[Title 14 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 2008 Edition]
[From the U.S. Government Printing Office]



[[Page i]]

          

          14


          Parts 200 to 1199

                         Revised as of January 1, 2008


          Aeronautics and Space
          



________________________

          Containing a codification of documents of general 
          applicability and future effect

          As of January 1, 2008
          With Ancillaries
                    Published by
                    Office of the Federal Register
                    National Archives and Records
                    Administration
                    A Special Edition of the Federal Register

[[Page ii]]

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[[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                                           485
  Finding Aids:
      Table of CFR Titles and Chapters........................     899
      Alphabetical List of Agencies Appearing in the CFR......     917
      List of CFR Sections Affected...........................     927

[[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 
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    To determine whether a Code volume has been amended since its 
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Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

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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 
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OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
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INCORPORATION BY REFERENCE

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This material, like any other properly issued regulation, has the force 
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    What is a proper incorporation by reference? The Director of the 
Federal Register will approve an incorporation by reference only when 
the requirements of 1 CFR part 51 are met. Some of the elements on which 
approval is based are:
    (a) The incorporation will substantially reduce the volume of 
material published in the Federal Register.
    (b) The matter incorporated is in fact available to the extent 
necessary to afford fairness and uniformity in the administrative 
process.
    (c) The incorporating document is drafted and submitted for 
publication in accordance with 1 CFR part 51.
    Properly approved incorporations by reference in this volume are 
listed in the Finding Aids at the end of this volume.
    What if the material incorporated by reference cannot be found? If 
you have any problem locating or obtaining a copy of material listed in 
the Finding Aids of this volume as an approved incorporation by 
reference, please contact the agency that issued the regulation 
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the revision dates of the 50 CFR titles.

[[Page vii]]


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    Raymond A. Mosley,
    Director,
    Office of the Federal Register.
    January 1, 2008.







[[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 and chapter VI--Air Transportation System 
Stabilization. The contents of these volumes represent all current 
regulations codified under this title of the CFR as of January 1, 2008.

    For this volume, Susannah C. Hurley and Moja N. Mwaniki were Chief 
Editors. The Code of Federal Regulations publication program is under 
the direction of Michael L. White, assisted by Ann Worley.


[[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          23
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.............          41
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....          56

[[Page 4]]

221             Tariffs.....................................          57
222             Intermodal cargo services by foreign air 
                    carriers................................          86
223             Free and reduced-rate transportation........          90
232             Transportation of mail, review of orders of 
                    Postmaster General......................          93
234             Airline service quality performance reports.          95
240             Inspection of accounts and property.........         101
241             Uniform system of accounts and reports for 
                    large certificated air carriers.........         102
243             Passenger manifest information..............         192
247             Direct airport-to-airport mileage records...         194
248             Submission of audit reports.................         194
249             Preservation of air carrier records.........         195
250             Oversales...................................         200
252             Smoking aboard aircraft.....................         205
253             Notice of terms of contract of carriage.....         206
254             Domestic baggage liability..................         208
255             Airline computer reservations systems.......         209
256

[Reserved]

257             Disclosure of code-sharing arrangements and 
                    long-term wet leases....................         212
258             Disclosure of change-of-gauge services......         214
271             Guidelines for subsidizing air carriers 
                    providing essential air transportation..         215
272             Essential air service to the Freely 
                    Associated States.......................         217
291             Cargo operations in interstate air 
                    transportation..........................         221
292             International cargo transportation..........         231
293             International passenger transportation......         232
294             Canadian charter air taxi operators.........         234
296             Indirect air transportation of property.....         241
297             Foreign air freight forwarders and foreign 
                    cooperative shippers associations.......         243
298             Exemptions for air taxi and commuter air 
                    carrier operations......................         246
                  SUBCHAPTER B--PROCEDURAL REGULATIONS
300             Rules of conduct in DOT proceedings under 
                    this chapter............................         264
302             Rules of practice in proceedings............         271
303             Review of air carrier agreements............         326
305             Rules of practice in informal nonpublic 
                    investigations..........................         332
313             Implementation of the Energy Policy and 
                    Conservation Act........................         334
314             Employee protection program.................         336

[[Page 5]]

323             Terminations, suspensions, and reductions of 
                    service.................................         339
325             Essential air service procedures............         345
330             Procedures for compensation of air carriers.         347
331             Procedures for reimbursement of general 
                    aviation operators and service providers 
                    in the Washington, DC area..............         367
                         SUBCHAPTER C [RESERVED]
                    SUBCHAPTER D--SPECIAL REGULATIONS
372             Overseas military personnel charters........         378
374             Implementation of the Consumer Credit 
                    Protection Act with respect to air 
                    carriers and foreign air carriers.......         385
374a            Extension of credit by airlines to Federal 
                    political candidates....................         386
375             Navigation of foreign civil aircraft within 
                    the United States.......................         390
377             Continuance of expired authorizations by 
                    operation of law pending final 
                    determination of applications for 
                    renewal thereof.........................         401
380             Public charters.............................         403
381             Special event tours.........................         420
382             Nondiscrimination on the basis of disability 
                    in air travel...........................         422
383             Civil penalties.............................         444
                       SUBCHAPTER E--ORGANIZATION
385             Staff assignments and review of action under 
                    assignments.............................         445
389             Fees and charges for special services.......         458
                     SUBCHAPTER F--POLICY STATEMENTS
398             Guidelines for individual determinations of 
                    basic essential air service.............         464
399             Statements of general policy................         467

[[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. 
302.1(c) 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, as amended at 65 FR 6456, 
Feb. 9, 2000]



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 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 fitness data shall be filed with DOT Dockets, PL-401, 400 7th 
Street, SW., Washington, DC 20590-0002. Requests for confidential 
treatment of documents should be filed in

[[Page 8]]

accordance with the requirements of part 302 of this chapter.

(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; 64 FR 3212, Jan. 21, 1999; 70 FR 25767, May 16, 
2005]



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, in accordance with the provisions of those 
parts.

[Docket No. 47939, 57 FR 40100, Sept. 2, 1992, as amended at 60 FR 
43523, Aug. 22, 1995; 70 FR 25767, May 16, 2005]



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.
204.4 Carriers proposing to provide essential air service.

[[Page 11]]

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.

[72 FR 20036, Apr. 23, 2007]



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, which is under the actual control of 
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 and which has significant 
influence over 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; 64 FR 12085, Mar. 11, 1999; 72 FR 20036, Apr. 23, 
2007]



                      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

[[Page 13]]

available to the Department and need not be included in the filing.
    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;

[[Page 14]]

    (3) All footnotes applicable to the financial statements, including:
    (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

[[Page 15]]

application for any additional FAA authority needed to conduct the 
proposed operations.
    (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

[[Page 16]]

FAA and currently comply with all FAA safety standards.
    (3) A description of the fuel available to perform the proposed 
essential air 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) The change substantially alters the factors upon which its 
latest fitness finding is based, even if no new authority is required.
    (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 
Carrier 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 Docket Operations, M-30, U.S. 
Department of Transportation, Washington, DC 20590, or by electronic 
submission at http://dms.dot.gov.
    (d) 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, management, or 
ownership, including changes that may affect the air carrier's 
citizenship, shall be addressed to the Chief, Air Carrier Fitness 
Division, Office of

[[Page 17]]

the Secretary, U.S. Department of Transportation, Washington, DC 20590.

(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 72 FR 
20036, Apr. 23, 2007]



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.

[[Page 18]]


    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 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

[[Page 19]]

    (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]



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. 
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. Certificates of Insurance shall be filed on 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 air taxi operators. The Department may return the certificate 
or self-insurance plan to the carrier if it finds for good cause that 
such certificate or plan does not show adequate evidence of insurance 
coverage under this part. Forms may be obtained from and should be filed 
with the Department at the addresses specified in paragraph (c) of this 
section. Forms may also be obtained on the Internet at http://
ostpxweb.dot.gov.
    (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 at the 
addresses specified in paragraph (c) of this section 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) Certificates of insurance and endorsements required in 
paragraphs (a) and (b) of this section shall be submitted to the 
Department of Transportation, Federal Aviation Administration, Program 
Management Branch, AFS-260, 800 Independence Avenue, SW., Washington, DC 
20591. For those air carriers that have a mailing address in the State 
of Alaska, the forms shall be submitted to the Department of 
Transportation, Federal Aviation Administration, Alaskan Region 
Headquarters, AAL-230, 222 West 7th Avenue, Box 14, Anchorage, Alaska 
99513. For Canadian air taxis, the forms shall be submitted to the 
Department of Transportation, Special Authorities Division, X-46, 400 
7th Street, SW., Washington, DC 20590.

(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; 70 FR 25767, May 16, 2005]



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

[[Page 20]]

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 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]

[[Page 21]]



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 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 at the addresses specified in Sec. 205.4(c), 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, as amended at 70 
FR 25768, May 16, 2005]



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.


[[Page 22]]


    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 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, Sec. Sec. 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, Sec. Sec. 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

[[Page 23]]

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.



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]

[[Page 24]]



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, 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 B, 
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; 65 FR 6456, Feb. 9, 2000]



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

[[Page 25]]

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 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

[[Page 26]]

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.
    (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;

[[Page 27]]

    (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.
    (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.

[[Page 28]]


    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 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,

[[Page 29]]

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.



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

[[Page 30]]

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.
    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.
    Seventh-freedom charter means a charter flight carrying traffic that 
originates and terminates in a country other than the foreign air 
carrier's home country, where the flight does not have a prior, 
intermediate, or subsequent stop in the foreign air carrier's home 
country.
    Single entity charter means a charter the cost of which is borne by 
the charterer and not by individual passengers, directly or indirectly.
    Sixth-freedom charter means a charter flight carrying traffic that 
originates and terminates in a country other than the country of the 
foreign air carrier's home country, provided the flight operates via the 
home country of the foreign air carrier.
    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.

[Docket No. OST-97-2356, 63 FR 28236, May 22, 1998, as amended at 71 FR 
5784, Feb. 3, 2006]



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

[[Page 31]]

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 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.

[[Page 32]]

    (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 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

[[Page 33]]

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 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.

[[Page 34]]

    (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 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

[[Page 35]]

each long-term wet lease to a foreign air carrier.
    (b) Foreign air carriers shall obtain a statement of authorization 
for each:
    (1) Fifth-, sixth- and/or seventh-freedom charter flights 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. 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.

[Docket No. OST-97-2356, 63 FR 28236, May 22, 1998, as amended at 71 FR 
5785, Feb. 3, 2006]



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. Except for an application for a long-term wet lease involving 
a codeshare 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 7th Street, SW., Washington, DC 20590; an original and two copies of 
an application for a long-term wet lease involving a codeshare agreement 
shall be submitted to DOT Dockets, PL-401, 400 7th Street, SW., 
Washington, DC 20590, or by electronic submission to DOT Dockets 
according to procedures at the DOT Dockets website. 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

[[Page 36]]

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 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. Such 
information with respect to codeshare applications and responsive 
pleadings will be available for public inspection at DOT Dockets or at 
the DOT Dockets website. 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.

[Docket No. OST-97-2356, 63 FR 28236, May 22, 1998, as amended at 64 FR 
3213, Jan. 21, 1999]



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.

[[Page 37]]

    (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.



Sec. 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

[[Page 38]]

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'' 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.



Sec. 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

[[Page 39]]

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 14 of part 302 within 10 days after 
Department action.

[ER-624, 35 FR 8881, June 9, 1970, as amended at 65 FR 6456, Feb. 9, 
2000]



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, 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

[[Page 40]]

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 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 14 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; 65 FR 6456, Feb. 9, 2000]



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,

[[Page 41]]

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 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

[[Page 42]]

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. 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.

[53 FR 17923, May 19, 1988, as amended at 70 FR 25768, May 16, 2005]



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 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 
commuter or foreign air carrier permit or exemption authority, must file 
a statement that complies with Sec. Sec. 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.)

[53 FR 17923, May 19, 1988, as amended at 70 FR 25768, May 16, 2005]



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 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.

[53 FR 17923, May 19, 1988, as amended at 70 FR 25768, May 16, 2005]



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

    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:

[[Page 43]]

    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.



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 
Sec. Sec. 302.3(b) and 302.4 (a) and (b) 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. 302.7 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

[[Page 44]]

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 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; 65 FR 6456, Feb. 9, 
2000]



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.

[[Page 45]]

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.
    Nonrevenue passenger means: a person traveling free or under token 
charges, except those expressly named in the definition of revenue 
passenger; a person traveling at a fare or discount available only to 
employees or authorized persons of air carriers or their agents or only 
for travel on the business of the carriers; and an infant who does not 
occupy a seat. (This definition is for 14 CFR Part 217 traffic reporting 
purposes and may differ from the definitions used in other parts by the 
Federal Aviation Administration and the Transportation Security 
Administration for the collection of Passenger Facility Charges and 
Security Fees.)
    The definition includes, but is not limited to the following 
examples of passengers when traveling free or pursuant to token charges:
    (1) Directors, officers, employees, and others authorized by the air 
carrier operating the aircraft;
    (2) Directors, officers, employees, and others authorized by the air 
carrier or another carrier traveling pursuant to a pass interchange 
agreement;
    (3) Travel agents being transported for the purpose of familiarizing 
themselves with the carrier's services;
    (4) Witnesses and attorneys attending any legal investigation in 
which such carrier is involved;
    (5) Persons injured in aircraft accidents, and physicians, nurses, 
and others attending such persons;
    (6) Any persons transported with the object of providing relief in 
cases of general epidemic, natural disaster, or other catastrophe;
    (7) Any law enforcement official, including any person who has the 
duty of guarding government officials who are traveling on official 
business or traveling to or from such duty;
    (8) Guests of an air carrier on an inaugural flight or delivery 
flights of newly-acquired or renovated aircraft;
    (9) Security guards who have been assigned the duty to guard such 
aircraft against unlawful seizure, sabotage, or other unlawful 
interference;
    (10) Safety inspectors of the National Transportation Safety Board 
or the FAA in their official duties or traveling to or from such duty;
    (11) Postal employees on duty in charge of the mails or traveling to 
or from such duty;
    (12) 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 purpose of in-flight observation and subject to applicable FAA 
regulations;
    (13) Persons engaged in promoting air transportation;
    (14) Air marshals and other Transportation Security officials acting 
in their official capacities and while traveling to and from their 
official duties; and
    (15) Other authorized persons, when such transportation is 
undertaken for promotional purpose.
    Reporting carrier for T-100(f) purposes means the air carrier in 
operational control of the flight, i.e., the carrier that uses its 
flight crews under its own operating authority.
    Revenue passenger means: a passenger for whose transportation an air 
carrier receives commercial remuneration. (This definition is for 14 CFR 
Part 217 traffic reporting purposes and may differ from the definitions 
used in other parts by the Federal Aviation Administration and the 
Transportation Security Administration for the collection of Passenger 
Facility Charges and Security Fees.) This includes, but is not limited 
to, the following examples:
    (1) Passengers traveling under publicly available tickets including 
promotional offers (for example two-for-

[[Page 46]]

one) or loyalty programs (for example, redemption of frequent flyer 
points);
    (2) Passengers traveling on vouchers or tickets issued as 
compensation for denied boarding or in response to consumer complaints 
or claims;
    (3) Passengers traveling at corporate discounts;
    (4) Passengers traveling on preferential fares (Government, seamen, 
military, youth, student, etc.);
    (5) Passengers traveling on barter tickets; and
    (6) Infants traveling on confirmed-space tickets.
    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.
    Wet-Lease Agreement means an agreement under which one carrier 
leases an aircraft with flight crew to another air carrier.

[53 FR 46294, Nov. 16, 1988, as amended at 67 FR 49223, July 30, 2002; 
67 FR 58689, Sept. 18, 2002]



Sec. 217.2  Applicability.

    This part applies to foreign air carriers that are authorized by the 
Department to provide civilian passenger and/or cargo service to or from 
the United States, whether performed pursuant to a permit or exemption 
authority.

[Doc. No. OST 98-4043, 67 FR 49223, July 30, 2002]



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 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

[[Page 47]]

(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 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.

[[Page 48]]

    (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 Sec. 41302 
permit or exemption authority shall file Schedule T-100(f).
    (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

[[Page 49]]

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

--------------------------------------------------------------------------------------------------------------------------------------------------------
            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                   Destin ation   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
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 50]]

    (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 
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-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       freight     transported    revenue   freight in
                                                                                         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
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 51]]

    (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.

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.

[[Page 52]]

    (i) Reporting medium. ADP data submission must be on IBM compatible 
disks. Carriers using mainframe or minicomputers shall download 
(transcribe) to the required IBM compatible disk. Carriers wishing to 
use a different ADP procedure or e-mail must obtain written approval to 
do so from the BTS Assistant Director--Airline Information under the 
waiver provisions in Sec. 217.9 of this part. Requests for approval to 
use alternative methods must disclose and describe in sufficient detail 
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
(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.

[[Page 53]]

    (ii) Line A-2 Report date. This is the year and month to which the 
data are applicable. For example, 200009 indicates the year 2000, and 
the month of September.
    (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 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 on BTS Form 41 
Schedules T-100 and T-100(f) by the air carrier in operational control 
of the flight, i.e., the air carrier that uses its flight crew to 
perform the operation. If there are questions about reporting a joint-
service operation, contact the BTS Assistant Director--Airline 
Information at the address in paragraph (a)(3) of this appendix.
    (j) Schedules.

[[Page 54]]

[GRAPHIC] [TIFF OMITTED] TC30SE91.000


[[Page 55]]


[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; 67 FR 49223, July 30, 2002]



Sec. 217.11  Reporting compliance.

    (a) Failure to file reports required by this part will subject an 
air carrier to civil penalties prescribed in Title 49 United States Code 
section 46301.
    (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.

[53 FR 46294, Nov. 16, 1988, as amended at 67 FR 49223, July 30, 2002]

[[Page 56]]



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 57]]

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 Carrier's duty.
221.3 Definitions.
221.4 English language.
221.5 Unauthorized air transportation.

          Subpart B_Who Is Authorized To Issue and File Tariffs

221.10 Carrier.
221.11 Agent.

             Subpart C_Specifications of Tariff Publications

221.20 Specifications applicable to tariff publications.

                   Subpart D_Manner of Filing Tariffs

221.30 Passenger fares and charges.
221.31 Rules and regulations governing passenger fares and services.

                      Subpart E_Contents of Tariff

221.40 Specific requirements.
221.41 Routing.

Subpart F_Requirements Applicable to all Statements of Fares and Charges

221.50 Currency.
221.51 Territorial application.
221.52 Airport to airport application, accessorial services.
221.53 Proportional fares.
221.54 Fares stated in percentages of other fares; other relationships 
          prohibited.
221.55 Conflicting or duplicating fares prohibited.
221.56 Applicable fare when no through local or joint fares.

                       Subpart G_Governing Tariffs

221.60 When reference to governing tariffs permitted.
221.61 Rules and regulations governing foreign air transportation.
221.62 Explosives and other dangerous or restricted articles.
221.63 Other types of governing tariffs.

[[Page 58]]

                     Subpart H_Amendment of Tariffs

221.70 Who may amend tariffs.
221.71 Requirement of clarity and specificity.
221.72 Reinstating canceled or expired tariff provisions.

         Subpart I_Suspension of Tariff Provisions by Department

221.80 Effect of suspension by Department.
221.81 Suspension supplement.
221.82 Reissue of matter continued in effect by suspension to be 
          canceled upon termination of suspension.
221.83 Tariff must be amended to make suspended matter effective.
221.84 Cancellation of suspended matter subsequent to date to which 
          suspended.

          Subpart J_Filing Tariff Publications With Department

221.90 Required notice.
221.91 Delivering tariff publications to Department.
221.92 Number of copies required.
221.93 Concurrences or powers of attorney not previously filed to 
          accompany tariff transmittal.
221.94 Explanation and data supporting tariff changes and new matter in 
          tariffs.

   Subpart K_Availability of Tariff Publications for Public Inspection

221.100 Public notice of tariff information.
221.101 Inspection at stations, offices, or locations other than 
          principal or general office.
221.102 Accessibility of tariffs to the public.
221.103 Notice of tariff terms.
221.105 Special notice of limited liability for death or injury under 
          the Warsaw Convention.
221.106 Notice of limited liability for baggage; alternative 
          consolidated notice of liability limitations.
221.107 Notice of contract terms.
221.108 Transmission of tariff filings to subscribers.

               Subpart L_Rejection of Tariff Publications

221.110 Department's authority to reject.
221.111 Notification of rejection.
221.112 Rejected tariff is void and must not be used.

   Subpart M_Special Tariff Permission to File on Less Than Statutory 
                                 Notice

221.120 Grounds for approving or denying Special Tariff Permission 
          applications.
221.121 How to prepare and file applications for Special Tariff 
          Permission.
221.122 Special Tariff Permission to be used in its entirety as granted.
221.123 Re-use of Special Tariff Permission when tariff is rejected.

                 Subpart N_Waiver of Tariff Regulations

221.130 Applications for waiver of tariff regulations.
221.131 Form of application for waivers.

         Subpart O_Giving and Revoking Concurrences to Carriers

221.140 Method of giving concurrence.
221.141 Method of revoking concurrence.
221.142 Method of withdrawing portion of authority conferred by 
          concurrence.

       Subpart P_Giving and Revoking Powers of Attorney to Agents

221.150 Method of giving power of attorney.
221.151 Method of revoking power of attorney.
221.152 Method of withdrawing portion of authority conferred by power of 
          attorney.

  Subpart Q_Adoption Publications Required To Show Change in Carrier's 
                  Name or Transfer of Operating Control

221.160 Adoption notice.
221.161 Notice of adoption to be filed in former carrier's tariffs.
221.162 Receiver shall file adoption notices.
221.163 Agents' and other carriers' tariffs shall reflect adoption.
221.164 Concurrences or powers of attorney to be reissued.
221.165 Cessation of operations without successor.

                 Subpart R_Electronically Filed Tariffs

221.170 Applicability of the subpart.
221.180 Requirements for electronic filing of tariffs.
221.190 Time for filing and computation of time periods.
221.195 Requirement for filing printed material.
221.200 Content and explanation of abbreviations, reference marks and 
          symbols.
221.201 Statement of filing with foreign governments to be shown in air 
          carrier's tariff filings.
221.202 The filing of tariffs and amendments to tariffs.
221.203 Unique rule numbers required.
221.204 Adoption of provisions of one carrier by another carrier.
221.205 Justification and explanation for certain fares.
221.206 Statement of fares.
221.210 Suspension of tariffs.
221.211 Cancellation of suspended matter.

[[Page 59]]

221.212 Special tariff permission.
221.300 Discontinuation of electronic tariff system.
221.400 Filing of paper tariffs required.
221.500 Transmission of electronic tariffs to subscribers.
221.550 Copies of tariffs made from filer's printer(s) located in 
          Department's public reference room.
221.600 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 chapter 417, subchapter I.

    Source: 64 FR 40657, July 27, 1999, 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 Department pursuant to chapter 415 of the 
statute shall be constructed, published, filed, posted and kept open for 
public inspection in accordance with the regulations in this part and 
orders of the Department.



Sec. 221.2  Carrier's duty.

    (a) Must file tariffs. (1) Except as provided in paragraph (d) of 
this section, every air carrier and every foreign air carrier shall file 
with the Department, and provide and keep open to public inspection, 
tariffs showing all fares, and charges for foreign 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 and orders of the Department, all 
classifications, rules, regulations, practices, and services in 
connection with such foreign air transportation.
    (2) Tariffs shall be filed, and provided in such form and manner, 
and shall contain such information as the Department shall by regulation 
or order prescribe. Any tariff so filed which is not consistent with 
chapter 415 of the statute and such regulations and orders may be 
rejected. Any tariff so rejected shall be void, and may not be used.
    (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 foreign air transportation or for any service 
in connection therewith, than the 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 fares, or charges so specified, or extend to any person any 
privileges or facilities, with respect to matters required by the 
Department 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 statute, 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 statute.
    (d) Exemption authority. Air carriers and foreign air carriers, both 
direct and indirect, are exempted from the requirement of section 41504 
of the statute and any requirement of this chapter to file, and shall 
not file with the Department, tariffs for operations under the following 
provisions:
    (1) Part 291, Domestic Cargo Transportation;
    (2) Part 296, Indirect Air Transportation of Property;
    (3) Part 297, Foreign Air Freight Forwarders and Foreign Cooperative 
Shippers Association;
    (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 part 292.
    (10) Part 293 International Passenger Transportation, except as 
provided in part 293.

[[Page 60]]



Sec. 221.3  Definitions.

    As used in this part, terms shall be defined as follows:
    Add-on means an amount published for use only in combination with 
other fares for the construction of through fares. It is also referred 
to as ``proportional fare'' and ``arbitrary fare''.
    Add-on tariff means a tariff which contains add-on fares.
    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 former 
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; and the islands of the 
Pacific Ocean except those included in Area No. 1.
    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.
    Capacity controlled fare means a fare for which a carrier limits the 
number of seats available for sale.
    Carrier means an air carrier or foreign air carrier subject to 
section 41504 of 49 U.S.C. subtitle VII.
    Charge means the amount charged for baggage, in excess of the free 
allowance, accompanying or checked by a passenger or for any other 
service ancillary to the passenger's carriage.
    Conditions of carriage means those rules of general applicability 
that define the rights and obligations of the carrier(s) and any other 
party to the contract of carriage with respect to the transportation 
services provided.
    Contract of carriage means those fares, rules, and other provisions 
applicable to the foreign air transportation of passengers or their 
baggage, as defined in the statute.
    Department means the Department of Transportation.
    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.
    Electronic tariff means an international passenger fares or rules 
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, 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 air transportation thereof and includes 
baggage unless the context otherwise requires.
    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 tariffs on its behalf in 
conformity with this subpart.
    Item means a small subdivision of a tariff and identified by a 
number, a letter, or other definite method for the purpose of 
facilitating reference and amendment.
    Joint fare means a fare 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.
    Local fare means a fare that applies to transportation over the 
lines or routes of one carrier only.
    Local tariff means a tariff that contains local fares.
    Machine-readable data means encoded computer data, normally in a 
binary format, which can be read electronically by another computer with 
the requisite software without any human interpretation.
    On-line tariff database means the remotely accessible, on-line 
version, maintained by the filer, of:

[[Page 61]]

    (1) The electronically filed tariff data submitted to the Department 
pursuant to this part and Department orders, and
    (2) The Departmental approvals, disapprovals, and other actions, as 
well as any Departmental notation concerning such approvals, 
disapprovals, or other actions, that subpart R of this part requires the 
filer to maintain in its database.
    Original tariff refers to the tariff as it was originally filed 
exclusive of any supplements, revised records or additional records.
    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, foreign air transportation.
    Passenger tariff means a tariff containing fares, charges, or 
governing provisions applicable to the foreign air transportation of 
persons and their baggage.
    Publish means to display tariff material in either electronic or 
paper media.
    Record means an electronic tariff data set that contains information 
describing one (1) tariff price or charge, or information describing one 
(1) related element associated with that tariff price or charge.
    SFFL means the Standard Foreign Fare Level as established by the 
Department of Transportation under 49 U.S.C. 41509.
    Statute means subtitle VII of Title 49, United States Code.
    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 record of a tariff, including an index of tariffs 
and an adoption notice (Sec. 221.161).
    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.
    Ticket office means a station, office or other location where 
tickets are sold or similar documents are issued, that is under the 
charge of a person employed exclusively by the carrier, or by it jointly 
with another person.
    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, exclusive of capacity control.
    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.



Sec. 221.4  English language.

    All tariffs and other documents and material filed with the 
Department pursuant to this part shall be in the English language.



Sec. 221.5  Unauthorized air transportation.

    Tariff publications shall not contain fares or charges, or their 
governing provisions, applicable to foreign air transportation which the 
issuing or participating carriers are not authorized by the Department 
to perform, except where the Department expressly requests or authorizes 
tariff publications to be filed prior to the Department's granting 
authority to perform the foreign air transportation covered by such 
tariff publications. Any tariff publication filed pursuant to such 
express request or authorization which is not consistent with chapter 
415 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 fares of such carrier only, and provisions governing such 
local fares, and/or
    (2) Joint 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

[[Page 62]]

carrier as provided in Sec. 221.140) and provisions governing such 
joint fares. Provisions for account of an individual participating 
carrier may be published to govern such joint fares provided Sec. 
221.40(a)(9) is complied with. A carrier shall not issue and file tariff 
publications containing local fares of other carriers, joint rates or 
fares in which the issuing carrier does not participate, or provisions 
governing such local or joint fares.
    (3) Rules and regulations governing foreign air transportation to 
the extent provided by this part and/or Department order. Rules and 
regulations may be published in separate governing tariffs, as provided 
in subpart G.
    (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 Department on behalf of the issuing carrier 
and all carriers participating in the tariff publication.



Sec. 221.11  Agent.

    An agent may issue and file, in his or its own name, tariff 
publications naming local fares and/or joint fares, and provisions 
governing such fares, and rules and regulations governing foreign air 
transportation to the extent provided by this part and/or Department 
order, 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. 221.150. The issuing agent shall file 
such tariff publications with the Department on behalf of all carriers 
participating therein. Only one issuing agent may act in issuing and 
filing each such tariff publication.



             Subpart C_Specifications of Tariff Publications



Sec. 221.20  Specifications applicable to tariff publications.

    (a) Numerical order. All items in a tariff shall be arranged in 
numerical or alphabetical order. Each item shall bear a separate item 
designation and the same designation shall not be assigned to more than 
one item.
    (b) 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 Department to engage 
in air transportation is held by the carrier, or such other name which 
has specifically been authorized by order of the Department. A carrier's 
name may be abbreviated, provided the abbreviation is explained in the 
tariff.
    (c) 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.
    (d) Statement of prices. All fares and charges shall be clearly and 
explicitly 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 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.
    (e) Statement of rules. The rules and regulations of each tariff 
shall be clear, explicit and definite, and except as otherwise provided 
in this part, shall contain:
    (1) Such explanatory statements regarding the fares, charges, rules 
or other provisions contained in the tariff as may be necessary to 
remove all doubt as to their application.
    (2) All of the terms, conditions, or other provisions which affect 
the fares or charges for air transportation named in the tariff.
    (3) All provisions and charges which in any way increase or decrease 
the amount to be paid by any passenger, or which in any way increase or 
decrease the value of the services rendered to the passenger.
    (f) Separate rules tariff. If desired, rules and regulations may be 
published

[[Page 63]]

in separate governing tariffs to the extent authorized and in the manner 
required by subpart G.
    (g) Rules of limited application. A rule affecting only a particular 
fare or other provision in the tariff shall be specifically referred to 
in connection with such fare or other provision, and such rule shall 
indicate that it is applicable only in connection with such fare or 
other provision. Such rule shall not be published in a separate 
governing rules tariff.
    (h) 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 prohibited.
    (i) Each tariff shall include:
    (1) A prominent D.O.T. or other number identifying the tariff in the 
sequence of tariffs published by the carrier or issuing agent;
    (2) The name of the issuing carrier or agent;
    (3) The cancellation of any tariffs superseded by the tariff;
    (4) A description of the tariff contents, including geographic 
coverage;
    (5) Identification by number of any governing tariffs;
    (6) The date on which the tariff is issued;
    (7) The date on which the tariff provisions will become effective; 
and
    (8) the expiration date, if applicable to the entire tariff.



                   Subpart D_Manner of Filing Tariffs



Sec. 221.30  Passenger fares and charges.

    (a) Fares tariffs, including associated data, shall be filed 
electronically in conformity with subpart R. Associated data includes 
arbitraries, footnotes, routing numbers and fare class explanations. See 
Sec. 221.202(b)(8).
    (b) Upon application by a carrier, the Department's Office of 
International Aviation shall have the authority to waive the electronic 
filing requirement in this paragraph and in Subpart R in whole or in 
part, for a period up to one year, and to permit, under such terms and 
conditions as may be necessary to carry out the purposes of this part, 
the applicant carrier to file fare tariffs in a paper format. Such 
waivers shall only be considered where electronic filing, compared to 
paper filing, is impractical and will produce a significant economic 
hardship for the carrier due to the limited nature of the carrier's 
operations subject to the requirements of this part, or other unusual 
circumstances. Paper filings pursuant to this paragraph shall normally 
conform to the requirements of Sec. 221.195 and other applicable 
requirements of this part.



Sec. 221.31  Rules and regulations governing passenger fares and services.

    (a) Tariff rules and regulations governing passenger fares and 
services other than those subject to Sec. 221.30 may be filed 
electronically in conformity with subpart R. Such filings shall conform 
to criteria approved by the Department's Office of International 
Aviation as provided in Sec. 221.180 and shall contain at a minimum the 
information required by Sec. 221.202(b)(9).
    (b) Applications for special tariff permission may be filed 
electronically, as provided in Sec. 221.212.
    (c) Tariff publications and applications for special tariff 
permission covered by paragraphs (a) and (b) of this section may be 
filed in a paper format, subject to the requirements of this part and 
Department orders.



                      Subpart E_Contents of Tariff



Sec. 221.40  Specific requirements.

    (a) In addition to the general requirements in Sec. 221.20, the 
rules and regulations of each tariff shall contain:
    (1) Aircraft and seating. 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

[[Page 64]]

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 and described.
    (2) Rule numbers. Each rule or regulation shall have a separate 
designation. The same designation shall not be assigned to more than one 
rule in the tariff.
    (3) Penalties. 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.
    (4) Vague or indefinite provisions. 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.
    (5) Personal liability rules. Except as provided in this part, no 
provision of the Department's regulations issued under this part or 
elsewhere shall be construed to require 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 Department shall be construed to supersede or modify this rule of 
construction except to the extent that such regulation shall do so in 
express terms.
    (6) Notice of limitation of liability for death or injury under the 
Warsaw Convention. Notwithstanding the provisions of paragraph (a)(5) 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.
    (7) Extension of credit. 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 air transportation.
    (8) Individual carrier provisions governing joint fares. Provisions 
governing joint fares may be published for account of an individual 
carrier participating in such joint fares provided that the tariff 
clearly indicates how such individual carrier's 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.
    (9) Passenger 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.
    (b) [Reserved]



Sec. 221.41  Routing.

    (a) Required routing. The route or routes over which each fare 
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,

[[Page 65]]

    (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 fare and the 
order in which such intermediate points are served.
    (b) Individually stated routings--Method of publication. The routing 
required by paragraph (a) of this section shall be shown directly in 
connection with each fare or charge for transportation, or in a routing 
portion of the tariff (following the 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 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.



Subpart F_Requirements Applicable to All Statements of Fares and Charges



Sec. 221.50  Currency.

    (a) Statement in United States currency required. All fares 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. 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 and charges stated in currencies of countries other 
than the United States are substantially equivalent in value to the 
respective fares and charges stated in cents or dollars of the United 
States.
    (2) Each record containing fares and charges shall clearly indicate 
the respective currencies in which the fares and charges thereon are 
stated, and
    (3) The fares and charges stated in cents or dollars of the United 
States are published separately from those stated in currencies of other 
countries. This shall be done in a systematic manner and the fares and 
charges in the respective currencies shall be published in separate 
records.



Sec. 221.51  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 apply shall be specifically named directly 
in connection with the respective fares.
    (b) Directional application. A tariff shall specifically indicate 
directly in connection with the fares therein whether they apply 
``from'' and ``to'' or ``between'' the points named. Where the 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 fares apply in both directions between the 
points, the terms ``Between'' and ``And'' shall be shown in connection 
with the respective points.



Sec. 221.52  Airport to airport application, accessorial services.

    Tariffs shall specify whether or not the fares therein include 
services in addition to airport-to-airport transportation.



Sec. 221.53  Proportional fares.

    (a) Definite application. Add-on fares shall be specifically 
designated as ``add-on'' fares on each page where they appear.
    (b) A tariff may provide that fares from (or to) particular points 
shall be determined by the addition of add-ons to, or the deduction of 
add-ons from, fares therein which apply from (or to) a base point. 
Provisions for the addition or deduction of such add-ons shall be shown 
either directly in connection with the fare 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 add-ons shall be applied.

[[Page 66]]

    (c) Restrictions upon beyond points or connecting carriers. If an 
add-on fare 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 add-on fare.



Sec. 221.54  Fares stated in percentages of other fares; other relationships prohibited.

    (a) Fares for foreign air transportation of persons or property 
shall not be stated in the form of percentages, multiples, fractions, or 
other relationships to other fares except to the extent authorized in 
paragraphs (b), (c), and (d) of this section with respect to passenger 
fares and baggage charges.
    (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 portion of passengers' baggage in 
excess of the baggage allowance under the applicable fares may be 
stated, by rule, as percentages of fares.
    (d) Children's, infants' and senior citizen's 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.
    (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.



Sec. 221.55  Conflicting or duplicating fares prohibited.

    The publication of fares or charges of a carrier which duplicate or 
conflict with the 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. 221.56  Applicable fare when no through local or joint fares.

    Where no applicable local or joint fare is provided from point of 
origin to point of destination over the route of movement, whichever 
combination of applicable fares provided over the route of movement 
produces the lowest charge shall be applicable, except that a carrier 
may provide explicitly that a fare cannot be used in any combination or 
in a combination on particular traffic or under specified conditions, 
provided another combination is available.



                       Subpart G_Governing Tariffs



Sec. 221.60  When reference to governing tariffs permitted.

    (a) Reference to other tariffs 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 fare tariff to governing tariffs. A fare 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 fare tariff in the manner required by Sec. 221.20(h).
    (c) Participation in governing tariffs. A fare tariff may refer to a 
separate governing tariff authorized by this subpart only when all 
carriers participating in such 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 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.
    (2) [Reserved]
    (d) Maximum number of governing tariffs. A single fare tariff shall 
not make reference to conflicting governing tariffs.

