating                                                     Ticketed
Carrier                                                       Carrier
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 234]]

    In the above example, the passenger trip stages or segments are 
compressed into the maximum of 7 stages so that several intermediate 
city-pairs (Los Angeles to Seattle to Anchorage, or LAX--SEA--Anc) and 
the related carriers have not been recorded, as prescribed below in this 
Section V.D.(3)(e). In addition, after the fourth city-pair (Los 
Angeles-Salt Lake City), the passenger trip itinerary moves from the 
initial four-part ticket booklet onto another ``conjunction'' ticket, 
and the summary fare code data are not recorded beyond the initial four-
part ticket.
    (b) All entries for operating and ticketed carriers for a coupon 
stage of an itinerary are to be recorded using two character IATA-
assigned or DOT codes, as in the above example. Note that the fare code 
summary was properly inserted after the ticketed carrier's code, i.e., 
UA for United Air Lines and Y for unrestricted coach class service. When 
a two-character carrier code is shown on the ticket, record that code 
for the ticketed carrier. However, if a code is obviously incorrect, 
record the correct carrier code. If the reporting carrier does not know 
the operating carrier on a downline code-share segment, it would use the 
ticketed carrier's code for both the operating and ticketed carriers. 
The reporting carrier is not responsible for knowing the operating 
carrier of a downline code-share where it is not a party to the code-
share segment. Except for the infrequent compression of data to fit into 
the stage-length limitation (7 or 23 stages at the carrier's option), 
all carrier codes are to be recorded, including data on air taxis, 
commuters, intra-state, and other carrier portions of itineraries. On 
tickets involving interchange service or other cooperative carrier 
arrangements, the juncture point(s) where the passenger moves from one 
carrier system to another is to be recorded as an intermediate point in 
the itinerary, even when not shown on the ticket and even though the 
flight may overfly the juncture point.
    (c) Entries for fare-basis codes are to be taken from the ``fare 
basis'' and ``fare description'' portions of the ticket and simplified 
into the appropriate category, as shown below. No attempt shall be made 
to determine and record fare-basis codes for that portion of a 
conjunction ticket appearing in the ticket. Fare-basis codes are to be 
recorded in one-character alphabetic codes. The fare-basis codes are 
recorded as follows:
C--Unrestricted Business Class
D--Restricted Business Class
F--Unrestricted First Class
G--Restricted First Class
X--Restricted Coach/Economy Class
Y--Unrestricted Coach/Economy Class
U--Unknown (This fare category is used when none is shown on a ticket 
          coupon, or when a fare category is not discernible, or when 
          two or more carrier fare codes are compressed into a single 
          stage of a passenger trip).
    (d) In recording the number of passengers, each single-passenger 
ticket is to be recorded as one passenger. Tickets for infants under two 
years of age not occupying a seat are not to be counted. A revenue 
passenger is defined in Section X.
    For group tickets of 10 or fewer passengers per ticket record the 
actual number of passengers on each ticket, i.e., either 2, 3, 4, 5, 6, 
7, 8, 9 or 10. For group tickets with 11 or more passengers (those 
sampled at a 100-percent rate) record the actual number of passengers 
traveling on each ticket, but keep these entries separate from the group 
ticket records with 10 or fewer passengers and from the single-passenger 
ticket records. Group tickets with 11 or more passengers are to be 
sorted and summarized to combine all passengers for all itineraries 
which are identical in every respect, i.e., points, carriers, fare basis 
codes, and average dollar value (as defined in paragraph (e), below). 
The total number of passengers on each summarized record is to be 
divided by 10, rounding to the nearest whole passenger. If the quotient 
ends in 0.5 or more, raise to the next whole passenger. If the quotient 
ends in less than 0.5, drop the fraction. These large group-ticket 
records, after division by 10 for compatibility with the other data, are 
to be merged with the single-passenger records and with the group-ticket 
entries from tickets of 10 or fewer passengers for the quarterly O&D 
Survey report.
    (e) The total dollar value shall be taken from the ``Total'' box on 
each ticket and shall be the sum of the fare plus tax for the entire 
ticket. Record this amount in whole U.S. dollars, with the cents 
dropped. Do not round cents to nearest whole dollar.
    Amounts on tickets stated in foreign currency are to be converted to 
U.S. dollar equivalents. For all group tickets, the dollar value to be 
recorded shall be the average amount per passenger, determined by 
dividing the total dollar value for the entire group by the number of 
passengers on the group ticket, dropping cents in the average amount.

[[Page 235]]

    (3) The length of the itineraries to be recorded is limited to a 
maximum of seven stages or twenty-three stages, at the carrier's option. 
This recognizes that the vast majority of tickets sampled have seven 
stages or fewer and that the rare occurrences of extremely lengthy 
itineraries do not impact the overall Survey results enough to justify 
their reporting burden. Therefore, trips longer than these limits are 
compressed to fall within the stated maximums. The ticketed origin and 
destination are retained, but the intermediate routing is compressed by 
applying the following rules, in sequence:
    (a) Combine any contiguous open, unknown carrier, or surface stages 
eliminating the connecting point, and ignoring the fare-basis codes, if 
different:
    (b) Combine any contiguous stages via the same non-U.S. carrier, 
eliminating the connecting point, and ignoring the fare-basis codes, if 
different;
    (c) Combine any contiguous stages via different non-U.S. carrier, 
making the carrier ``UK'', eliminating the connecting point, and 
ignoring fare-basis codes, if different:
    (d) Combine any contiguous stages via the same U.S. carrier, 
eliminating the connecting point, and ignoring the fare-basis codes, if 
different, and;
    (e) If the trip, after applying the four steps above, is still too 
long, record the compressed routing through to the stage length 
limitation city (seventh or twenty-third city), enter UK as the final 
carrier, and then record the ticketed destination as the next (the 8th 
or 24th) city.

                   VI. Summarization of Recorded Data

    A. General. Prior to the submission of each quarterly report to the 
Department, each carrier is to summarize the data in accordance with the 
rules in Section VI.B. In special hardship cases, carriers may submit a 
waiver request (with justification under Section 1-2 of 14 CFR part 241) 
requesting permission to report their flight coupon records exactly as 
represented on their lifted tickets. Waiver requests must provide the 
documentation described in Section VI.C. so that the Department can 
develop the necessary procedures and edit routines to ensure the 
accuracy and reliability of the overall O&D Survey results. The granting 
of such waivers will depend upon the availability of resources for the 
Department to assume this additional burden, which can only be 
determined on a case by case basis, after evaluating each carrier's 
need.
    B. Rules for Summarization. Sort the recorded entries into sequence 
by the entire record (excluding the passenger field), i.e., by origin, 
complete routing (including fare-basis codes), tickets destination, and 
dollars value of ticket. All identical records are then to be combined 
into one summary record. The number of passengers on the summary record 
is to be the sum of the passenger amounts of all the individual records 
combined. Passengers are only summarized where records are identical in 
all respects except in number of passengers including dollar value of 
ticket. NOTE: DO NOT SUMMARIZE DOLLARS OVER IDENTICAL RECORDS. This 
summarization is to include the entries from group tickets, but only 
after the entries for group tickets with 11 or more passengers have been 
summarized and divided by 10, as stated in Section V.D.(2)(d). Carriers 
submitting quarterly O&D Survey reports on magnetic tapes or similar 
formats such as ``floppy discs'' will follow the ADP INSTRUCTIONS in 
Section IX. Carriers filing reports on hardcopy BTS Forms 2787 are to 
enter, on the last page of the report, the overall total of the number 
of passengers in the report.
    C. Waiver Requests. Requests for permission to depart from the 
required O&D Survey procedures should include a procedural statement 
describing the process the carrier proposed to employ in examining, 
selecting and editing the data from reportable flight coupons for the 
O&D Survey, as well as a flow chart diagramming the proposed procedures.
    D. Quantity and Quality Controls. Carriers are expected to establish 
and maintain continuous quantity and quality controls on the flow of all 
lifted flight coupons through their system processes to determine the 
total number of coupons handled and the number of reportable coupons 
selected. Such data controls and tests have not been

[[Page 236]]

specified by the Department, and necessarily must be developed by each 
carrier. Each participating carrier shall develop and use on a 
continuous basis such control tests as are necessary to ensure that all 
reportable coupons are being selected, recorded and reported as intended 
by these O&D Survey Instructions. Such controls should extend over all 
ADP processing, both in-house and that from external service bureaus.

                      VII. Editing of Recorded Data

    A. City and Airport Codes. Prior to submission of O&D Survey 
reports, each carrier is to edit the recorded data to validate city and 
airport codes. This edit is to verify that the codes recorded are valid 
official codes, and it is independent of whether or not the carriers 
shown actually operated into or out of the airport shown. Any questions 
about airport codes should be addressed to the Director, Office of 
Airline Information (see inside of cover).
    B. Edit Responsibility of Carriers. Each carrier is responsible for 
developing edit procedures and internal controls over its data entry and 
processing procedures so that valid and reliable data are captured in 
the O&D Survey inputs and are properly summarized in the outputs. Since 
the carriers have many different statistical systems, it is not 
practicable for the Department of Transportation to prescribe specific 
controls in this area, and each carrier is responsible for developing 
the appropriate internal control procedures to edit the O&D Survey data 
and ensure the integrity of these data. The Department will control the 
accuracy of its processing of the sampled data upon receipt from the 
carriers.
    C. System Documentation of Edits. Carriers are required to maintain 
written O&D Survey procedural statements and flow charts. As provided in 
Section VIII, these must be established, or re-certified as of July 1, 
1987, and thereafter when significant procedural revisions occur.