[[Page 67]]



Sec. 221.61  Rules and regulations governing foreign air transportation.

    Instead of being included in the fares tariffs, the rules and 
regulations governing foreign air transportation required to be filed by 
Sec. Sec. 221.20 and 221.30 and/or Department order which do not govern 
the applicability of particular fares may be filed in separate governing 
tariffs, conforming to this subpart. Governing rules tariffs shall 
contain an index of rules.



Sec. 221.62  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 governing tariffs, conforming to this subpart, instead of 
being included in the fares tariffs or in the governing rules tariff 
authorized by Sec. 221.61. This separate governing tariff shall contain 
no other rules or governing provisions.



Sec. 221.63  Other types of governing tariffs.

    Subject to approval of the Department, carriers may publish other 
types of governing tariffs not specified in this subpart, such as 
routing guides.



                     Subpart H_Amendment of Tariffs



Sec. 221.70  Who may amend tariffs.

    A tariff shall be amended only by the carrier or agent who issued 
the tariff (except as otherwise authorized in subparts P and Q).



Sec. 221.71  Requirement of clarity and specificity.

    Amendments to tariffs shall identify with specificity and clarity 
the material being amended and the changes being made. Amendments to 
paper tariffs shall be accomplished by reissuing each page upon which a 
change occurs with the change made and identified by uniform amendment 
symbols. Each revised page shall identify and cancel the previously 
effective page, show the effective date of the previous page, and show 
the intended effective date of the revised page. Amendments in 
electronic format shall conform to the requirements of Sec. 221.202 and 
other applicable provisions of subpart R.



Sec. 221.72  Reinstating canceled or expired tariff provisions.

    Any 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.



         Subpart I_Suspension of Tariff Provisions by Department



Sec. 221.80  Effect of suspension by Department.

    (a) Suspended matter not to be used. A fare, charge, or other tariff 
provision which is suspended by the Department, under authority of 
chapter 415 of the statute, shall not be used during the period of 
suspension specified by the Department's order.
    (b) Suspended matter not to be changed. A fare, charge, or other 
tariff provision which is suspended by the Department 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 Department.
    (c) Suspension continues former matter in effect. If a tariff 
publication containing matter suspended by the Department directs the 
cancellation of a tariff or any portion thereof, which contains fares, 
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 fare, charge, or 
other tariff provision which is continued in effect as a result of a 
suspension by the Department shall not be changed during the period of 
suspension unless the change is authorized by order or special tariff 
permission of the Department, except that such matter may be reissued 
without change during the period of suspension.



Sec. 221.81  Suspension supplement.

    (a) Suspension supplement. Upon receipt of an order of the 
Department

[[Page 68]]

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 Department a consecutively numbered supplement 
for the purpose of announcing such suspension.
    (b) The suspension supplement shall not contain an effective date 
and it shall contain the suspension notice required by paragraph (c) of 
this section.
    (c) Suspension notice. The suspension supplement shall contain a 
prominent notice of suspension which shall:
    (1) Indicate what particular fares, charges, or other tariff 
provisions are under suspension,
    (2) State the date to which such tariff matter is suspended,
    (3) State the Department's docket number and order number which 
suspended such tariff matter, and
    (4) Give specific reference to the tariffs (specifying their D.O.T. 
or other identifying numbers), original or revised records and 
paragraphs or provisions which contain the fares, charges, or other 
tariff provisions continued in effect.



Sec. 221.82  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.



Sec. 221.83  Tariff must be amended to make suspended matter effective.

    (a) When the Department 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 Department 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.



Sec. 221.84  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 Department requires the cancellation of tariff 
provisions which were suspended by the Department and such cancellation 
is required to be made effective on or before a date which is after 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 
Department's order. The tariff amendments which reestablish such 
canceled tariff provisions shall bear reference to this subpart and the 
Department's order.



          Subpart J_Filing Tariff Publications With Department



Sec. 221.90  Required notice.

    (a) Statutory notice required. Unless otherwise authorized by the 
Department 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 
41509(e) of the statute or

[[Page 69]]

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. 
221.94(c)(1)(v); and
    (3) At least 60 days before they are to become effective, for all 
other tariffs.
    (b) Computing number of days' notice. A tariff publication shall be 
deemed to be filed only upon its actual receipt by the Department, and 
the first day of any required period of notice shall be the day of 
actual receipt by the Department.
    (c) Issued date. All tariff publications must be received by the 
Department on or before the designated issued date.



Sec. 221.91  Delivering tariff publications to Department.

    Tariff publications will be received for filing only by delivery 
thereof to the Department electronically, through normal mail channels, 
or by delivery thereof during established business hours directly to 
that office of the Department charged with the responsibility of 
processing tariffs. No tariff publication will be accepted by the 
Department unless it is delivered free from all charges, including 
claims for postage.



Sec. 221.92  Number of copies required.

    Two copies of each paper tariff, tariff revision and adoption notice 
to be filed shall be sent to the Office of International Aviation, 
Department of Transportation, Washington, DC 20428. All such copies 
shall be included in one package and shall be accompanied by a letter of 
tariff transmittal.



Sec. 221.93  Concurrences or powers of attorney not previously filed to accompany tariff transmittal.

    When a tariff 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 
Department, be transmitted at the same time such tariff is submitted for 
filing.



Sec. 221.94  Explanation and data supporting tariff changes and new matter in tariffs.

    When a tariff is filed with the Department which contains new or 
changed local or joint fares or charges for foreign air transportation, 
or new or changed classifications, rules, regulations, or practices 
affecting such 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 tariff:
    (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 is filed pursuant to an intercarrier agreement approved 
by the Department, the explanation shall identify such agreement by DOT 
Docket number, DOT order of approval number, IATA resolution number, or 
if none is designated, then by other definite identification. Where a 
tariff is filed on behalf of a foreign air carrier pursuant to a 
Government order, a copy of such order shall be submitted with the 
tariff.
    (b) Appropriate Economic data and/or information in support of the 
new or changed matter.
    (c) Exceptions. (1) The requirement for data and/or information in 
paragraph (b) of this section will not apply to tariff publications 
containing new or changed matter which are filed:
    (i) In response to Department orders or specific policy 
pronouncements of the Department directly related to such new or changed 
matter;
    (ii) Pursuant to an intercarrier agreement approved by the 
Department setting forth the fares, charges (or specific formulas 
therefor) or other matter: Provided that the changes are submitted with 
the number of the DOT order of approval and fully comply with any 
conditions set forth in that order;
    (iii) To the extent fares for scheduled passenger service are within 
a statutory or Department-established zone of fare flexibility; and
    (iv) To meet competition: Provided, that
    (A) Changed matter will be deemed to have been filed to meet 
competition only when it effects decreases in fares

[[Page 70]]

or charges and/or increases the value of service so that the level of 
the fares or charges and the services provided will be substantially 
similar to the level of 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 fare or charge and a service which 
will be substantially similar to the 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 (c)(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, as part of the 
filing justification, the complete tariff references which will serve to 
identify the competing tariff matter which the tariff purports to meet. 
In such case the justification 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) [Reserved]



   Subpart K_Availability of Tariff Publications for Public Inspection



Sec. 221.100  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 221.101, 221.102, 221.103, 221.104, 221.105, and 
221.106, or
    (b) Sections 221.105, 221.106 and 221.107 of this subpart.



Sec. 221.101  Inspection at stations, offices, or locations other than principal or general office.

    (a) Each carrier shall make available for public inspection at each 
of its stations, offices, or other locations at which tickets for 
passenger transportation are sold and which is in charge of a person 
employed exclusively by the carrier, or by it jointly with another 
person, all tariffs 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.
    (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 tariffs required to be posted; 
and in the case of tariffs involving passenger fares, rules, charges or 
practices, notice to the passenger as required in Sec. 221.105.
    (c) Tariffs shall be posted by each carrier party thereto no later 
than the filed date designated thereon except that in the case of 
carrier stations, offices or locations situated outside the United 
States, its territories and possessions, the time shall be not later 
than five days after the filed date, and except that a tariff which the 
Department has authorized to be filed on shorter notice shall be posted 
by the carrier on like notice as authorized for filing.



Sec. 221.102  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. 221.103  Notice of tariff terms.

    Each carrier shall cause to be displayed continuously in a 
conspicuous

[[Page 71]]

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 tariffs to which this company 
is a party and all passenger 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.)



Sec. 221.105  Special notice of limited liability for death or injury under the Warsaw Convention.

    (a)(1) In addition to the other 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.

    (2) 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:
    (i) Each ticket;
    (ii) A piece of paper either placed in the ticket envelope with the 
ticket or attached to the ticket; or
    (iii) The ticket envelope.
    (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 Civil Aeronautics 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. 221.106(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 Civil Aeronautics Board by 
Order E-

[[Page 72]]

23680, dated May 13, 1966 (31 FR 7302, May 19, 1966), may use the 
following notice in the manner prescribed by this paragraph in full 
compliance with the posting requirements of this paragraph. Such 
statements shall be printed in bold faced type at least one-fourth of an 
inch high.

      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.



Sec. 221.106  Notice of limited liability for baggage; alternative consolidated notice of liability limitations.

    (a)(1) 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.

    (2) 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 Civil Aeronautics 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. 221.105(b):

            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.

    (3) 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)(1) 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.

    (2) 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.

[[Page 73]]

    (c) It shall be the responsibility of each carrier to insure 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 Department.
    (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) of this section may be waived by the Department 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 Department's Office of International 
Aviation 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.



Sec. 221.107  Notice of contract terms.

    (a) Terms incorporated in the contract of carriage. (1) A ticket, or 
other written instrument that embodies the contract of carriage for 
foreign air transportation shall contain or be accompanied by notice to 
the passenger as required in paragraphs (b) and (d) of this section.
    (2) Each carrier shall make the full text of all terms that are 
incorporated in a contract of carriage readily available for public 
inspection at each airport or other ticket 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 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 into the contract of carriage 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 incorporated contract terms may be 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 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 sales office of the carrier. In addition, all other 
locations where the carrier's tickets may be issued shall have available 
at all times, free of charge, information sufficient to enable the 
passenger 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 or other written instrument given to 
the passenger, that embodies the contract of carriage, a conspicuous 
notice that:
    (1) The contract of carriage may incorporate terms and conditions by 
reference; passengers may inspect the full text of each applicable 
incorporated term at any of the carrier's airport locations or other 
ticket sales offices of the carrier; and passengers, shippers and 
consignees have the right to receive, upon request at any airport or 
other ticket sales office of the carrier, a free copy of the full text 
of any/all such terms by mail or other delivery service;

[[Page 74]]

    (2) The incorporated terms may include, among others, the terms 
shown in paragraphs (b)(2) (i) through (iv) of this section. Passengers 
may obtain a concise and immediate explanation of the terms shown in 
paragraphs (b)(2) (i) through (iv) of this section from any location 
where the carrier's tickets are sold.
    (i) Limits on the carrier's liability for personal injury or death 
of passengers (subject to Sec. 221.105), and for loss, damage, or delay 
of goods and baggage, including fragile or perishable goods.
    (ii) Claim restrictions, including time periods within which 
passengers must file a claim or bring an action against the carrier for 
its acts or omissions or those of its agents.
    (iii) Rules about re-confirmations or reservations, check-in times, 
and refusal to carry.
    (iv) Rights of the carrier and limitations concerning delay or 
failure to perform service, including schedule changes, substitution of 
alternate carrier or aircraft, and rerouting.
    (c) Explanation of incorporated terms. Each carrier shall ensure 
that any passenger can obtain from any location where its tickets are 
sold or any similar documents are issued, a concise and 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 must receive 
conspicuous written notice, on or with the ticket, or other similar 
document, of the salient features of any terms that restrict refunds of 
the price of the transportation, impose monetary penalties on customers, 
or permit a carrier to raise the price or impose more restrictive 
conditions of contract after issuance of the ticket.



Sec. 221.108  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 for its passenger 
tariffs issued by it or by a publishing agent on its behalf.
    (b) Under the required subscription service one copy of each new 
tariff publication, including the justification required by Sec. 
221.94, 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 Department. The subscription service described in 
this section 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.



               Subpart L_Rejection of Tariff Publications



Sec. 221.110  Department's authority to reject.

    The Department may reject any tariff which is not consistent with 
section 41504 of the statute, with the regulations in this part, or with 
Department orders.



Sec. 221.111  Notification of rejection.

    When a tariff is rejected, the issuing carrier or agent thereof will 
be notified electronically or in writing that the tariff is rejected and 
of the reason for such rejection.



Sec. 221.112  Rejected tariff is void and must not be used.

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



   Subpart M_Special Tariff Permission To File on Less Than Statutory 
                                 Notice



Sec. 221.120  Grounds for approving or denying Special Tariff Permission applications.

    (a) General authority. The Department may permit changes in fares, 
charges or other tariff provisions on less than

[[Page 75]]

the statutory notice required by section 41505 of the statute.
    (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 tariffs 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 
Department with reasonable promptness after issuance of the defective 
tariff.
    (2) Rejection caused by clerical or typographical errors or 
unintelligibility. Rejection of a tariff caused by clerical or 
typographical errors constitute 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 
tariff, all changes contained in the rejected tariff 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 Department within five days 
after receipt of the Department's notice of rejection.
    (3) Newly authorized transportation. The fact that the Department 
has newly authorized a carrier to perform foreign 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.
    (4) The fact that a passenger fare is within a statutory or 
Department-established zone of fare flexibility constitutes grounds for 
approving an application for Special Tariff Permission to file a tariff 
stating that fare and any rules affecting them exclusively, on less than 
statutory notice. The Department's policy on approving such applications 
is set forth in Sec. 399.35 of this chapter.
    (5) Lowered fares and charges. The prospective lowering of fares or 
charges to the traveling public constitutes grounds for approving an 
application for Special Tariff Permission to file on less than statutory 
notice a tariff stating the lowered fares or charges and any rules 
affecting them exclusively. However, the Department 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) Filing notice required by formal order. When a formal order of 
the Department requires the filing of tariff matter 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.



Sec. 221.121  How to prepare and file applications for Special Tariff Permission.

    (a) Form. Each application for Special Tariff Permission to file a 
tariff on less than statutory notice shall conform to the requirements 
of Sec. 221.212 if filed electronically.
    (b) Number of paper copies and place of filing. For paper format 
applications, 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 Office of International Aviation, 
Department of Transportation, Washington, DC 20590.
    (c) Who may make application. Applications for Special Tariff 
Permission to file 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. Such application by 
the issuing carrier or agent will constitute application on behalf of 
all carriers participating in the proposed fares, or other tariff 
provisions.
    (d) When notice is required. Notice in the manner set forth in 
paragraph (e) of this section is required when a carrier files an 
application for Special Tariff Permission:

[[Page 76]]

    (1) To offer passenger fares that would be outside a Department-
established zone of price flexibility or, in markets for which the 
Department has not established such a zone, outside the statutory zone 
of price flexibility; or
    (2) To file any price increase or rule change that the carrier 
believes is likely to be controversial.
    (e) Form of notice. When notice of filing of a Special Tariff 
Permission application affecting passenger fares is required by 
paragraph (d) of this section, the carrier shall, when it files the 
application, give immediate telegraphic notice or other notice approved 
by the Office 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. The application shall include a list of the parties notified.



Sec. 221.122  Special Tariff Permission to be used in its entirety as granted.

    Each Special Tariff Permission to file 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 Sec. 221.121 
in all respects and referring to the previous permission shall be filed.



Sec. 221.123  Re-use of Special Tariff Permission when tariff is rejected.

    If a tariff containing matter issued under Special Tariff Permission 
is rejected, the same Special Tariff Permission may be used in a tariff 
issued in lieu of such rejected tariff provided that such re-use is not 
precluded by the terms of the Special Tariff Permission, and is made 
within the time limit thereof or within seven days after the date of the 
Department'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.



                 Subpart N_Waiver of Tariff Regulations



Sec. 221.130  Applications for waiver of tariff regulations.

    Applications for waiver or modification of any of the requirements 
of this part 221 or for modification of chapter 415 of the statute with 
respect to the filing and posting of tariffs shall be made by the 
issuing carrier or issuing agent.



Sec. 221.131  Form of application for waivers.

    Applications for waivers shall be in the form of a letter addressed 
to the Office of International Aviation, Department of Transportation 
Washington, DC 20590, and shall:
    (a) Specify (by section and paragraph) the particular regulation 
which the applicant desires the Department to waive.
    (b) Show in detail how the proposed provisions will be shown in the 
tariff under authority of such waiver if granted (submitting exhibits of 
the proposed provision where necessary to clearly show this 
information).
    (c) Set forth all facts and circumstances on which the applicant 
relies as warranting the Department's granting the authority requested. 
No tariff or other documents shall be filed pursuant to such application 
prior to the Department's granting the authority requested.



         Subpart O_Giving and Revoking Concurrences to Carriers



Sec. 221.140  Method of giving concurrence.

    (a) A concurrence prepared in a manner acceptable to the Office of 
International Aviation shall be used by a carrier to give authority to 
another carrier to issue and file with the Department tariffs which 
contain joint fares or charges, including provisions governing such 
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 
file joint fares or charges in which the carrier to whom the concurrence 
is given does not participate, and

[[Page 77]]

it shall not be used as authority to file local fares or charges.
    (b) Number of copies. Each concurrence shall be prepared in 
triplicate. The original of each concurrence shall be filed with the 
Department, 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. 221.141  Method of revoking concurrence.

    (a) A concurrence may be revoked by filing with the Department a 
Notice of Revocation of Concurrence prepared in a form acceptable to the 
Office of International Aviation.
    (b) Sixty days' notice required. Such Notice of Revocation of 
Concurrence shall be filed on not less than sixty days' notice to the 
Department. A Notice of Revocation of Concurrence will be deemed to be 
filed only upon its actual receipt by the Department, 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 
Department and, at the same time that the original is transmitted to the 
Department, 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.



Sec. 221.142  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 a 
form acceptable to the Office of International Aviation. Such revocation 
notice shall include reference to the new concurrence.



       Subpart P_Giving and Revoking Powers of Attorney to Agents



Sec. 221.150  Method of giving power of attorney.

    (a) Prescribed form of power of attorney. A power of attorney 
prepared in accordance with a form acceptable to the Office of 
International Aviation 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 Department tariffs which contain 
local or joint fares or charges, including provisions governing such 
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 
Department 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 Department. 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 Department 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/her 
individual capacity. Every tariff issued

[[Page 78]]

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 Department, 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 prohibited. In giving powers of attorney, 
carriers shall not give authority to two or more agents which, if used, 
would result in conflicting or duplicate tariff provisions.



Sec. 221.151  Method of revoking power of attorney.

    (a) A power of attorney may be revoked only by filing with the 
Department in the manner specified in this section a Notice of 
Revocation of Power of Attorney in a form acceptable to the Office of 
International Aviation.
    (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 
Department. A Notice of Revocation of Power of Attorney will be deemed 
to be filed only upon its actual receipt by the Department, 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 Department and, at the same time that the original is 
transmitted to the Department, 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 amend the tariff or tariffs, the 
provisions therein shall remain applicable until lawfully canceled.



Sec. 221.152  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 a form acceptable to the Office of 
International Aviation. Such revocation notice shall include reference 
to the new power of attorney.



  Subpart Q_Adoption Publications Required To Show Change in Carrier's 
                  Name or Transfer of Operating Control



Sec. 221.160  Adoption notice.

    (a) 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 
Department, and post for public inspection, an adoption notice in a form 
and containing such information as is approved by the Office of 
International Aviation. (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) The adoption notice shall be prepared, filed, and posted as a 
tariff. 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

[[Page 79]]

Department for filing, the adopting carrier shall send copies of such 
adoption notice to each agent and carrier to whom the former carrier has 
given a power of attorney or concurrence. (See Sec. 221.163.)



Sec. 221.161  Notice of adoption to be filed in former carrier's tariffs.

    At the same time that the adoption notice is issued, posted, and 
filed pursuant to Sec. 221.160, the adopting carrier shall issue, post 
and file with the Department a notice in each effective tariff issued by 
the former carrier providing specific notice of the adoption in a manner 
authorized by the Office of International Aviation and which shall 
contain no matter other than that authorized.



Sec. 221.162  Receiver shall file adoption notices.

    A receiver shall, immediately upon assuming control of a carrier, 
issue and file with the Department an adoption notices as prescribed by 
Sec. Sec. 221.160 and 221.161 and shall comply with the requirements of 
this subpart.



Sec. 221.163  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.
    (b) Add the adopting carrier (in alphabetical order) to the list of 
participating carriers. 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.



Sec. 221.164  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 
Department), 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.
    (b) 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 Sec. Sec. 221.142 
and 221.152 shall be observed. Concurrences and powers of attorney which 
will not be replaced by new issues shall be revoked in the form and 
manner and upon the notice required by Sec. Sec. 221.141 and 221.151.
    (c) 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 Sec. Sec. 221.141 and 221.142 shall be observed.



Sec. 221.165  Cessation of operations without successor.

    If a carrier ceases operations without having a successor, it shall:
    (a) File a notice in each tariff of its own issue and cancel such 
tariff in its entirety.

[[Page 80]]

    (b) Revoke all powers of attorney and concurrences which it has 
issued.



                 Subpart R_Electronically Filed Tariffs



Sec. 221.170  Applicability of the subpart.

    (a) Every air carrier and foreign air carrier shall file its 
international passenger fares tariffs consistent with the provisions of 
this subpart, and part 221 generally. Additionally, any air carrier and 
any foreign air carrier may file its 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 R. Any carrier or agent that files electronically 
under this subpart must transmit to the Department the remainder of the 
tariff in a form consistent with part 221, Subparts A through Q, on the 
same day that the electronic tariff would be deemed received under Sec. 
221.190(b).
    (b) To the extent that subpart R is inconsistent with the remainder 
of part 221, subpart R shall govern the filing of electronic tariffs. In 
all other respects, part 221 remains in full force and effect.



Sec. 221.180  Requirements for electronic filing of tariffs.

    (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, Pricing and Multilateral Affairs 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. 221.202.)
    (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 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 filed 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

[[Page 81]]

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 data 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, 
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 (not less than 28.8K 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 14.4K baud rate. In the event 
of a failure of the primary circuit the filer must notify the Chief of 
the Pricing and Multilateral Affairs 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.



Sec. 221.190  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. 221.180, and anytime thereafter, subject to 
Sec. 221.400. 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 days, such date shall be the next Federal business 
day.



Sec. 221.195  Requirement for filing printed material.

    (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. 221.190(b). Further, such paper tariff, or 
revision thereto, shall

[[Page 82]]

be filed in accordance with the requirements of subparts A through Q 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. 221.200  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. 221.180, and must 
include those data elements set forth in Sec. 221.202. Those portions 
that are filed in paper form shall comply in all respects with part 221, 
subparts A through Q.
    (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. 221.201  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. 221.201(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 D.O.T. number appearing 
on the tariff.



Sec. 221.202  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. 221.212, 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
    (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;

[[Page 83]]

    (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
    (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 informational 
purposes only, not part of official tariff'', in a manner acceptable to 
the Department.

[[Page 84]]

    (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 applicable to each fare at the time that the fare was 
in effect.
    (9) Routing (RG) Number(s), 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.



Sec. 221.203  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. 221.204  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. 221.205  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 the SFFL.



Sec. 221.206  Statement of fares.

    All fares filed electronically in direct-service markets shall be 
filed as single factor fares.



Sec. 221.210  Suspension of tariffs.

    (a) A fare, charge, rule or other tariff provision that is suspended 
by the Department pursuant to section 41509 of the statute 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 the tariff becomes 
effective upon termination of the suspension period, the carrier or its 
agent shall refile the tariff showing the effective date.



Sec. 221.211  Cancellation of suspended matter.

    When, pursuant to an order of the Department, the cancellation of 
rules, fares, charges, or other tariff provision is required, such 
action shall be made by the carrier by appropriate revisions to the 
tariff.



Sec. 221.212  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

[[Page 85]]

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. 221.195, 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 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 
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) Example of disapproval statement:

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 submission filed under this part, the filer 
must take corrective action 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. 221.202.



Sec. 221.300  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. 221.400  Filing of paper tariffs required.

    (a) After approval of any application filed under Sec. 221.180 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 through Q 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 
manner prescribed by subparts A through Q of part 221.



Sec. 221.500  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. 221.205. The subscription 
service shall not preclude the offering of additional services by the 
filer or its agent.

[[Page 86]]

    (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. 221.550  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. 221.600  Actions under assigned authority and petitions for review of staff action.

    (a) 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:
    (1) 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.
    (2) 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.
    (b) [Reserved]



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 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 Sec. Sec. 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

[[Page 87]]

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 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.

[[Page 88]]



Sec. Appendix A to Part 222--CAB Form 222

[GRAPHIC] [TIFF OMITTED] TC30SE91.005


[[Page 89]]


[GRAPHIC] [TIFF OMITTED] TC30SE91.006


[[Page 90]]





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 91]]

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 92]]

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 93]]

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 94]]

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 95]]

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.
234.13 Reports by air carriers on incidents involving animals during air 
          transport.

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

    Source: Amdt. No. 234-1, 52 FR 34071, Sept. 9, 1987, unless 
otherwise noted.

[[Page 96]]

    Note: The reporting requirements contained in this part have been 
approved by the 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 97]]

    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.
    (16) Causal code for cancellation, if any.
    (17) Minutes of delay attributed to the air carrier, if any.
    (18) Minutes of delay attributed to extreme weather, if any.
    (19) Minutes of delay attributed to the national aviation system, if 
any.
    (20) Minutes of delay attributed to security, if any.
    (21) Minutes of delay attributed to a previous late arriving 
aircraft, 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. Carriers are not required to report causal 
information for diverted flights.
    (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

[[Page 98]]

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.
    (g) Reporting carriers should use the following codes to identify 
causes for cancelled flights:

Code
A--Air Carrier
B--Extreme Weather
C--National Aviation System (NAS).
D-Security

    (1) Air Carrier cancellations are due to circumstances that were 
within the control of the air carrier (e.g., lack of flight crew, 
maintenance, etc.).
    (2) Extreme weather cancellations are caused by weather conditions 
(e.g., significant meteorological conditions), actual or forecasted at 
the point of departure, en route, or point of arrival that, in 
accordance with applicable regulatory standards and/or in the judgment 
of the air carrier, prevents operation of that flight and/or prevents 
operations of subsequent flights due to the intended aircraft being out 
of position as a result of a prior cancellation or delay attributable to 
weather.
    (3) NAS cancellations are caused by circumstances within the 
National Aviation System. This term is used to refer to a broad set of 
conditions: weather-non-extreme, airport operations, heavy traffic 
volume, air traffic control, etc.
    (4) Security cancellations may be the result of malfunctioning 
screening or other security equipment or a breech of security that 
causes the evacuation of the airport or individual concourses, or the 
need to re-screen passengers.
    (h) Reporting carriers should use the following causes to identify 
the reasons for delayed flights:

CAUSE
Air Carrier
Extreme weather
NAS
Security
Late arriving aircraft

    (1) Air carrier delays are due to circumstances within the control 
of the air carrier.
    (2) Extreme weather delays are caused by weather conditions (e.g., 
significant meteorological conditions, actual or forecasted at the point 
of departure, en route, or point of arrival that, in accordance with 
applicable regulatory standards and/or in the judgment of the air 
carrier, prevents operation of that flight and/or prevents operations of 
subsequent flights due to the intended aircraft being out of position as 
a result of a prior cancellation or delay attributable to weather.
    (3) NAS delays are caused by circumstances within the National 
Aviation System. This term is used to refer to a broad set of 
conditions: weather-non-extreme, airport operations, heavy traffic 
volume, air traffic control, etc.
    (4) Security delays may be the result of malfunctioning screening or 
other security equipment or a breech of security that causes the 
evacuation of the airport or individual concourses or the need to re-
screen passengers.
    (5) Late arriving aircraft delays are the result of a late incoming 
aircraft from the previous flight.
    (i) When reporting causal codes in paragraph (a) of this section, 
reporting carriers are required to code delays only when the arrival 
delay is 15 minutes or greater; and reporting carriers must report each 
causal component of the reportable delay when the causal component is 5 
minutes or greater.

[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; 67 FR 
70544, Nov. 25, 2002]



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 reports must be submitted to the Office of Airline 
Information in a format specified in accounting and reporting directives 
issued by the Bureau of Transportation Statistics' Assistant Director 
for Airline Information.

[Docket No. OST-2000-8164, 67 FR 70545, Nov. 25, 2002]



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

[[Page 99]]

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 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,

[[Page 100]]

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]



Sec. 234.13  Reports by air carriers on incidents involving animals during air transport.

    (a) Any air carrier that provides scheduled passenger air 
transportation shall, within 15 days of the end of the month to which 
the information applies, submit to the United States Department of 
Transportation's Aviation Consumer Protection Division a report on any 
incidents involving the loss, injury, or death of an animal during air 
transport provided by the air carrier.
    (b) The report shall be made in the form and manner set forth in 
reporting directives issued by the Deputy General Counsel for the U.S. 
Department of Transportation and shall contain the following 
information:
    (1) Carrier and flight number;
    (2) Date and time of the incident;
    (3) Description of the animal, including name, if applicable;
    (4) Identification of the owner(s) and/or guardian of the animal;
    (5) Narrative description of the incident;
    (6) Narrative description of the cause of the incident;
    (7) Narrative description of any corrective action taken in response 
to the incident; and
    (8) Name, title, address, and telephone number of the individual 
filing the report on behalf of the air carrier.
    (c) For purposes of this section:
    (1) The air transport of an animal includes the entire period during 
which an animal is in the custody of an air carrier, from check-in of 
the animal prior to departure until the animal is returned to the owner 
or guardian of the animal at the final destination of the animal; and

[[Page 101]]

    (2) Animal means any warm or cold blooded animal which, at the time 
of transportation, is being kept as a pet in a family household in the 
United States.

[Docket No. OST-2005-20331, 70 FR 7394, Feb. 14, 2005]



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 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.

[[Page 102]]

    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.

                      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.

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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.

                      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

[[Page 104]]

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.

                           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]

[[Page 105]]



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 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 means the 
number of days that aircraft owned or acquired through rental or lease 
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 wet-lease 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 dry-leased or rented to 
others, and days in possession but formally withdrawn from air 
transportation service.
    Aircraft day 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.

[[Page 106]]

    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).
    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.
    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

[[Page 107]]

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 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.

[[Page 108]]

    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 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

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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 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. A person traveling free or under token 
charges, except those expressly named in the definition of revenue 
passenger; a person traveling at a fare or discount available only to 
employees or authorized persons of air carriers or their agents or only 
for travel on the business of the carriers; and an infant who does not 
occupy a seat. (This definition is for 14 CFR part 241 traffic reporting 
purposes and may differ from the definitions used in other parts by the 
Federal Aviation Administration and the Transportation Security 
Administration for the collection of Passenger Facility Charges and 
Security Fees.)
    The definition includes, but is not limited to following examples of 
passengers when traveling free or pursuant to token charges:
    (1) Directors, officers, employees, and others authorized by the air 
carrier operating the aircraft;
    (2) Directors, officers, employees, and others authorized by the air 
carrier or another carrier traveling pursuant to a pass interchange 
agreement;
    (3) Travel agents being transported for the purpose of familiarizing 
themselves with the carrier's services;

[[Page 110]]

    (4) Witnesses and attorneys attending any legal investigation in 
which such carrier is involved;
    (5) Persons injured in aircraft accidents, and physicians, nurses, 
and others attending such persons;
    (6) Any persons transported with the object of providing relief in 
cases of general epidemic, natural disaster, or other catastrophe;
    (7) Any law enforcement official, including any person who has the 
duty of guarding government officials who are traveling on official 
business or traveling to or from such duty;
    (8) Guests of an air carrier on an inaugural flight or delivery 
flights of newly-acquired or renovated aircraft;
    (9) Security guards who have been assigned the duty to guard such 
aircraft against unlawful seizure, sabotage, or other unlawful 
interference;
    (10) Safety inspectors of the National Transportation Safety Board 
or the FAA in their official duties or traveling to or from such duty;
    (11) Postal employees on duty in charge of the mails or traveling to 
or from such duty;
    (12) 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 purpose of in-flight observation and subject to applicable FAA 
regulations;
    (13) Persons engaged in promoting air transportation;
    (14) Air marshals and other Transportation Security officials acting 
in their official capacities and while traveling to and from their 
official duties; and
    (15) Other authorized persons, when such transportation is 
undertaken for promotional purpose.
    Passenger, revenue. A passenger for whose transportation an air 
carrier receives commercial remuneration. (This definition is for 14 CFR 
part 241 traffic reporting purposes and may differ from the definitions 
used in other parts by the Federal Aviation Administration and the 
Transportation Security Administration for the collection of Passenger 
Facility Charges and Security Fees.) This includes, but is not limited 
to, the following examples:
    (1) Passengers traveling under publicly available tickets including 
promotional offers (for example two-for-one) or loyalty programs (for 
example, redemption of frequent flyer points);
    (2) Passengers traveling on vouchers or tickets issued as 
compensation for denied boarding or in response to consumer complaints 
or claims;
    (3) Passengers traveling at corporate discounts;
    (4) Passengers traveling on preferential fares (Government, seamen, 
military, youth, student, etc.);
    (5) Passengers traveling on barter tickets; and
    (6) Infants traveling on confirmed-space tickets.
    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.
    Reporting carrier for T-100 purposes means the air carrier in 
operational control of the flight, i.e., the carrier that uses its 
flight crew under its own FAA operating authority.
    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

[[Page 111]]

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 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

[[Page 112]]

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 of cargo unloaded from an aircraft. For this purpose, 
passengers and 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.
    Wet-Lease Agreement means an agreement under which one carrier 
leases an aircraft with flight crew to another 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, which appears in the Finding Aids 
section of the printed volume and on GPO Access.



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:

------------------------------------------------------------------------
         Carrier Group               Total Annual Operating Revenues
------------------------------------------------------------------------
I..............................  0-$100,000,000
II.............................  $100,000,001-$1,000,000,000
III............................  $1,000,000,001+
------------------------------------------------------------------------


[[Page 113]]

    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 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

[[Page 114]]

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 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

[[Page 115]]

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 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,

[[Page 116]]

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 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

[[Page 117]]

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 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]

[[Page 118]]

                      Balance Sheet Classifications



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................
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

[[Page 119]]

 
  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.
    (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

[[Page 120]]

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.
    (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

[[Page 121]]

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 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.

[[Page 122]]

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 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

[[Page 123]]

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 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

[[Page 124]]

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:

                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.

[[Page 125]]

    (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 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

[[Page 126]]

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 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

[[Page 127]]

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 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

[[Page 128]]

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.
    (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

[[Page 129]]

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 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

[[Page 130]]

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, 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,

[[Page 131]]

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         31, 32.................  31, 32.................  31, 32.
   revenues.
08 Public service revenues (subsidy).  48.....................  48.....................  48.
 
Transport-related revenues and
 expenses:
 
09 In-flight sales:
  09.1 Liquor and food--gross          48.....................  48.....................  48.
   revenues.
  09.2 Movies and stereo--gross        48.....................  48.....................  48.
   revenues.
  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--             71.....................  71.....................  71.
   depreciation expense.
  09.7 Movies and stereo--other        71.....................  71.....................  71.
   expense.
  09.8 Other--depreciation expense...  71.....................  71.....................  71.
  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--          71.....................  71.....................  71.
   depreciation expense.
  13.4 Associated companies--other     71.....................  71.....................  71.
   expense.
  13.5 Outside--depreciation expense.  71.....................  71.....................  71.
  13.6 Outside--other expense........  71.....................  71.....................  71.

[[Page 132]]

 
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--          71.....................  71.....................  71.
   depreciation expense.
  14.4 Associated companies--other     71.....................  71.....................  71.
   expense.
  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         31, 32, 41.............  31, 32, 41.............  31, 32, 41.
   revenues.
 
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      .......................  52.....................  52.
   flight 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       69.....................  .......................  .......................
 personnel.
  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       53, 69.................  53, 55, 64, 67, 68.....  53, 55, 61, 62, 63, 65,
 personnel.                                                                               66, 68.
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, 68.  51, 53, 55, 61, 62, 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     51, 53, 69.............  51, 53, 55, 64, 67, 68.  51, 53, 55, 61, 62, 63,
 and expenses.                                                                            65, 66, 68
43 General services purchased:
  43.1 Airframe and other flight       .......................  52.....................  52
   equipment 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     52, 69.................  52, 55, 64, 67, 68.....  52, 55, 61, 62, 63, 65,
   charges.                                                                               66, 68
  43.9 Other services................  52, 53, 69.............  52, 53, 55, 64, 67, 68.  52, 53, 55, 61, 62, 63,
                                                                                          65, 66, 68

[[Page 133]]

 
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, 68.  51, 53, 55, 61, 62, 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, 65,
 supplies.                                                                                66, 68.
51 Passenger food expense............  69.....................  55.....................  55.
53 Other supplies....................  51, 53, 69.............  51, 53, 55, 64, 67, 68.  51, 53, 55, 61, 62, 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, 68.  51, 53, 55, 61, 62, 63,
                                                                                          65, 66, 68.
58 Injuries, loss and damage.........  51, 53, 69.............  51, 53, 55, 64, 67, 68.  51, 53, 55, 61, 62, 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.
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, 68.  51, 53, 55, 61, 62, 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, 68.  51, 53, 55, 61, 62, 63,
                                                                                          65, 66 68.
72 Aircraft overhauls................  52, 53.................  52, 53.................  52, 53.
  72.1 Airworthiness allowance         52, 53.................  52, 53.................  52, 53.
   provisions--airframes.
  72.3 Airframe overhauls deferred...  52, 53.................  52, 53.................  52, 53.
  72.6 Airworthiness allowance         52, 53.................  52, 53.................  52, 53.
   provisions--aircraft engines.
  72.8 Aircraft engine overhauls       52, 53.................  52, 53.................  52, 53.
   deferred.
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       70.....................  70.....................  70.
   hangars.
  75.9 General ground property.......  70.....................  70.....................  70.
76 Amortization expense, capital
 leases:
  76.1 Amortization--capitalized       70.....................  70.....................  70
   flight equipment.
  76.2 Amortization--capitalized       70.....................  70.....................  70
   other property and equipment.
77 Uncleared expense credits:
  77.8 Uncleared interchange expense   53, 69.................  53, 55, 64, 67, 68.....  53, 55, 61, 62, 63, 65,
   credits.                                                                               66, 68.
  77.9 Other uncleared expense         53, 69.................  53, 55, 64, 67, 68.....  53, 55, 61, 62, 63, 65,
   credits.                                                                               66, 68.
78 Direct maintenance--flight          52.....................  52.....................  52.
 equipment.
79 Applied burden Dr/Cr:
  79.6 Flight equipment..............  52 Dr, 53 Cr...........  52 Dr, 53 Cr...........  52 Dr, 53 Cr.