          VIII. Control of Sample Selection and Data Recording

    A. Sample Accuracy and Reliability. In order to maximize the 
accuracy and reliability of the sample selection and data recording, 
each carrier is to:
    (1) Develop a written statement describing the procedures it will 
employ in examining and selecting reportable flight coupons and in 
recording, summarizing, editing, and testing the Survey data.
    (2) Submit any proposed changes in the above procedures to the 
Department's Office of Airline Information, prior to implementation of 
such changes.
    (3) Establish continuous quantity controls on the flow of all lifted 
flight coupons through the carrier's accounting processing to determine 
the total number of coupons handled, and the number of reportable 
coupons selected. Tests are to be made continuously to assure that all 
reportable coupons are being selected and the data recorded. Such tests 
should be completed while the ``lifted'' flight coupons (representing 
earned passenger revenues for flight segments operated) remain in the 
possession of the carrier. Establish such other internal control 
procedures as are necessary for supervising and monitoring the accuracy 
of the recording of data from reportable flight coupons.
    B. Staff Review. The OAI staff will review the carrier procedures 
and practices and may request modifications or the use of special 
procedures necessary to improve the sample or to bolster the controls 
for accuracy and reliability.

                          IX. ADP Instructions

    Each carrier electing to submit its Survey reports in machine 
listing form or magnetic media in lieu of hardcopy BTS Form 2787 is to 
be governed by the following instructions:

        A. Instructions for Submitting Records on Magnetic Media 

    (1) Identification record. This identification record is to include 
the reporting carrier and the reporting period. It

[[Page 237]]

is designed to fall at the beginning of each file when sorted on columns 
7 through 200. The record is to be in the format shown as follows:\6\
---------------------------------------------------------------------------

    \6\ Each reel of tape will be returned to the individual carrier 
upon request.

------------------------------------------------------------------------
                                      Tape
              Field                 positions      Tape record layout
                                    (from-to)
------------------------------------------------------------------------
Passenger Count.................       1-6      1. Passenger field must
                                                 contain leading zeros,
                                                 and no blanks.
1st City Code...................       7-9
1ST Operating Carrier...........     10-11
1ST Ticketed Carrier............     12-13      2. City field contains
                                                 the 3-letter alpha code
                                                 for the airport in the
                                                 first 3 positions.
Fare Basis Code.................        14
2ND City Code...................     15-17
2nd Operating Carrier...........     18-19
2nd Ticketed Carrier............     20-21
Fare Basis Code.................        22
3rd City Code...................     23-25
3rd Operating Carrier...........     26-27
3rd Ticketed Carrier............     28-29
Fare Basis Code.................        30
4th City Code...................     31-33      3. Ticketed and
                                                 operating carrier
                                                 fields are to contain
                                                 the 2 character air
                                                 carrier code. An
                                                 unknown carrier is to
                                                 be coded ``UK'' and
                                                 surface carrier is to
                                                 be coded ``--  --''
                                                 (dash dash).
4th Operating Carrier...........     34-35
4th Ticketed Carrier............     36-37
Fare Basis Code.................        38
5th City Code...................     39-41
5th Operating Carrier...........     42-43
5th Ticketed Carrier............     44-45
Fare Basis Code.................        46
6th City Code...................     47-49      4. Fare basis code is a
                                                 one position alpha
                                                 code.
6th Operating Carrier...........     50-51
6th Ticketed Carrier............     52-53
Fare Basis Code.................        54      5. Portion of record for
                                                 sorting, summarizing,
                                                 and sequencing includes
                                                 columns 7 through 200.
7th City Code...................     55-57
7th Operating Carrier...........     58-59
7th Ticketed Carrier............     60-61
Fare Basis Code.................        62
8th City Code...................     63-65      6. Dollar amount in
                                                 positions 196-200 is
                                                 right justified.
8th Operating Carrier...........     66-67
8th Ticketed Carrier............     68-69
Fare Basis Code.................        70      7. Positions 66-193 are
                                                 used only by those
                                                 carriers who want to
                                                 report more data, and
                                                 are not compressing to
                                                 7 stages (see Sec. V.D.
                                                 (3) for compressing
                                                 rules.
9th City Code...................     71-73
9th Operating Carrier...........     74-75
9th Ticketed Carrier............     76-77
Fare Basis Code.................        78
10th City Code..................     79-81
10th Operating Carrier..........     82-83
10th Ticketed Carrier...........     84-85
Fare Basis Code.................        86
11th City Code..................     87-89
11th Operating Carrier..........     90-91
11th Ticketed Carrier...........     92-93
Fare Basis Code.................        94
12th City Code..................     95-97
12th Operating Carrier..........     98-99
12th Ticketed Carrier...........   100-101
Fare Basis Code.................       102
13th City Code..................   103-105
13th Operating Carrier..........   106-107
13th Ticketed Carrier...........   108-109
Fare Basis Code.................       110
14th City Code..................   111-113
14th Operating Carrier..........   114-115
14th Ticketed Carrier...........   116-117

[[Page 238]]

 
Fare Basis Code.................       118
15th City Code..................   119-121
15th Operating Carrier..........   122-123
15TH Ticketed Carrier...........   124-125
Fare Basis Code.................       126
16th City Code..................   127-129
16th Operating Carrier..........   130-131
16th Ticketed Carrier...........   132-133
Fare Basis Code.................       134
17th City Code..................   135-137
17th Operating Carrier..........   138-139
17th Ticketed Carrier...........   140-141
Fare Basis Code.................       142
18th City Code..................   143-145
18th Operating Carrier..........   146-147
18th Ticketed Carrier...........   148-149
Fare Basis Code.................       150
19th City Code..................   151-153
19th Operating Carrier..........   154-155
19th Ticketed Carrier...........   156-157
Fare Basis Code.................       158
20th City Code..................   159-161
20th Operating Carrier..........   162-163
20th Ticketed Carrier...........   164-165
Fare Basis Code.................       166
21st City Code..................   167-169
21st Operating Carrier..........   170-171
21st Ticketed Carrier...........   172-173
Fare Basis Code.................       174
22nd City Code..................   175-177
22nd Operating Carrier..........   178-179
22nd Ticketed Carrier...........   180-181
Fare Basis Code.................       182
23rd City Code..................   183-185
23rd Operating Carrier..........   186-187
23rd Ticketed Carrier...........   188-189
Fare Basis Code.................       190
24th City Code..................   191-193
Blank...........................   194-195
US Value of Ticket in $.........   196-200
------------------------------------------------------------------------


------------------------------------------------------------------------
                Field                  Columns           Remarks
------------------------------------------------------------------------
Reporting carrier...................        1-2  Alpha code.
Reporting period:
  Year..............................        3-4  Tens and units
                                                  position.
  Quarter...........................          5  1, 2, 3, or 4.
Blanks..............................      6-200
------------------------------------------------------------------------

    (2) Detail record. (a) All records are to be summarized on the 
complete itinerary \7\ (columns 7 through 200) and the summary record 
only for each itinerary is to be submitted. The tape file, including the 
identification record, is to be in sequence by complete itinerary.
---------------------------------------------------------------------------

    \7\ Itinerary includes total dollar value of ticket.
---------------------------------------------------------------------------

    (b) The tape record layout is shown on the following page.
    (3) Magnetic Tape Instructions: (a) All tapes are to be written 
using the standard IBM extended binary coded decimal interchange code 
(EBCDIC).
    (b) The recording density can be either 6250 or 1600 B.P.I.
    (c) All tape will contain standard IBM volume header, and trailer 
records.
    (d) External labels will contain the carrier, name, the report date, 
file identification, and an address for returning the tapes.
    (4) Transmittal letter. The tape shall be accompanied by a 
transmittal letter which shows the number of records reported and the 
total number of passengers contained in the report.
    B. Editing of Tape Records. Prior to submission of data, each 
carrier is requested to edit and correct its data so that its O&D Survey 
report may be as error-free as is reasonably practicable. The methods to 
be used in editing are left to the carriers' discretion, but with

[[Page 239]]

assistance available upon request from the Department's Office of 
Airline Information (OAI). To aid the carriers in maintaining a current 
file of editing criteria, OAI will re-issue, as needed, the city/
airport-carrier file to each participating carrier. There will be a 
five-position field to denote the city/airport-carrier. The first three 
positions denotes the airport and the last two positions denotes the air 
carrier.
    C. Standard Formats for Floppy Disk or Cartridge Submissions. 
Carriers should use the 200 position format with the standard length 
fields prescribed for magnetic media submissions. The record layout is 
detailed in subsection A(1) of this section. However, to simplify the PC 
submissions, the submitter may report the dollar value of the ticket in 
the field immediately after the last reported city code, rather than in 
positions 196-200. Submitters may separate fields by using commas or 
tabs (comma delimited ASCII or tab delimited ASCII format).