[[Page 134]]

 
  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     81.....................  81.....................  81
   debt.
  81.2 Interest expense, capital       81.....................  81.....................  81
   leases.
82 Other interest:
  82.1 Interest expense, short-term    81.....................  81.....................  81
   debt.
  83.1 Imputed interest capitalized--  81.....................  81.....................  81
   credit.
  83.2 Imputed interest deferred--     81.....................  81.....................  81
   debit.
  83.3 Imputed interest deferred--     81.....................  81.....................  81
   credit.
  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      81.....................  81.....................  81
   debt.
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        81.....................  81.....................  81
   ventures.
  87.0 Equity in income of investor    81.....................  81.....................  81
   controlled companies.
  88.1 Intercompany transaction        81.....................  81.....................  81
   adjustment-credit.
  88.2 Dividend income...............  81.....................  81.....................  81
  88.3 Net unrealized gain or loss on  81.....................  81.....................  81.
   marketable equity securities.
  88.4 Net realized gain or loss on    81.....................  81.....................  81.
   marketable equity securities.
  88.5 Capital gains and losses--      81.....................  81.....................  81.
   operating property.
  88.6 Capital gains and losses--      81.....................  81.....................  81.
   other.
  88.7 Unapplied cash discounts......  81.....................  81.....................  81.
  88.9 Other miscellaneous             81.....................  81.....................  81.
   nonoperating credits.
  89.1 Intercompany transaction        81.....................  81.....................  81.
   adjustment--debit.
  89.9 Other miscellaneous             81.....................  81.....................  81.
   nonoperating debits.
 
             income taxes
 
91 Provision for income taxes:
  91.1 Income taxes before investment  91.....................  91.....................  91.
   tax credits.
  91.2 Investment tax credits          91.....................  91.....................  91.
   utilized.
92 Provisions for deferred income
 taxes:
  92.1 Current provisions for          91.....................  91.....................  91.
   deferred 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          91.....................  91.....................  91.
   deferred.
  93.2 Amortization of deferred        91.....................  91.....................  91.
   investment tax credits.
94 Excess profits taxes..............  91.....................  91.....................  91.
 
       discontinued operations
 
95 Discontinued operations:
  95.1 Income from discontinued        96.....................  96.....................  96.
   operations.
  95.2 Loss on disposal of             96.....................  96.....................  96.
   discontinued 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

[[Page 135]]

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 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:

[[Page 136]]

                        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 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:

[[Page 137]]

                        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 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

[[Page 138]]

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 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.

[[Page 139]]

    (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 
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

[[Page 140]]

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 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 deplane ment.
    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.

[[Page 141]]

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:

                      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

[[Page 142]]

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]



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

[[Page 143]]

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.

    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.

[[Page 144]]

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.

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

[[Page 145]]

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]
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

[[Page 146]]

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 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.

[[Page 147]]

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.

    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:

[[Page 148]]

                     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.
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

[[Page 149]]

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. 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

[[Page 150]]

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 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.

[[Page 151]]

    (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 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

[[Page 152]]

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.
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.

[[Page 153]]

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.
    (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.

[[Page 154]]

                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.

    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.

[[Page 155]]

               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 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.

[[Page 156]]

    (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]

[[Page 157]]

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.
    (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

[[Page 158]]

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;
    (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.

[[Page 159]]

                  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]
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

[[Page 160]]

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 Market,'' and summary data as prescribed in this 
section and in sections 22 and 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 IBM 
compatible disk 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 or submit data via e-mail.
    (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; 67 FR 49223, July 30, 2002]



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) [Reserved]
    (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.

[53 FR 46305, Nov. 16, 1988; 53 FR 52404, Dec. 28, 1988, as amended at 
67 FR 49223, July 30, 2002]



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 classifications shall 
be reported, as applicable:

U.S. Air Carriers:
 K--Scheduled Services (F+G)
 F--Scheduled Passenger/Cargo

[[Page 161]]

 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:

----------------------------------------------------------------------------------------------------------------
        Code                 Description               Segment               Market           Computed by DOT
----------------------------------------------------------------------------------------------------------------
                     Carrier, carrier entity     S                    M
                      code.
                     Reporting period date.....  S                    M
                     Origin airport code.......  S                    M
                     Destination airport code..  S                    M
                     Service class code........  S                    M
                     Aircraft type code........  S
110................  Revenue passengers                               M
                      enplaned.
130................  Revenue passengers          S
                      transported.
140................  Revenue passenger-miles...                                            CFD *
210................  Revenue cargo tons                                                    CFD *
                      enplaned.
217................  Enplaned freight..........                       M
219................  Enplaned mail.............                       M
230................  Revenue tons transported..                                            CFD *
237................  Transported freight.......  S
239................  Transported mail..........  S
240................  Revenue ton-miles.........                                            CFD *
241................  Revenue ton-miles                                                     CFD *
                      passenger.
247................  Revenue ton-miles freight.                                            CFD *
249................  Revenue ton-miles mail....                                            CFD *
270................  Available capacity payload  S
280................  Available ton-miles.......                                            CFD *
310................  Available seats, total....  S
320................  Available seat-miles......                                            CFD *
410................  Revenue aircraft miles                                                CFD *
                      flown.
430................  Revenue aircraft miles                                                CFD *
                      scheduled.
501................  Inter-airport distance....                                            CFD *
510................  Revenue aircraft            S
                      departures performed.
520................  Revenue aircraft            S
                      departures scheduled.
610................  Revenue aircraft hours      S
                      (airborne).
630................  Aircraft hours (ramp-to-    S
                      ramp).
650................  Total aircraft hours        S
                      (airborne).
----------------------------------------------------------------------------------------------------------------
* CFD = Computed by DOT from detail Schedule T-100 and T-100(f) data.

    (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

[[Page 162]]

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 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

[[Page 163]]

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 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; 67 FR 49224, July 30, 2002]



Section 19-6  Public disclosure of traffic data.

    (a) Detailed domestic on-flight market data and nonstop segment data 
except military data 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

[[Page 164]]

and the Virgin Islands, or a U.S. territory or possession. Domestic 
military operations are reported under service codes N or R.
    (b) Detailed international on-flight market and nonstop segment data 
in Schedule T-100 and Schedule T-100(f) reports, except military data, 
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. Military operations are reported 
under service codes N or R. Data for on-flight markets and nonstop 
segments involving no U.S. point 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 period 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; 67 FR 49224, July 30, 2002]



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 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

[[Page 165]]

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 166]]

[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 167]]

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 168]]

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 169]]

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).

----------------------------------------------------------------------------------------------------------------
 000001      UCA         YV            UA             Y           JFK           TW           TW           X
----------------------------------------------------------------------------------------------------------------
Passenge  Utica     Mesa          United        Fare Code     New York     TWA          TWA          Fare Code
 r(s)               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     Northwest     Northwest     Fare Code     Phoenix    American     American     Fare Code    Los Angeles
 Lake    Operating     Ticketed                               Operating    Ticketed
 City    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
----------------------------------------------------------------------------------------------------------------

    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

[[Page 170]]

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.
    (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

[[Page 171]]

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 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.

[[Page 172]]

                          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 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
                                      positions
                Field                   (from-      Tape record layout
                                         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
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

[[Page 173]]

 
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 
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.

[[Page 174]]

    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 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.
    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 175]]

[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; 67 FR 58690, Sept. 18, 
2002]

      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 176]]


    (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 177]]

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--Grou
                  p 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-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 178]]


              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)
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),
March 20................  P-12(a)
March 30................  B-43, P-1(a).         T-100, T-100(f), T-8
April 20................  P-12(a)
April 30................  P-1(a)                T-100, T-100(f)
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)
June 20.................  P-12(a)
June 30.................  P-1(a)                T-100, T-100(f)
July 20.................  P-12(a)
July 30.................  P-1(a)                T-100, T-100(f)
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)
September 20............  P-12(a)
September 30............  P-1(a)                T-100, T-100(f)
October 20..............  P-12(a)
October 30..............  P-1(a)                T-100, T-100(f)
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)
December 20.............  P-12(a)
December 30.............  P-1(a)                T-100, T-100(f)
------------------------------------------------------------------------
\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.
    (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

[[Page 179]]

upon receipt of a written request therefor. To provide ample time for 
consideration and communication to the air carrier of the action taken, 
such a request must be delivered to the Board in writing at least three 
(3) days in advance of the due date, setting forth good and sufficient 
reason to justify the granting of the extension and the date when the 
report can be filed. Except in cases of emergency, no such request will 
be entertained which is not in writing and received by the BTS at least 
three (3) days before the prescribed due date. If a request is denied, 
the air carrier remains subject to the filing requirements to the same 
extent as if no request for extension of time had been made.
    (d) [Reserved]
    (e) All financial data reported on B, P and G schedules shall 
reflect the status of the air carrier's books of account for the period 
for which the report is being made and shall conform to the instructions 
contained in this Uniform System of Accounts and Reports. At the option 
of the air carrier, Group III air carriers may round reported financial 
data to the nearest thousands of dollars by typing ``($000)'' at the top 
of each amount column. All Group I and Group II air carriers may, at 
their option, round reported financial data to the nearest whole dollars 
by dropping the cents. All rounded amounts must be balanced within and 
between schedules. This option applies only to the submission of 
hardcopy reports. Instructions for the submission of data in ADP format 
are contained in the Accounting and Reporting Directives, which are 
available from OAI.
    (f) Traffic and other operational statistics included in schedules 
of the BTS Form 41 reports shall reflect data pertaining to the month, 
quarter or 12-months-to-date period for which the report is being made.
    (g) Adjustments correcting errors in previously reported traffic and 
other operational statistics shall not be included in data reported in 
schedules for the current period but shall be effected by submission of 
corrected schedules for the period to which applicable or, if only a few 
items are involved, by written notice and authorization to the BTS to 
correct previously filed reports except that any correction which 
amounts to less than one-half of one percent (0.5%) of the corrected 
amount for the month to which related may be included in the report for 
the current month provided the amount of the correction is clearly noted 
on the Form 41 Report.
    (h) All letters and statements of correction or revision of reported 
data shall be a part of the BTS Form 41 reports.
    (i) All changes in accounting methods having a material impact upon 
the particular financial elements involved, and all changes in methods 
of computing and reporting traffic and capacity statistics having a 
material impact upon the particular statistic involved shall be 
adequately explained and identified in the report first reflecting such 
changes. Such explanations related to financial position or financial 
results shall be made on BTS Form 41 Schedule P-2. Changes in methods 
for computing or reporting traffic and capacity statistics shall be 
identified and explained on a separate sheet attached to the first 
report affected. (See sec. 2-16.) The reporting requirements shall not 
be construed, in any sense, as relieving the air carrier of the 
responsibility for conforming its procedures to those otherwise 
prescribed in this system of accounts and reports.
    (j) All financial statements released by carriers to the public 
reflecting a financial position or operating results for dates or 
reporting periods not covered by reports on file with the Board shall be 
filed with the Board simultaneously with their public release.

(Approved by the Office of Management and Budget under control number 
2138-0013)

[ER-755, 37 FR 19726, Sept. 21, 1972]

    Editorial Note: For Federal Register citations affecting part 241, 
section 22, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.

                    Financial Reporting Requirements



Section 23  Certification and Balance Sheet Elements

                        Schedule A--Certification

    (a) The certification of the BTS Form 41 Report shall be signed by 
an elective corporate officer, executive, or director. Other

[[Page 180]]

persons may be authorized by the carrier to sign the certification 
provided a written authorization disclosing the individual's name and 
title is forwarded to the Department of Transportation. Since 
corrections or revisions of reported data are a part of the BTS Form 41 
Report, all correspondence relating to such matters shall be signed only 
by the person(s) authorized to sign the certification.
    (b) The certification of the Form 41 reports, embodied in Schedule A 
thereof, shall read as follows:
    I, the undersigned (Title of officer in charge of accounts) -------- 
of the (Full name of the reporting company) ------ do certify that this 
report and all schedules, ADP-media submissions, Passenger Origin-
Destination Survey submissions and supporting documents which are 
submitted herewith or have been submitted heretofore as parts of this 
report filed for the above indicated period have been prepared under my 
direction; that I have carefully examined them and declare that they 
correctly reflect the accounts and records of the company, and to the 
best of my knowledge and belief are a complete and accurate statement, 
after adjustments to reflect full accruals, of the operating revenues 
and expenses, income items, assets, liabilities, capital, retained 
earnings, and operating statistics for the periods reported in the 
several schedules, the Schedule T-100 ADP-media submissions, and the 
Passenger Origin-Destination Survey; that the various items herein 
reported were determined in accordance with the Uniform System of 
Accounts and Reports for Large Certificated Air Carriers prescribed by 
the Department of Transportation; and that the data contained herein are 
reported on a basis consistent with that of the preceding report except 
as specifically noted in the financial and statistical statements.

                       Schedule B-1 Balance Sheet

    (a) This schedule shall be filed by all Group II and Group III air 
carriers and Group I air carriers that have annual operating revenues of 
$20 million or more.
    (b) This schedule shall reflect the balances at the close of 
business on the last day of each calendar quarter for the overall or 
system operations of each air carrier in conformance with the provisions 
of sections 4, 5 and 6.
    (c) Individual proprietors or partners shall report the aggregate 
capital contributed by the proprietor or partners in account 2890 
Additional Capital Invested.

                      Schedule B-1.1--Balance Sheet

    (a) This schedule shall be filed semiannually by Group I air 
carriers with annual operating revenues below $20 million.
    (b) Each carrier shall insert in the space provided for ``OAG Code'' 
its carrier code as contained in the Official Airlines Guide (OAG). If 
the OAG does not contain a carrier code for the reporting carrier, a 
code will be provided by the Office of Airline Information upon request. 
This code will then be inserted in the space provided for ``carrier 
code.''
    (c) This schedule shall show the account balances at the close of 
business on June 30 or December 31, as applicable, of each semiannual 
reporting period.
    (d) ``Current Assets'' shall include all resources that may 
reasonably be expected to be realized in cash or sold or consumed within 
one year. This group of assets is classified into three basic accounts:
    (1) ``Cash and Equivalents'' shall include cash on hand and on 
deposit, U.S. Government securities, and other temporary cash 
investments.
    (2) ``Notes and Accounts Receivable-Net'' shall include general 
traffic accounts receivable, government receivables, notes and 
receivables from associated companies, officers, employees and others, 
and a deduction for a reasonable allowance for bad debts.
    (3) ``Other Current Assets'' shall contain all other current assets 
not provided for in the above classifications. This account shall 
include, but is not limited to, short-term prepayments, expendable spare 
parts, supplies and other inventories of flight equipment replacement 
parts that are usually replaced rather than repaired, and materials and 
supplies held in stock, such as fuel and oil, expendable tools, office 
supplies and food service supplies. Spare parts may be reduced by an 
allowance for obsolescence to provide for losses in value.
    (e) ``Property and Equipment'' shall be segregated into that which 
is owned and that which is leased under capital leases. All property and 
equipment, with the deception of land, shall be reported net of 
accumulated depreciation or amortization.
    (f) ``Other Assets'' shall included all assets not included in the 
above categories, such as long-term investments, long-term prepayments, 
long-term receivables, deferred charges, intangible assets, equipment 
purchase deposits, and construction work in progress.
    (g) ``Current Liabilities'' shall include all obligations, the 
liquidation of which is reasonably expected to require the use of 
existing resources within one year. This group of liabilities is 
classified into three basic accounts:
    (1) ``Notes and Accounts Payable'' shall include any payments on 
long-term debt, short-term notes and accounts payable, and accrued 
expenses that are payable within one year.
    (2) ``Accrued Taxes'' shall include tax liabilities, such as those 
imposed on income,

[[Page 181]]

property and payroll, which are reasonably expected to be liquidated 
within one year.
    (3) ``Other Current Liabilities'' shall include all current 
liabilities which are not provided for elsewhere, such as air traffic 
liabilities for unused transportation sold (includes sales of 
transportation on both the reporting carrier and other carriers).
    (h) ``Long-Term Debt'' shall include all obligations which are not 
reasonably expected to be liquidated within one year. Typical examples 
include bonds payable, long-term notes payable, lease obligations, and 
pension obligations.
    (i) ``Other Liabilities'' shall include any debts or obligations 
which are not properly listed in the ``Current Liabilities'' or ``Long-
Term Debt'' sections.
    (j) ``Deferred Credits'' shall include all credit balances of a 
general clearing nature, including credits held in suspense pending 
receipt of further information necessary for final disposition. Included 
in this account are deferred income taxes and deferred investment tax 
credits.
    (k) ``Stockholder's Equity'' shall be reported as follows:
    (1) ``Capital Stock'' shall be segregated as between common and 
preferred. The number of shares outstanding, along with the par or 
stated value of the stock, shall be reported. In the case of no-par 
stock without stated value, the full consideration received shall be 
reported.
    (2) ``Other Paid-In Capital'' shall include the difference between 
the price at which the capital stock is sold and the par or stated value 
of the stock.
    (3) ``Retained Earnings'' shall represent the net income or loss 
from all operations of the corporate entity less dividends.
    (4) ``Treasury Stock'' shall represent the cost of stock issued by 
the carrier and reacquired by it but not retired or cancelled.
    (l) The statement of certification shall be signed by the carrier's 
chief accounting officer.
    (m) All substantive matters that may materially influence 
interpretations or conclusions in regard to the financial condition or 
the earnings position of the air carrier which are not clearly 
identified in the body of the schedule or which represent information 
that cannot be expressed adequately in monetary terms shall be 
completely and clearly stated in a note attached to this schedule and 
cross-referenced to the affected account or accounts.

 Schedule B-7 Airframe and Aircraft Engine Acquisitions and Retirements

    (a) This schedule shall be filed by all Group II and Group III air 
carriers.
    (b) Data applicable to acquisitions and data applicable to 
retirements shall be grouped and reported separately. The data reported 
within each group (acquisitions; retirements) shall be further 
subgrouped and reported as follows:
    (1) Acquisitions: the indicated data shall be reported for each 
individual airframe, identified by type, model, and design of cabin as 
to use for passengers exclusively, cargo exclusively, or both passengers 
and cargo in combination. Data pertaining to aircraft engines shall be 
reported in aggregate for each type or model; however, leased aircraft 
engines shall be separately reported under captions entitled: Capital 
Leases--Aircraft Engines; and Operating Leases--Aircraft Engines. 
Airframe units leased from others for a period of more than 90 days 
shall be reported in a separate subsection of this schedule, captioned 
as follows: Capital Leases--Airframe Units; and Operating Leases--
Airframe Units. In addition, a notation shall be made by license number 
of airframe units of the air carrier returned after lease to others for 
a period of more than 90 days. Airframe units obtained through 
interchange lease arrangements shall not be so reported.
    (2) Retirements: The indicated data shall be reported for the sale 
or retirement of each airframe, each type of aircraft engine (stating 
the number of units retired) and, to the extent retired along with 
airframes and engines, in aggregates by accounts, operating property and 
equipment included in accounts 1607 and 1608 and nonoperating property 
and equipment included in accounts 1707 and 1708. Disposition of 
properties in accounts 1608 and 1708 not related to airframe and 
aircraft engine retirements shall be reported in a separate group for 
each account. Airframe units leased from others for a period of more 
than 90 days shall be reported, upon return to the lessor, in a separate 
subsection of this schedule and captioned as follows: Capital Leases--
Airframe Units; and Operating Leases--Airframe Units. In addition, a 
notation shall be made by license number and name of lessee of airframe 
units leased to others for a period of more than 90 days; moreover, 
airframe units leased to others under sales-type or direct financing 
leases shall be separately captioned and reported on this schedule. 
Airframe units leased under interchange arrangements shall not be so 
reported. Aircraft engines leased from others for a period of more than 
90 days shall be reported, upon return to the lessor, in a separate 
subsection of this schedule and captioned as follows: Capital Leases--
Aircraft Engines; and Operating Leases--Aircraft Engines. In addition, a 
notation shall be made by model number, number of units, and name of 
lessee of aircraft engines leased to others for a period of more than 90 
days; moreover, aircraft engines leased to others under sales-type or 
direct financing leases shall be separately captioned and reported on 
this schedule. Aircraft engines leased under interchange arrangements 
shall not be so reported.

[[Page 182]]

    (c) All dates shall indicate the day, the month and the year; shall 
be provided on a unit basis for airframes only, and, shall be reported 
for each aircraft engine group by date of transaction.
    (d) Column 1, ``Year of First Delivery--Airframe,'' shall reflect, 
for each reported airframe, the year that the airframe was first 
delivered by its manufacturer.
    (e) Column 2, ``Airframe Manufacturer's Serial Number,'' shall 
reflect the serial number assigned to each reported airframe by its 
manufacturer.
    (f) Column 4, ``Acquisitions or Retirements,'' shall be used to 
indicate, for each item entered, whether it represents an acquisition or 
retirement. This shall be indicated by inserting in Column 4 an ``A'' 
for acquisition or an ``R'' for retirement.
    (g) Column 8, ``Maximum Seating Capacity,'' shall reflect the number 
of passenger seats installed in each airframe acquired. When airframes 
are designed for multiple adjustable seating configurations, the maximum 
number of seats for which designed shall be reported. When the seating 
configuration of airframes is modified subsequent to original 
acquisition, the revised passenger capacity of each airfame shall be 
reported in the quarter in which modified and referenced to identify 
original capacity reported.
    (h) Column 9, ``Cost,'' shall reflect the book cost of reported 
airframe and aircraft engine acquisitions and retirements.
    (i) Column 10, ``Amortization/Depreciated Cost,'' shall reflect the 
book cost, less amortization or depreciation expense, for airframes and 
aircraft engines that have been retired.
    (j) Column 11, ``Realization,'' shall reflect the proceeds from the 
disposition of airframes and aircraft engines, including any insurance 
proceeds.
    (k) Column 12, ``Acquired From/Disposition,'' shall reflect: (1) for 
acquisitions: the name of the person or organization from which 
airframes and aircraft engines are acquired and (2) for dispositions 
(retirements): the name of the person or organization to which airframes 
and aircraft engines are sold or a notation as to the nature of the 
retirement and the account to which any depreciated cost has been 
charged, if not sold. Items included in accounts 1607, 1608, 1707, and 
1708, sold as a part of an airframe or aircraft sales transaction, shall 
also be identified by the name of the buyer. Other sales of items 
included in these accounts shall be reported in a separate group in 
aggregate for each property account affected.

                 Schedule B-12--Statement of Cash Flows

    (a) This Schedule shall be filed quarterly by all Group II and Group 
III air carriers and Group I air carriers that have annual operating 
revenues of $20 million or more.
    (b) This schedule shall be filed for the overall or system 
operations of the air carrier.
    (c) The statement of cash flows shall separately disclose the amount 
of net cash provided or used during the reporting period from the 
carrier's operating activities, investing activities and financing 
activities. The effect on cash and cash equivalents of the total amount 
of net cash provided or used during the quarter from each of the above 
activities shall be clearly disclosed so as to reconcile beginning and 
ending cash and cash equivalents.
    (d) Carriers may use either the direct or indirect method of 
reporting cash flows. Under either method, the reporting of cash flows 
from investing and financing activities will remain the same. However, 
the reporting of cash flows from operating activities does differ 
between the two methods.
    (e) For carriers electing to use the direct method, cash flows from 
operating activities are reported as gross amounts of the principal 
components of cash receipts and cash payments from operating activities, 
such as cash received from passengers and shippers, cash paid to 
suppliers, and cash paid to employees. Each carrier using the direct 
method shall provide as part of its statement of cash flows, a separate 
schedule that reconciles net income (as reported on Schedule P-1.2 in 
Account 9899) to cash flow from operating activities.
    (f) For carriers electing to use the indirect method, cash flows 
from operating activities shall reflect net income (as reported on 
Schedule P-1.2 in Account 9899) along with the adjustments necessary to 
reconcile net income (Account 9899) to net cash for the period (Net Cash 
Provided or Used By Operating Activities).
    (g) Regardless of the method used, the statement of cash flows shall 
reflect the amount of net cash flow provided or used by operating 
activities during the reporting period.
    (h) The balance of ``Cash and Cash Equivalents,'' at the beginning 
and ending of the quarterly period covered by the report, should equal 
the sum of Accounts 1010, ``Cash,'' and 1100, ``Short-term 
Investments,'' as reported on the immediately preceding and current 
quarterly Schedule B-1, ``Balance Sheet.'' If the sum of these two 
accounts does not equal the total ``Cash and Cash Equivalents'' reported 
on the statement of cash flows, then a footnote explaining the 
difference shall be provided as part of the statement of cash flows.

       Schedule B-43--Inventory of Airframes and Aircraft Engines

    (a) This schedule shall be filed by all Group I, Group II and Group 
III air carriers.
    (b) The indicated data shall be reported for each individual 
airframe, identified by type, model and design of cabin (main deck) as 
to

[[Page 183]]

use for passengers exclusively, cargo exclusively, or both passengers 
and cargo in combination. Type and model refers to aircraft models such 
as B-707-100, B-707-200, DC-10-40, Beech-18, Piper PA-32, etc. Aircraft 
type designations are prescribed in Accounting and Reporting Directive 
No. 178, ``List of Aircraft Type Numeric Codes.'' Copies of this 
directive and subsequent updates to the list of aircraft type codes are 
available from the Department's Office of Airline Information. Airframes 
that are authorized for operation over water under FAA regulation FAR 
121 shall be so indicated by asterisk.
    (c) Data pertaining to aircraft engines shall be reported on a group 
basis by type of engine and by type of aircraft to which related.
    (d) Data in this schedule shall be grouped and subtotaled as data 
pertaining to airframes and data pertaining to aircraft engines. Data 
pertaining to nonoperating airframes and aircraft engines shall be 
reported in a group below the data for operating equipment. Data 
pertaining to airframes and aircraft engines obtained under operating 
and capital leases shall be reported, by type of lease, in a separately 
captioned grouping below nonoperating airframes and aircraft engines and 
subgrouped within those groups according to operating and nonoperating 
equipment.
    (e) Column 1, ``Year of First Delivery--Airframe,'' shall reflect, 
for each reported airframe, the year that the airframe was first 
delivered by its manufacturer.
    (f) Column 2, ``Airframe Manufacturer's Serial Number,'' shall 
reflect the serial number assigned to each reported airframe by its 
manufacturer.
    (g) Data pertaining to airframes and aircraft engines obtained under 
operating leases shall be listed in Columns 1 through 9; the cost of 
improvements to equipment under operating leases shall be reported in 
Columns 10 through 12.
    (h) Column 9, ``Available Capacity (Weight),'' shall reflect, for 
each reported aircraft type, the available capacity (stated in pounds) 
that is used in computing the available ton-miles reported on Schedules 
T-100, T-1, and T-2.
    (i) Column 10, ``Acquired Cost or Capitalized Value,'' shall include 
(1) the acquisition cost of owned airframes and aircraft engines; (2) 
the total capitalized cost of obtaining airframes and engines under 
capital leases; and (3) the cost of improvements to airframes and 
engines obtained under operating leases.
    (j) Column 11, ``Allowance for Depreciation or Amortization,'' shall 
include (1) the accumulations of all provisions for losses due to use 
and obsolescence that are applicable to owned airframes and aircraft 
engines, (2) the amount of amortization recorded for amortizing the 
value of airframes and engines obtained under capital leases, and (3) 
the amount of amortization recorded for amortizing the value of 
improvements to airframes and aircraft engines obtained under operating 
leases.
    (k) Column 12, ``Depreciated Cost or Amortized Value,'' shall be 
calculated as either (1) Acquired Cost (Column 10) less the Allowance 
for Depreciation (Column 11) or (2) Capitalized Value (Column 10) less 
Amortization (Column 11).
    (l) Column 13, ``Estimated Residual Value,'' shall state, in 
dollars, the residual value assigned to owned and capital-leased 
airframes and aircraft engines, including any overhaul value not subject 
to depreciation.
    (m) Column 14, ``Estimated Depreciable or Amortizable Life 
(Months),'' shall state the estimated depreciable or amortizable life 
from the date of acquisition of each airframe and each group of aircraft 
engines.

[ER-755, 37 FR 19726, Sept. 21, 1972]

    Editorial Note: For Federal Register citations affecting part 241, 
section 23, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Section 24  Profit and Loss Elements

                 Schedule P-1.1--Statement of Operations

    (a) This schedule shall be filed semiannually by Group I air 
carriers with annual operating revenues below $20 million. Data reported 
on this schedule shall be for the overall or system operations of the 
air carrier.
    (b) This schedule shall show the results of operations for six-month 
periods ending June 30 and December 31. Data reported in the ``12 
Months-to-Date'' column shall represent for each individual item the sum 
of the amount reported in the ``Current Period'' column and the next 
previous six-month period.
    (c) Each carrier shall insert in the space provided for ``OAG Code'' 
its carrier code as contained in the Official Airlines Guide (OAG). If 
the OAG does not contain a carrier code for the reporting carrier, a 
code will be provided by the Office of Airline Information upon request. 
This code will then be placed in the space provided for ``carrier 
code.''
    (d) ``Operating Revenue'' shall be put in categories as follows:
    (1) ``Transport Revenue'' shall include the revenue generated by the 
performance of air transportation services. This category shall be 
subdivided as follows:
    (i) ``Scheduled Service'' shall include all transport revenue 
derived from operations between pairs of points which are served on a 
regularly scheduled basis. Transport revenue received from scheduled 
service operations shall be subdivided as follows:
    (A) Passengers. Revenue generated from the transportation of 
passengers shall be included in this category.

[[Page 184]]

    (B) Other. Revenue generated by the transportation of property and 
mail shall be included in this category.
    (ii) ``Nonscheduled Service'' shall include all transport revenue 
derived from operations between pairs of points which are not served on 
a regularly scheduled basis.
    (2) ``Transport-Related Revenue'' shall include monies received for 
providing air transportation facilities associated with the performance 
of services which flow from and are incidental to air transportation 
services performed by the air carrier. This category shall be subdivided 
as follows:
    (i) Public Service Revenue. This category shall include amounts of 
compensation paid to the carrier under 49 U.S.C 41733.
    (ii) Other. This category shall include other transport-related 
revenue such as in-flight sales, restaurant and food service (ground), 
rental of property or equipment, limousine service, interchange sales, 
and cargo pick-up and delivery charges.
    (e) ``Operating Expense'' shall be segregated as follows:
    (1) ``Flying Operations'' shall include expenses incurred directly 
in the in-flight operation of aircraft and expenses incurred in the 
holding of aircraft and aircraft operation personnel in readiness for 
assignment to an in-flight status.
    (2) ``Maintenance'' shall include all expenses which are 
specifically identifiable with the repair and upkeep of property and 
equipment used in the performance of air transportation.
    (3) ``General and Administrative'' shall include that portion of all 
expenses of a general corporate nature and all other expenses not 
provided for elsewhere which are related to air transport operations 
either directly or indirectly.
    (4) ``Depreciation and Amortization'' shall include all depreciation 
and amortization expenses applicable to property and equipment used in 
providing air transportation services. These expenses shall be 
segregated between those applicable to owned property and equipment and 
those applicable to property and equipment which is leased.
    (5) ``Transport-Related Expense'' shall include all expenses 
associated with the transport-related revenues reported on line 5 of 
this schedule.
    (f) ``Operating Profit (Loss)'' shall be computed by subtracting the 
total operating expenses from the total operating revenues.
    (g) ``Nonoperating Income and Expense'' shall include all revenues 
and expenses resulting from commercial ventures which are not inherently 
related to the performance of air transport services. For example, the 
revenues and expenses related to operating a hotel or motel would be 
reported under this category. This category shall also include the total 
interest expense incurred from all sources and shall be subdivided as 
follows:
    (1) Interest Expense.
    (2) Other Nonoperating (Net).
    (h) ``Income Tax'' shall reflect the provisions for accruals of 
Federal, State, local, and foreign taxes based upon taxable income, and 
computed at the normal and surtax rates in effect during the current 
accounting year.
    (i) ``Discontinued Operations, Extraordinary Items or Accounting 
Changes'' shall reflect any earnings or losses from discontinued 
operations, the net of the tax amount of extraordinary items, and the 
cumulative effect of any changes in accounting principles.
    (j) Any air carrier that does not file Schedule P-1(a) in accordance 
with the filing option described in section 22--General Reporting 
Instructions shall, for the sixth month of any semi-annual period during 
which the option is exercised, type in the bottom margin of this 
statement of operations the total number of full-time and part-time 
employees to be labeled as such and calculated in accordance with 
paragraph (d) of the reporting instructions for Schedule P-1(a).

                 Schedule P-1.2--Statement of Operations

    (a) This schedule shall be filed quarterly by all Group II and Group 
III air carriers and Group I air carriers that have annual operating 
revenues of $20 million or more.
    (b) Route and charter carriers shall file separate statements of 
operations for each separate operating entity and for the overall, or 
system operations.
    (c) Data reported on this schedule shall conform with the 
instructions pertaining to profit and loss classifications within this 
Uniform System of Accounts and Reports.
    (d) Data reported in the ``12 Months-to-Date'' column shall 
represent for each item the sum of amounts reported in the ``Quarter'' 
column for the current and next previous three quarters.
    (e) Group III air carriers shall subdivide total Transport Revenues-
Passenger (Account 3901) between Accounts 3901.1, Passenger-Flight Class 
and Account 3901.2 Passenger-Coach, only for operations that are 
reported in the international entity (Atlantic, Pacific and Latin 
American). First class and coach passenger revenues associated with 
transport operations reported in the domestic entity shall be reported 
as a combined total in Account 3901 Transport Revenues-Passenger.
    (f) All Group I and Group II air carriers shall report first class 
and coach passenger revenues as a combined total in Account 3901 
Transport Revenues-Passenger, for both domestic and international entity 
operations. However, U.S. air carriers in any carrier group that elect 
to do so may continue to report first class and coach revenue data, if 
they consider such voluntary reporting to be less burdensome than 
changing their existing financial reporting system.

[[Page 185]]

    (g) Any air carrier that does not file Schedule P-1(a) in accordance 
with the filing option described in section 22--General Reporting 
Instructions shall, for the third month of any calendar quarter during 
which the option is exercised, type in the bottom margin of the system 
statement of operations the total number of full-time and part-time 
employees to be labeled as such and calculated in accordance with 
paragraph (d) of the reporting instructions for Schedule P-1(a).

                Schedule P-1(a)--Interim Income Statement

    (a) This schedule shall be filed by all air carriers.
    (b) This schedule shall be filed for the overall or system 
operations of the air carrier.
    (c) Data reported on this schedule shall reflect the results of 
operations for the month covered by the report and shall conform to the 
instructions pertaining to profit and loss classifications within this 
Uniform System of Accounts and Reports.
    (d) Air carriers shall report on this schedule:
    (1) Total operating revenues,
    (2) Total operating expenses,
    (3) Operating profit or loss,
    (4) Net income,
    (5) Passenger revenues--scheduled service,
    (6) Public service revenues (subsidy) and other information on
    (7) The total number of full-time and
    (8) Part-time employees. Total number of full-time employees and 
total number of part-time employees shall reflect for the overall or 
system operations of the air carrier the total number of full-time and 
part-time employees, respectively, who worked or received pay for any 
part of the pay period(s) ending nearest the 15th day of the month. For 
the purposes of this part, ``part-time employees'' means those employees 
hired to work less than the number of hours that is customary or 
standard for their occupational specialty.
    (e) In the event of a labor strike, the ``number of employees'' to 
be reported on this schedule shall be determined on and actual payroll 
basis. Actual payroll shall be determined in accordance with paragraph 
(d) of these reporting instructions. An air carrier that on October 24, 
1978, held a certificate issued under 49 U.S.C. 41102 shall also report 
in a footnote on this schedule the number of full-time employees who 
were deprived of employment because of a strike (i.e., the number of 
full-time employees who, but for a strike, would have been included in 
the number reported in accordance with paragraph (d)(7)).