                          X. Glossary of Terms

    Selected terms used in the foregoing instructions are here defined 
and explained in the context of the O&D Survey.
    ADP. An abbreviation for automated data processing, which is the 
term applied to all forms of machine processed data.
    Carrier. Any scheduled air carrier, U.S. or foreign, that appears on 
a coupon stage in a ticketed itinerary, including helicopter, air taxi, 
commuter, intra-Alaska carriers, and intra-state carriers.
    City or origin. (See origin.)
    Conjunction ticket. Two or more tickets concurrently issued to a 
passenger and which together constitute a single contract of carriage.
    Connecting point. An intermediate point in an itinerary at which the 
passenger deplanes from one flight and boards another flight, either on 
the same carrier or from the flight of one carrier to a flight of 
another carrier, for continuation of the journey.
    Coupon stage. (See flight-coupon stage.)
    Destination. The last point in the itinerary and the last point at 
which the passenger is to deplane at the completion of the journey. (In 
roundtrip itineraries, the destination and the origin are the same.)
    Dollar value of ticket. (See total dollar value of ticket.)
    Domestic. Itineraries within or between the 50 U.S. States and the 
District of Columbia are considered domestic for this Survey.
    Fare basis code. The alphabetic code(s) or combination of alphabetic 
and numeric codes appearing in the ``Fare basis'' box on the flight 
coupon which describe the applicable service and discount to which the 
passenger is entitled. All fare basis codes are summarized into basic 
categories; namely C--Unrestricted Business Class, D--Restricted 
Business Class, F--Unrestricted First Class, G--Restricted First Class, 
X--Restricted Coach/Economy Class, Y--Unrestricted Coach/Economy Class, 
and U--Unknown (This fare category is used when none is shown on a 
ticket coupon, or when a fare category is not discernible, or when two 
or more carrier fare codes are compressed into a single stage of a 
passenger trip).
    Fare ladder. The ``For-issuing-office-only'' box of a ticket.
    Flight-coupon stage. The portion of an itinerary which lies between 
two contiguous points in the itinerary and between which points the 
passenger is to travel on a single flight.
    Group ticket. A single ticket valid for the transportation of two or 
more passengers over the same itinerary.
    Interline transfer. An occurrence at an intermediate point in an 
itinerary where a passenger changes from one carrier to another carrier, 
with or without a stopover.
    Intermediate point. Any point in an itinerary, other than the origin 
or destination, at which the passenger makes an interline or intraline 
connection or stopover.
    International. The world area outside the 50 U.S. States and the 
District of Columbia. Itineraries between points outside the 50 States 
are considered as international for this Survey, as well as itineraries 
between the 50 States and U.S. possessions, and between or within U.S. 
possessions.
    Intraline transfer. An occurrence at an intermediate point in an 
itinerary

[[Page 240]]

where a passenger changes from a flight of one carrier to another flight 
of that same carrier, with or without stopover, or where the passenger 
changes from one class of service to another class of service on the 
same flight.
    Itinerary. All points in the passenger journey, beginning with the 
origin, followed by the routing, and ending with the destination, in the 
sequence shown on the ticket.
    Operating air carrier. Under a code-share arrangement, the air 
carrier whose aircraft and flight crew are used to perform a flight 
segment.
    Origin. The first point in the itinerary and the point where the 
passenger first boards a carrier at the beginning of the itinerary.
    Participating carrier. A carrier which is governed by the Survey 
data collection and reporting instructions contained herein and which is 
required to file Survey reports with the Department of Transportation.
    Point. A city or airport (always identified by its airport code).
    Reissued ticket. A ticket issued in exchange for all or part of the 
unused portion of a previously issued ticket.
    Reportable flight coupon. A flight coupon in an itinerary in which 
the carrier examining the coupon is the first participating carrier to 
lift a flight coupon in the itinerary and from which coupon the 
examining carrier records the Survey data.
    Reporting carrier. The carrier in a given itinerary which has lifted 
the reportable flight coupon in that itinerary and which carrier is 
required to record the Survey data for that itinerary for the report to 
the Department.
    Revenue passenger. A passenger transported for which more than a 
service charge or nominal remuneration is received by the air carrier. 
Passengers traveling for a zero fare, because of the frequent flyer or 
mileage programs are considered revenue passengers, since the revenue 
considerations for passenger travel were included in their previously 
purchased tickets.
    Routing. The carrier on each flight-coupon stage in an itinerary and 
the intermediate points of routing stopover or connection (interline or 
intraline) in the sequence of occurrence in the movement of the 
passenger from origin to destination. The routing also includes fare-
basis summary codes on each flight-coupon stage, to the extent these are 
available from the ticket.
    Scheduled service. Transport service operated on a certificated 
large air carrier's routes pursuant to published flight schedules, 
including extra sections of scheduled flights.
    Stage. (See flight-coupon stage.)
    Ticketed air carrier. Under a code-share arrangement, the air 
carrier whose two-character air carrier code is used for a flight 
segment, whether or not it actually operates the flight segment.
    Total dollar value of ticket. The sum of the fare plus tax for the 
entire ticketed itinerary, in whole U.S. dollars with cents dropped. For 
a group ticket, the amount is the average per passenger. For fares 
stated in foreign currency, it is the equivalent in U.S. dollars.
    Transfer. (See interline transfer and intraline transfer.)

[[Page 241]]

[GRAPHIC] [TIFF OMITTED] TC30SE91.011

[Amdt. No. 241-55, 52 FR 6529, Mar. 5, 1987, as amended at 60 FR 66723, 
66724, Dec. 26, 1995; 62 FR 43280, Aug. 13, 1997]



      GENERAL REPORTING PROVISIONS--LARGE CERTIFICATED AIR CARRIERS



              Section 21--Introduction to System of Reports

    (a) Each large certificated air carrier subject to the Federal 
Aviation Act of 1958, as amended, shall file with the BTS, monthly, 
quarterly, semiannually, and annually BTS Form 41 Reports of financial 
and operating statistics as prescribed herein unless waiver has been 
made by the Civil Aeronautics Board.
    (b) The system prescribed provides for the submission by each air 
carrier of four classes of financial and operating statistics, on 
individual schedules of the BTS Form 41 Report, grouped as follows:
    A. Certification.
    B. Balance Sheet Elements.
    P. Profit and Loss Elements.
    T. Traffic and Capacity Elements.

[[Page 242]]

    (c) The prescribed system of reports provides that the frequency of 
reporting shall be monthly for some schedules, quarterly for some, 
semiannually for some and annually for others. It also provides in some 
areas for the classification of large certificated air carriers into 
Group I, Group II, and Group III with the form and content 
differentiated as between groups.
    (d) Each schedule of the prescribed BTS Form 41 Report has been 
assigned a specific code. The prefix alphabetical codes A, B, P and T, 
respectively, have been employed to denote certification, balance sheet, 
profit and loss, and traffic and capacity. The digits immediately 
following the alphabetical prefix designate the particular schedule.
    (e) Upon approval by the Director, Office of Airline Information, a 
carrier may:
    (1) Supply its own computer prepared formats provided each schedule 
conforms with the size and format of the forms prescribed in this part.
    (2) Use telefacsmile, or fax, equipment to submit the forms 
prescribed by this part; however, forms transmitted by fax must conform 
to an 8\1/2\ x 14 inch size. With prior approval, larger forms may be 
reduced in size of 8\1/2\ x 14 for transmission to the Department.
    (f) In submitting each schedule prescribed by this part to the 
Department, each reporting air carrier shall adhere to the following 
guidelines:
    (1) A good quality black ribbon shall be used in preparing the 
original copy of each schedule.
    (2) In no event shall any information be typed on the reverse side 
of copies submitted to the Department.
    (3) Except as provided for in paragraph (e) of this section, no 
photocopy or similar process shall be used.
    (g) Four separate air carrier entities shall be established for 
large certificated air carriers conducting scheduled service for the 
purpose of submitting the prescribed reports. They are as follows: (1) 
Domestic operations; (2) operations via the Atlantic Ocean; (3) 
operations via the Pacific Ocean; and (4) operations in Latin American 
areas. With respect to the first classification, the domestic entity 
shall embrace all operations within and between the 50 States of the 
United States, the District of Columbia, the Commonwealth of Puerto Rico 
and the U.S. Virgin Islands, and shall also include Canadian transborder 
operations. The reports to be submitted by each entity shall be 
comparable to those required of a distinct legal entity whether the 
reporting entity constitutes such an entity, a semiautonomous physically 
separated operating division of the carrier, or an entity established 
for reporting purposes only.
    (h) Two separate entities shall be established for large 
certificated air carriers predominantly engaged in conducting charter 
activities for the purpose of submitting the prescribed reports: (1) 
Domestic operations; and (2) international operations. The domestic 
entity includes all operations within and between the 50 States of the 
United States, the District of Columbia, the Commonwealth of Puerto 
Rico, and the U.S. Virgin Islands. All other operations will be in the 
international entity.
    (i) The entities for which separate reports shall be made by the 
different route and charter air carriers will be set semiannually by the 
Office of Airline Information.
    (j) As a general rule separate reports shall be filed for the air 
carrier and for each associated company air carriers as defined in 
section 03 which is an air carrier. However, transactions of associated 
companies in which 100 percent equity control resides in the reporting 
air carrier shall be consolidated with transactions of the reporting air 
carrier when such associated companies perform services related to the 
transport operations of the reporting air carrier almost exclusively and 
are not engaged in air transportation for their own account.
    (k) Generally, route air carriers' nonscheduled services shall be 
treated as an integral part of the reporting entity to which most 
closely related without regard to the geographic area in which such 
nonscheduled services may actually be performed. However, supplemental 
reports shall be made of nonscheduled services (including service for 
the Department of Defense) in areas not encompassed by the prescribed 
reporting entity in any month in which