                Schedule P-2--Notes to BTS Form 41 Report

    (a) This schedule shall be filed quarterly by all Group II and Group 
III air carriers and Group I air carriers that have annual operating 
revenues of $20 million or more.
    (b) Route and charter air carriers shall file this schedule for each 
separate operating entity and for the overall, or system operations of 
the carrier.
    (c) All substantive matters which may influence materially 
interpretations or conclusions in regard to the financial condition or 
the earnings position of the air carrier which are not clearly 
identified in the body of the Form 41 report or which represent 
information that cannot be expressed adequately in monetary terms shall 
be completely and clearly stated in this schedule and cross-referenced 
to the affected account or accounts. The informative disclosure on this 
schedule for the system operations of the air carrier shall conform, at 
the end of each carrier's fiscal or calendar year, with the footnotes 
prepared for audited financial statements.
    (d) The amounts and estimated delivery dates of any purchase 
commitments of material size and not of a recurrent routine character 
shall be explained on this schedule. In the case of commitments 
involving flight equipment, the amount for each equipment type may be 
given in total, including any engines, airframes and spares; but the 
number of airframes and the number of engines by type shall be given, as 
well as the estimated delivery date for each complete aircraft. Reports 
on commitments other than for flight equipment are required only in the 
December 31 report of each calendar year.
    (e) Each scheduled air carrier shall include on this schedule a 
description of each interruption in air transport operations, the 
aggregate effect of which is ten (10) percent or more of the scheduled 
revenue plane-miles which, except for the interruption, would have been 
operated during the month or either of 2 consecutive months affected. 
The information to be reported for each such interruption in operations 
shall consist of:
    (1) For the report period in which partial or complete interruption 
first occurs, the nature of the interruption and dates of partial and/or 
complete cessation of operations, as applicable;
    (2) For each report period until full resumption of operations, an 
estimate of the revenue plane-miles canceled in each month of the 
quarter because of the interruption; and
    (3) For the report period in which scheduled operations are resumed, 
dates of partial and/or complete resumption, as applicable.

               Schedule P-5.1--Aircraft Operating Expenses

    (a) This schedule shall be filed by all Group I air carriers. Group 
I air carriers that have annual operating revenues of $20 million or 
more shall file this schedule quarterly and only report direct operating 
expense data (lines 1 thru 9). Group I air carriers with annual 
operating revenues below $20 million

[[Page 186]]

shall file this schedule semiannually and report both direct and 
indirect operating expense data (lines 1 thru 16).
    (b) Subject to the provisions of Section 22(a), quarterly reports 
are due on May 10, August 10, November 10 and February 10 for the first, 
second, third and fourth calendar quarters, respectively. Semiannual 
reports are due on August 10 and February 10.
    (c) Each carrier shall indicate in the space provided its full 
corporate name and an ``X'' shall be inserted in the appropriate box to 
indicate whether the data being reported are quarterly or six months 
data. The period-ending data shall be indicated in the space provided.
    (d) Route and charter air carriers subject to the quarterly filing 
requirement shall file this schedule for each operating entity of the 
air carrier. Air carriers subject to the semiannual filing requirement 
shall file this schedule for the overall or system operations of the air 
carrier.
    (e) This schedule shall show the direct and indirect expenses 
incurred in aircraft operations plus total aircraft hours, gallons of 
fuel issued, and aircraft days assigned to service. Direct expense data 
applicable to each aircraft type operated by the carrier shall be 
reported in separate colums of this schedule. Each aircraft type 
reported shall be identified at the head of each column in the space 
provided. ``Aircraft Type'' refers to aircraft models such as B-707-100, 
B-707-200, DC-10-40, Beech-18, Piper PA-32, etc, Aircraft Type 
designations are prescribed in the Accounting and Reporting Directives, 
which is available from the Board's Information Management Division. In 
the space provided for ``Aircraft Code'' carriers shall insert the four 
digit code which is prescribed in the Accounting and Reporting 
Directives for the reported aircraft type.
    (f) Direct aircraft operating expenses shall be reported in the 
following categories:
    (1) Line 2 ``Flying Operations (Less Rental)'' shall be subdivided 
as follows:
    (i) Line 3 ``Pilot and Copilot'' expense shall include pilots' and 
copilots' salaries, and related employee benefits, pensions, payroll 
taxes and personnel expenses.
    (ii) Line 4 ``Aircraft Fuel and Oil'' expense shall include the cost 
of fuel and oil used in flight operations and nonrefundable aircraft 
fuel and oil taxes.
    (iii) Line 5 ``Other'' expenses shall include general (hull) 
insurance, and all other expenses incurred in the in-flight operation of 
aircraft and holding of aircraft and aircraft operational personnel in 
readiness for assignment to an in-flight status that are not provided 
for otherwise on this schedule.
    (2) Line 6 ``Total Flying Operations (Less Rentals)'' shall equal 
the sum of lines 3, 4 and 5.
    (3) Line 7 ``Maintenance-Flight Equipment'' shall include the cost 
of labor, material and related overhead expended by the carrier to 
maintain flight equipment, general services purchased for flight 
equipment maintenance from associated or other outside companies, and 
provisions for flight equipment overhauls.
    (4) Line 8 ``Depreciation and Rental-Flight Equipment'' expense 
shall include depreciation of flight equipment, amortization of 
capitalized leases for flight equipment, provision for obsolescence and 
deterioration of spare parts, and rental expense of flight equipment.
    (5) Line 9 ``Total Direct Expense'' shall equal the sum of lines 6, 
7 and 8.
    (g) Line 10 Indirect aircraft operating expenses shall be reported 
only in total for all aircraft types and shall be segregated according 
to the following categories:
    (1) Line 11 ``Flight Attendant Expense'' shall include flight 
attendants' salaries, and related employee benefits, pensions, payroll 
taxes and personnel expenses.
    (2) Line 12 ``Traffic Related Expense'' shall include traffic 
solicitor salaries, traffic commissions, passenger food expense, traffic 
liability insurance, advertising and other promotion and publicity 
expenses, and the fringe benefit expenses related to all salaries in 
this classification.
    (3) Line 13 ``Departure Related (Station) Expense'' shall include 
aircraft and traffic handling salaries, landing fees, clearance, customs 
and duties, related fringe benefit expenses and maintenance and 
depreciation on ground property and equipment.
    (4) Line 14 ``Capacity Related Expense'' shall include salaries and 
fringe benefits for general management personnel, recordkeeping and 
statistical personnel, lawyers, and law clerks, and purchasing 
personnel; legal fees and expenses; stationery; printing; uncollectable 
accounts; insurance purchased-general; memberships; corporate and fiscal 
expenses; and all other expenses which cannot be identified or allocated 
to some other specifically identified indirect cost category.
    (h) Line 15 ``Total Indirect Expense'' shall equal the sum of lines 
11, 12, 13 and 14.
    (i) Line 16 ``Total Operating Expense'' shall equal the sum of lines 
9 and 15.
    (j) Line 17 ``Total Aircraft Hours'' shall equal the sum of revenue 
and nonrevenue aircraft hours.
    (k) Line 18 ``Gallons of Fuel Issued'' shall equal the aircraft 
fuels issued (account Z921).
    (l) Line 19 ``Aircraft Days Assigned to Service'' equals the number 
of days that aircraft owned or acquired through rental or lease 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 wet-lease agreements. 
Includes days in overhaul, or temporarily out of service due to schedule 
cancellations. Excludes days that newly acquired aircraft

[[Page 187]]

are on hand but not available for productive use, days dry-leased or 
rented to others, and days in possession but formally withdrawn from air 
transportation service.

   Schedule P-5.2--Aircraft Operating Expenses and Related Statistics

    (a) This schedule shall be filed by all Group II and Group III air 
carriers.
    (b) Route and charter air carriers shall file this schedule for each 
operating entity of the air carrier.
    (c) Data applicable to each aircraft type operated by the air 
carrier shall be reported in separate columns of this schedule. 
``Aircraft Type'' refers to aircraft models (such as B-707-100, B-707-
300, DC-9-30, etc.) that are prescribed in the Accounting and Reporting 
Directives, which is available from the Office of Airline Information. 
In the space provided for ``Aircraft Code'' carriers shall insert the 
four digit code which is prescribed in the Accounting and Reporting 
Directives for the reported aircraft type. For route air carriers, 
expenses of operating aircraft provided by other carriers under 
interchange agreements shall be separately reported in total for all 
such aircraft as if for a distinct aircraft type. Interchange expenses 
applicable to aircraft of the same type as those owned or operated by 
the air carrier shall be distributed in summary memo form as item 98.1 
and 98.2 to each aircraft type owned or operated by that air carrier. 
Aircraft types not generally used in revenue service shall be separately 
reported. If more than one type of aircraft is involved, a separation of 
data relating to each type of aircraft shall not be required.
    (d) Each aircraft type for which a report is being made shall be 
identified at the head of each column in the space provided. Data 
applicable to aircraft designed primarily for cargo services and only 
incidentally used for passenger services shall be reported in separate 
columns, and the word ``cargo'' shall be inserted after the aircraft 
type at the head of the column. The prescribed reporting by aircraft 
types may be reviewed from time to time upon request by individual air 
carriers, or upon the initiative of the BTS, and groupings of aircraft 
types for reporting purposes may be prescribed or amended in specific 
instances.
    (e) Italicized codes and item titles do not constitute accounts or 
account numbers prescribed for air carrier accounting, but shall be used 
for reporting purposes only.
    (f) Item 79.6 ``Applied Maintenance Burden'' shall reflect a 
memorandum allocation by each air carrier of the total expenses included 
in subfunction 5300 ``Maintenance Burden'' between maintenance of flight 
equipment, by aircraft type, and maintenance of ground property and 
equipment. The allocation of subfunction 5300 (maintenance burden) shall 
include the net effect of charges and credits to profit and loss account 
5272 Flight Equiment Airworthiness Provisions.
    (g) Item 73 ``Obsolescence and Deterioration--Expendable Parts'' 
shall reflect (for obsolescence and deterioration of flight equipment 
expandable parts) the gross provisions for losses in value of expendable 
parts during the current accounting period offset by any credits 
applicable to the current period for adjustments for excess inventory 
levels determined pursuant to section 6-1311.
    (h) The total of function 5100 ``Flying Operations'' reported on 
this schedule shall agree with corresponding amounts reported on 
Schedule P-1.2.

         Schedule P-6--Operating Expenses by Objective Groupings

    (a) This schedule shall be filed quarterly by all Group II and Group 
III air carriers and Group I air carriers that have annual operating 
revenues of $20 million or more.
    (b) Route and charter air carriers shall file this schedule for each 
separate operating entity.
    (c) Line 36 ``Total Operating Expenses'' shall agree with the 
corresponding amount reported on Schedule P-1.

Schedule P-7--Operating Expenses by Functional Groupings--Group III Air 
                                Carriers

    (a) This schedule shall be filed by all Group III air carriers.
    (b) Route and charter air carriers shall file this schedule for each 
operating entity of the air carrier.
    (c) Line 38 ``Total Operating Expenses'' shall agree with the 
corresponding amount reported on Schedule P-1.2.

         Schedule P-10--Employment Statistics by Labor Category

    (a) This schedule shall be filed annually by all Group II and Group 
III air carriers and Group I air carriers that have annual operating 
revenues of $20 million or more.
    (b) Separate sets of this schedule shall be filed for each operating 
entity of the air carrier. Employees will be allocated to the reporting 
entities on a basis consistent with that used in the allocation of 
salaries for Form 41 financial reporting purposes.
    (c) Column 3, ``Number of Employees,'' shall reflect, for each 
category in column 1, the weighted average number of full-time employees 
who received pay for any part of the calendar year. In determining the 
weighted average, all temporary or part-time employees shall be 
restated, based on their hours paid, as an equivalent number of full-
time employees. The calculation shall be based on a standard full-time 
2,080/hour year with overtime hours excluded from the computation.
    (d) Labor category description--``Other personnel'' shall include 
all employees whose

[[Page 188]]

salary is chargeable to accounts 30, 32, 34 and 35 in this Uniform 
System of Accounts and Reports.
    (e) Labor category description--``Transport-related'' shall include 
all employees whose salary is not chargeable to one of the various 
salary accounts contained in the Uniform System of Accounts and Reports. 
For example, this category would include those employees who work in 
transport-related operations and other activities for which a separate 
payroll account is not prescribed. The number of employees reported as 
transport-related shall be calculated in accordance with paragraph (c) 
of these reporting instructions.

    Schedule P-12(a)--Fuel Consumption by Type of Service and Entity

    (a) This schedule shall be filed monthly by all Group II and Group 
III air carriers and Group I air carriers that have annual operating 
revenues of $20 million or more.
    (b) A single copy (original only) of this schedule shall be filed to 
report monthly fuel consumption data by type of service and entity.
    (c) For the purposes of this schedule, type of service shall be 
either scheduled service or nonscheduled service as those terms are 
defined in section 03 of part 241.
    (d) For the purpose of this schedule, scheduled service shall be 
reported separately for: (1) Intra-Alaskan operations; (2) domestic 
operations, which shall include all operations within and between the 50 
States of the United States (except Intra-Alaska), the District of 
Columbia, the Commonwealth of Puerto Rico and the United States Virgin 
Islands and Canadian transborder operations; (3) Atlantic operations 
(excluding Bermuda); (4) Pacific operations which shall include the 
North/Central Pacific, South Pacific (including Australia) and the Trust 
Territories; and (5) Latin American operations which shall include the 
Caribbean (including Bermuda and the Guianas), Mexico and South/Central 
America.
    (e) For the purpose of this schedule, nonscheduled service shall be 
reported separately for domestic operations and international operations 
as defined in paragraph (d) above, except that domestic and 
international MAC operations shall be reported on separate lines.
    (f) The cost data reported on each line shall represent the average 
cost of fuel, as determined at the station level, consumed in that 
entity.
    (g) The cost of fuel shall include shrinkage but exclude (1) 
``through-put'' and ``in to plane'' fees, i.e., service charges or 
gallonage levies assessed by or against the fuel vendor or 
concessionaire and passed on to the carrier in a separately identifiable 
form and (2) nonrefundable Federal and State excise taxes. However, 
``through-put'' and ``in to plane'' charges that cannot be identified or 
segregated from the cost of fuel shall remain a part of the cost of fuel 
as reported on this schedule.
    (h) Each air carrier shall maintain records for each station showing 
the computation of fuel inventories and consumption for each fuel type. 
The periodic average cost method shall be used in computing fuel 
inventories and consumption. Under this method, an average unit cost for 
each fuel type shall be computed by dividing the total cost of fuel 
available (Beginning Inventory plus Purchases) by the total gallons 
available. The resulting unit cost shall then be used to determine the 
ending inventory and the total consumption costs to be reported on this 
schedule.
    (i) Where amounts reported for a specific entity include other than 
Jet A fuel, a footnote shall be added indicating the number of gallons 
and applicable costs of such other fuel included in amounts reported for 
that entity.
    (j) Where any adjustment(s) recorded on the books of the carrier 
results in a material distortion of the current month's schedule, 
carriers shall file a revised schedule P-12(a) for the month(s) 
affected.
    (k) Data reported on this schedule shall be withheld from public 
release until the quarterly Form 41 P schedules for the calendar quarter 
to which the monthly schedules relate are due at the BTS. However, 
aggregate data may be released before that time without identifying 
individual carriers. Provisions governing the due dates for submitting 
the quarterly P schedules are contained in paragraphs (a) and (b) of 
section 22 of this part. Individual carrier fuel data withheld from 
public disclosure may be disclosed by the BTS to:
    (1) Parties to any proceeding before the DOT to the extent such 
material is 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;
    (2) Agencies and other components of the Federal Government for 
their internal use only; and
    (3) Such persons and in such circumstances as the BTS determines to 
be in the public interest or consistent with its regulatory functions 
and responsibilities.

(Approved by the Office of Management and Budget under control number 
2138-0013)

[ER-755, 37 FR 19726, Sept. 21, 1972, as amended by 241-58, 54 FR 5597, 
Feb. 6, 1989]

    Editorial Note: For Federal Register citations affecting part 241 
section 24, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.

[[Page 189]]

                     Traffic Reporting Requirements



Section 25  Traffic and Capacity Elements

    General Instructions. (a) All prescribed reporting for traffic and 
capacity elements shall conform with the data compilation standards set 
forth in section 19--Uniform Classification of Operating Statistics.
    (b) Carriers submitting Schedule T-100 shall use magnetic computer 
tape or IBM compatible disk 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 or submit data via e-mail.

              Schedule T-8--Report of all-cargo operations.

    (a) This schedule shall be filed annually by all air carriers that 
conduct all-cargo operations under certificates issued under 49 U.S.C. 
41103.
    (b) Data reported on this schedule shall include only results of 
operations conducted in all-cargo aircraft. Data shall be segregated 
between domestic all-cargo operations conducted within the geographic 
limitations of section 418 certificates and all other all-cargo 
operations.
    (c) Statement of operations. This statement shall include the 
following elements:
    (1) Total operating revenue, categorized as follows:
    (i) Transport revenues from the carriage of property in scheduled 
and nonscheduled service;
    (ii) Transport revenues from the carriage of mail in scheduled and 
nonscheduled service; and
    (iii) Transport-related revenues.
    (2) Total operating expenses; and
    (3) Operating profit or loss, computed by subtracting the total 
operating expenses from the total operating revenues.
    (d) Summary of traffic and capacity statistics. This summary shall 
include the following elements:
    (1) Total revenue ton-miles, which are the aircraft miles flown on 
each flight stage times the number of tons of revenue traffic carried on 
that stage. They shall be categorized as follows:
    (i) Property; and
    (ii) Mail.
    (2) Revenue tons enplaned, reflecting the total revenue tons of 
cargo loaded on aircraft during the annual period;
    (3) Available ton-miles, reflecting the total revenue ton-miles 
available for all-cargo service during the annual period, and computed 
by multiplying aircraft miles flown on each flight stage by the number 
of tons of aircraft capacity available for that stage;
    (4) Aircraft miles flown, reflecting the total number of aircraft 
miles flown in cargo service during the annual period;
    (5) Aircraft departures performed, reflecting the total number of 
take-offs performed in cargo service during the annual period; and
    (6) Aircraft hours airborne, reflecting the aircraft hours of flight 
(from take-off to landing) performed in cargo service during the annual 
period.

  Schedule T-100 U.S. Air Carrier Traffic and Capacity Data By Nonstop 
                      Segment and On-Flight Market

    (a) Schedule T-100 collects detailed on-flight market and nonstop 
segment data on all revenue flights flown by U.S. certificated air 
carriers. This schedule is filed monthly. Separate data shall be 
reported for each operating entity (Latin America, Atlantic, Pacific; 
International, or Domestic) of the air carrier. Data for each operating 
entity shall be reported using the five digit entity code prescribed 
under section 19-5(c) of this part.
    (b) Guidelines for reporting the automated monthly Schedule T-100 
are included in the Appendix to this section.
    (c) Reported data shall be compiled as aggregates of the basic data 
elements and service classes contained in sections 19-4 and 19-5 of this 
part.
    (d) Joint-service operations. The air carrier in operational control 
of the aircraft (the carrier that uses its flight crews under its own 
FAA operating authority) must report joint-service operations.

 Schedule T-100(f) Foreign Air Carrier Traffic Data by Nonstop Segment 
                          and On-Flight Market

    (a) This Schedule T-100(f) collects detail on-flight market and 
nonstop segment data. This schedule shall be filed monthly by each 
foreign (non-U.S.) air carrier conducting operations to or from the 
United States with large aircraft pursuant to Section 41302 permits or 
exemption authority. Reported traffic data shall include all services 
affecting the United States, as prescribed in this part.
    (b) Guidelines for reporting the monthly Schedule T-100(f) are 
included in the Appendix to Sec. 217.10 of this chapter. Copies of 
these instructions are provided to each foreign air carrier submitting 
the traffic data. 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.
    (c) The reported data shall be compiled as aggregates of the basic 
data elements and service classes prescribed in sections 19-4 and 19-5 
of this part.

[[Page 190]]

 Appendix to Section 241.25 of 14 CFR Part 241-Instructions to U.S. Air 
 Carriers for Reporting Traffic and Capacity Data on Form 41 Schedule T-
                                   100

    (a) Applicability. Each large U.S. air carrier that holds a 49 
U.S.C. ``41102 certificate must file the monthly Schedule T-100.
    (b) Schedules, Frequency, and entity: (1) Schedule T-100 collects 
summarized flight stage data by reporting entity for scheduled and 
nonscheduled passenger, and cargo operations. The term entity refers to 
the geographic location designator prescribed by the Department in 
``241.19-5(c)(2). Thus, domestic entity operations are distinguished 
from international entity operations.
    (2) [Reserved]
    (c) Format of reports:
    (1) Automatic Data Processing (ADP) magnetic tape. Refer to 
paragraph (f) of this appendix for instructions pertaining to mainframe 
and minicomputer reporting. The Department will issue ``Accounting and 
Reporting Directives'' to make necessary technical changes to these T-
100 instructions. Technical changes which are minor in nature do not 
require public notice and comment.
    (2) Microcomputer diskette--(i) Optional specification. If an air 
carrier desires to use its personal computers (PC's), rather than 
mainframe or minicomputers to prepare its data submissions, the 
following specifications for filing data on diskette media apply:
    (ii) Reporting medium. Microcomputer ADP data submission of T-100 
information must be on IBM compatible disks. Carriers wishing to use a 
different ADP procedure must obtain written approval to do so from the 
BTS Assistant Director--Airline Information. Requests for approval to 
use alternate methods must disclose and describe the proposed data 
transmission methodology. Refer to paragraph (k) of this appendix for 
microcomputer record layouts.
    (iii) Microcomputer file characteristics. The files will be created 
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 (,) or tab. Numeric data 
elements that are recorded without editing symbols are also separated by 
a comma (,) or tab. The data are identified by its juxtaposition within 
a given record. Therefore, each record must contain the exact number of 
data elements, all of which must be juxtapositionally correct. Personal 
computer software including most spreadsheets, data base management 
programs, and BASIC are capable of producing files in this format.
    (d) Filing date for reports. The reports must be received at BTS 
within 30 days following the end of each reporting period.
    (e) Address for filing: Data Administration Division, K-14, Room 
4125, Office of Airline Information, Bureau of Transportation 
Statistics, U.S. Department of Transportation, 400 Seventh Street SW., 
Washington, DC 20590-0001.
    (f) ADP format for magnetic tape--(1) Magnetic tape specifications. 
IBM compatible 9-track EBCDIC recording. Recording density of 6250 or 
1600 bpi. The order of recorded information is:

Volume label
Header label
Data records
Trailer label

    (2) [Reserved]
    (g) External tape label information:

Carrier name
Report date
File identification
Carrier address for return of tape reel

    (h) Standards. It is the policy of the Department to be consistent 
with the American National Standards Institute and the Federal Standards 
Activity in all data processing and telecommunications matters. It is 
our intention that all specifications in this application be in 
compliance with standards promulgated by these organizations.
    (i) Volume, header, and trailer label formats:
    (1) Use standard IBM label formats. The file identifier field of the 
header labels should be ``T-100.SYSTEM''.
    (2) [Reserved]
    (j) Magnetic tape record layouts for T-100--(1) Nonstop segment 
record layout:

----------------------------------------------------------------------------------------------------------------
        Field No.             Positions               Mode                            Description
----------------------------------------------------------------------------------------------------------------
1........................               1  1T.......................  Record type code (S = nonstop segment).
2........................             2-6  5T.......................  Carrier entity code.
3........................            7-12  6T.......................  Report date (YYYYMM).
4........................           13-15  3T.......................  Origin airport code.
5........................           16-18  3T.......................  Destination airport code.
6........................              19  1T.......................  Service class code (F, G, L, N, P or R).
7........................           20-23  4T.......................  Aircraft type code.
8........................           24-28  5N.......................  Revenue departures performed (F, G, L, N,
                                                                       P, R510).
9........................           29-38  10N......................  Available capacity payload (lbs) (F, G, L,
                                                                       N, P, R270).
10.......................           39-45  7N.......................  Available seats (F, L, N310).
11.......................           46-52  7N.......................  Passengers transported (F, L, N130).
12.......................           53-62  10N......................  Rev freight transported (F, G, L, N, P,
                                                                       R237)(in lbs).
13.......................           63-72  10N......................  Revenue mail transported (F, G, L, N, P,
                                                                       R239) (in lbs).
14.......................           73-77  5N.......................  Revenue aircraft departures scheduled (F,
                                                                       G520).

[[Page 191]]

 
15.......................           78-87  10N......................  Rev hrs, ramp-to-ramp (F, G, L, N, P,
                                                                       R630) (in minutes).
16.......................           88-97  10N......................  Rev hrs, airborne (F, G, L, N, P, R610)
                                                                       (in minutes).
----------------------------------------------------------------------------------------------------------------
T= Text.
N= Numeric.

    (2) On-flight market record layout:

----------------------------------------------------------------------------------------------------------------
        Field No.             Positions               Mode                            Description
----------------------------------------------------------------------------------------------------------------
1........................               1  1T.......................  Record type: M = on-flight market record.
2........................             2-6  5T.......................  Carrier entity code.
3........................            7-12  6T.......................  Report date (YYYYMM).
4........................           13-15  3T.......................  Origin airport code.
5........................           16-18  3T.......................  Destination airport code.
6........................              19  1T.......................  Service class code (F, G, L, N, P or R).
7........................           20-26  7N.......................  Total passengers in market (F, L, N110).
8........................           27-36  10N......................  Rev freight in market (F, G, L, N, P,
                                                                       R217) (in lbs).
9........................           37-46  10N......................  Revenue mail in market (F, G, L, N, P,
                                                                       R219) (in lbs).
----------------------------------------------------------------------------------------------------------------
T=Text.
N-Numeric.

    (k) Record layouts for microcomputer diskettes. The record layouts 
for diskettes are generally identical to those shown for magnetic tape, 
with the exception that delimiters (quotation marks, tabs and commas) 
are used to separate fields. It is necessary that the order of fields be 
maintained in all records.
    (1) File characteristics. The files will be created 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 (,) or tab. Numeric data 
elements that are recorded without editing symbols are also separated by 
a comma (,) or tab. The data are identified by their juxtaposition 
within a given record. Therefore, it is critical that each record 
contain the exact number of data elements, all of which must be 
juxtapositionally correct. PC software including most spreadsheets, data 
base management programs, and BASIC produce minidisk files in this 
format.
    (2) File naming conventions for diskettes. For microcomputer 
reports, each record type shall be contained in a separate DOS file on 
the same physical diskette. The following DOS naming conventions should 
be followed:

Record type S = SEGMENT.DAT
Record type M = MARKET.DAT

    (l) Discussion of Reporting Concept. (1) Schedule T-100 collects 
summarized flight stage data and on-flight market data. All traffic 
statistics shall be compiled in terms of each revenue flight stage as 
actually performed. The detail T-100 data shall be maintained in such a 
manner as to permit monthly summarization and organization into two 
basic groupings. The first grouping, the nonstop segment information, is 
to be summarized by equipment type, within class of service, within 
pair-of-points, without regard to individual flight number. The second 
grouping requires that the enplanement/deplanement information be broken 
out into separate units called on-flight market records, which shall be 
summarized by class of service, within pair-of-points, without regard 
for equipment type or flight number.
    (2) [Reserved]
    (m) Joint Service--(1) Joint-service operations. 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 other similar arrangements.
    (i) Joint-service operations are reported by the carrier in 
operational control of the flight, i.e., the carrier that uses its 
flight crews under its own FAA operating authority. The traffic moving 
under these agreements is reported on Schedule T-100 the same way as any 
other traffic on the aircraft.
    (ii) If there are questions about reporting a joint-service 
operation, contact the BTS Assistant Director--Airline Information (fax 
no. 202 366-3383, telephone no. 202 366-4373).
    (iii) Operational control. The air carrier in operational control of 
the aircraft (the carrier that uses its flight crew under its own FAA 
operating authority) must report joint-service operations.
    (2) [Reserved]
    (n) Glossary of data elements. Sec. 241.19-5 and Sec. 241.03.

(Approved by the Office of Management and Budget under control number 
2138-0013)

[ER-755, 37 FR 19726, Sept. 21, 1972]

[[Page 192]]


    Editorial Note: For Federal Register citations affecting part 241, 
section 25, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



PART 243_PASSENGER MANIFEST INFORMATION--Table of Contents




Sec.
243.1 Purpose.
243.3 Definitions.
243.5 Applicability.
243.7 Information collection requirements.
243.9 Procedures for collecting and maintaining the information.
243.11 Transmission of information after an aviation disaster.
243.13 Filing requirements.
243.15 Conflicts with foreign laws.
243.17 Enforcement.

    Authority: 49 U.S.C. 40101, 40101nt., 40105, 40113, 40114, 41708, 
41709, 41711, 41501, 41702, 41712, 44909, 46301, 46310, 46316; section 
203 of Pub. L. 101-604, 104 Stat. 3066 (22 U.S.C. 5501-5513), Title VII 
of Pub. L. 104-264, 110 Stat. 3213 (22 U.S.C. 5501-5513) and Pub. L. 
105-148, 111 Stat. 2681 (49 U.S.C. 41313.)

    Source: Docket No. OST-95-950, 63 FR 8280, Feb. 18, 1998, unless 
otherwise noted.



Sec. 243.1  Purpose.

    The purpose of this part is to ensure that the U.S. government has 
prompt and adequate information in case of an aviation disaster on 
covered flight segments.



Sec. 243.3  Definitions.

    Air piracy means any seizure of or exercise of control over an 
aircraft, by force or violence or threat of force or violence, or by any 
other form of intimidation, and with wrongful intent.
    Aviation disaster means:
    (1) An occurrence associated with the operation of an aircraft that 
takes place between the time any passengers have boarded the aircraft 
with the intention of flight and the time all such persons have 
disembarked or have been removed from the aircraft, and in which any 
person suffers death or serious injury, and in which the death or injury 
was caused by a crash, fire, collision, sabotage or accident;
    (2) A missing aircraft; or
    (3) An act of air piracy.
    Contact means a person not on the covered flight or an entity that 
should be contacted in case of an aviation disaster. The contact need 
not have any particular relationship to a passenger.
    Covered airline means:
    (1) certificated air carriers, and
    (2) foreign air carriers, except those that hold Department of 
Transportation authority to conduct operations in foreign air 
transportation using only small aircraft (i.e., aircraft designed to 
have a maximum passenger capacity of not more than 60 seats or a maximum 
payload capacity of not more than 18,000 pounds).
    Covered flight segment means a passenger-carrying flight segment 
operating to or from the United States (i.e., the flight segment where 
the last point of departure or the first point of arrival is in the 
United States). A covered flight segment does not include a flight 
segment in which both the point of departure and point of arrival are in 
the United States.
    Full name means the given name, middle initial or middle name, if 
any, and family name or surname as provided by the passenger.
    Passenger means every person aboard a covered flight segment 
regardless of whether he or she paid for the transportation, had a 
reservation, or occupied a seat, except the crew. For the purposes of 
this part, passenger includes, but is not limited to, a revenue and non-
revenue passenger, a person holding a confirmed reservation, a standby 
or walkup, a person rerouted from another flight or airline, an infant 
held upon a person's lap and a person occupying a jump seat. Airline 
personnel who are on board but not working on that particular flight 
segment would be considered passengers for the purpose of this part.
    United States means the States comprising the United States of 
America, the District of Columbia, and the territories and possessions 
of the United States, including the territorial sea and the overlying 
airspace.
    U.S. citizen means United States nationals as defined in 8 U.S.C. 
1101(a)(22).



Sec. 243.5  Applicability.

    This part applies to covered flight segments operated by covered 
airlines. (See Sec. 243.3 of this part)

[[Page 193]]



Sec. 243.7  Information collection requirements.

    (a) For covered flight segments, each covered airline shall:
    (1) Collect, or cause to be collected, the full name for each 
passenger who is a U.S. citizen. U.S.-citizen passengers for whom this 
information is not obtained shall not be boarded;
    (2) Solicit, or cause to be solicited, a name and telephone number 
of a contact from each passenger who is a U.S. citizen; and
    (3) Maintain a record of the information collected pursuant to this 
section.
    (b) The covered airline operating the flight segment shall be 
responsible for ensuring compliance with paragraph (a) of this section.



Sec. 243.9  Procedures for collecting and maintaining the information.

    Covered airlines may use any method or procedure to collect, store 
and transmit the required information, subject to the following 
conditions:
    (a) Information on individual passengers shall be collected before 
each passenger boards the aircraft on a covered flight segment.
    (b) The information shall be kept until all passengers have 
disembarked from the covered flight segment.
    (c) The contact information collected pursuant to section 
243.7(a)(2) of this part shall be kept confidential and released only to 
the U.S. Department of State, the National Transportation Safety Board 
(upon NTSB's request), and the U.S. Department of Transportation 
pursuant to oversight of this part. This paragraph does not preempt 
other governments or governmental agencies that have an independent, 
legal right to obtain this information.
    (d) The contact information collected pursuant to section 
243.7(a)(2) of this part shall only be used by covered airlines for 
notification of family members or listed contacts following an aviation 
disaster. The information shall not be used for commercial or marketing 
purposes.



Sec. 243.11  Transmission of information after an aviation disaster.

    (a) Each covered airline shall inform the Managing Director of 
Overseas Citizen Services, Bureau of Consular Affairs, U.S. Department 
of State immediately upon learning of an aviation disaster involving a 
covered flight segment operated by that carrier. The Managing Director 
may be reached 24 hours a day through the Department of State Operations 
Center at (202) 647-1512.
    (b) Each covered airline shall transmit a complete and accurate 
compilation of the information collected pursuant to Sec. 243.7 of this 
part to the U.S. Department of State as quickly as possible, but not 
later than 3 hours, after the carrier learns of an aviation disaster 
involving a covered flight segment operated by that carrier.
    (c) Upon request, a covered airline shall transmit a complete and 
accurate compilation of the information collected pursuant to Sec. 
243.7 of this part to the Director, Family Support Services, National 
Transportation Safety Board.



Sec. 243.13  Filing requirements.

    (a) Each covered airline that operates one or more covered flight 
segments shall file with the U.S. Department of Transportation a brief 
statement summarizing how it will collect the passenger manifest 
information required by this part and transmit the information to the 
Department of State following an aviation disaster. This description 
shall include a contact at the covered airline, available at any time 
the covered airline is operating a covered flight segment, who can be 
consulted concerning information gathered pursuant to this part.
    (b) Each covered airline shall file any contact change as well as a 
description of any significant change in its means of collecting or 
transmitting manifest information on or before the date the change is 
made.
    (c) All filings under this section should be submitted to OST Docket 
98-3305, Dockets Facility (SVC-121.30), U.S. Department of 
Transportation, Room PL-401, 400 Seventh Street, SW., Washington, DC 
20590. The statement shall be filed by July 1, 1998, or, for covered 
airlines beginning operations after July 1, 1998, prior to the date a 
covered airline operates a covered flight segment.

[[Page 194]]



Sec. 243.15  Conflict with foreign laws.

    (a) If a covered airline obtains a waiver in the manner described in 
this section, it will not be required to solicit, collect or transmit 
information under this part in countries where such solicitation or 
collection would violate applicable foreign law, but only to the extent 
it is established by the carrier that such solicitation or collection 
would violate applicable foreign law.
    (b) Covered airlines that claim that such solicitation, collection 
or transmission would violate applicable foreign law in certain foreign 
countries shall file a petition requesting a waiver in the Docket 
Facility, on or before October 1, 1998, or on or before beginning 
service between that country and United States. Such petition shall 
include copies of the pertinent foreign law, as well as a certified 
translation, and shall include opinions of appropriate legal experts 
setting forth the basis for the conclusion that collection would violate 
such foreign law. Statements from foreign governments on the application 
of their laws will also be accepted.
    (c) The U.S. Department of Transportation will notify the covered 
airline of the extent to which it has been satisfactorily established 
that compliance with all or part of the data collection requirements of 
this part would constitute a violation of foreign law.
    (d) The U.S. Department of Transportation will maintain an up-to-
date listing in OST Docket 98-3305 of countries where adherence to all 
or a portion of this part is not required because of a conflict with 
applicable foreign law.

[Doc. No. OST-95-950, 63 FR 8280, Feb. 18, 1998; 63 FR 9413, Feb. 25, 
1998]



Sec. 243.17  Enforcement.

    The U.S. Department of Transportation may at any time require a 
covered airline to produce a passenger manifest including emergency 
contacts and phone numbers for a specified covered flight segment to 
ascertain the effectiveness of the carrier's system. In addition, it may 
require from any covered airline further information about collection, 
storage and transmission procedures at any time. If the Department finds 
a covered airline's system to be deficient, it will require appropriate 
modifications, which must be implemented within the period specified by 
the Department. In addition, a covered airline not in compliance with 
this part may be subject to enforcement action by the Department.



PART 247_DIRECT AIRPORT-TO-AIRPORT MILEAGE RECORDS--Table of Contents




    Authority: 49 U.S.C. chapter 401.

    Source: Amdt. 247-2, 56 FR 67170, Dec. 30, 1991, unless otherwise 
noted.



Sec. 247.1  Official mileage record of the Department of Transportation.

    The direct airport-to-airport mileage record now maintained, and as 
hereafter amended or revised from time to time by the Office of Airline 
Information of the Bureau of Transportation Statistics of the Department 
of Transportation in the regular performance of its duties, is hereby 
adopted as the official mileage record of the Department and the 
mileages set forth therein shall be used in all instances where it shall 
be necessary to determine direct airport-to-airport mileages pursuant to 
the provisions of Titles IV and X of the Federal Aviation Act of 1958, 
as amended, or any rule, regulation, or order of the Department pursuant 
thereto.

[Amdt. 247-2, 56 FR 67170, Dec. 30, 1991, as amended at 60 FR 66725, 
Dec. 26, 1995]



PART 248_SUBMISSION OF AUDIT REPORTS--Table of Contents




Sec.
248.1 Applicability.
248.2 Filing of audit reports.
248.4 Time for filing reports.
248.5 Withholding from public disclosure.

    Authority: 49 U.S.C. 329 and chapters 401, 411, 417.

    Source: ER-420, 29 FR 13799, Oct. 7, 1964, unless otherwise noted.



Sec. 248.1  Applicability.

    The requirements of this part shall be applicable to all air 
carriers subject to the requirements of part 241 of this subchapter.

[[Page 195]]



Sec. 248.2  Filing of audit reports.