[[Page 243]]

the available ton-miles of such nonscheduled services exceed 5 percent 
of the available ton-miles of the reporting entity. Such supplemental 
reports shall continue until waived by the BTS upon a showing that such 
nonscheduled operations will not in the subsequent 12-month period 
exceed the 5-percent limit. The supplemental reports to be filed each 
month or calendar quarter, as applicable, shall be comprised of report 
Schedules P-5, T-1, and T-2. Transport and nontransport revenues 
pertaining to such separately reported nonscheduled services shall be 
reported on Schedule P-2 each quarter.
    (l) When and as required in the national interest, any air carrier 
which performs nonscheduled transport services for the Department of 
Defense shall, when directed by the Department, make separate reports 
for such services as if they were conducted by a physically separate 
transport entity, such reports shall consist of Schedules P-1 through P-
7, T-1, and T-2. The letter ``D'' shall be inserted on such reports, 
following the schedule number of each P and T schedule. When a carrier 
has more than one reporting entity, nonscheduled transport and 
nonscheduled Defense services shall be assigned to the reporting entity 
to which more closely related.

[ER-1027, 42 FR 60128, Nov. 25, 1977, as amended by ER-1073, 43 FR 
40453, Sept. 12, 1978; ER-1073, 44 FR 1970, Jan. 9, 1979; ER-1188, 45 FR 
48871, July 22, 1980; ER-1297, 47 FR 32919, July 30, 1982; ER-1400, 50 
FR 12, Jan. 2, 1985; ER-1401, 50 FR 247, Jan. 3, 1985; Amdt. No. 241-56, 
52 FR 9130, Mar. 23, 1987; Amdt. 241-60, 56 FR 12658, Mar. 27, 1991; 60 
FR 66724, Dec. 26, 1995]



               Section 22--General Reporting Instructions

    (a) One copy of each schedule in the BTS Form 41 report shall be 
filed with the BTS and shall be received on or before the due date 
indicated for each such schedule in the list titled ``Due Dates of 
Schedules in BTS Form 41 Report.''

                 List of Schedules in BTS Form 41 Report
                     [See footnotes at end of table]
------------------------------------------------------------------------
                                                Applicability by carrier
                                      Filing              group
  Schedule No.         Title        frequency  -------------------------
                                                   I        II      III
------------------------------------------------------------------------
A..............  Certification...  Q            (1)      X        X
B-1............  Balance sheet...  Q            (1)      X        X
B-1.1..........  Balance sheet...  SA           (2)      NA       NA
B-7............  Airframe and      Q            NA       X        X
                  aircraft engine
                  acquisitions
                  and retirements.
B-12...........  Statement of      Q            (1)      X        X
                  changes in
                  financial
                  position.
B-43...........  Inventory of      A            X        X        X
                  airframes and
                  aircraft
                  engines.
P-1.1..........  Statement of      SA           (2)      NA       NA
                  operations.
P-1.2..........  Statement of      Q            (1)      X        X
                  operations.
P-1(a).........  Interim           M            X        X        X
                  operations
                  report.
P-2............  Notes to RSPA     Q            (1)      X        X
                  Form 41 report.
P-5.1..........  Aircraft          Q(1), SA(2)  X        NA       NA
                  operating
                  expenses.
P-5.2..........  Aircraft          Q            NA       X        X
                  operating
                  expenses.
P-6............  Operating         Q            (1)      X        X
                  expenses by
                  objective
                  groupings.
P-7............  Operating         Q            NA       NA       X
                  expenses by
                  functional
                  groupings--
                  Group III air
                  carriers.
P-10...........  Employment        A            (1)      X        X
                  statistics by
                  labor category.
P-12(a)........  Fuel consumption  M            (1)      X        X
                  by type of
                  service and
                  entity.
T-100..........  U.S. air carrier  M            X        X        X
                  traffic and
                  capacity data
                  by nonstop
                  segment and on-
                  flight market.
T-100(f).......  Foreign air       M
                  carrier traffic
                  data by nonstop
                  segment and on-
                  flight market.
                                     (see 14 CFR 217)
T-1............  U.S. air carrier  M            X        X        X
                  traffic and
                  capacity
                  summary by
                  service class.
T-2............  U.S. air carrier  Q            X        X        X
                  traffic and
                  capacity by
                  aircraft type.
T-3............  U.S. air carrier  Q            X        X        X
                  airport
                  activity
                  statistics.
T-8............  Report of all-    A            (3)      (3)      (3)
                  cargo
                  operations.
------------------------------------------------------------------------
M=Monthly, Q=Quarterly, SA=Semiannually, A=Annually, NA=Not Applicable,
  X=All Carriers.
(1) Applicable to Group I Air Carriers with annual operating revenues of
  $20 million or more.
(2) Appilcable to Group I Air Carriers with annual operating revenues
  below $20 million.
(3) Applicable to Air Carriers conducting 49 U.S.C. 41103 all-cargo
  operations.


[[Page 244]]


              Due Dates of Schedules in BTS Form 41 Report
------------------------------------------------------------------------
                            Financial data on     Traffic and capacity
      Due dates \1\           schedule No.        data on schedule No.
------------------------------------------------------------------------
January 20..............  P-12(a)
January 30..............  P-1(a)                T-100, T-100(f), T-1, T-
                                                 2, T-3
February 10 \2\.........  A, B-1, B-1.1, B-7,
                           B-12, P-1.1, P-1.2,
                           P-2, P-5.1, P-5.2,
                           P-6, P-7, P-10.
February 20.............  P-12(a)
March 1.................  P-1(a)                T-100, T-100(f), T-1
March 20................  P-12(a)
March 30................  B-43, P-1(a).         T-100, T-100(f), T-1, T-
                                                 8
April 20................  P-12(a)
April 30................  P-1(a)                T-100, T-100(f), T-1, T-
                                                 2, T-3
May 10..................  A, B-1, B-7, B-12, P-
                           1.2, P-2, P-5.1, P-
                           5.2, P-6, P-7.
May 20..................  P-12(a)
May 30..................  P-1(a)                T-100, T-100(f), T-1
June 20.................  P-12(a)
June 30.................  P-1(a)                T-100, T-100(f), T-1
July 20.................  P-12(a)
July 30.................  P-1(a)                T-100, T-100(f), T-1, T-
                                                 2, T-3
August 10...............  A, B-1, B-1.1, B-7,
                           B-12, P-1.1, P-1.2,
                           P-2, P-5.1, P-5.2,
                           P-6, P-7.
August 20...............  P-12(a)
August 30...............  P-1(a)                T-100, T-100(f), T-1
September 20............  P-12(a)
September 30............  P-1(a)                T-100, T-100(f), T-1
October 20..............  P-12(a)
October 30..............  P-1(a)                T-100, T-100(f), T-1, T-
                                                 2, T-3
November 10.............  A, B-1, B-7, B-12, P-
                           1.2, P-2, P-5.1, P-
                           5.2, P-6, P-7.
November 20.............  P-12(a)
November 30.............  P-1(a)                T-100, T-100(f), T-1
December 20.............  P-12(a)
December 30.............  P-1(a)                T-100, T-100(f), T-1
------------------------------------------------------------------------
\1\ Due dates falling on a Saturday, Sunday or national holiday will
  become effective the first following work day.
\2\ Reporting due dates on Form 41 Schedules B and P are extended to
  March 30 if preliminary schedules are filed at the Department by
  February 10

    (b) Each large certificated air carrier shall file the applicable 
schedules of the BTS Form 41 Report with the BTS in accordance with the 
above instructions with the following exceptions:
    (1) The time for filing B and P report schedules for the final 
quarter or semiannual period of each calendar year may be extended to 
the following March 30 if the preliminary Schedules B-1 or B-1.1 and P-
1.1 or P-1.2 are submitted, as applicable, and are received on or before 
their respective due dates.
    (2) For the third month of any calendar quarter, Schedule P-1(a) 
need not be filed if Schedule P-1.1 or P-1.2 for the quarter or 
semiannual period, as applicable, is received on the due date prescribed 
for Schedule P-1(a).
    (3) Income and expense data on Schedule P-1(a) for each month will 
be withheld by the BTS from public disclosure, until such time as (i) 
the semiannual or quarterly financial reports are due, (ii) the 
semiannual or quarterly financial reports are filed, or (iii) 
information covered by monthly reports is publicly released by the 
carrier concerned, whichever occurs first. Before that time, income and 
expense data reported on Schedule P-1(a) will be disclosed to parties to 
any proceeding before the DOT to the extent that such data are relevant 
and material to the issues in the proceeding upon a determination to 
this effect by the administrative law judge assigned to the case or by 
the DOT. Any data to which access is granted may be introduced into 
evidence, subject to the normal rules of admissibility of evidence. The 
DOT will make other disclosure of these data upon its own motion or upon 
application of any interested person, when the DOT finds the public 
interest so requires. The BTS may, from time to time, publish summary 
information compiled from Schedule P-1(a) in a form which will not 
identify the individual carrier. At the request of an air carrier, and 
upon a showing by such air carriers that public disclosure of its 
preliminary year-end report would adversely affect its interests and 
would not be in the public interest, the BTS will withhold such 
preliminary year-end report from public disclosure until such time as 
(i) the final report is filed, (ii) the final report is due, or (iii) 
information covered by the preliminary report is publicly released by 
the carrier concerned, whichever occurs first.

[[Page 245]]

    (c) If circumstances prevent the filing of a report on or before the 
prescribed due date, consideration will be given to the granting of an 
extension upon receipt of a writ