    (a) Whenever any air carrier subject to Sec. 248.1 shall have 
caused an annual audit of its books, records, and accounts to be made by 
independent public accountants, such air carrier shall file with the 
Office of Airline Information, in duplicate, a special report consisting 
of a true and complete copy of the audit report submitted by such 
independent public accountants, including all schedules, exhibits, and 
certificates included in, attached to, or submitted with or separately 
as a part of, the audit report.
    (b) Each air carrier subject to Sec. 248.1 that does not cause an 
annual audit to be made of its books, records, and accounts for any 
fiscal year shall, at the close of such fiscal year file with the 
Board's Office of the Comptroller, as a part of its periodic reports, a 
statement that no such audit has been performed.

(Approved by the Office of Management and Budget under control number 
2138-0004)

[ER-1351, 48 FR 32756, July 19, 1983, as amended by ER-1362, 48 FR 
46265, Oct. 12, 1983; 60 FR 66725, Dec. 26, 1995]



Sec. 248.4  Time for filing reports.

    The report required by this part shall be filed with the Office of 
Airline Information within 15 days after the due date of the appropriate 
periodic BTS Form 41 Report, filed for the 12-month period covered by 
the audit report, or the date the accountant submits its audit report to 
the air carrier, whichever is later.

[ER-1351, 48 FR 32756, July 19, 1983, as amended at 60 FR 66725, Dec. 
26, 1995]



Sec. 248.5  Withholding from public disclosure.

    The special reports required to be filed by Sec. 248.2 shall be 
withheld from public disclosure, until further order of the BTS, if such 
treatment is requested by the air carrier at the time of filing.

[ER-420, 29 FR 13799, Oct. 7, 1964, as amended at 60 FR 66725, Dec. 26, 
1995]



PART 249_PRESERVATION OF AIR CARRIER RECORDS--Table of Contents




                     Subpart A_General Instructions

Sec.
249.1 Applicability.
249.2 Definitions.
249.3 Preservation of records.
249.4 Photographic copies.
249.5 Storage of records.
249.6 Destruction of records.
249.7 Restrictions on record destruction.
249.8 Premature loss or destruction of records.
249.9 Carriers going out of business.
249.10 Waiver of requirements.

              Subpart B_Preservation of Records by Carrier

249.20 Preservation of records by certificated air carriers.
249.21 Preservation of records by public charter operators and overseas 
          military personnel charter operators.

       Subpart C_Regulations Relating to the Truth-in-Lending Act

249.30 Applicability.
249.31 Preservation and inspection of evidence of compliance.

    Authority: 49 U.S.C. 329 and chapters 401, 411, 413, 417.

    Source: ER-1214, 46 FR 25415, May 6, 1981, unless otherwise noted.
    Note: The recordkeeping requirements contained in this part have 
been approved by the Office of Management and Budget under control 
number 2138-0006.



                     Subpart A_General Instructions



Sec. 249.1  Applicability.

    Subparts A and B of this part apply to:
    (a) Air carriers, as defined in 49 U.S.C. 40102, that hold either 
certificates of public convenience and necessity or certificates for 
all-cargo air service.
    (b) Public charter operators, as defined in part 380 of this 
chapter.
    (c) Overseas military personnel charter operators, as defined in 
part 372 of this chapter.

[ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66725, Dec. 26, 
1995]



Sec. 249.2  Definitions.

    For the purposes of this part:

[[Page 196]]

    Authorized representatives of the DOT means any persons, including 
special agents and auditors, designated by the DOT to perform 
inspections, audits, or examinations within the purview of the DOT's 
authority.
    Certificated air carrier means the holder of a certificate of public 
convenience and necessity issued by the Department of Transportation 
under 49 U.S.C. 41102 or a certificate for all-cargo air service issued 
by the Department of Transportation under 49 U.S.C. 41103.
    Final adjudication means the expiration date of the last possible 
period of review or reconsideration of a given case, by the DOT or by a 
court, that is provided by applicable statute or regulation.
    Open mail rate period means the time interval between the date of 
institution of a new mail rate proceeding or the start of service over a 
new route for which no mail rate has previously been fixed, and the date 
upon which a DOT order setting the final mail rate becomes legally 
effective.
    Pending case means any case that the DOT is empowered to hear before 
its final adjudication.
    Records include all documents that are related to, or constitute 
integral links in developing the history of, or facts regarding, 
financial transactions or physical operations of a particular segment, 
operating division, or entire system of the carrier's operations. The 
term includes any copy of initially prepared documents which bear 
approvals, comments, or notations which were added and are of 
significance to a full explanation of recorded facts or information. The 
term records means not only accounting records in a limited technical 
sense but all other evidentiary accounts of events such as memoranda, 
correspondence, working sheets, tabulating equipment listings punched 
cards, computer-produced listings, microfilm, and magnetic storage media 
(i.e., magnetic tapes, disks). The term records also means microform 
and/or tape reproductions of documents made as authorized by this 
subpart. In addition, the term records includes any of the above-
described materials coming into the possession of the air carrier 
through merger, consolidation, succession, transfer, or other 
acquisition.
    Supporting papers (records) means any group of documentary papers, 
such as memoranda, correspondence, working sheets, etc., that assist in 
upholding the accuracy or clarity of related records.

[ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66725, Dec. 26, 
1995]



Sec. 249.3  Preservation of records.

    (a) All records listed in Sec. Sec. 249.20 and 249.21 may be 
preserved on either paper or nonerasable microfilm (see Sec. 249.4). 
However, a paper or microfilm record need not be created to satisfy the 
requirements of this part if the record is initially prepared in a 
machine-readable medium such as punched cards, magnetic tapes, and 
disks. The records maintained in machine-readable media and the 
underlying data used in their preparation shall be preserved for the 
periods prescribed in Sec. Sec. 249.20 and 249.21. A paper or microfilm 
record shall not be destroyed after transfer to a machine-readable 
medium before expiration of the prescribed period: however, a waiver 
permitting the early destruction of paper or microfilm records 
transferred to a machine-readable medium may be granted by the Director, 
Office of Airline Information, when it is demonstrated by the requesting 
carrier that the substantive purpose of the retention requirement will 
be met by retention of the information in machine-readable form (see 
Sec. 249.10).
    (b) Each record kept in a machine-readable medium shall be 
accompanied by a statement clearly indicating the type of data included 
in the record and certifying that the information contained in it is 
complete and accurate. This statement shall be executed by a person 
having personal knowledge of the facts contained in the records. The 
records shall be indexed and retained in such a manner so that they are 
easily accessible, and the carrier shall have the facilities available 
to locate, identify and reproduce the records in readable form without 
loss of clarity. Authorized representatives of the DOT shall be given 
immediate access to the carrier's facilities upon request.
    (c) If any record which must be retained under the provisions of 
Sec. Sec. 249.20

[[Page 197]]

and 249.21 is included as an exhibit to another document which must also 
be retained, the carrier need only keep in its files one copy of the 
record to satisfy these record retention requirements. In these cases, 
the carrier shall establish adequate cross-references to assist in 
locating the record.
    (d) The provisions in this part do not excuse noncompliance with 
requirements of any other governmental body, Federal or State, 
prescribing longer retention periods for any rec ords.

[ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66725, Dec. 26, 
1995]



Sec. 249.4  Photographic copies.

    (a) Any record may be transferred to nonerasable microfilm 
(including microfiche, computer output microfilm, and aperture cards) at 
any time. Records so maintained on microfilm shall satisfy the minimum 
requirements listed in paragraphs (b) through (f) of this section.
    (b) The microfilm shall be of a quality that can be easily read and 
that can be reproduced in paper similar in size to an original without 
loss of clarity or detail during the periods the records are required to 
be retained in Sec. Sec. 249.20 and 249.21.
    (c) Microfilm records shall be indexed and retained in such a manner 
as will render them readily accessible, and the company shall have 
facilities available to locate, identify and read the microfilm and 
reproduce in paper form. Authorized representatives of the DOT shall be 
given immediate access to these facilities upon request.
    (d) Any significant characteristic, feature, or other attribute 
which microfilm will not preserve shall be clearly indicated at the 
beginning of each roll of film or series of microfilm records if 
applicable to all records on the roll or series, or on the individual 
record, as appropriate.
    (e) The printed side of printed forms need not be microfilmed for 
each record if nothing has been added to the printed matter common to 
all such forms, but an identified specimen of the form shall be on the 
film for reference.
    (f) Each roll of film or series of microfilm records shall include a 
microfilm of a certificate stating that the photographs are direct and 
facsimile reproductions of the original records and they have been made 
in accordance with prescribed regulations. Such a certificate shall be 
executed by a person having personal knowledge of these facts. Where the 
microfilm is computer output, the microfilm certificate shall state that 
the information is complete and accurate.

[ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66725, Dec. 26, 
1995]



Sec. 249.5  Storage of records.

    Each carrier shall provide reasonable protection from damage by 
fire, floods, and other hazards for records subject to the provisions of 
this part.



Sec. 249.6  Destruction of records.

    (a) Upon the expiration of the period of preservation prescribed in 
this regulation, records may be destroyed at the option of the carrier.
    (b) Unless otherwise specified, duplicate copies of records may be 
destroyed at any time if they contain no significant information not 
shown on the originals.



Sec. 249.7  Restrictions on record destruction.

    (a) Each carrier that has been named a party to a pending mail rate 
case shall retain all records remaining in its custody as of the 
beginning of an ``open mail rate period'' until the occurrence of one of 
the following contingencies, whichever is first:
    (1) Final adjudication of a DOT order fixing the final mail 
compensation payable for services rendered during an ``open mail rate 
period.''
    (2) Receipt of a notice issued by the Director, Office of Airline 
Information in response to a written application filed by the carrier, 
authorizing the destruction of specifically identified categories of 
records. An application should be filed when the carrier believes that 
certain categories of records are not relevant to the proper processing 
of a pending mail proceeding. The application should list those 
categories of records which the carrier wants to destroy and its reasons 
for believing that the records are not necessary or useful in 
determining its satutory mail pay.

[[Page 198]]

    (b) Each carrier shall preserve records supporting the computation 
of subsidy mail pay in accordance with the provisions of Sec. 249.20 
unless the carrier has been advised that these computations are subject 
to further review and disposition by the Board. When the DOT is still 
reviewing the compensation amount after expiration of the normal 
retention period specified in Sec. 249.20, these records must be 
retained until the carrier is notified by the Director, Office of 
Airline Information, that the records may be destroyed.
    (c) Each carrier that has been named a party to an enforcement 
proceeding or against whom a third-party complaint has been filed shall 
retain all records relating to the case until the receipt of formal 
notification from the Director, Office of Airline Information, following 
a written application from the carrier, which authorizes the destruction 
of these records.
    (d) Each carrier that has been named a party to a pending case which 
is not of a type discussed in paragraphs (a), (b), and (c) of this 
section, shall preserve all records according to the provisions of Sec. 
249.20 unless the Director, Office of Airline Information, notifies the 
carrier in writing that specific records shall be preserved until final 
adjudication of the pending case.
    (e) Each carrier that is a party to litigation in a Federal court of 
which the DOT is also a party shall retain all records relating to the 
case until the receipt of formal notification from the Director, Office 
of Airline Information, following a written application from the 
carrier, which authorizes the destruction of these records.

[ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66725, Dec. 26, 
1995]



Sec. 249.8  Premature loss or destruction of records.

    If records are destroyed or lost before the expiration of the 
prescribed retention period, a statement shall be prepared and submitted 
to the Director, Office of Airline Information, which lists, as 
accurately as possible, the unavailable records and describes the 
circumstances under which they became unavailable.

[ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66725, Dec. 26, 
1995]



Sec. 249.9  Carriers going out of business.

    The records referred to in these regulations may be destroyed after 
the business is discontinued and the carrier is completely liquidated. 
The records may not be destroyed until dissolution is final and all 
transactions and litigations are completed. When a carrier is merged 
with another company which is regulated by the DOT, the successor 
company shall preserve records of the merged company in accordance with 
these regulations.

[ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66725, Dec. 26, 
1995]



Sec. 249.10  Waiver of requirements.

    A waiver from any provision of this regulation may be made by the 
Director, Office of Airline Information, upon the Director's own 
initiative or upon submission of a written request by a carrier or group 
of carriers. Each request for waiver shall demonstrate that unusual 
circumstances warrant a departure from prescribed retention periods, 
procedures, or techniques, or that compliance with the prescribed 
requirements would impose an unreasonable burden on the carrier, and 
that granting the waiver would be in the public interest.

[ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66726, Dec. 26, 
1995]



              Subpart B_Preservation of Records by Carrier



Sec. 249.20  Preservation of records by certificated air carriers.

    Each certificated air carrier shall retain its records according to 
the provisions of this section. Unless otherwise specified in the 
``Schedule of Records,'' each retention period shall begin on the date 
when the records are created or otherwise come into the possession of 
the carrier.

[[Page 199]]



                           Schedule of Records
                     [See footnote at end of table]
------------------------------------------------------------------------
              Category of records                   Retention period
------------------------------------------------------------------------
1. General and subsidiary ledgers or their
 equivalents:
  (a) General ledgers; subsidiary or auxiliary  3 years.
   ledgers.
  (b) Indexes to general and subsidiary          Do.
   ledgers.
2. Journals and journal vouchers:
  (a) General and subsidiary journals, and      3 years.
   journal vouchers.
  (b) Papers forming a part of, or necessary     Do.
   to explain, journal entries; entry numbers.
3. Voucher distribution registers or their       Do.
 equivalent.
4. Accounts receivables and payables:
  (a) Traffic accounts receivable or payable,    Do.
   detailed journals and ledgers or their
   equivalents, together with supporting
   papers.
  (b) General accounts receivable or payable,    Do.
   detailed journals and ledgers or their
   equivalents, together with supporting
   papers.
  (c) Copies of invoices issued by the carrier  1 year.
   which have been settled and all supporting
   papers.
  (d) Copies of Postal Service Forms: Weekly    30 days.
   Summary of Airmail Dispatch (No. 2729) and
   POD Airmail Exemption Record (No. 2734)
   supporting mail pay claims which have been
   settled.
5. Subsidy records:
  (a) For each calendar year, all monthly       3 years.
   records of operations, such as tabulations
   and summaries of miles flown and passenger-
   miles flown, pertaining to or part of
   operational records relevant to computation
   of subsidy mail pay.
  (b) For each calendar year, all basic          Do.
   original documents, such as pilots' flight
   logs and passenger lists relevant to a
   determination of the validity of a
   carrier's operations described in item (a)
   above.
6. The papers, records, or other evidence        Do.
 supporting financial and statistical reports
 to the BTS. These should include among others
 the following specific records: Internal
 administrative or operating reports; system
 reports of aircraft movements by trip number,
 showing arrivals, departures, flight delays
 and related information; bonds and other long-
 term debt records; stock records; corporate
 organization records; financial data in
 support of subsidy claims; minutes of
 meetings; carrier internal reports on
 internal controls and other internal audits
 and procedural studies; operational,
 management, accounting, financial, and legal
 service contracts and agreements; records and
 agreements relating to the lease or purchase
 and sale of company assets, including title
 papers, deeds, and similar records; insurance
 records; property and equipment records; tax
 records; accountants' and auditors' reports;
 records of receipts and disbursements
 including bank statements, check registers
 and cancelled checks; payroll registers of
 salaries and wages paid; cost accounting
 records for work orders; inventories of
 materials and supplies; and other source
 documents.
7. Funds reports and estimates of funds.......  1 year.
8. Consumer complaints:
  (a) Initial correspondence and record of      3 years.
   action taken.
  (b) Initial trip reports:
    (1) Traffic Data: Basic documents showing   (\1\).
     the number of passengers, and pounds of
     mail and property carried.
  (c) Reservations reports and records:
    (1) Cards and charts constituting original  2 months.
     source of passengers' names, telephone
     numbers, etc.
    (2) Telegrams and radio messages relating   1 month.
     to the clearance of space, passenger
     dispatching, etc.
  (d) System report of airplane movements by    3 years.
   trip number showing arrivals, departures,
   delays and related information.
  (e) Sales reports:
    (1) Sales ticket or other similar reports   2 years.
     from stations, offices and agents.
  (f) Auditors' coupons.......................  1 year.
  (g) Air waybills............................   Do.
  (h) Flight coupons..........................   Do.
  (i) Ticket refund claims records and reports   Do.
  (j) Records and reports relating to errors,    Do.
   oversales, irregularities and delays in
   handling passengers.
9. All documents which relate to the            2 years.
 furnishing of transportation to candidates
 for political office or persons acting on
 their behalf which are required to be
 maintained following Sec.  374a.7 of the
 subchapter.

[[Page 200]]

 
10. Correspondence and working papers relating  3 years.
 to rate and route proceedings.
------------------------------------------------------------------------
\1\ One year-mail-property; 2 years-passengers.


[ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66726, Dec. 26, 
1995]



Sec. 249.21  Preservation of records by public charter operators and overseas military personnel charter operators.

    Each operator authorized under parts 372 and 380 of this chapter 
shall retain the following records for 6 months after completion or 
cancellation of the flight or series of flights. The records shall be 
made available upon request of an authorized representative of the DOT.
    (a) All receipts and statements of travel agents and all other 
documents which show deposits made by each charter participant or which 
show refunds to charter participants.
    (b) All receipts and statements of travel agents and all other 
documents which show or reflect commissions received, paid to, or 
deducted by travel agents in connection with the flight or series of 
flights.
    (c) All statements, invoices, bills, and receipts from suppliers for 
furnishing of goods or services in connection with the tour or series of 
tours.
    (d) All customer reservations records for each flight.
    (e) All contracts with individual tour participants.
    (f) All bank statements and reconciliations for escrow bank accounts 
opened and maintained in accordance with DOT regulations.

[ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66726, Dec. 26, 
1995]



       Subpart C_Regulations Relating to the Truth-in-Lending Act



Sec. 249.30  Applicability.

    This subpart is applicable to all air carriers and foreign air 
carriers as defined in 49 U.S.C. 40102, including, without limitation, 
direct carriers, air taxi operators registered under part 298 of this 
chapter, indirect air carriers registered under part 296 of this 
chapter, charter operators authorized under parts 372 and 380 of this 
chapter, and foreign air carriers holding permits to engage in indirect 
foreign air transportation issued under 49 U.S.C. 41302.

[ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66726, Dec. 26, 
1995]



Sec. 249.31  Preservation and inspection of evidence of compliance.

    Air carriers and foreign air carriers shall preserve evidence of 
compliance with the requirements imposed under Regulation Z of the Board 
of Governors of the Federal Reserve System (12 CFR part 226), 
implementing the provisions of Title I (Truth in Lending) and Title V 
(General Provisions) of the Consumer Credit Protection Act, as amended 
(15 U.S.C. 1601 et seq.) other than the advertising requirements under 
Sec. 226.10 of regulation Z. This evidence shall be preserved for no 
less than 2 years after the date each disclosure is required to be made 
and shall be made available for inspection by authorized representatives 
of the DOT.

[ER-1214, 46 FR 25415, May 6, 1981, as amended at 60 FR 66726, Dec. 26, 
1995]



PART 250_OVERSALES--Table of Contents




Sec.
250.1 Definitions.
250.2 Applicability.
250.2a Policy regarding denied boarding.
250.2b Carriers to request volunteers for denied boarding.
250.3 Boarding priority rules.
250.5 Amount of denied boarding compensation for passengers denied 
          boarding involuntarily.
250.6 Exceptions to eligibility for denied boarding compensation.
250.7 [Reserved]
250.8 Denied boarding compensation.

[[Page 201]]

250.9 Written explanation of denied boarding compensation and boarding 
          priorities.
250.10 Report of passengers denied confirmed space.
250.11 Public disclosure of deliberate overbooking and boarding 
          procedures.

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

    Source: ER-1306, 47 FR 52985, Nov. 24, 1982, unless otherwise noted.



Sec. 250.1  Definitions.

    Airport means the airport at which the direct or connecting flight, 
on which the passenger holds confirmed reserved space, is planned to 
arrive or some other airport serving the same metropolitan area, 
provided that transportation to the other airport is accepted (i.e., 
used) by the passenger.
    Carrier means: (1) A direct air carrier, except a helicopter 
operator, holding a certificate issued by the Department of 
Transportation pursuant to 49 U.S.C. 41102 (formerly sections 401(d)(1), 
401(d)(2), 401(d)(5) and 401(d)(8) of the Federal Aviation Act of 1958), 
or an exemption from 49 U.S.C. 41101 (formerly section 401(a) of the 
Act), authorizing the transportation of persons, or
    (2) A foreign route air carrier holding a permit issued by the 
Department pursuant to 49 U.S.C. 41301 through 41306 (formerly section 
402 of the Act), or an exemption from the appropriate provision of 49 
U.S.C. 41301 through 41306, authorizing the scheduled foreign air 
transportation of persons.
    Comparable air transportation means transportation provided to 
passengers at no extra cost by a carrier as defined above.
    Confirmed reserved space, means space on a specific date and on a 
specific flight and class of service of a carrier which has been 
requested by a passenger and which the carrier or its agent has 
verified, by appropriate notation on the ticket or in any other manner 
provided therefor by the carrier, as being reserved for the 
accommodation of the passenger.
    Large aircraft means any aircraft that has a passenger capacity of 
more than 60 seats.
    Stopover means a deliberate interruption of a journey by the 
passenger, scheduled to exceed 4 hours, at a point between the place of 
departure and the final destination.
    Sum of the values of the remaining flight coupons means the sum of 
the applicable one-way fares, including any surcharges and air 
transportation taxes, less any applicable discounts.

[ER-1306, 47 FR 52985, Nov. 24, 1982, as amended by ER-1337, 48 FR 
29680, June 28, 1983; 68 FR 52836, Sept. 8, 2003]



Sec. 250.2  Applicability.

    This part applies to every carrier, as defined in Sec. 250.1, with 
respect to flight segments with large aircraft in (1) interstate air 
transportation and (2) foreign air transportation originating at a point 
within the United States.

[ER-1306, 47 FR 52985, Nov. 24, 1982, as amended at 68 FR 52836, Sept. 
8, 2003]



Sec. 250.2a  Policy regarding denied boarding.

    In the event of an oversold flight, every carrier shall ensure that 
the smallest practicable number of persons holding confirmed reserved 
space on that flight are denied boarding involuntarily.



Sec. 250.2b  Carriers to request volunteers for denied boarding.

    (a) In the event of an oversold flight, every carrier shall request 
volunteers for denied boarding before using any other boarding priority. 
A ``volunteer'' is a person who responds to the carrier's request for 
volunteers and who willingly accepts the carriers' offer of 
compensation, in any amount, in exchange for relinquishing the confirmed 
reserved space. Any other passenger denied boarding is considered for 
purposes of this part to have been denied boarding involuntarily, even 
if that passenger accepts the denied boarding compensation.
    (b) If an insufficient number of volunteers come forward, the 
carrier may deny boarding to other passengers in accordance with its 
boarding priority rules. However, the carrier may not deny boarding to 
any passenger involuntarily who was earlier asked to volunteer without 
having been informed

[[Page 202]]

about the danger of being denied boarding involuntarily and the amount 
of DOT-mandated compensation.

[ER-1337, 48 FR 29680, June 28, 1983, as amended at 68 FR 52836, Sept. 
8, 2003]



Sec. 250.3  Boarding priority rules.

    (a) Every carrier shall establish priority rules and criteria for 
determining which passengers holding confirmed reserved space shall be 
denied boarding on an oversold flight in the event that an insufficient 
number of volunteers come forward. Such rules and criteria shall reflect 
the obligations of the carrier set forth in Sec. Sec. 250.2a and 250.2b 
to minimize involuntary denied boarding and to request volunteers, and 
shall be written in such manner as to be understandable and meaningful 
to the average passenger. Such rules and criteria shall not make, give, 
or cause any undue or unreasonable preference or advantage to any 
particular person or subject any particular person to any unjust or 
unreasonable prejudice or disadvantage in any respect whatsoever.
    (b) [Reserved]

[ER-1306, 47 FR 52985, Nov. 24, 1982, as amended by ER-1337, 48 FR 
29680, June 28, 1983]



Sec. 250.5  Amount of denied boarding compensation for passengers denied boarding involuntarily.

    (a) Subject to the exceptions provided in Sec. 250.6, a carrier as 
defined in Sec. 250.1, shall pay compensation to passengers denied 
boarding involuntarily from an oversold flight at the rate of 200 
percent of the sum of the values of the passenger's remaining flight 
coupons up to the passenger's next stopover, or if none, to the 
passenger's final destination, with a maximum of $400. However, the 
compensation shall be one-half the amount described above, with a $200 
maximum, if the carrier arranges for comparable air transporation, or 
other transportation used by the passenger that, at the time either such 
arrangement is made, is planned to arrive at the airport of the 
passenger's next stopover or if none, at the airport of the passenger's 
destination, not later than 2 hours after the time the direct or 
connecting flight on which confirmed space is held is planned to arrive 
in the case of interstate air transportation, or 4 hours after such time 
in the case of foreign air transportation.
    (b) Carriers may offer free or reduced rate air transportation in 
lieu of the cash due under paragraph (a) of this section, if (1) the 
value of the transportation benefit offered is equal to or greater than 
the cash payment otherwise required, and (2) the carrier informs the 
passenger of the amount of cash compensation that would otherwise be due 
and that the passenger may decline the transportation benefit and 
receive the cash payment.

[ER-1337, 48 FR 29680, June 28, 1983, as amended at 68 FR 52836, Sept. 
8, 2003]



Sec. 250.6  Exceptions to eligibility for denied boarding compensation.

    A passenger denied boarding involuntarily from an oversold flight 
shall not be eligible for denied boarding compensation if:
    (a) The passenger does not comply fully with the carrier's contract 
of carriage or tariff provisions regarding ticketing, reconfirmation, 
check-in, and acceptability for transportation;
    (b) The flight for which the passenger holds confirmed reserved 
space is unable to accommodate that passenger because of substitution of 
equipment of lesser capacity when required by operational or safety 
reasons;
    (c) The passenger is offered accommodations or is seated in a 
section of the aircraft other than that specified on the ticket at no 
extra charge, except that a passenger seated in a section for which a 
lower fare is charged shall be entitled to an appropriate refund; or
    (d) The carrier arranges comparable air transportation, or other 
transportation used by the passenger at no extra cost to the passenger, 
that at the time such arrangements are made is planned to arrive at the 
airport of the passenger's next stopover or, if none, at the airport of 
the final destination not later than 1 hour after the planned arrival 
time of the passenger's original flight or flights.

[ER-1337, 48 FR 29680, June 28, 1983]

[[Page 203]]



Sec. 250.7  [Reserved]



Sec. 250.8  Denied boarding compensation.

    (a) Every carrier shall tender to a passenger eligible for denied 
boarding compensation, on the day and place the denied boarding occurs, 
except as provided in paragraph (b), cash or an immediately negotiable 
check for the appropriate amount of compensation provided in Sec. 
250.5.
    (b) Where a carrier arranges, for the passenger's convenience, 
alternate means of transportation that departs before the payment can be 
prepared and given to the passenger, tender shall be made by mail or 
other means within 24 hours after the time the denied boarding occurs.

[ER-1394, 49 FR 43625, Oct. 31, 1984]



Sec. 250.9  Written explanation of denied boarding compensation and boarding priorities.

    (a) Every carrier shall furnish passengers who are denied boarding 
involuntarily from flights on which they hold confirmed reserved space 
immediately after the denied boarding occurs, a written statement 
explaining the terms, conditions, and limitations of denied boarding 
compensation, and describing the carriers' boarding priority rules and 
criteria. The carrier shall also furnish the statement to any person 
upon request at all airport ticket selling positions which are in the 
charge of a person employed exclusively by the carrier, or by it jointly 
with another person or persons, and at all boarding locations being used 
by the carrier.
    (b) The statement shall read as follows:

                    Compensation For Denied Boarding

    If you have been denied a reserved seat on (name of air carrier), 
you are probably entitled to monetary compensation. This notice explains 
the airline's obligation and the passenger's rights in the case of an 
oversold flight, in accordance with regulations of the U.S. Department 
of Transportation.

                   Volunteers and Boarding Priorities

    If a flight is oversold (more passengers hold confirmed reservations 
than there are seats available), no one may be denied boarding against 
his or her will until airline personnel first ask for volunteers who 
will give up their reservation willingly, in exchange for a payment of 
the airline's choosing. If there are not enough volunteers, other 
passengers may be denied boarding involuntarily in accordance with the 
following boarding priority of (name of air carrier): (In this space 
carrier inserts its boarding priority rules or a summary thereof, in a 
manner to be understandable to the average passenger.)

               Compensation of Involuntary Denied Boarding

    If you are denied boarding involuntarily, you are entitled to a 
payment of ``denied boarding compensation'' from the airline unless:
    (1) You have not fully complied with the airline's ticketing, check-
in, and reconfirmation requirements, or you are not acceptable for 
transportation under the airline's usual rules and practices, or (2) you 
are denied boarding because the flight is canceled; or (3) you are 
denied boarding because a smaller capacity aircraft was substituted for 
safety or operational reasons; or (4) you are offered accommodations in 
a section of the aircraft other than specified in your ticket, at no 
extra charge, (a passenger seated in a section for which a lower fare is 
charged must be given an appropriate refund); or (5) the airline is able 
to place you on another flight or flights that are planned to reach your 
final destination within one hour of the scheduled arrival of your 
original flight.

                 Amount of Denied Boarding Compensation

    Passengers who are eligible for denied boarding compensation must be 
offered a payment equal to the sum of the face values of their ticket 
coupons, with a $200 maximum. However, if the airline cannot arrange 
``alternate transportation'' (see below) for the passenger, the 
compensation is doubled ($400 maximum). The ``value'' of a ticket coupon 
is the one-way fare for the flight shown on the coupon including any 
surcharge and air transportation tax, minus any applicable discount. All 
flight coupons, including connecting flights, to the passenger's final 
destination or first 4-hour stopover are used to compute the 
compensation.
    ``Alternate transportation'' is air transportation (by an airline 
licensed by DOT) or other transportation used by the passenger which, at 
the time the arrangement is made, is planned to arrive at the 
passenger's next scheduled stopover (of 4 hours or longer) or final 
destination no later than 2 hours (for flights within U.S. points, 
including territories and possessions) or 4 hours (for international 
flights) after the passenger's originally scheduled arrival time.

[[Page 204]]

                            Method of Payment

    The airline must give each passenger who qualifies for denied 
boarding compensation a payment by cash or check for the amount 
specified above, on the day and place the involuntary denied boarding 
occurs. However, if the airline arranges alternate transportation for 
the passenger's convenience that departs before the payment can be made, 
the payment will be sent to the passenger within 24 hours. The air 
carrier may offer free tickets in place of the cash payment. The 
passenger may, however, insist on the cash payment, or refuse all 
compensation and bring private legal action.

                           Passenger's Options

    Acceptance of the compensation may relieve (name of air carrier) 
from any further liability to the passenger caused by its failure to 
honor the confirmed reservation. However, the passenger may decline the 
payment and seek to recover damages in a court of law or in some other 
manner.

(Approved by the Office of Management and Budget under control number 
3024-0003)

[ER-1306, 47 FR 52985, Nov. 24, 1982, as amended by ER-1337, 48 FR 
29681, June 28, 1983; ER-1392, 49 FR 40401, Oct. 16, 1984; ER-1394, 49 
FR 43625, Oct. 31, 1984; 68 FR 52836, Sept. 8, 2003]



Sec. 250.10  Report of passengers denied confirmed space.

    Every carrier shall file, on a quarterly basis, the information 
specified in BTS Form 251. The reporting basis shall be flights 
originating or terminating at, or servicing, a point within the United 
States. The reports are to be submitted within 30 days after the quarter 
covered by the report. The calendar quarters end March 31, June 30, 
September 30 and December 31. ``Total Boardings'' on line 7 of Form 251 
shall include only passengers on flights for which confirmed 
reservations are offered. No reports need be filed for inbound 
international flights on which the protections of this part do not 
apply.

(Approved by the Office of Management and Budget under control number 
2138-0018)

[Doc. No. 43872, 51 FR 30475, Aug. 27, 1986, as amended at 60 FR 66726, 
Dec. 26, 1995]



Sec. 250.11  Public disclosure of deliberate overbooking and boarding procedures.

    (a) Every carrier 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 passengers, a 
sign located so as to be clearly visible and clearly readable to the 
traveling public, which shall have printed thereon the following 
statement in boldface type at least one-fourth of an inch high:

                     Notice--Overbooking of Flights

    Airline flights may be overbooked, and there is a slight chance that 
a seat will not be available on a flight for which a person has a 
confirmed reservation. If the flight is overbooked, no one will be 
denied a seat until airline personnel first ask for volunteers willing 
to give up their reservation in exchange for a payment of the airline's 
choosing. If there are not enough volunteers the airline will deny 
boarding to other persons in accordance with its particular boarding 
priority. With few exceptions persons denied boarding involuntarily are 
entitled to compensation. The complete rules for the payment of 
compensation and each airline's boarding priorities are available at all 
airport ticket counters and boarding locations. Some airlines do not 
apply these consumer protections to travel from some foreign countries, 
although other consumer protections may be available. Check with your 
airline or your travel agent.

    (b) Every carrier shall include with each ticket sold in the United 
States the notices set forth in paragraph (a) of this section, printed 
in at least 12-point type. The notice may be printed on a separate piece 
of paper, on the ticket stock, or on the ticket envelope. The last two 
sentences of the notice shall be printed in a type face contrasting with 
that of the rest of the notice.
    (c) It shall be the responsibility of each carrier to ensure that 
travel agents authorized to sell air transportation for that carrier 
comply with the notice provisions of paragraphs (a) and (b) of this 
section.
    (d) [Reserved]
    (e) Any air carrier or foreign air carrier engaged in foreign air 
transportation that complies fully with this part for inbound traffic to 
the United

[[Page 205]]

States need not use the last two sentences of the notices required by 
paragraph (a) of this subsection.

(Approved by the Office of Management and Budget under control number 
3024-0018)

[ER-1306, 47 FR 52985, Nov. 24, 1982, as amended by ER-1392, 49 FR 
40401, Oct. 16, 1984]



PART 252_SMOKING ABOARD AIRCRAFT--Table of Contents




Sec.
252.1 Purpose.
252.2 Applicability.
252.3 Smoking ban: air carriers
252.5 Smoking ban: foreign air carriers.
252.7 No-smoking sections.
252.8 Extent of smoking restrictions
252.9 Ventilation systems.
252.11 Aircraft on the ground.
252.13 Small aircraft.
252.15 Cigars and pipes.
252.17 Enforcement.
252.19 Single-entity charters.

    Authority: Pub. L 101-164; 49 U.S.C. 40102, 40109, 40113, 41701, 
41702, 41706, as amended by section 708 of Pub. L 106-181, 41711, and 
46301.

    Cross Reference: For smoking rules of the Federal Aviation 
Administration, see 14 CFR 121.317(c), 121.571(a)(1)(i), 129.29, 
135.117(a)(1), and 135.127(a).

    Source: Docket No. OST-2000-7473, 65 FR 36775, June 9, 2000, unless 
otherwise noted.



Sec. 252.1  Purpose.

    This part implements a ban on smoking of tobacco products on air 
carrier and foreign air carrier flights in scheduled intrastate, 
interstate and foreign air transportation, as required by 49 USC 41706. 
It also addresses smoking on charter flights. Nothing in this regulation 
shall be deemed to require air carriers or foreign air carriers to 
permit the smoking of tobacco products aboard aircraft.

    Note to Sec. 252.1: As defined in 49 U.S.C. 40102, an ``air 
carrier'' is a citizen of the United States undertaking to provide air 
transportation, and a ``foreign air carrier'' is a person, not a citizen 
of the United States, undertaking to provide foreign air transportation.



Sec. 252.2  Applicability.

    This part applies to all operations of air carriers engaged in 
interstate, intrastate and foreign air transportation and to foreign air 
carriers engaged in foreign air transportation, but does not apply to 
the on-demand services of air taxi operators.



Sec. 252.3  Smoking ban: air carriers.

    Air carriers shall prohibit smoking on all scheduled passenger 
flights.



Sec. 252.5  Smoking ban: foreign air carriers.

    (a) Foreign air carriers shall prohibit smoking on all scheduled 
passenger flight segments:
    (1) Between points in the United States, and
    (2) Between the U.S. and any foreign point.
    (b) A foreign government objecting to the application of paragraph 
(a) of this section on the basis that paragraph (a) provides for 
extraterritorial application of the laws of the United States may 
request and obtain a waiver of paragraph (a) from the Assistant 
Secretary of Transportation for Transportation Policy, provided that an 
alternative smoking prohibition resulting from bilateral negotiations is 
in effect.



Sec. 252.7  No-smoking sections.

    (a) Except as provided in paragraph (b) of this section, air 
carriers operating nonstop flight segments to which Sec. Sec. 252.3 and 
252.13 do not apply shall provide, at a minimum:
    (1) A no-smoking section for each class of service;
    (2) A sufficient number of seats in each no-smoking section to 
accommodate all persons in that class of service who wish to be seated 
there;
    (3) Expansion of no-smoking sections to meet passenger demand; and
    (4) Special provisions to ensure that if a no-smoking section is 
placed between smoking sections, the nonsmoking passengers are not 
unreasonably burdened.
    (b) On flights for which passengers may make confirmed reservations 
and on which seats are assigned before boarding, an air carrier need not 
provide a seat in a no-smoking section to a passenger who has not met 
the carrier's requirements as to time and method of obtaining a seat on 
the

[[Page 206]]

flight, or who does not have a confirmed reservation. If a seat is 
available in the established no-smoking section, however, an air carrier 
shall seat there any enplaning passenger who so requests, regardless of 
boarding time or reservation status.



Sec. 252.8  Extent of smoking restrictions.

    The restrictions on smoking described in Sec. Sec. 252.3 through 
252.7 shall apply to all locations within the aircraft.



Sec. 252.9  Ventilation systems.

    Air carriers shall prohibit smoking whenever the ventilation system 
is not fully functioning. Fully functioning for this purpose means 
operating so as to provide the level and quality of ventilation 
specified and designed by the manufacturer for the number of persons 
currently in the passenger compartment.



Sec. 252.11  Aircraft on the ground.

    (a) Air carriers shall prohibit smoking whenever the aircraft is on 
the ground.
    (b) With respect to the restrictions on smoking described in Sec. 
252.5, foreign air carriers shall prohibit smoking from the time an 
aircraft begins enplaning passengers until the time passengers complete 
deplaning.



Sec. 252.13  Small aircraft.

    Air carriers shall prohibit smoking on aircraft designed to have a 
passenger capacity of 30 or fewer seats.

    Note to Sec. 252.13: This section, like the rest of this part, does 
not apply to on-demand services of air taxi operators; see Sec. 252.2 
in this part.



Sec. 252.15  Cigars and pipes.

    Air carriers shall prohibit the smoking of cigars and pipes aboard 
aircraft.



Sec. 252.17  Enforcement.

    Air carriers and foreign air carriers shall take such action as is 
necessary to ensure that smoking by passengers or crew is not permitted 
in the passenger cabin or lavatories on no-smoking flight segments. Air 
carriers shall take such action as is necessary to ensure that smoking 
by passengers or crew is not permitted in no-smoking sections or at 
other times or places where smoking is prohibited by this part, and to 
maintain required separation of passengers in smoking and no-smoking 
areas.



Sec. 252.19  Single-entity charters.

    On single-entity charters operated pursuant to Sec. Sec. 207.50 or 
208.300 of this title, air carriers need not comply with the procedures 
of this part 252 if such a request is made by the charterer, provided 
that each passenger on such flights is given notice of the smoking 
procedures for the flight at the time he or she first makes arrangements 
to take the flight.



PART 253_NOTICE OF TERMS OF CONTRACT OF CARRIAGE--Table of Contents




Sec.
253.1 Purpose.
253.2 Applicability.
253.3 Definitions.
253.4 Incorporation by reference in the contract of carriage.
253.5 Notice of incorporated terms.
253.6 Explanation of incorporated terms.
253.7 Direct notice of certain terms.
253.8 Qualifications to notice requirements.

    Authority: Secs. 204, 403, 404, and 411, Pub. L. 85-726, as amended, 
72 Stat. 743, 758, 760, 769; 49 U.S.C. 1324, 1373, 1374, 1381.

    Source: ER-1302, 47 FR 52134, Nov. 19, 1982, unless otherwise noted.



Sec. 253.1  Purpose.

    The purpose of this rule is to set uniform disclosure requirements, 
which preempt any State requirements on the same subject, for terms 
incorporated by reference into contracts of carriage for scheduled 
service in interstate and overseas passenger air transportation.



Sec. 253.2  Applicability.

    This rule applies to all scheduled direct air carrier operations in 
interstate and overseas air transportation. It applies to all contracts 
with passengers, for those operations, that incorporate terms by 
reference.

[ER-1323, 48 FR 6318, Feb. 11, 1983]

[[Page 207]]



Sec. 253.3  Definitions.

    Large aircraft means any aircraft designed to have a maximum 
passenger capacity of more than 60 seats.
    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.
    Ticket office means station, office, or other location where tickets 
are sold that is under the charge of a person employed exclusively by 
the carrier, or by it jointly with another person.



Sec. 253.4  Incorporation by reference in the contract of carriage.

    (a) A ticket or other written instrument that embodies the contract 
of carriage may incorporate contract terms by reference (i.e., without 
stating their full text), and if it does so shall contain or be 
accompanied by notice to the passenger as required by this part. In 
addition to other remedies at law, an air carrier may not claim the 
benefit as against the passenger of, and the passenger shall not be 
bound by, any contract term incorporated by reference if notice of the 
term has not been provided to that passenger in accordance with this 
part.
    (b) Each air carrier shall make the full text of each term that it 
incorporates by reference in a contract of carriage available for public 
inspection at each of its airport and city ticket offices.
    (c) Each air carrier shall provide free of charge by mail or other 
delivery service to passengers, upon their request, a copy of the full 
text of its terms incorporated by reference in the contract. Each 
carrier shall keep available at all times, free of charge, at all 
locations where its tickets are sold within the United States 
information sufficient to enable passengers to order the full text of 
such terms.

(The notice requirements contained in paragraphs (b) and (c) were 
approved by the Office of Management and Budget under control number 
3024-0061)

[ER-1302, 47 FR 52134, Nov. 19, 1982, as amended by ER-1309, 47 FR 
54764, Dec. 6, 1982]



Sec. 253.5  Notice of incorporated terms.

    Except as provided in Sec. 253.8, each air carrier shall include on 
or with a ticket, or other written instrument given to a passenger, that 
embodies the contract of carriage and incorporates terms by reference in 
that contract, a conspicuous notice that:
    (a) Any terms incorporated by reference are part of the contract, 
passengers may inspect the full text of each term incorporated by 
reference at the carrier's airport or city ticket offices, and 
passengers have the right, upon request at any location where the 
carrier's tickets are sold within the United States, to receive free of 
charge by mail or other delivery service the full text of each such 
incorporated term;
    (b) The incorporated terms may include and passengers may obtain 
from any location where the carrier's tickets are sold within the United 
States further information concerning:
    (1) Limits on the air carrier's liability for personal injury or 
death of passengers, and for loss, damage, or delay of goods and 
baggage, including fragile or perishable goods;
    (2) Claim restrictions, including time periods within which 
passengers must file a claim or bring an action against the carrier for 
its acts or omissions or those of its agents;
    (3) Rights of the carrier to change terms of the contract. (Rights 
to change the price, however, are governed by Sec. 253.7);
    (4) Rules about reconfirmation of reservations, check-in times, and 
refusal to carry;
    (5) Rights of the carrier and limitations concerning delay or 
failure to perform service, including schedule changes, substitution of 
alternate air carrier or aircraft, and rerouting.

(Approved by the Office of Management and Budget under control number 
3024-0061)

[ER-1302, 47 FR 52134, Nov. 19, 1982, as amended by ER-1309, 47 FR 
54764, Dec. 6, 1982; ER-1370, 48 FR 54591, Dec. 6, 1983; ER-1375, 49 FR 
5064, Feb. 10, 1984]

[[Page 208]]



Sec. 253.6  Explanation of incorporated terms.

    Each air carrier shall ensure that any passenger can obtain from any 
location where its tickets are sold within the United States a concise 
and immediate explanation of any terms incorporated by reference, 
concerning the subjects listed in Sec. 253.5(b).

(Approved by the Office of Management and Budget under control number 
3024-0061)

[ER-1302, 47 FR 52134, Nov. 19, 1982, as amended by ER-1309, 47 FR 
54764, Dec. 6, 1982]



Sec. 253.7  Direct notice of certain terms.

    A passenger shall not be bound by any terms restricting refunds of 
the ticket price, imposing monetary penalties on passengers, or 
permitting the carrier to raise the price, unless the passenger receives 
conspicuous written notice of the salient features of those terms on or 
with the ticket.

(Approved by the Office of Management and Budget under control number 
3024-0061)

[ER-1302, 47 FR 52134, Nov. 19, 1982, as amended by ER-1309, 47 FR 
54764, Dec. 6, 1982]



Sec. 253.8  Qualifications to notice requirements.

    (a) If notice is not provided in accordance with Sec. 253.5 at a 
ticket sales location outside of the United States that is not a U.S. 
air carrier ticket office, the price paid for the portion of such ticket 
that is for interstate and overseas air transportation shall be 
refundable without penalty if the passenger refuses transportation by 
the carrier. Each air carrier shall ensure that passengers who have 
bought tickets at those locations without the notice required in Sec. 
253.5 are given that notice not later than check-in for the travel in 
interstate or overseas air transportation, and that conspicuous notice 
is included on or with the ticket stating that the price for that travel 
is refundable without penalty.
    (b) An air taxi operator (including a commuter air carrier) not 
operating under subpart I of part 298 of this chapter shall not be 
considered to have incorporated terms by reference into its contract of 
carriage merely because a passenger has purchased a flight segment on 
that carrier that appears on ticket stock that contains a statement that 
terms have been incorporated by reference. However, such an air taxi 
operator may not claim the benefit as against the passenger of, and the 
passenger shall not be bound by, any contract term incorporated by 
reference if notice of the term has not been provided to the passenger 
in accordance with this part.

[ER-1370, 48 FR 54591, Dec. 6, 1983]



PART 254_DOMESTIC BAGGAGE LIABILITY--Table of Contents




Sec.
254.1 Purpose.
254.2 Applicability.
254.3 Definitions.
254.4 Carrier liability.
254.5 Notice requirement.
254.6 Periodic adjustments.

    Authority: 49 U.S.C. 40113, 41501, 41504, 41510, 41702, and 41707.

    Source: ER-1374, 49 FR 5071, Feb. 10, 1984, unless otherwise noted.



Sec. 254.1  Purpose.

    The purpose of this part is to establish rules for the carriage of 
baggage in interstate and intrastate air transportation. The part sets 
permissible limitations of air carrier liability for loss, damage, or 
delay in the carriage of passenger baggage and requires air carriers to 
provide certain types of notice to passengers.

[ER-1374, 49 FR 5071, Feb. 10, 1984, as amended at 64 FR 70575, Dec. 17, 
1999]



Sec. 254.2  Applicability.

    This part applies to any air carrier that provides charter or 
scheduled passenger service in interstate or intrastate air 
transportation.

[ER-1374, 49 FR 5071, Feb. 10, 1984, as amended at 64 FR 70575, Dec. 17, 
1999]



Sec. 254.3  Definitions.

    Large aircraft means any aircraft designed to have a maximum 
passenger capacity of more than 60 seats.



Sec. 254.4  Carrier liability.

    On any flight segment using large aircraft, or on any flight segment 
that is included on the same ticket as another flight segment that uses 
large aircraft, an air carrier shall not limit

[[Page 209]]

its liability for provable direct or consequential damages resulting 
from the disappearance of, damage to, or delay in delivery of a 
passenger's personal property, including baggage, in its custody to an 
amount less than $3,000 for each passenger.

[72 FR 3943, Jan. 29, 2007]



Sec. 254.5  Notice requirement.

    In any flight segment using large aircraft, or on any flight segment 
that is included on the same ticket as another flight segment that uses 
large aircraft, an air carrier shall provide to passengers, by 
conspicuous written material included on or with its ticket, either:
    (a) Notice of any monetary limitation on its baggage liability to 
passengers; or
    (b) The following notice: ``Federal rules require any limit on an 
airline's baggage liability to be at least $3,000 per passenger.''

[72 FR 3943, Jan. 29, 2007]



Sec. 254.6  Periodic adjustments.

    The Department of Transportation will review the minimum limit of 
liability prescribed in this part every two years. The Department will 
use the Consumer Price Index for All Urban Consumers as of July of each 
review year to calculate the revised minimum liability amount. The 
Department will use the following formula:


$2500 x (a/b) rounded to the nearest $100 where:

a = July CPI-U of year of current adjustment
b = Most current CPI-U figure when final rule is issued.

[64 FR 70575, Dec. 17, 1999]



PART 255_AIRLINE COMPUTER RESERVATIONS SYSTEMS--Table of Contents




Sec.
255.1 Purpose.
255.2 Applicability.
255.3 Definitions.
255.4 Display of information.
255.5 Contracts with participating carriers.
255.6 Exceptions.
255.7 Prohibition against carrier bias.
255.8 Sunset Date.

    Authority: 49 U.S.C. 40101, 40102, 40105, 40113, 41712.

    Source: 69 FR 1032, Jan. 7, 2004, unless otherwise noted.



Sec. 255.1.  Purpose.

    (a) The purpose of this part is to set forth requirements for the 
operation of computer reservations systems used by travel agents and 
certain related air carrier distribution practices so as to prevent 
unfair, deceptive, predatory, and anticompetitive practices in air 
transportation and the sale of air transportation.
    (b) Nothing in this part operates to exempt any person from the 
operation of the antitrust laws set forth in subsection (a) of the first 
section of the Clayton Act (15 U.S.C. 12).



Sec. 255.2  Applicability.

    This part applies to firms that operate computerized reservations 
systems for travel agents in the United States, and to the sale in the 
United States of interstate, overseas, and foreign air transportation 
through such systems.



Sec. 255.3  Definitions.

    Availability means information provided in displays with respect to 
the seats a carrier holds out as available for sale on a particular 
flight.
    Carrier means any air carrier, any foreign air carrier, and any 
commuter air carrier, as defined in 49 U.S.C. 40102(3), 49 U.S.C. 
40102(22), and 14 CFR 298.2(f), respectively, that is engaged directly 
in the operation of aircraft in passenger air transportation.
    Display means the system's presentation of carrier schedules, fares, 
rules or availability to a subscriber by means of a computer terminal.
    Integrated display means any display that includes the schedules, 
fares, rules, or availability of all or a significant proportion of the 
system's participating carriers.
    On-time performance code means a single-character code supplied by a 
carrier to the system in accordance with the provisions of 14 CFR Part 
234 that reflects the monthly on-time performance history of a nonstop 
flight or one-stop or multi-stop single plane operation held out by the 
carrier in a CRS.
    Participating carrier means a carrier that has an agreement with a 
system for display of its schedules, fares, or

[[Page 210]]

seat availability, or for the making of reservations or issuance of 
tickets through a system.
    Subscriber means a ticket agent, as defined in 49 U.S.C. 40102(40), 
that holds itself out as a source of information about, or reservations 
for, the air transportation industry and that uses a system.
    System means a computerized reservations system offered to 
subscribers for use in the United States that contains information about 
schedules, fares, rules or availability of carriers and provides 
subscribers with the ability to make reservations, if it charges any 
carrier a fee for system services. It does not mean direct connections 
between a ticket agent and the internal reservations systems of 
individual carriers.



Sec. 255.4  Display of information.

    (a) All systems shall provide at least one integrated display that 
includes the schedules, fares, rules, and availability of all 
participating carriers in accordance with the provisions of this 
section. This display shall be at least as useful for subscribers, in 
terms of functions or enhancements offered and the ease with which such 
functions or enhancements can be performed or implemented, as any other 
displays maintained by the system vendor. No system shall make available 
to subscribers any integrated display unless that display complies with 
the requirements of this section.
    (1) Each system must offer an integrated display that uses the same 
editing and ranking criteria for both on-line and interline connections 
and does not give on-line connections a system-imposed preference over 
interline connections. This display shall be at least as useful for 
subscribers, in terms of functions or enhancements offered and the ease 
with which such functions or enhancements can be performed or 
implemented, as any other display maintained by the system vendor.
    (2) Each integrated display offered by a system must either use 
elapsed time as a significant factor in selecting service options from 
the database or give single-plane flights a preference over connecting 
services in ranking services in displays.
    (b) In ordering the information contained in an integrated display, 
systems shall not use any factors directly or indirectly relating to 
carrier identity.
    (1) Systems may order the display of information on the basis of any 
service criteria that do not reflect carrier identity and that are 
consistently applied to all carriers and to all markets.
    (2) When a flight involves a change of aircraft at a point before 
the final destination, the display shall indicate that passengers on the 
flight will change from one aircraft to another.
    (3) Each system shall provide to any person upon request the current 
criteria used in editing and ordering flights for the integrated 
displays and the weight given to each criterion and the specifications 
used by the system's programmers in constructing the algorithm.
    (c) Systems shall not use any factors directly or indirectly 
relating to carrier identity in constructing the display of connecting 
flights in an integrated display.
    (1) Systems shall select the connecting points (and double connect 
points) to be used in the construction of connecting flights for each 
city pair on the basis of service criteria that do not reflect carrier 
identity and that are applied consistently to all carriers and to all 
markets.
    (2) Systems shall select connecting flights for inclusion (``edit'') 
on the basis of service criteria that do not reflect carrier identity 
and that are applied consistently to all carriers.
    (3) Systems shall provide to any person upon request current 
information on:
    (i) All connecting points and double connect points used for each 
market;
    (ii) All criteria used to select connecting points and double 
connect points;
    (iii) All criteria used to ``edit'' connecting flights; and
    (iv) The weight given to each criterion in paragraphs (c)(3)(ii) and 
(iii) of this section.
    (4) Participating carriers shall be entitled to request that a 
system use up to five connect points (and double connect points) in 
constructing connecting flights for the display of service in a

[[Page 211]]

market. The system may require participating carriers to use specified 
procedures for such requests, but no such procedures may be unreasonably 
burdensome, and any procedures required of participating carriers must 
be applied without unreasonable discrimination between participating 
airlines.
    (5) When a system selects connecting points and double connect 
points for use in constructing connecting flights it shall use at least 
fifteen points and six double connect points for each city-pair, except 
that a system may select fewer such connect or double connect points for 
a city-pair where:
    (i) Fewer than fifteen connecting points and six double connect 
points meet the service criteria described in paragraph (c)(1) of this 
section; and
    (ii) The system has used all the points that meet those criteria, 
along with all additional connecting points and double connect points 
requested by participating carriers.
    (6) If a system selects connecting points and double connect points 
for use in constructing connecting flights it shall use every point 
requested by a participating carrier up to the maximum number of points 
that the system can use. The system may use fewer than all the connect 
points requested by participating carriers to the extent that:
    (i) Points requested by participating carriers do not meet the 
service criteria described in paragraph (c)(1) of this section; and
    (ii) The system has used all the points that meet those criteria.
    (d) Each system shall apply the same standards of care and 
timeliness to loading information concerning every participating 
carrier. Each system shall display accurately information submitted by 
participating carriers. Each system shall provide to any person upon 
request all current data base update procedures and data formats.
    (e) Systems shall use or display information concerning on-time 
performance of flights as follows:
    (1) Within 10 days after receiving the information from 
participating carriers or third parties, each system shall include in 
all integrated schedule and availability displays the on-time 
performance code for each nonstop flight segment and one-stop or multi-
stop single plane flight, for which a participating carrier provides a 
code.
    (2) A system shall not use on-time flight performance as a ranking 
factor in ordering information contained in an integrated display.
    (f) Each participating carrier shall ensure that complete and 
accurate information is provided each system in a form such that the 
system is able to display its flights in accordance with this section.
    (g) A system may make available to subscribers the internal 
reservations system display of a participating carrier, provided that a 
subscriber and its employees may see any such display only by requesting 
it for a specific transaction.



Sec. 255.5  Contracts with participating carriers.

    (a) No system may require a carrier to maintain any particular level 
of participation or buy any enhancements in its system on the basis of 
participation levels or enhancements selected by that carrier in any 
other foreign or domestic computerized reservations system, as a 
condition to participation in the system.
    (b) No system may require any carrier as a condition to 
participation to provide it with fares that the carrier has chosen not 
to sell through that system.



Sec. 255.6  Exceptions.

    The obligations of a system under Sec. 255.4 shall not apply with 
respect to a carrier that refuses to enter into and comply with a 
participating airline contract with that system.



Sec. 255.7  Prohibition against Carrier Bias.

    No carrier may induce or attempt to induce a system to create a 
display that would not comply with the requirements of Sec. 255.4.



Sec. 255.8  Sunset Date.

    Unless extended by a document published in the Federal Register, 
these rules shall terminate on July 31, 2004.

                           PART 256 [RESERVED]

[[Page 212]]



PART 257_DISCLOSURE OF CODE-SHARING ARRANGEMENTS AND LONG-TERM WET LEASES--Table of Contents




Sec.
257.1 Purpose.
257.2 Applicability.
257.3 Definitions.
257.4 Unfair and deceptive practice.
257.5 Notice requirement.
257.6 Effective and compliance dates.

    Authority: 49 U.S.C. 40113(a) and 41712.

    Source: 64 FR 12851, Mar. 15, 1999, unless otherwise noted.



Sec. 257.1  Purpose.

    The purpose of this part is to ensure that ticket agents doing 
business in the United States, air carriers, and foreign air carriers 
tell consumers clearly when the air transportation they are buying or 
considering buying involves a code-sharing arrangement or a long-term 
wet lease, and that they disclose to consumers the transporting 
carrier's identity.



Sec. 257.2  Applicability.

    This part applies to the following:
    (a) Direct air carriers and foreign air carriers that participate in 
code-sharing arrangements or long-term wet leases involving scheduled 
passenger air transportation; and
    (b) Ticket agents doing business in the United States that sell 
scheduled passenger air transportation services involving code-sharing 
arrangements or long-term wet leases.



Sec. 257.3  Definitions.

    As used in this part:
    (a) Air transportation means foreign air transportation or 
interstate air transportation as defined in 49 U.S.C. 40102 (a)(23) and 
(25) respectively.
    (b) Carrier means any air carrier or foreign air carrier as defined 
in 49 U.S.C. 40102(2) or 49 U.S.C. 40102(21), respectively, that is 
engaged directly in scheduled passenger air transportation, including by 
wet lease.
    (c) Code-sharing arrangement means an arrangement whereby a 
carrier's designator code is used to identify a flight operated by 
another carrier.
    (d) Designator code means the airline designations originally 
allotted and administered pursuant to Agreements CAB 24606 and 26056.
    (e) Long-term wet lease means a lease by which the lessor provides 
both an aircraft and crew dedicated to a particular route(s), and 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.
    (f) Ticket agent has the meaning ascribed to it in 49 U.S.C. 
40102(40).
    (g) Transporting carrier means the carrier that is operating the 
aircraft in a code-sharing arrangement or long-term wet lease.



Sec. 257.4  Unfair and deceptive practice.

    The holding out or sale of scheduled passenger air transportation 
involving a code-sharing arrangement or long-term wet lease is 
prohibited as unfair and deceptive in violation of 49 U.S.C. 41712 
unless, in conjunction with such holding out or sale, carriers and 
ticket agents follow the requirements of this part.



Sec. 257.5  Notice requirement.

    (a) Notice in schedules. In written or electronic schedule 
information provided by carriers in the United States to the public, the 
Official Airline Guides and comparable publications, and, where 
applicable, computer reservations systems, carriers involved in code-
sharing arrangements or long-term wet leases shall ensure that each 
flight in scheduled passenger air transportation on which the designator 
code is not that of the transporting carrier is identified by an 
asterisk or other easily identifiable mark and that the corporate name 
of the transporting carrier and any other name under which that service 
is held out to the public is also disclosed.
    (b) Oral notice to prospective consumers. In any direct oral 
communication in the United States with a prospective consumer and in 
any telephone calls placed from the United States concerning a flight 
that is part of a code-sharing arrangement or long-term wet lease, a 
ticket agent doing business in the United States or a carrier shall tell 
the consumer, before booking transportation, that the transporting 
carrier is not the carrier whose

[[Page 213]]

designator code will appear on the ticket and shall identify the 
transporting carrier by its corporate name and any other name under 
which that service is held out to the public.
    (c) Written notice. Except as specified in paragraph (c)(3) of this 
section, at the time of purchase, each selling carrier or ticket agent 
shall provide each consumer of scheduled passenger air transportation 
sold in the United States that involves a code-sharing arrangement or 
long-term wet lease with the following notice:
    (1) If an itinerary is issued, there shall appear in conjunction 
with the listing of any flight segment on which the designator code is 
not that of the transporting carrier a legend that states ``Operated 
by'' followed by the corporate name of the transporting carrier and any 
other name in which that service is held out to the public. In the case 
of single-flight-number service involving a segment or segments on which 
the designator code is not that of the transporting carrier, the notice 
shall clearly identify the segment or segments and the transporting 
carrier by its corporate name and any other name in which that service 
is held out to the public. The following form of statement will satisfy 
the requirement of this paragraph (c)(1):

    Important Notice: Service between XYZ City and ABC City will be 
operated by Jane Doe Airlines d/b/a QRS Express.

    (2) If no itinerary is issued, the selling carrier or ticket agent 
shall provide a separate written notice that clearly identifies the 
transporting carrier by its corporate name and any other name under 
which that service is held out to the public for any flight segment on 
which the designator code is not that of the transporting carrier. The 
following form of notice will satisfy the requirement of this paragraph 
(c)(2):

    Important Notice: Service between XYZ City and ABC City will be 
operated by Jane Doe Airlines d/b/a QRS Express.

    (3) If transportation is purchased far enough in advance of travel 
to allow for advance delivery of the ticket by mail or otherwise, the 
written notice required by this part shall be delivered in advance along 
with the ticket. If time does not allow for advance delivery of the 
ticket, or in the case of ticketless travel, the written notice required 
by this part shall be provided no later than the time that they check in 
at the airport for the first flight in their itinerary.
    (4) At the purchaser's request, the notice required by this part may 
be delivered in person or by telecopier, electronic mail, or any other 
reliable method of transmitting written material.
    (d) In any printed advertisement published in or mailed to or from 
the United States (including those published through the Internet) for 
service in a city-pair market that is provided under a code-sharing 
arrangement or long-term wet lease, the advertisement shall prominently 
disclose that the advertised service may involve travel on another 
carrier and clearly indicate the nature of the service in reasonably 
sized type and shall identify all potential transporting carriers 
involved in the markets being advertised by corporate name and by any 
other name under which that service is held out to the public. In any 
radio or television advertisement broadcast in the United States for 
service in a city-pair market that is provided under a code-sharing or 
long-term wet lease, the advertisement shall include at least a generic 
disclosure statement, such as ``Some services are provided by other 
airlines.''

[64 FR 12851, Mar. 15, 1999, as amended at 70 FR 44851, Aug. 4, 2005]



Sec. 257.6  Effective and compliance dates.

    (a) This Part is effective as of August 25, 1999.
    (b) Compliance with the following sections is mandatory as of August 
25, 1999:
    (1) Sec. 257.1, Sec. 257.2, Sec. 257.3, Sec. 257.4, Sec. 
257.5(d), and Sec. 257.6.
    (2) Sec. 257.5(b) to the extent that it requires sellers of air 
transportation to give consumers oral notice before booking 
transportation involving a code-share arrangement
    (i) Of the fact that the selling carrier is not the transporting 
carrier and

[[Page 214]]

    (ii) Of the transporting carrier's identity (as shown by its two-
letter designator code in CRS displays).
    (c) Compliance with the following sections is mandatory as of March 
15, 2000:
    (1) Sec. 257.5(a) and Sec. 257.5(c) in their entirety.
    (2) Sec. 257.5(b) insofar as it requires sellers of air 
transportation to give consumers
    (i) Oral notice before booking transportation involving a code-share 
arrangement of the transporting carrier's corporate name and any other 
name under which the service is held out to the public and
    (ii) The same disclosures for long-term wet leases as for code-
sharing arrangements.

[64 FR 46821, Aug. 27, 1999]



PART 258_DISCLOSURE OF CHANGE-OF-GAUGE SERVICES--Table of Contents




Sec.
258.1 Purpose.
258.2 Applicability.
258.3 Definitions.
258.4 Unfair and deceptive practice.
258.5 Notice requirement.
258.6 Effective and compliance dates.

    Authority: 49 U.S.C. 40113(a) and 41712.

    Source: 64 FR 12860, Mar. 15, 1999, unless otherwise noted.



Sec. 258.1  Purpose.

    The purpose of this part is to ensure that consumers are adequately 
informed before they book air transportation or embark on travel 
involving change-of-gauge services that these services require a change 
of aircraft en route.



Sec. 258.2  Applicability.

    This part applies to the following:
    (a) Direct air carriers and foreign air carriers that sell or issue 
tickets in the United States for scheduled passenger air transportation 
on change-of-gauge services or that operate such transportation; and
    (b) Ticket agents doing business in the United States that sell or 
issue tickets for scheduled passenger air transportation on change-of-
gauge services.



Sec. 258.3  Definitions.

    As used in this part:
    (a) Air transportation has the meaning ascribed to it in 49 U.S.C. 
40102(5).
    (b) Carrier means any air carrier or foreign air carrier as defined 
in 49 U.S.C. 40102(2) or 49 U.S.C. 40102(21), respectively, that engages 
directly in scheduled passenger air transportation.
    (c) Change-of-gauge service means a service that requires a change 
of aircraft en route but has only a single flight number.
    (d) Ticket agent has the meaning ascribed to it in 49 U.S.C. 
40102(40).



Sec. 258.4  Unfair and deceptive practice.

    The holding out or sale of scheduled passenger air transportation 
that involves change-of-gauge service is prohibited as an unfair or 
deceptive practice or an unfair method of competition within the meaning 
of 49 U.S.C. 41712 unless, in conjunction with such holding out or sale, 
carriers and ticket agents follow the requirements of this part.



Sec. 258.5  Notice requirement.

    (a) Notice in schedules. Carriers holding out or operating change-
of-gauge services to, from, or within the United States shall ensure 
that in the written and electronic schedule information they provide to 
the public, to the Official Airline Guide and comparable publications, 
and to computer reservations systems, these services are shown as 
requiring a change of aircraft.
    (b) Oral notice to prospective consumers. In any direct oral 
communication with a consumer in the United States concerning a change-
of-gauge service, any carrier or ticket agent doing business in the 
United States shall tell the consumer before booking scheduled passenger 
air transportation to, from, or within the United States that the 
service requires a change of aircraft en route.
    (c) Written notice. At the time of sale in the United States of 
transportation that includes a change-of-gauge service to, from, or 
within the United States, or, if no ticket is issued, no later than the 
time when the passenger checks in at the airport for the first flight in 
an itinerary that includes such a service,

[[Page 215]]

the selling carrier or ticket agent shall provide the following written 
notice:

                   Notice: Change of Aircraft Required

    For at least one of your flights, you must change aircraft en route 
even though your ticket may show only one flight number and have only 
one flight coupon for that flight. Further, in the case of some travel, 
one of your flights may not be identified at the airport by the number 
on your ticket, or it may be identified by other flight numbers in 
addition to the one on your ticket. At your request, the seller of this 
ticket will give you details of your change of aircraft, such as where 
it will occur and what aircraft types are involved.



Sec. 258.6  Effective and compliance dates.

    (a) This Part is effective as of August 25, 1999.
    (b) Compliance with the following sections is mandatory as of August 
25, 1999: Sec. 258.1, Sec. 258.2, Sec. 258.3, Sec. 258.4, Sec. 
258.5(a), Sec. 258.5(b), and Sec. 258.6.
    (c) Compliance with Sec. 258.5(c) is mandatory as of March 15, 
2000.

[64 FR 46821, Aug. 27, 1999]



PART 271_GUIDELINES FOR SUBSIDIZING AIR CARRIERS PROVIDING ESSENTIAL AIR TRANSPORTATION--Table of Contents




Sec.
271.1 Purpose.
271.2 Definitions.
271.3 Carrier subsidy need.
271.4 Carrier costs.
271.5 Carrier revenues.
271.6 Profit element.
271.7 Subsidy payout formula.
271.8 Rate period.
271.9 Discrimination prohibited.

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

    Source: ER-1398, 49 FR 49846, Dec. 24, 1984, unless otherwise noted.



Sec. 271.1  Purpose.

    This part establishes the guidelines required by 49 U.S.C. 41736 to 
be used by the Department in establishing the fair and reasonable amount 
of compensation needed to ensure the continuation of essential air 
service to an eligible place under 49 U.S.C. 41731 and 41734. These 
guidelines are intended to cover normal carrier selection cases and rate 
renewal cases, and not necessarily emergency carrier selection cases.

[60 FR 43524, Aug. 22, 1995]



Sec. 271.2  Definitions.

    As used in this part:
    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.
    Essential air service is that air transportation which the 
Department has found to be essential under Subchapter II of Chapter 417 
of the Statute.

[60 FR 43524, Aug. 22, 1995]



Sec. 271.3  Carrier subsidy need.

    In establishing the subsidy for an air carrier providing essential 
air service at an eligible place, the Department will consider the 
following:
    (a) The reasonable projected costs of a carrier in serving that 
place;
    (b) The carrier's reasonable projected revenues for serving that 
place;
    (c) The appropriate size of aircraft for providing essential air 
service at that place; and
    (d) A reasonable profit for a carrier serving that place.

[ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43524, Aug. 
22, 1995]



Sec. 271.4  Carrier costs.

    (a) The reasonable costs projected for a carrier providing essential 
air service at an eligible place will be evaluated:
    (1) For costs attributable to the carrier's flying operations 
(direct expenses), by comparing the projected costs submitted by the 
carrier with the following:
    (i) The carrier's historical direct operating costs with the same or 
similar aircraft types;
    (ii) The direct operating unit costs of similar carriers using the 
same or similar equipment; and

[[Page 216]]

    (iii) Data supplied by the manufacturer of the carrier's aircraft.
    (2) For other costs, by one or more of the following methods:
    (i) By direct assignment where the indirect costs are attributable 
to the carrier's operations at the eligible place;
    (ii) By comparing the carrier's systemwide indirect operating 
expenses to those submitted by the carrier for the eligible place; or
    (iii) By comparing the indirect operating expenses submitted by the 
carrier with the ratio of indirect to direct costs that have been 
experienced by the carrier in other markets or to costs that are 
representative of the industry.
    (3) By considering the unique circumstances of the carrier or the 
community being served that justify deviations from the costs that would 
otherwise be established for that carrier under this paragraph.
    (4) By determining whether the aircraft to be used by the carrier at 
the eligible place, and on which its costs are derived, are appropriate 
for providing essential air service there. The appropriateness of the 
aircraft to be used is based on the following characteristics of the 
eligible place:
    (i) Traffic levels;
    (ii) The level of air service that the Department has decided is 
essential for the eligible place;
    (iii) Distance to the designated hub;
    (iv) The altitude at which the carrier must fly to the designated 
hub; and
    (v) Other operational elements involved.
    (b) When the essential air service would be made part of the 
carrier's linear system, the Department might, instead of the factors in 
paragraph (a) of this section, consider only the incremental costs that 
the carrier will incur in adding that service to its system.

[ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43524, 43525, 
Aug. 22, 1995]



Sec. 271.5  Carrier revenues.

    (a) The projected passenger revenue for a carrier providing 
essential air service at an eligible place will be calculated by 
multiplying the following:
    (1) A reasonable projected net fare, which is the standard fare 
expected to be charged for service between the eligible place and the 
designated hub less any dilution caused by joint fare arrangements, 
discount fares that it offers, or prorates of fares for through one-line 
passengers; and
    (2) The traffic (including both local and beyond traffic) projected 
to flow between the eligible place and the designated hub or hubs, which 
is based on the carrier's own estimates, Department estimates, and on 
traffic levels in the market at issue when such data are available.
    (b) The reasonableness of a carrier's passenger revenue projections 
will be evaluated by:
    (1) Comparing the carrier's proposed fare with the fare charged in 
other city-pair markets of similar distances and traffic densities; and
    (2) Comparing the carrier's proposed pricing structure with 
historical pricing practices in the market at issue, with the pricing 
practices of that carrier in other markets, and with any standard 
industry pricing guidelines that may be available.
    (c) An estimate of freight and other transport-related revenue will 
be included as a component of projected revenues and will be based on 
recent experience in the market involved and on the experience of the 
carrier involved in other markets.

[ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43524, Aug. 
22, 1995]



Sec. 271.6  Profit element.

    The reasonable return for a carrier for providing essential air 
service at an eligible place generally will be set at a flat percentage, 
typically 5 percent of that carrier's projected operating costs as 
established under Sec. 271.4, plus any applicable interest expenses on 
flight equipment.

[ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43524, 43525, 
Aug. 22, 1995]



Sec. 271.7  Subsidy payout formula.

    (a) Subsidy will be paid by the Department to the air carrier 
monthly, based on the subsidy rate established by the Department for the 
carrier under this part. Payments will not vary except as provided in 
this section.
    (b) While a carrier's subsidy rate will not vary even if actual 
revenues or

[[Page 217]]

costs differ from projections, the actual amount of each payment may 
vary depending on the following factors:
    (1) Seasonal characteristics of the carrier's operations at the 
eligible place;
    (2) The actual number of flights completed, aircraft miles flown, 
available seat-miles flown, or variations in other operational elements 
upon which the subsidy rate is based; or
    (3) Adjustments to the carrier's subsidy required by Sec. 271.8(b).
    (c) Payments will continue for the duration of the rate term 
established under Sec. 271.8 provided that the carrier continues to 
provide the required service.

[ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43524, 43525, 
Aug. 22, 1995]



Sec. 271.8  Rate period.

    (a) The subsidy rate generally will be set for a 2-year period, or 
two consecutive 1-year periods. The Department may set the rate for a 
shorter period in the following situations:
    (1) A commuter air carrier is replacing a larger certificated 
carrier at the eligible place;
    (2) Traffic at the eligible place has substantially decreased;
    (3) The Department considers the cost or revenue projections of the 
carrier for the second year to be unrealistic;
    (4) It is likely that there will be changes in the eligible place 
essential air service level; or
    (5) The uncertainties of the market or other circumstances warrant a 
shorter rate period.
    (b) The subsidy rate established for a carrier under this part will 
not be changed during the rate period unless an adjustment is required 
in the public interest.
    (c) At the end of the rate period, the carrier will not have a 
continuing right to receive subsidy for providing essential air service 
at the eligible place.

[ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43524, 43525, 
Aug. 22, 1995]



Sec. 271.9  Discrimination prohibited.

    (a) All air carriers receiving subsidy under this part shall comply 
with the following:
    (1) The Age Discrimination Act of 1975;
    (2) The Civil Rights Act of 1964 and 49 CFR part 21; and
    (3) The Rehabilitation Act of 1973, 49 CFR part 27, and part 382 of 
this chapter.
    (b) Within 1 year after it first receives a subsidy under this part, 
the carrier shall evaluate its practices and procedures for 
accommodating the handicapped in accordance with Sec. 382.23 of this 
chapter.
    (c) All air carriers seeking a subsidy under this part shall include 
in their subsidy application the assurances required by 49 CFR parts 20, 
21, 27 and 29, and Sec. 382.21 of this chapter.

[ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43525, Aug. 
22, 1995]



PART 272_ESSENTIAL AIR SERVICE TO THE FREELY ASSOCIATED STATES--Table of Contents




Sec.
272.1 Purpose.
272.2 Applicability.
272.3 Places eligible for guaranteed essential air service.
272.4 Applicability of procedures and policies under 49 U.S.C. 41731-42.
272.5 Determination of essential air service.
272.6 Considerations in the determination of essential air service.
272.7 Notice of discontinuance of service.
272.8 Obligation to continue service.
272.9 Selection of a carrier to provide essential air service and 
          payment of compensation.
272.10 Conditions applicable to carriers serving a subsidized market.
272.11 Effective date of provisions.
272.12 Termination.

    Authority: 49 U.S.C. Chapters 401, 402, 416, 461, 1102; sec. 
221(a)(5) of the Compact of Free Association, and paragraph 5 of Article 
IX of the Federal Programs and Services Agreement in implementation of 
that Compact (Pub. L. 99-239; Pub. L. 99-658); Pub. L. 101-219.

    Source: Amdt. No. 272-1, 52 FR 5443, Feb. 23, 1987, unless otherwise 
noted.



Sec. 272.1  Purpose.

    Paragraph 5 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 the Governments of the 
Federated States of Micronesia, the Marshall Islands and

[[Page 218]]

Palau (the Freely Associated States) provides, among other things, for 
the Department of Transportation (Department), as successor to the Civil 
Aeronautics Board (Board), to guarantee essential air service, with 
compensation if necessary, to certain places in these islands. 
Subparagraph 5(h) of the Agreement provides that the Department shall 
adopt rules to implement the provisions of paragraph 5 as it in its 
discretion deems appropriate. Section 221(a)(5) of the Compact, which 
was adopted by Congress as public laws (Pub. L. 99-239, Jan. 14, 1986; 
Pub. L. 99-658, Nov. 14, 1986), provides that the Department (as 
successor to the Board) has the authority to implement the provisions of 
paragraph 5 of the Agreement. This part implements these provisions of 
paragraph 5.

[Amdt. No. 272-1, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, 
Aug. 22, 1995]



Sec. 272.2  Applicability.

    This part establishes the provisions applicable to the Department's 
guarantee of essential air service to places in the Federated States of 
Micronesia, the Marshall Islands and Palau, and the payment of 
compensation for such services. The rule applies to U.S. air carriers 
and Freely Associated State Air Carriers providing essential air service 
to these places.

[Amdt. No. 272-1, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, 
Aug. 22, 1995]



Sec. 272.3  Places eligible for guaranteed essential air service.

    (a) Subject to the provisions of this part, and paragraph 5 of 
Article IX of the Federal Programs and Services Agreement, the 
Department will make provision for the operation of essential air 
service, with compensation if necessary, to the following places in the 
Freely Associated States:
    In the Federated States of Micronesia: Ponape, Truk and Yap.
    In the Marshall Islands: Majuro and Kwajalein.
    In Palau: Koror.
    (b) The places specified herein in the Federated States of 
Micronesia, the Marshall Islands or Palau, respectively, shall cease to 
be eligible places under this part if any of those Governments withdraw 
from the subsidy provisions of Article IX of the Federal Programs and 
Services Agreement in accordance with paragraph 8 of Article IX or 
Article XII of that Agreement.

[Amdt. No. 272-1, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, 
Aug. 22, 1995]



Sec. 272.4  Applicability of procedures and policies under 49 U.S.C. 41731-42.

    Since the authority of the Department to guarantee essential air 
service is derived from the Federal Programs and Services Agreement and 
the Compact of Free Association, the provisions and procedures utilized 
by the Department in implementation of 49 U.S.C. 41731-42 will be 
followed only to the extent determined by the Department to be 
consistent with the obligations assumed by the United States in the 
Agreement and Compact, and the provisions of this part.

[Amdt. No. 272-1, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, 
Aug. 22, 1995]



Sec. 272.5  Determination of essential air service.

    Procedures for the determination of essential air service under this 
section, and review of that determination, shall, except to the extent 
otherwise directed by the Department, be governed by Sec. 325.4 (except 
the application of 49 U.S.C. 41737 in Sec. 325.4(b)); Sec. 325.6(a); 
Sec. Sec. 325.8-325.11; Sec. 325.12 (provided that all documents shall 
be served on the President and the designated authorities of the Freely 
Associated State concerned); and Sec. Sec. 325.13 and 325.14 of this 
chapter.

[Amdt. No. 272-1, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, 
Aug. 22, 1995]



Sec. 272.6  Considerations in the determination of essential air service.

    (a) In the determination of essential air service to an eligible 
Freely Associated State place, the Department shall consider, among 
other factors, the following:
    (1) The demonstrated level of traffic demand;
    (2) The amount of compensation necessary to maintain a level of 
service sufficient to meet that demand;
    (3) The extent to which the demand may be accommodated by connecting

[[Page 219]]

or other services of U.S., Freely Associated State, or foreign carriers 
by air--through U.S., Freely Associated State, or foreign places--that 
provide access to the U.S. air transportation system;
    (4) Alternative modes of transportation that may be available; and
    (5) The peculiar needs of the Freely Associated States for air 
transportation services.
    (b) The Guidelines for Individual Determinations of essential air 
service set forth in part 398 of this chapter shall be applied only to 
the extent the Department concludes that they are applicable to the 
special circumstances affecting transportation to the Freely Associated 
States and reflective of the provisions of this part.
    (c) Nothing in this part shall be construed as providing for a level 
of essential air service that would exceed the level of service 
justified by the considerations set forth in paragraph (a) of this 
section.

[Amdt. No. 272-1, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, 
Aug. 22, 1995]



Sec. 272.7  Notice of discontinuance of service.

    (a) An air carrier or Freely Associated State Air Carrier shall not 
terminate, suspend, or reduce air service to any eligible Freely 
Associated State place, unless it has given notice as specified in this 
section, if as a result of the reduction of such service the aggregate 
of the remaining air service provided to such place would be below:
    (1) If the Department has not made a determination of essential air 
service for such place, the level of service specified in Order 80-9-63; 
and
    (2) If the Department has made a determination of essential air 
service for such place, that level of essential air service.
    (b) An air carrier or Freely Associated State Air Carrier wishing to 
terminate, suspend or reduce air service under paragraph (a) shall file 
a notice of such proposed reduction in service at least 90 days prior to 
such service reduction, in accordance with the procedures specified in 
Sec. Sec. 323.4, 323.6, and 323.7 of this chapter.
    (c) The notice shall be served on the President and the designated 
Authorities of the Freely Associated State concerned, in addition to the 
persons specified in Sec. 323.7.
    (d) The procedures specified in Sec. Sec. 323.9-323.18, to the 
extent applicable to 90-day notices filed by certificated air carriers, 
shall also be applicable to notices of terminations, suspensions or 
reductions in service filed under this section.

[Amdt. No. 272-1, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, 
Aug. 22, 1995]



Sec. 272.8  Obligation to continue service.

    (a) If the Department finds that a proposed termination, suspension, 
or reduction in service by an air carrier or Freely Associated State Air 
Carrier will, or may, reduce service to an eligible Freely Associated 
State place below the level of essential air service to such place, 
whether or not the Department has previously determined the level of 
essential air service to such place, the Department may direct the air 
carrier or Freely Associated State Air Carrier concerned to maintain 
service to such place at a level the Department determines will ensure 
essential air service to such place, pending the commencement of 
alternative service as required to maintain the level of essential air 
service previously, or thereafter, determined by the Department.
    (b) During any period the Department requires an air carrier or 
Freely Associated State Air Carrier to maintain a level of service 
proposed to be terminated, suspended or reduced, following the filing of 
a 90 day notice in accordance with Sec. 272.7, the Department will 
provide for the payment of compensation to such carrier for any losses 
incurred by that carrier as a result of such required continuation of 
service in accordance with the procedures set forth in part 271 of this 
chapter. If the carrier is already receiving compensation pursuant to 
Sec. 272.9 of this part, the Department will continue to direct payment 
of such compensation during any period the carrier is required to 
maintain service. Such payments shall be made by the Department of 
Interior from funds appropriated for this purpose.
    (c) The Department will review its order from time to time and will 
revise

[[Page 220]]

the level of required service as necessary to maintain only the level of 
essential air service determined by the Department for that place, 
considering all other service to such place in accordance with Sec. 
272.6(a)(3).
    (d) During the period any such air carrier or Freely Associated 
State Air Carrier is required to maintain service under this section, 
the Department will make every effort to obtain alternative service, 
with compensation if necessary, as required to maintain essential air 
service to such place.

[Amdt. No. 272-1, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, 
Aug. 22, 1995]



Sec. 272.9  Selection of a carrier to provide essential air service and payment of compensation.

    (a) If the Department finds that essential air service will not be 
maintained to an eligible Freely Associated State place, the Department 
shall invite applications to provide the service required to maintain 
essential air service to such place.
    (b) If the Department determines that essential air service will not 
be provided to such place in the absence of the payment of subsidy 
compensation to a carrier or carriers, the Department shall determine 
the compensation necessary, considering all other service to such place 
in accordance with Sec. 272.6(a)(3), to maintain the level of essential 
air service determined by the Department under Sec. 272.5, and the 
times and manner of the payment of such compensation.
    (c) The compensation determined by the Department to be necessary to 
maintain essential air service to such place shall be paid by the 
Department of Interior out of funds appropriated for that purpose, to 
the carrier or carriers selected by the Department.
    (d) The Department shall continue to specify compensation to be paid 
to a carrier or carriers under this section only as long as the 
Department determines that essential air service will not be provided to 
the Freely Associated State in the absence of the payment of such 
compensation.
    (e) Except as permitted in paragraph (f) of this section, the 
Department shall select a U.S. air carrier or carriers to provide 
essential air service for compensation.
    (f) The Department may select a Freely Associated State Air Carrier, 
holding a foreign air carrier permit issued in accordance with subpart D 
of part 211 of this chapter, to provide essential air service for 
compensation, only if--
    (1) No U.S. air carrier is available to provide the required 
essential air service; or
    (2) The compensation necessary for the provision of the required 
essential air service would be substantially less than the compensation 
necessary if such essential air service were to be provided by a U.S. 
air carrier.
    (g) Any order of the Department selecting a Freely Associated State 
Air Carrier to provide such essential air service shall be submitted to 
the President of the United States not less than 10 days prior to its 
effective date and shall be subject to stay or disapproval by the 
President.
    (h) Among the criteria that will be considered by the Department in 
its determination of the carrier or carriers to be selected to perform 
the required essential air service are:
    (1) The desirability of developing an integrated linear system of 
air transportation whenever such a system most adequately meets the air 
transportation needs of the Freely Associated States concerned;
    (2) The experience of the applicant in providing scheduled air 
service in the vicinity of the Freely Associated States for which 
essential air service is proposed to be provided;
    (3) The amount of compensation that will be required to provide the 
proposed essential air service;
    (4) The impact of the proposed service on service provided to other 
Freely Associated State points; and
    (5) The views of the Governments of the Freely Associated States 
concerned.
    (i) The Department may from time to time, on its own motion, or upon 
application of any carrier or government, review and change its 
selection of a carrier to provide essential air service, or its 
determination as to the compensation necessary to provide such essential 
air service.

[[Page 221]]

    (j) All applications or other documents filed or issued in 
proceedings under this section shall be served upon the President of the 
Freely Associated State concerned and the Authorities designated by that 
Government(s) in accordance with Article II, paragraph 10, of the 
Federal Programs and Services Agreement supplemental to the Compact of 
Free Association, and such Government shall be a party to any such 
proceeding. In reaching its determination, the Department will carefully 
consider any views of such Government that have been submitted.

[Amdt. No. 272-1, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, 
Aug. 22, 1995]



Sec. 272.10  Conditions applicable to carriers serving a subsidized market.

    (a) The Department may, after providing an opportunity for comment 
by the carrier or carriers affected, impose service, fare or rate 
conditions on any U.S., Freely Associated State, foreign air carrier, or 
foreign carrier by air as a precondition to the payment of compensation 
necessary to maintain essential air service, whether or not the affected 
carrier is itself receiving subsidy compensation in the market, if it 
finds that:
    (1) Essential air service in a Freely Associated State market or 
markets will not be provided in the absence of the payment of 
compensation;
    (2) Specified service, rate or fare conditions are or will be 
necessary or desirable to minimize the required subsidy compensation; 
and
    (3) The imposition of such conditions will not unduly impair the 
service provided in the market.
    (b) To the extent the carrier or carriers upon whom the conditions 
are imposed pursuant to paragraph (a) of this section do not hold a 
certificate, permit, or other authority from the Department that may be 
amended to effectively implement the specified conditions, the 
Department may notify the Government(s) of the Freely Associated States 
concerned that the imposition of such conditions on those carriers by 
those Governments shall be a precondition to the payment of the subsidy 
compensation required to maintain essential air service in the market in 
question.
    (c) The Department may withhold or suspend its provision for the 
payment of subsidy compensation required to maintain essential air 
service unless and until the Freely Associated State(s) concerned take 
the necessary action to impose the specified conditions on the carriers 
referred to in paragraph (b) of this section, and those carriers have 
complied with the specified conditions.
    (d) Any order of the Department imposing conditions, or requiring 
the imposition of conditions, pursuant to this paragraph shall be 
submitted to the President for review not less than 10 days prior to its 
effective date, and shall be subject to stay or disapproval by the 
President.

[Amdt. No. 272-1, 52 FR 5443, Feb. 23, 1987, as amended at 60 FR 43525, 
Aug. 22, 1995]



Sec. 272.11  Effective date of provisions.

    The provisions of this part shall not become effective for Palau 
until the Compact of Free Association and Article IX of the Federal 
Programs and Services Agreement become effective for Palau.



Sec. 272.12  Termination.

    These provisions shall terminate on October 1, 1998, unless the 
program of essential air service to the Federated States of Micronesia, 
the Marshall Islands, and Palau is specifically extended by Congress.
    This amendment is issued under the authority of 49 CFR 1.57(l).

[Amdt. 272-2, 56 FR 1732, Jan. 7, 1991, as amended at 60 FR 43525, Aug. 
22, 1995]



PART 291_CARGO OPERATIONS IN INTERSTATE AIR TRANSPORTATION--Table of Contents




                            Subpart A_General

Sec.
291.1 Applicability.
291.2 Definitions.

           Subpart B_All-Cargo Air Transportation Certificates

291.10 Applications.

[[Page 222]]

        Subpart C_General Rules for All-Cargo Air Transportation

291.20 Applicability.
291.22 Aircraft accident liability insurance requirement.
291.23 Record retention.
291.24 Waiver of Department Economic Regulations.

      Subpart D_Exemptions for Cargo Operations in Interstate Air 
                             Transportation

291.30 General.
291.31 Exemptions from the Statute.

                        Subpart E_Reporting Rules

291.40 [Reserved]
291.41 Financial and statistical reporting--general.
291.42 Section 41103 financial and traffic reporting.
291.43 Statement of operation for section 41103 operations.
291.44 BTS Schedule P-12(e), Fuel Consumption by Type of Service and 
          Entity.
291.45 BTS Schedule T-100, U.S. Air Carrier Traffice and Capacity Data 
          by Nonstop Segment and On-Flight Market.

                          Subpart F_Enforcement

291.50 Enforcement.

                   Subpart G_Public Disclosure of Data

291.60 Public disclosure of data.

    Authority: 49 U.S.C. 329 and chapters 411 and 417.

    Source: ER-1080, 43 FR 53635, Nov. 16, 1978, unless otherwise noted.



                            Subpart A_General



Sec. 291.1  Applicability.

    This part applies to cargo operations in interstate air 
transportation by air carriers certificated under section 41102 or 41103 
of the Statute. It also applies to applicants for an all-cargo air 
transportation certificate under section 41103 of the Statute.

[60 FR 43525, Aug. 22, 1995]



Sec. 291.2  Definitions.

    All-cargo air transportation means the transportation by aircraft in 
interstate air transportation of only property or only mail, or both.
    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 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.
    Reporting carrier for Schedule T-100 purposes means the air carrier 
in operational control of the aircraft, i.e., the carrier that uses its 
flight crew under its own FAA operating authority.
    Section 41102 carrier means an air carrier certificated under 
section 41102 of the Statute to transport persons, property and mail or 
property and mail only.
    Section 41103 carrier means an air carrier holding a certificate 
issued under section 41103 of the Statute to provide all-cargo air 
transportation.
    Service, scheduled cargo means transport service operated pursuant 
to published flight schedules including extra sections. There is no 
requirement on the number of weekly flights nor is there a requirement 
that the schedule be published in the Official Airline Guide.
    Wet-Lease Agreement means an agreement under which one carrier 
leases an aircraft with flight crew to another air carrier.

[60 FR 43525, Aug. 22, 1995, as amended at 67 FR 49226, July 30, 2002]



           Subpart B_All-Cargo Air Transportation Certificates



Sec. 291.10  Applications.

    Applications for all-cargo air service certificates shall comply 
with the provisions of part 201 and subpart B of part 302 of this 
chapter with regard to filing procedures, and with the provisions of

[[Page 223]]

part 204 of this chapter with regard to evidentiary requirements.

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

[Docket No. 47582, 57 FR 38770, Aug. 27, 1992, as amended at 65 FR 6456, 
Feb. 9, 2000]



        Subpart C_General Rules for All-Cargo Air Transportation



Sec. 291.20  Applicability.

    The rules in this subpart apply to cargo operations in interstate 
air transportation performed by air carriers certificated under sections 
41102 or 41103 of the Statute. Section 41103 carriers that operate 
passenger-only or combination aircraft under section 41102, part 298 of 
this chapter, or other Department authority, must comply with the rules 
in this subpart in connection with cargo operations in interstate air 
transportation, whether provided on all-cargo or combination aircraft, 
operated pursuant to this authority or otherwise. In case a carrier may 
operate a particular flight under either a section 41102 certificate or 
a section 41103 certificate, the flight is presumed to be operated under 
the carrier's section 41103 authority.

[60 FR 43526, Aug. 22, 1995]



Sec. 291.22  Aircraft accident liability insurance requirement.

    No air carrier shall operate all-cargo aircraft or provide all-cargo 
air transportation unless such carrier has and maintains in effect 
aircraft accident liability coverage that meets the requirements of part 
205 of this chapter.

[ER-1255, 46 FR 52583, Oct. 27, 1981, as amended at 60 FR 43526, Aug. 
22, 1995]



Sec. 291.23  Record retention.

    (a) The provisions of 14 CFR part 249, Preservation of air carrier 
accounts, records and memoranda, shall apply to all carriers, except 
that records pertaining to transportation provided on aircraft eligible 
to be operated under part 298 of this title, and records concerning 
transportation outside the geographic scope of interstate air 
transportation, need not be maintained unless required by other 
Department regulations.
    (b) Each carrier shall retain for 1 year a copy of each rate sheet, 
airwaybill contract, and other document reflecting changed, new, or 
other previously unreported general or special prices or rules governing 
the carriage of freight in interstate air transportation (except mail), 
unless the transportation was performed in accordance with an effective 
tariff on file with the Department. Each carrier shall retain for 1 year 
a copy of any formula based on standard weight, mileage, or other method 
used to determine an individual airbill or contract.

(Approved by the Office of Management and Budget under control number 
3024-0022)

[ER-1080, 43 FR 53635, Nov. 16, 1978, as amended by ER-1270, 46 FR 
63220, Dec. 31, 1981; Docket No. 47582, 57 FR 38770, Aug. 27, 1992; 60 
FR 43526, Aug. 22, 1995]



Sec. 291.24  Waiver of Department Economic Regulations.

    Except for this part and those parts of the Department's Economic 
Regulations (parts 200 through 299 of this title) specifically referred 
to in this part, carriers providing cargo operations in interstate air 
transportation are, with respect to that transportation, relieved from 
all obligations imposed on air carriers by those economic regulations. 
Flights operated entirely within interstate air transportation shall be 
free from those obligations, even though they may also carry shipments 
to or from points outside that geographic area. This waiver shall not 
apply to the requirements of part 239 of this title.

[ER-1080, 43 FR 53635, Nov. 16, 1978, as amended by Docket No. 47582, 57 
FR 38770, Aug. 27, 1992; 60 FR 43526, Aug. 22, 1995]



      Subpart D_Exemptions for Cargo Operations in Interstate Air 
                             Transportation



Sec. 291.30  General.

    The following exemptions, except as otherwise specifically noted, 
apply only to cargo operations in interstate air transportation. They do 
not relieve a carrier from obligations derived from other 
transportation.

[ER-1080, 43 FR 53635, Nov. 16, 1978, as amended at 60 FR 43526, Aug. 
22, 1995]

[[Page 224]]



Sec. 291.31  Exemptions from the Statute.

    (a) Each section 41102 or 41103 air carrier providing cargo 
operations in interstate air transportation is, with respect to such 
transportation, exempted from the following portions of the Statute only 
if and so long as it complies with the provisions of this part and the 
conditions imposed herein, and to the extent necessary to permit it to 
conduct cargo operations in interstate air transportation:
    (1) Sections 41310, 41705,
    (2) Chapter 415, and
    (3) Chapter 419 for all-cargo operations under section 41103.
    (b) Each air carrier providing cargo operations in interstate air 
transportation under section 41103 of the Statute is exempted from the 
provisions of section 41106(a) of the Statute to the extent necessary to 
permit it to compete for and operate cargo charters in interstate air 
transportation for the Department of Defense under contracts of more 
than 30 days' duration.
    (c) The Department of Defense is exempted from section 41106(a) of 
the Statute to the extent necessary to permit it to negotiate and enter 
into contracts of more than 30 days' duration with any section 41103 
carrier for operation of cargo charters in interstate air 
transportation.

[60 FR 43526, Aug. 22, 1995]



                        Subpart E_Reporting Rules



Sec. 291.40  [Reserved]



Sec. 291.41  Financial and statistical reporting--general.

    (a) Carriers providing cargo operations in interstate air 
transportation that also conduct other operations under section 41102 
shall comply with the provisions of part 241 of this title.
    (b) Carriers providing cargo operations in interstate air 
transportation under section 41103 certificates shall comply with Sec. 
291.42.
    (c) Carriers providing cargo operations in interstate air 
transportation under section 41103, and also providing other services 
under part 298 of this title, shall report their cargo operations in 
interstate air transportation operations in accordance with Sec. 
291.42, and shall report all other traffic in accordance with the 
provisions of subpart F of part 298.

[ER-1080, 43 FR 53635, Nov. 16, 1978, as amended at 60 FR 43526, Aug. 
22, 1995]



Sec. 291.42  Section 41103 financial and traffic reporting.

    (a) General instructions. Carriers operating under section 41103 
certificates that are not subject to part 241 of this chapter shall file 
Form 291-A, ``Statement of Operations for Section 41103 Operations'', 
Schedule T-100, ``U.S. Air Carrier Traffic and Capacity Data by Nonstop 
Segment and On-Flight Market'', and Schedule P-12(a), ``Fuel Consumption 
by Type of Service and Entity'' with the Department's Bureau of 
Transportation Statistics (BTS).
    (1) A single copy of the BTS Form 291-A report shall be filed 
annually with the Office of Airline Information (OAI) for the year ended 
December 31, to be received on or before February 10 of the immediately 
following year. A single copy of the monthly BTS Schedule P-12(a) is due 
at OAI within 20 days after the end of each month. An electronic filing 
of the monthly Schedule T-100 is due at OAI within 30 days after the end 
of each month. Due dates falling on a Saturday, Sunday or Federal 
holiday will become effective on the next work day.
    (2) Reports required by this section shall be filed at the Office 
Airline Information, K-14, Room 4125, U.S. Department of Transportation, 
400 Seventh Street, SW., Washington, DC 20590-0001.
    (b) Statement of Operations and Statistics Summary for section 41103 
operations. This statement shall include the following elements:
    (1) Total operating revenue, categorized as follows:
    (i) Transport revenues from the carriage of property in scheduled 
and nonscheduled service;
    (ii) Transport revenue from the carriage of mail in scheduled and 
nonscheduled service; and
    (iii) Transport-related revenues.
    (2) Total operating expenses;
    (3) Operating profit or loss, computed by subtracting the total 
operating expenses from the total operating revenues; and

[[Page 225]]

    (4) Net income, computed by subtracting the total operating and 
nonoperating expenses, including interest expenses and income taxes, 
from the total operating and nonoperating revenues.
    (c) Summary of traffic and capacity statistics. This summary shall 
include the following elements:
    (1) Total revenue ton-miles, which are the aircraft miles flown on 
each flight stage times the number of tons of revenue traffic carried on 
that stage. They shall be categorized as follows:
    (i) Property; and
    (ii) Mail.
    (2) Revenue tons enplaned, reflecting the total revenue tons of 
cargo loaded on aircraft during the annual period;
    (3) Available ton-miles, reflecting the total revenue ton-miles 
available for all-cargo service during the annual period, and computed 
by multiplying aircraft miles flown on each flight stage by the number 
of tons of aircraft capacity available for that stage;
    (4) Aircraft miles flown, reflecting the total number of aircraft 
miles flown in cargo service during the annual period;
    (5) Aircraft departures performed, reflecting the total number of 
take-offs performed in cargo service during the annual period; and
    (6) Aircraft hours airborne, reflecting the aircraft hours of flight 
(from takeoff to landing) performed in cargo service during the annual 
period.

[ER-1350, 48 FR 32757, July 19, 1983, as amended by Docket No. 47582, 57 
FR 38770, Aug. 27, 1992; 60 FR 43526, Aug. 22, 1995; 60 FR 66726, Dec. 
26, 1995; 67 FR 49226, July 30, 2002]



Sec. 291.43  Statement of operation for section 41103 operations.

    Form 291-A contains the following data elements:
    (a) Total operating revenue, categorized as follows:
    (1) Transport revenues from the carriage of property in scheduled 
and nonscheduled service;
    (2) Transport revenues from the carriage of mail in scheduled and 
nonscheduled service; and
    (3) Transport-related revenues;
    (b) Total operating expenses;
    (c) Operating profit or loss, computed by subtracting the total 
operating expenses from the total operating revenues; and
    (d) Net income, computed by subtracting the total operating and 
nonoperating expenses, including interest expenses and income taxes, 
from the total operating and nonoperating revenues.

[Doc. No. OST 98-4043, 67 FR 49227, July 30 2002]



Sec. 291.44  BTS Schedule P-12(a), Fuel Consumption by Type of Service and Entity.

    (a) For the purposes of BTS schedule P-12(a), type of service shall 
be either scheduled service or nonscheduled service as those terms are 
defined in Sec. 291.45(c)(2) and (3).
    (b) For the purpose of this schedule, scheduled service shall be 
reported separately for:
    (1) Intra-Alaskan operations;
    (2) Domestic operations, which shall include all operations within 
and between the 50 States of the United States (except Intra-Alaska), 
the District of Columbia, the Commonwealth of Puerto Rico and the United 
States 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 United States Virgin Islands, or a 
U.S. territory or possession;
    (3) International operations are flight stages with one or both 
terminals outside the 50 States of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico and the United States Virgin 
Islands, or a U.S. territory or possession.
    (c) For the purpose of this schedule, nonscheduled service shall be 
reported separately for domestic operations and international operations 
as defined in paragraphs (b)(2) and (b)(3) of this section, except that 
domestic and international Military Airlift Command (MAC) operations 
shall be reported on separate lines.
    (d) The cost data reported on each line shall represent the average 
cost of fuel, as determined at the station level, consumed in that 
geographic entity.
    (e)(1) The cost of fuel shall include shrinkage, but excludes:
    (i) ``Throughput'' and ``in to plane'' fees, i.e., service charges 
or gallonage

[[Page 226]]

levies assessed by or against the fuel vendor or concessionaire and 
passed on to the carrier in a separately identifiable form; and
    (ii) Nonrefundable Federal and State excise taxes.
    (2) However, ``through-put'' and ``in to plane'' charges that cannot 
be identified or segregated from the cost of fuel shall remain a part of 
the cost of fuel as reported on this schedule.
    (f) Each air carrier shall maintain records for each station showing 
the computation of fuel inventories and consumption for each fuel type. 
The periodic average cost method shall be used in computing fuel 
inventories and consumption. Under this method, an average unit cost for 
each fuel type shall be computed by dividing the total cost of fuel 
available (Beginning Inventory plus Purchases) by the total gallons 
available. The resulting unit cost shall then be used to determine the 
ending inventory and the total consumption costs to be reported on this 
schedule.
    (g) Where amounts reported for a specific entity include other than 
Jet A fuel, a footnote shall be added indicating the number of gallons 
and applicable costs of such other fuel included in amounts reported for 
that entity.
    (h) Where any adjustment(s) recorded on the books of the carrier 
results in a material distortion of the current month's schedule, 
carriers shall file a revised Schedule P-12(a) for the month(s) 
affected.

[Doc. No. OST 98-4043, 67 FR 49227, July 30, 2002]



Sec. 291.45  BTS Schedule T-100, U.S. Air Carrier Traffic and Capacity Data by Nonstop Segment and On-Flight Market.

    (a) Each section 41103 all-cargo air carrier shall file Schedule T-
100, ``U.S. Air Carrier Traffic and Capacity Data by Nonstop Segment and 
On-Flight Market''.
    (b) Schedule T-100 shall be filed monthly.
    (1) Schedule T-100 collects summarized flight stage data and on-
flight market data for revenue flights. All traffic statistics shall be 
compiled in terms of each flight stage as actually performed. The detail 
T-100 data shall be maintained in such a manner as to permit monthly 
summarization and organization into two basic groupings. First, the 
nonstop segment information which is to be summarized by equipment type, 
within class of service, within pair-of-points, without regard to 
individual flight number. The second grouping requires that the 
enplanement/deplanement information be broken out into separate units 
called on-flight market records, which shall be summarized by class of 
service, within pair-of-points, without regard for equipment type or 
flight number.
    (2) Joint-service operations. 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.
    (i) Joint-service operations are reported by the carrier in 
operational control of the flight, i.e., the carrier that uses its 
flight crews under its own FAA operating authority. The traffic moving 
under these agreements is reported on Schedule T-100 the same way as any 
other traffic on the aircraft.
    (ii) If there are questions about reporting a joint-service 
operation, contact the BTS Assistant Director--Airline Information (fax 
no. 202 366-3383, telephone no. 202 366-4373). Joint-service operations 
are reported in Schedule T-100 in accordance with this paragraph (b).
    (iii) Operational control. The air carrier in operational control of 
the aircraft (the carrier that uses its flight crews under its own FAA 
operating authority) must report joint services.
    (c) Service classes.(1) The statistical classifications are designed 
to reflect the operating characteristics attributable to each 
distinctive type of service offered. The combination of scheduled and 
nonscheduled operations with passenger, all-cargo, and military services 
are placed into service classes as follows:

------------------------------------------------------------------------
               Code                           Type of service
------------------------------------------------------------------------
F................................  Scheduled Passenger/Cargo.
G................................  Scheduled All-Cargo.
L................................  Nonscheduled Civilian Passenger/Cargo/
 
P................................  Nonscheduled Civilian Cargo.
N................................  Nonscheduled Military Passenger/
                                    Cargo.

[[Page 227]]

 
R................................  Nonscheduled Military Cargo.
------------------------------------------------------------------------

    (2) Scheduled services include traffic and capacity elements 
applicable to air transportation provided pursuant to published 
schedules and extra sections of scheduled flights. Scheduled Passenger/
Cargo (Service Class F) is a composite of first-class, coach, and mixed 
passenger/cargo service.
    (3) Nonscheduled services 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.
    (d) Air transport traffic and capacity elements. Within each of the 
service classifications, carriers shall report air transport traffic and 
capacity elements. The elements are reported on segment and/or market 
records as follows:

------------------------------------------------------------------------
                                                             Computed by
   Code         Description         Segment       Market         DOT
------------------------------------------------------------------------
           Carrier, carrier      S             M
            entity code.
           Reporting period      S             M
            date.
           Origin airport code.  S             M
           Destination airport   S             M
            code.
           Service class code..  S             M
           Aircraft type code..  S
110        Revenue passengers                  M
            enplaned.
130        Revenue passengers    S
            transported.
140        Revenue passenger-                               CFD*
            miles.
210        Revenue cargo tons                               CFD*
            enplaned.
217        Enplaned freight....                M
219        Enplaned mail.......                M
230        Revenue tons                                     CFD*
            transported.
237        Transported freight.  S
239        Transported mail....  S
240        Revenue ton-miles...                             CFD*
241        Revenue ton-miles                                CFD*
            passenger.
247        Revenue ton-miles                                CFD*
            freight.
249        Revenue ton-miles                                CFD*
            mail.
270        Available capacity    S
            payload.
280        Available ton-miles.                             CFD*
310        Available seats,      S
            total.
320        Available seat-miles                             CFD*
410        Revenue aircraft                                 CFD*
            miles flown.
430        Revenue aircraft                                 CFD*
            miles scheduled.
501        Inter-airport                                    CFD*
            distance.
510        Revenue aircraft      S
            departures
            performed.
520        Revenue aircraft      S
            departures
            scheduled.
610        Revenue aircraft      S
            hours (airborne).
630        Aircraft hours (ramp- S
            to-ramp).
650        Total aircraft hours  S
            (airborne).
------------------------------------------------------------------------
* CFD = Computed by DOT from detail Schedule T-100 and T-100(f) data.

    (e) These reported items are further described as follows:
    (1) Reporting period date. The year and month to which the reported 
data are applicable.
    (2) Carrier, Carrier entity code. Each air carrier shall report its 
name and entity code (a five digit code assigned by BTS 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 Office of Airline Information, Bureau of 
Transportation Statistics, DOT, Room 4125, K-14, 400 Seventh Street, 
SW., Washington, DC 20590-0001.
    (3) Service class code. The service class codes are prescribed in 
section 298.45(c). In general, classes are divided into two broad 
categories, either scheduled or nonscheduled, where scheduled = F + G 
and nonscheduled = L + N + P + R.
    (4) Record type code. This code indicates whether the data pertain 
to non-stop 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 BTS' Accounting and Reporting Directives.
    (6) Origin, Destination airport code(s). These codes represent the 
industry designators. An industry source of these industry designator 
codes is the Official Airline Guide (OAG). OAI assigns 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.
    (8) 130 Revenue passengers transported. The total number of revenue 
passengers transported over a single flight stage, including those 
already on the aircraft from a previous flight stage.
    (9) 140 Revenue passenger-miles. Computed by multiplying the inter-
airport 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 228]]

Freight and 219 Mail. This element represents an unduplicated count of 
the revenue traffic in a market.
    (11) 217 Enplaned freight. The total weight of revenue freight 
enplaned at the origin point of a flight, loaded onto the flight for the 
first time; an unduplicated count of freight in a market.
    (12) 219 Enplaned mail. The total weight of mail enplaned at the 
origin point of a flight, loaded onto the flight for the first time; an 
unduplicated count of mail in a market.
    (13) 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.
    (14) 237 Transported freight. The total weight of freight 
transported over a single flight stage, including freight already on the 
aircraft from a previous flight stage.
    (15) 239 Transported mail. The total weight of mail transported over 
a single flight stage, including mail already on the aircraft from a 
previous flight stage.
    (16) 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.
    (17) 241 Revenue ton-miles--passenger. Equals the number of 
passengers times 200, times inter-airport distance, divided by 2000. A 
standard weight of 200 pounds per passenger, including baggage, is used 
for all operations and service classes.
    (18) 247 Revenue ton-miles--freight. Equals the volume of freight in 
whole tons times the inter-airport distance.
    (19) 249 Revenue ton-miles--mail. Equals the volume of mail in whole 
tons times the inter-airport distance.
    (20) 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.
    (21) 280 Available ton-miles. The aircraft miles flown on each 
flight stage multiplied by the available capacity on the aircraft in 
tons.
    (22) 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. In the domestic entity, 
report the total available seats in item 130. Scheduled and nonscheduled 
available seats are reported in item 130.
    (23) 320 Available seat-miles. The aircraft miles flown on each 
flight stage multiplied by the seat capacity available for sale.
    (24) 410 Revenue aircraft miles flown. Revenue aircraft miles flown 
are computed based on the airport pairs between which service is 
actually performed; miles are generated from the data for scheduled 
aircraft departures (Code 520) times the inter-airport distances (Code 
501).
    (25) 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.
    (26) 501 Inter-airport 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 inter-airport 
mileage may be obtained from the Office of Airline Information.
    (27) 510 Revenue aircraft departures performed. The number of 
revenue aircraft departures performed.
    (28) 520 Revenue aircraft departures scheduled. The number of 
revenue aircraft departures scheduled, whether or not actually 
performed.
    (29) 610 Revenue aircraft hours (airborne). The elapsed time, 
computed from the moment the aircraft leaves the ground until its next 
landing.
    (30) 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.
    (31) 650 Total aircraft hours (airborne). The elapsed time, computed 
from the

[[Page 229]]

moment the aircraft leaves the ground until it touches down at the next 
landing. This includes flight training, testing, and ferry flights.
    (f) Public availability of Schedule T-100 data. Detailed domestic 
on-flight market and nonstop segment data in Schedule T-100, except 
military data, shall be 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.

    Appendix to Sec. 291.45--Instructions to U.S. Air Carriers for 
          Reporting Traffic and Capacity Data on Schedule T-100

    (a) Format of reports--(1) Automatic Data Processing (ADP) magnetic 
tape. Refer to paragraph (d) of this appendix for instructions 
pertaining to mainframe and minicomputer reporting. The Department will 
issue ``Accounting and Reporting Directives'' to make necessary 
technical changes to these T-100 instructions. Technical changes which 
are minor in nature do not require public notice and comment.
    (2) Microcomputer diskette--(i) Optional specification. If an air 
carrier desires to use its personal computers (PC's), rather than 
mainframe or minicomputers to prepare its data submissions, the 
following specifications for filing data on diskette media apply.
    (ii) Reporting medium. Microcomputer ADP data submission of T-100 
information must be on IBM compatible disks. Carriers wishing to use a 
different ADP procedure must obtain written approval to do so from the 
BTS Assistant Director--Airline Information. Requests for approval to 
use alternate methods must disclose and describe the proposed data 
transmission methodology. Refer to paragraph (i) of this appendix for 
microcomputer record layouts.
    (iii) Microcomputer file characteristics. The files will be created 
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 (,) or tab. Numeric data 
elements that are recorded without editing symbols are also separated by 
a comma (,) or tab. The data are identified by their juxtaposition 
within a given record. Therefore, each record must contain the exact 
number of data elements, all of which must be juxtapositionally correct. 
Personal computer software including most spreadsheets, data base 
management programs, and BASIC are capable of producing files in this 
format.
    (b) Filing date for reports. The reports must be received at BTS 
within 30 days following the end of each reporting period.
    (c) Address for filing. Data Administration Division, K-14, Room 
4125, Office of Airline Information, Bureau of Transportation 
Statistics, U.S. Department of Transportation, 400 Seventh Street SW., 
Washington, DC 20590-0001.
    (d) ADP format for magnetic tape--(1) Magnetic tape specifications. 
IBM compatible 9-track EBCDIC recording. Recording density of 6250 or 
1600 bpi. The order of recorded information is:
    (i) Volume label.
    (ii) Header label.
    (iii) Data records.
    (iv) Trailer label.
    (2) [Reserved]
    (e) External tape label information. (1) Carrier name.
    (2) Report date.
    (3) File identification.
    (4) Carrier address for return of tape reel.
    (f) Standards. It is the policy of the Department to be consistent 
with the American National Standards Institute and the Federal Standards 
Activity in all data processing and telecommunications matters. It is 
our intention that all specifications in this application are in 
compliance with standards promulgated by these organizations.
    (g) Volume, header, and trailer label formats--(1) Use standard IBM 
label formats. The file identifier field of the header labels should be 
``T-100.SYSTEM''.
    (h) Magnetic tape record layouts for T-100--(1) Nonstop segment 
record layout.

------------------------------------------------------------------------
    Field No.     Positions        Mode               Description
------------------------------------------------------------------------
1...............         1   1T.............  Record type code (S =
                                               nonstop segment).
2...............       2-6   5T.............  Carrier entity code.
3...............      7-12   6T.............  Report date (YYYYMM).
4...............     13-15   3T.............  Origin airport code.
5...............     16-18   3T.............  Destination airport code.
6...............        19   1T.............  Service class code (F, G,
                                               L, N, P or R).
7...............     20-23   4T.............  Aircraft type code.
8...............     24-28   5N.............  Revenue departures
                                               performed (F, G, L, N, P,
                                               R510).
9...............     29-38   10N............  Available capacity payload
                                               (lbs) (F, G, L, N, P,
                                               R270).
10..............     39-45   7N.............  Available seats (F, L,
                                               N310).
11..............     46-52   7N.............  Passengers transported (F,
                                               L, N130).
12..............     53-62   10N............  Rev freight transported
                                               (F, G, L, N, P, R237) (in
                                               lbs).
13..............     63-72   10N............  Revenue mail transported
                                               (F, G, L, N, P, R239) (in
                                               lbs).
14..............     73-77   5N.............  Revenue aircraft
                                               departures scheduled (F,
                                               G520).
15..............     78-87   10N............  Rev hrs, ramp-to-ramp (F,
                                               G, L, N, P, R630) (in
                                               minutes).

[[Page 230]]

 
16..............     88-97   10N............  Rev hrs, airborne (F, G,
                                               L, N, P, R610) (in
                                               minutes).
------------------------------------------------------------------------
T=Text.
N=Numeric.

    (2) On-flight market record layout.

------------------------------------------------------------------------
    Field No.     Positions        Mode               Description
------------------------------------------------------------------------
1...............         1   1T.............  Record type: M = on-flight
                                               market record.
2...............       2-6   5T.............  Carrier entity code.
3...............      7-12   4T.............  Report date (YYYYMM).
4...............     13-15   3T.............  Origin airport code.
5...............     16-18   3T.............  Destination airport code.
6...............        19   1T.............  Service class code (F, G,
                                               L, N, P or R).
7...............     20-26   7N.............  Total passengers in market
                                               (F, L, N110).
8...............     27-36   10N............  Rev freight in market (F,
                                               G, L, N, P, R217) (in
                                               lbs).
9...............     37-46   10N............  Revenue mail in market (F,
                                               G, L, N, P, R219) (in
                                               lbs).
------------------------------------------------------------------------
T=Text.
N=numeric.

    (i) Record layouts for microcomputer diskettes. The record layouts 
for diskette are generally identical to those shown for magnetic tape, 
with the exception that delimiters (quotation marks, tabs and commas) 
are used to separate fields. It is necessary that the order of fields be 
maintained in all records.
    (1) File characteristics. The files will be created 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 (,) or tab. Numeric data 
elements that are recorded without editing symbols are also separated by 
a comma (,) or tab. The data are identified by their juxtaposition 
within a given record. Therefore, it is critical that each record 
contain the exact number of data elements, all of which must be 
juxtapositionally correct. PC software including most spreadsheets, data 
base management programs, and BASIC produce minidisk files in this 
format.
    (2) File naming conventions for diskettes. For microcomputer 
reports, each record type should be contained in a separate DOS file on 
the same physical diskette. The following DOS naming conventions should 
be followed:
    (i) Record type S = SEGMENT.DAT
    (ii) Record type M = MARKET.DAT

[Doc. No. OST 98-4043, 67 FR 49227, July 30, 2002]



                          Subpart F_Enforcement



Sec. 291.50  Enforcement.

    In case of any violation of any of the provisions of the Statute, or 
this part, or any other rule, regulation, or order issued under the 
Statute, the violator may be subject to a proceeding pursuant to section 
46101 of the Statute before the Department, or sections 46106 through 
46108 of the Statute before a U.S. District Court, as the case may be, 
to compel compliance therewith; or to civil penalties pursuant to the 
provisions of section 46301 of the Statute.

[60 FR 43526, Aug. 22, 1995]



                   Subpart G_Public Disclosure of Data



Sec. 291.60  Public disclosure of data.

    (a) Detailed domestic on-flight market data and nonstop segment 
data, except military data, 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. Domestic military 
operations are reported under service codes N or R.
    (b) Detailed international on-flight market and nonstop segment data 
in Schedule T-100 and Schedule T-100(f) reports, except military data, 
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. Military operations are reported 
under service codes N or R. 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

[[Page 231]]

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 period as follows:
    (1) To foreign governments as provided in reciprocal arrangements 
between the foreign country and the 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 an 
Administrative Law Judge or other decision-maker 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.
    (3) To agencies or other components of the U.S. Government for their 
internal use only.

[Doc. No. OST 98-4043, 67 FR 49230, July 30, 2002]



PART 292_INTERNATIONAL CARGO TRANSPORTATION--Table of Contents




                            Subpart A_General

Sec.
292.1 Applicability.
292.2 Definitions.

                 Subpart B_Exemption From Filing Tariffs

292.10 Exemption.
292.11 Revocation of exemption.

                      Subpart C_Effect of Exemption

292.20 Rule of construction.
292.21 Incorporation of contract terms by reference.
292.22 Effectiveness of tariffs on file.

    Authority: 49 U.S.C. 40101, 40105, 40109, 40113, 40114, 41504, 
41701, 41707, 41708, 41709, 41712, 46101; 14 CFR 1.56(j)(2)(ii).

    Source: Docket No. 48827, 60 FR 61478, Nov. 30, 1995, unless 
otherwise noted.



                            Subpart A_General



Sec. 292.1  Applicability.

    This part applies to direct air carriers providing scheduled 
transportation of cargo in foreign air transportation.



Sec. 292.2  Definitions.

    For purposes of this part:
    Cargo means property other than baggage accompanied or checked by 
passengers, or mail.
    Cargo tariff means a tariff containing rates, charges or provisions 
governing the application of such rates or charges, or the conditions of 
service, applicable to the scheduled transportation of cargo in foreign 
air transportation.
    Direct air carrier means an air carrier or foreign air carrier 
directly engaged in the operation of aircraft under a certificate, 
regulation, order, exemption or permit issued by the Department or its 
predecessor, the Civil Aeronautics Board.



                 Subpart B_Exemption From Filing Tariffs



Sec. 292.10  Exemption.

    Direct air carriers are exempted from the requirement to file cargo 
tariffs with the Department of Transportation provided in 49 U.S.C. 
41504 and 14 CFR Part 221.



Sec. 292.11  Revocation of exemption.

    (a) The Department, upon complaint or upon its own initiative, may, 
immediately and without hearing, revoke, in whole or in part, the 
exemption granted by this part with respect to a carrier or carriers, 
when such action is in the public interest.
    (b) Any such action will be taken in an order issued by the 
Assistant Secretary for Aviation and International Affairs, and will 
identify:
    (1) The tariff matter to be filed; and
    (2) The deadline for carrier compliance.
    (c) Revocations under this section will have the effect of 
reinstating all applicable tariff requirements and procedures specified 
in the Department's regulations for the tariff material to be

[[Page 232]]

filed, unless otherwise specified by Department order.



                      Subpart C_Effect of Exemption



Sec. 292.20  Rule of construction.

    Carriers holding an effective exemption from the duty to file 
tariffs under this part shall not, unless otherwise directed by order of 
the Department, be subject to tariff posting, notification or 
subscription requirements set forth in 49 U.S.C. 41504 or 14 CFR part 
221, except as provided in Sec. 292.21 of this part.



Sec. 292.21  Incorporation of contract terms by reference.

    (a) Carriers holding an effective exemption from the duty to file 
tariffs under this part may incorporate contract terms by reference 
(i.e. without stating their full text) into the waybill or other 
document embodying the contract of carriage for the scheduled 
transportation of cargo in foreign air transportation, provided that:
    (1) The notice, inspection, explanation and other requirements set 
forth in 14 CFR 221.177(a)(1), (a)(2), (a)(4), (b), (c) and (d) are 
complied with, to the extent applicable, except that the notice required 
under 14 CFR 221.177(b)(1) shall refer to the title or general nature of 
the publication(s) or document(s) containing the full text of the 
referenced terms rather than to ``terms and conditions filed in public 
tariffs with U.S. authorities'';
    (b) In addition to other remedies at law, a carrier may not claim 
the benefit as against a shipper or consignee of, and a shipper or 
consignee shall not be bound by, any contract term which is incorporated 
by reference under this part unless the requirements of paragraph (a)(1) 
of this section are complied with, to the extent applicable; and
    (c) The purpose of this section is to set uniform disclosure 
requirements, which preempt any State requirements on the same subject, 
for terms incorporated by reference into contracts of carriage for the 
scheduled transportation of cargo in foreign air transportation.



Sec. 292.22  Effectiveness of tariffs on file.

    (a) Cargo rate tariffs on file with the Department, including 
related classification and/or applicability rules, cease to be effective 
as tariffs under 49 U.S.C. 41504 and 41510, as well as under the 
provisions of 14 CFR Part 221, and they are canceled by operation of 
law.
    (b) As of March 1, 1996, all remaining cargo tariffs on file with 
the Department cease to be effective as tariffs under 49 USC 41504 and 
the provisions of 14 CFR part 221, and are cancelled by operation of 
law. Any such tariffs may be cancelled voluntarily prior to that date. 
With respect to terms expressly agreed in the contract of carriage, 
carriers, agents and other persons are relieved from the requirement of 
adherence to filed tariffs in 49 USC 41510 and the related provisions of 
14 CFR part 221 as of November 30, 1995.
    (c) Applications for filing and/or effectiveness of any cargo 
tariffs pending on November 30, 1995 are dismissed by operation of law. 
No new filings or applications will be permitted except as provided 
under Sec. 292.11.



PART 293_INTERNATIONAL PASSENGER TRANSPORTATION--Table of Contents




                            Subpart A_General

Sec.
293.1 Applicability.
293.2 Definitions.

               Subpart B_Exemption From Filing of Tariffs

293.10 Exemption.
293.11 Required statement.
293.12 Revocation of exemption.

                      Subpart C_Effect of Exemption

293.20 Rule of construction.
293.21 Incorporation of contract terms by reference.
293.22 Effectiveness of tariffs on file.

    Authority: 49 U.S.C. 40101, 40105, 40109, 40113, 40114, 41504, 
41701, 41707, 41708, 41709, 41712, 46101; 14 CFR 1.56(j)(2)(ii).

    Source: 64 FR 40674, July 27, 1999, unless otherwise noted.

[[Page 233]]



                            Subpart A_General



Sec. 293.1  Applicability.

    This part applies to air carriers and foreign air carriers providing 
scheduled transportation of passengers and their baggage in foreign air 
transportation.



Sec. 293.2  Definitions.

    For purposes of this part the definitions in Sec. 221.3 of this 
chapter apply.



                 Subpart B_Exemption From Filing Tariffs



Sec. 293.10  Exemption.

    (a) Air carriers and foreign air carriers are exempted from the duty 
to file passenger tariffs with the Department of Transportation, as 
required by 49 U.S.C. 41504 and 14 CFR part 221, as follows:
    (1) The Assistant Secretary for Aviation and International Affairs 
will, by notice, issue and periodically update a list establishing the 
following categories of markets:
    (i) In Category A markets, carriers are exempted from the duty to 
file all passenger tariffs unless they are nationals of countries listed 
in Category C, or are subject to the provisions of paragraph (c) of this 
section.
    (ii) In Category B markets, carriers are exempted from the duty to 
file all passenger tariffs except those setting forth one-way economy-
class fares and governing provisions thereto, unless they are nationals 
of countries listed in Category C, or are subject to the provisions of 
paragraph (c) of this section.
    (iii) In Category C markets, carriers shall continue to file all 
passenger tariffs, except as provided in Sec. 293.10(b);
    (2) The Assistant Secretary will list country-pair markets falling 
in Categories A and C, taking into consideration the factors in 
paragraphs (a)(2) (i) through (iv) of this section. All country-pair 
markets not listed in Categories A or C shall be considered to be in 
Category B and need not be specifically listed.
    (i) Whether the U.S. has an aviation agreement in force with that 
country providing double-disapproval treatment of prices filed by the 
carriers of the Parties;
    (ii) Whether the country's Government has disapproved or deterred 
U.S. carrier price leadership or matching tariff filings in any market;
    (iii) Whether the country's Government has placed significant 
restrictions on carrier entry or capacity in any market; and
    (iv) Whether the country's government is honoring the provisions of 
the bilateral aviation agreement and there are no significant bilateral 
problems.
    (b) By notice of the Assistant Secretary, new country-pair markets 
will be listed in the appropriate category, and existing country-pair 
markets may be transferred between categories.
    (c) Notwithstanding a determination that a country is in Category A 
or B, if the Assistant Secretary finds that effective price leadership 
opportunities for U.S. carriers are not available between that country 
and any third country, carriers that are nationals of such country may 
be required to file tariffs, as provided under part 221 or as otherwise 
directed in the notice, for some or all of their services between the 
U.S. and third countries.
    (d) Air carriers and foreign air carriers are exempted from the duty 
to file governing rules tariffs containing general conditions of 
carriage with the Department of Transportation, as required by 49 U.S.C. 
41504 and 14 CFR part 221. A description of the general conditions of 
carriage will be included in the Assistant Secretary's initial notice.
    (e) Notwithstanding paragraph (d) of this section, air carriers and 
foreign air carriers shall file and maintain a tariff with the 
Department to the extent required by 14 CFR 203.4 and other implementing 
regulations.
    (f) Authority for determining what rules are covered by paragraph 
(d) of this section and for determining the filing format for the 
tariffs required by paragraph (e) of this section is delegated to the 
Director of the Office of International Aviation.



Sec. 293.11  Required statement.

    Each governing rules tariff shall include the following statements:

[[Page 234]]

    (a) ``Rules herein containing general conditions of carriage are not 
part of the official U.S. D.O.T. tariff.''
    (b) ``The rules and provisions contained herein apply only to the 
passenger fares and charges that the U.S. Department of Transportation 
requires to be filed as tariffs.''



Sec. 293.12  Revocation of exemption.

    (a) The Department, upon complaint or upon its own initiative, may, 
immediately and without hearing, revoke, in whole or in part, the 
exemption granted by this part with respect to a carrier or carriers, 
when such action is in the public interest.
    (b) Any such action will be taken in a notice issued by the 
Assistant Secretary for Aviation and International Affairs, and will 
identify the tariff matter to be filed, and the deadline for carrier 
compliance.
    (c) Revocations under this section will have the effect of 
reinstating all applicable tariff requirements and procedures specified 
in the Department's Regulations for the tariff material to be filed, 
unless otherwise specified by the Department.



                      Subpart C_Effect of Exemption



Sec. 293.20  Rule of construction.

    To the extent that a carrier holds an effective exemption from the 
duty to file tariffs under this part, it shall not, unless otherwise 
directed by order of the Department, be subject to tariff posting, 
notification or subscription requirements set forth in 49 U.S.C. 41504 
or 14 CFR part 221, except as provided in Sec. 293.21.



Sec. 293.21  Incorporation of contract terms by reference.

    Carriers holding an effective exemption from the duty to file 
tariffs under this part may incorporate contract terms by reference 
(i.e., without stating their full text) into the passenger ticket or 
other document embodying the contract of carriage for the scheduled 
transportation of passengers in foreign air transportation, provided 
that:
    (a) The notice, inspection, explanation and other requirements set 
forth in 14 CFR 221.107, paragraphs (a), (b), (c) and (d) are complied 
with, to the extent applicable;
    (b) In addition to other remedies at law, a carrier may not claim 
the benefit under this section as against a passenger, and a passenger 
shall not be bound by incorporation of any contract term by reference 
under this part, unless the requirements of paragraph (a), of this 
section are complied with, to the extent applicable; and
    (c) The purpose of this section is to set uniform disclosure 
requirements, which preempt any State requirements on the same subject, 
for incorporation of terms by reference into contracts of carriage for 
the scheduled transportation of passengers in foreign air 
transportation.



Sec. 293.22  Effectiveness of tariffs on file.

    (a) One hundred and eighty days after the date of effectiveness of 
the Assistant Secretary's notice, passenger tariffs on file with the 
Department covered by the scope of the exemption will cease to be 
effective as tariffs under 49 U.S.C. 41504 and 41510, and the provisions 
of 14 CFR part 221, and will be canceled by operation of law.
    (b) One hundred and eighty days after the date of effectiveness of 
the Assistant Secretary's notice, pending applications for filing and/or 
effectiveness of any passenger tariffs covered by the scope of the 
exemption, will be dismissed by operation of law. No new filings or 
applications will be permitted after the date of effectiveness of the 
Assistant Secretary's notice except as provided under Sec. 293.12.



PART 294_CANADIAN CHARTER AIR TAXI OPERATORS--Table of Contents




                            Subpart A_General

Sec.
294.1 Applicability and purpose.
294.2 Definitions.
294.3 General requirements for Canadian charter air taxi operators.

                           Subpart B_Exemption

294.10 Exemption authority.

                  Subpart C_Registration for Exemption

294.20 Applying for registration.

[[Page 235]]

294.21 Procedure on receipt of registration form.
294.22 Notification to the Department of change in operations or 
          identifying information.

                 Subpart D_General Rules for Registrants

294.30 Scope of service and equipment authorized.
294.31 Use of business name.
294.32 Security arrangements for operating Public Charters.
294.33 Compliance with the regulations of the Federal Aviation 
          Administration.
294.34 Advance approval by the Department.

                    Subpart E_Insurance Requirements

294.40 Aircraft accident liability insurance requirements.

     Subpart F_Cancellation of Registration and Presidential Review

294.50 Cancellation, revocation, or suspension of registration.
294.51 Presidential review.

                  Subpart G_Authorizations and Waivers

294.60 Applications for authorization to conduct individual operations 
          or programs not otherwise permitted by this part.
294.61 Waivers.

                          Subpart H_Violations

294.70 Enforcement.

        Subpart I_Terms, Conditions, and Limitations of This Part

294.80 Waiver of sovereign immunity.
294.81 Local traffic prohibited.
294.83 Compliance with certain international agreements.
294.84 Air competency requirements.
294.85 Charterworthiness standards.
294.86 Industrial/agricultural/other nontransport air operations 
          prohibited.
294.87 Compliance with Canadian licenses.

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

    Source: ER-1257, 46 FR 52591, Oct. 27, 1981, unless otherwise noted.



                            Subpart A_General



Sec. 294.1  Applicability and purpose.

    This part establishes a classification of foreign air carriers known 
as ``Canadian charter air taxi operators,'' and establishes registration 
procedures for these carriers operating or seeking to operate 
transborder services between Canada and the United States. This part 
also exempts Canadian charter air taxi operators from certain provisions 
of the Subtitle VII of Title 49 of the United States Code 
(Transportation), and establishes rules applicable to their operations 
in the United States. This part does not provide exemption from the 
safety regulatory provisions of the Statute that are administered by the 
U.S. Department of Transportation through the Federal Aviation 
Administration (FAA), and Canadian charter air taxi operators in the 
conduct of their operations must observe all applicable safety standards 
and requirements.

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended at 60 FR 43526, Aug. 
22, 1995]



Sec. 294.2  Definitions.

    As used in this part:
    (a) Agreement means the Air Transport Agreement Between the 
Government of the United States and the Government of Canada, signed at 
Ottawa, February 24, 1995, with Annexes and any amendments, supplements, 
reservations, or supersessions to it.
    (b) Canadian charter air taxi operator means a foreign air carrier 
that is substantially owned and effectively controlled by Canadian 
citizens, the Government of Canada, or both, whose foreign air 
transportation operations are limited to charter air service between 
points in Canada and points in the United States, and that does not use 
large aircraft in those operations.
    (c) Charter air service means nonscheduled commercial air 
transportation of persons and their accompanied baggage, and of 
property, on a time, mileage, or trip basis where the entire planeload 
capacity of one or more aircraft has been engaged, or the transportation 
of mail by aircraft.
    (d) Large aircraft means any aircraft that are not small aircraft as 
defined in this section.
    (e) Maximum authorized takeoff weight has the meaning assigned to it 
in regulations of the Canadian Transport Commission.
    (f) Maximum certificated takeoff weight means the maximum takeoff 
weight authorized by the terms of the aircraft airworthiness 
certificate. This weight may be found in the airplane operating

[[Page 236]]

record or in the airplane flight manual that is incorporated by 
regulation into the airworthiness certificate.
    (g) Maximum passenger capacity means the maximum number of passenger 
seats for which an aircraft is configured.
    (h) Maximum payload capacity means the maximum certificated takeoff 
weight of an aircraft less the empty weight as defined in section 03 of 
part 241 of this chapter, less all justifiable aircraft equipment, and 
less the operating load (consisting of minimum fuel load, oil, flight 
crew, steward's supplies, etc.). For purposes of this part, the 
allowance for weight of the crew, oil and fuel is as follows:
    (1) Crew--200 pounds per crew member required under FAA regulations, 
(2) oil--350 pounds, (3) fuel--the minimum weight of fuel required under 
FAA regulations for a flight between domestic points 200 miles apart, 
assuming VFR weather conditions and flights not involving extended 
overwater operations. However, in the case of aircraft for which a 
maximum zero fuel weight is prescribed by the FAA, maximum payload 
capacity means the maximum zero fuel weight less the empty weight, less 
all justifiable aircraft equipment, and less the operating load 
(consisting of minimum flight crew, steward's supplies, etc., but not 
including disposable fuel or oil).
    (2) [Reserved]
    (i) Small aircraft means any aircraft designed to have:
    (1) A maximum passenger capacity of not more than 30 seats and a 
maximum payload capacity of not more than 7,500 pounds, and/or
    (2) maximum authorized takeoff weight on wheels not greater than 
35,000 pounds.

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Doc. No. 47939, 57 
FR 40102, Sept. 2, 1992; 60 FR 43526, Aug. 22, 1995; 71 FR 49347, Aug. 
23, 2006]



Sec. 294.3  General requirements for Canadian charter air taxi operators.

    A Canadian charter air taxi operator shall conduct charter air 
service between the United States and Canada only if it:
    (a) Has been registered by the Department under this part;
    (b) Does not directly or indirectly utilize large aircraft in 
charter air services;
    (c) Has and maintains in effect liability insurance coverage that 
complies with the requirements set forth in subpart E of this part and 
has and maintains a current certificate of insurance evidencing such 
coverage on file with the Department;
    (d) Has and maintains in effect and on file with the Department a 
signed counterpart of Agreement 18900 (OST Form 4523) and complies with 
all other requirements of part 203 of this chapter;
    (e) Has effective authority from the Government of Canada to conduct 
charter air service between the United States and Canada.
    (f) Has been granted Federal Aviation Administration operations 
specifications required under part 129 of the Federal Aviation 
Regulations;
    (g) Is substantially owned and effectively controlled by Canadian 
citizens, or the Government of Canada, or a combination of both; and
    (h) Complies with the terms, conditions, and limitations of this 
part.

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

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by ER-1332, 48 FR 8051, 
Feb. 25, 1983; ER-1342, 48 FR 31015, July 6, 1983; Docket No. 47939, 57 
FR 40102, Sept. 2, 1992; 71 FR 49347, Aug. 23, 2006]



                           Subpart B_Exemption



Sec. 294.10  Exemption authority.

    Canadian charter air taxi operators registered under this part are 
exempt from the following provisions of the Statute to the extent 
necessary to perform charter air service between the United States and 
Canada, and as long as they comply with the terms, conditions, and 
limitations of this part:
    (a) Section 41302 (permits).
    (b) Section 41501 (carrier's duty to observe reasonable rates).
    (c) Section 41310 (discrimination).

[[Page 237]]

    (d) Section 41313 (aviation disaster family assistance plans for 
foreign air carriers)

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended at 60 FR 43526, Aug. 
22, 1995; 71 FR 49347, Aug. 23, 2006]



                  Subpart C_Registration for Exemption



Sec. 294.20  Applying for registration.

    To apply for registration under this part, a Canadian charter air 
taxi operator shall file with the Department's Office of International 
Aviation, Special Authorities Division, the following:
    (a) A currently effective certificate of insurance (see Sec. 
294.40); and
    (b) Three copies of OST Forms 4523 and 4505, which may be obtained 
from the Department's Office of International Aviation, Special 
Authorities Division. All the information required by OST Form 4505 
shall be filled in, and it shall be certified by a responsible officer 
of the applicant Canadian charter air taxi operator.

(Approved by the Office of Management and Budget under control number 
3024-0051)

[ER-1257, 46 FR 52591, Oct. 27, 1981; 46 FR 62054, Dec. 22, 1981, as 
amended by ER-1363, 48 FR 46265, Oct. 12, 1983; Docket No. 47939, 57 FR 
40102, Sept. 2, 1992; 60 FR 43526, Aug. 22, 1995; 71 FR 49347, Aug. 23, 
2006]



Sec. 294.21  Procedure on receipt of registration form.

    (a) The Department will list the names and addresses of all persons 
applying for registration under this part in its Weekly Summary of 
Filings.
    (b) Any person objecting to the registration of a Canadian charter 
air taxi operator shall file an objection with the Office of 
International Aviation, Special Authorities Division, and serve a copy 
on the applicant within 28 days after the Department receives the 
properly completed registration application. Objections shall include 
any facts and arguments upon which they are based.
    (c) Any answers to objections shall be filed within 14 days after 
the date that the objections were due.
    (d) After receipt of OST Form 4505, the Department may request 
additional information.
    (e) After the period for objections and answers has expired, the 
Department will take one of the following actions:
    (1) Issue the registration by stamping its effective date on OST 
Form 4505 and sending a copy of it to the carrier.
    (2) Reject the application for failure to comply with this part;
    (3) Issue the registration subject to such terms, conditions, or 
limitations as may be consistent with the public interest; or
    (4) Institute evidentiary proceedings to consider whether the 
registration should be issued.
    (f) An action described in paragraph (e) of this section will 
normally be taken within 60 days after the registration application is 
received. The Department will consider requests for faster action that 
include a full explanation of the need for expedited action.
    (g) A registration shall not be issued until the Department receives 
evidence that the applicant has effective authority issued by the 
Government of Canada. The applicant must provide copies of its Air 
Carrier Operating certificate and non-scheduled international license 
issued by the Government of Canada.
    (h) Rejection of an application for registration will not preclude 
the filing of a new application by the same carrier.

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Docket No. 47939, 57 
FR 40102, Sept. 2, 1992; 60 FR 43526, Aug. 22, 1995; 71 FR 49347, Aug. 
23, 2006]



Sec. 294.22  Notification to the Department of change in operations or identifying information.

    Registrants shall refile a copy of OST Form 4505 with the 
Department's Office of International Aviation, Special Authorities 
Division, upon any of the following events. The refiling shall be sent 
by electronic mail, or other means, so as to be received by the 
Department not later than 30 days after the reported event has occurred.
    (a) The carrier changes its name. When a carrier refiles OST Form 
4505 to indicate a change of name:

[[Page 238]]

    (1) A registration ceases to be in effect unless the Government of 
Canada amends the registrant's Air Carrier Operating Certificate to 
reflect the registrant's new name within 60 days of the name change and 
the registrant submits to the Department a copy of its amended Canadian 
authority.
    (2) The registrant must also refile three copies of Agreement 18900 
(OST Form 4523) under its new name;
    (3) The registrant must also refile its certificate of insurance 
under its new name; and
    (4) The registrant must also advise the appropriate FAA office 
referred to in Sec. 294.33 of the carrier's new name.
    (b) The carrier changes its designated agent.
    (c) A change occurs in the carrier's ownership and control resulting 
in a person acquiring a beneficial or voting interest in the registrant 
of 10 percent or more. The name(s), address(es), citizenship(s), and 
percentages of ownership of the new owners shall be indicated on the 
form. Acquisition of ownership interest by persons who are not citizens 
of the country of citizenship of the registrant may invalidate the 
registration.
    (d) The carrier temporarily or permanently ceases operations.

(Approved by the Office of Management and Budget under control number 
3024-0051)

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by ER-1363, 48 FR 
46265, Oct. 12, 1983; Doc. No. 47939, 57 FR 40102, Sept. 2, 1992; 60 FR 
43526, Aug. 22, 1995; 71 FR 49347, Aug. 23, 2006]



                 Subpart D_General Rules for Registrants



Sec. 294.30  Scope of service and equipment authorized.

    (a) Upon fulfillment of the requirements of Sec. 294.3 of this 
part, the registrant will have Department authority to engage in charter 
air services between any point or points in Canada and any point or 
points in the United States using small aircraft.
    (b) Nothing in this part shall be construed as authorizing the 
operation of large aircraft in charter air service, and the exemption 
provided by this part to Canadian charter air taxi operators that 
register with the Department extends only to the direct operations of 
charter air service in accordance with the limitations and conditions of 
this part using aircraft designed to have:
    (1) A maximum passenger capacity of no more than 30 seats and a 
maximum payload capacity of no more than 7,500 pounds, and/or
    (2) A maximum authorized takeoff weight on wheels not greater than 
35,000 pounds.
    (c) A Canadian charter air taxi operator shall not use large 
aircraft for charter air service until it has been granted a permit by 
the Department under section 41302 of the Statute or granted an 
exemption under section 41701 of the Statute. Its application for such a 
permit or exemption should refer to the registration under this part. 
Registration under this part will be canceled when a section 41302 
permit has been granted by the Department for the use of large aircraft 
in foreign charter air service.

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Doc. No. 47939, 57 
FR 40102, Sept. 2, 1992; 60 FR 43526, Aug. 22, 1995]



Sec. 294.31  Use of business name.

    (a) A Canadian charter air taxi operator, in holding out charter air 
service to the public and performing its charter operations, shall do so 
only in the names in which its registration is issued under this part. 
The Department may require a Canadian charter air taxi operator to 
change such names where they appear to be inconsistent with the public 
interest.
    (b) [Reserved]



Sec. 294.32  Security arrangements for operating Public Charters.

    When a Canadian charter air taxi operator performs a Public Charter 
under part 380 of this chapter, either:
    (a) The Canadian charter air taxi operator shall meet the bonding or 
escrow requirements applicable to foreign air carriers as set forth in 
Sec. 212.8 of this chapter.
    (b) The Canadian charter air taxi operator shall ensure that it does 
not receive any payments for the charter until after the charter has 
been completed. In this case, its contracts with the charter operator 
and the charter operator's depository bank, if any,

[[Page 239]]

shall state that the charter operator or bank, as applicable, shall 
retain control of and responsibility for all participant funds intended 
for payment for charter air service until after the charter has been 
completed, notwithstanding any provision of part 380.

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Doc. No. 2006-25691, 
71 FR 49347, Aug. 23, 2006]



Sec. 294.33  Compliance with the regulations of the Federal Aviation Administration.

    (a) Registrants under this part shall obtain FAA operations 
specifications required under part 129 or other applicable rules of the 
Federal Aviation Regulations prior to beginning operations into the 
United States. Registrants should write to the FAA office at one of the 
following addresses to obtain instructions on how to apply for FAA 
authority.
    (b) If the registrant's business address is located on or east of 76 
degrees West Longitude (in or east of Ottawa, Ontario) it should write 
to: Federal Aviation Administration, General Aviation District Office 
No. 1, Albany County Airport, Albany, New York 12211.
    (c) If the registrant's business address is located on or east of 
100 degrees West Longitude (in or east of Winnipeg, Manitoba) and west 
of 76 degrees West Longitude (west of, but not including, Ottawa, 
Ontario) it should write to: Federal Aviation Administration, Flight 
Standards District Office, 1 Airport Way, Rochester, New York 14624.
    (d) If the registrant's business address is west of Winnipeg, 
Manitoba, it should write to: Federal Aviation Administration, General 
Aviation District Office, 1601 Lind Avenue, SW., Renton, Washington 
98055.

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Docket No. 47939, 57 
FR 40102, Sept. 2, 1992]



Sec. 294.34  Advance approval by the Department.

    The Department, by order or regulation and without hearing, may 
require advance approval of individual charter trips conducted by the 
registrant under the authority granted by this part, if it finds such 
action to be consistent with the public interest.



                    Subpart E_Insurance Requirements



Sec. 294.40  Aircraft accident liability insurance requirements.

    No Canadian charter air taxi operator shall engage in charter air 
service unless such carrier has and maintains in effect aircraft 
accident liability coverage that meets the requirements of part 205 of 
this chapter. Evidence of such insurance coverage, in the form of a 
certificate of insurance, as required in part 205 of this chapter, shall 
be maintained on file with the Department's Office of International 
Aviation, Special Authorities Division, at all times.

(Approved by the Office of Management and Budget under control number 
3024-0050)

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by ER-1342, 48 FR 
31015, July 6, 1983; Docket No. 47939, 57 FR 40102, Sept. 2, 1992; 60 FR 
43526, Aug. 22, 1995; 71 FR 49347, Aug. 23, 2006]



     Subpart F_Cancellation of Registration and Presidential Review



Sec. 294.50  Cancellation, revocation, or suspension of registration.

    The registration of a carrier subject to this part may be revoked, 
canceled, suspended, modified, or otherwise subjected to additional 
terms and conditions by the Department if:
    (a) The carrier files with the Department a written notice that it 
is discontinuing operations;
    (b) The carrier is the holder of a section 41302 permit to perform 
large aircraft charters under the Agreement;
    (c) Substantial ownership or effective control is acquired by 
persons who are not (1) citizens of Canada, (2) the Government of 
Canada, or (3) a combination of both;
    (d) The Government of Canada terminates or suspends authority it 
granted to the registrant to conduct charter air service between the 
United States and Canada.
    (e) The Agreement between the two countries is terminated;

[[Page 240]]

    (f) The registrant fails to have proper insurance coverage, or fails 
to file or keep a current insurance certificate on file with the 
Department;
    (g) The registrant fails to comply with the terms, conditions, or 
limitations of this part;
    (h) The carrier's operations specifications issued by the FAA are 
suspended or terminated;
    (i) The Department finds that it is in the public interest to do so.

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended at 60 FR 43526, Aug. 
22, 1995; 71 FR 49347, Aug. 23, 2006]



Sec. 294.51  Presidential review.

    A Department order under Sec. 294.50 (e), (g) or (i) shall be 
subject to stay or disapproval by the President within 60 days.



                  Subpart G_Authorizations and Waivers



Sec. 294.60  Applications for authorization to conduct individual operations or programs not otherwise permitted by this part.

    (a) Where the terms, conditions, or limitations of this part, 
particularly Sec. 294.81, require prior approval of individual flights 
or charter programs, the registrant shall apply for such approval by 
filing three copies of OST Form 4540 with the Office of International 
Aviation, Foreign Air Carrier Licensing Division. OST Form 4540 may be 
obtained from the Foreign Air Carrier Licensing Division.
    (b) Action on the application for authorization filed under 
paragraph (a) of this section will normally be taken within 30 days 
after the application is filed. The Department will consider requests 
for faster action that include a full explanation of the need for 
expedited action.

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Docket No. 47939, 57 
FR 40103, Sept. 2, 1992; 71 FR 49347, Aug. 23, 2006]



Sec. 294.61  Waivers.

    The Department upon application or on its own initiative may waive 
any of the provisions of this part if it finds such action to be in the 
public interest.



                          Subpart H_Violations



Sec. 294.70  Enforcement.

    In case of any violation of any of the provisions of the Statute, or 
this part, or any other rule, regulation, or order issued under the 
Statute, the violator may be subject to a proceeding under section 46101 
of the Statute before the Department, or sections 46106 through 46108 of 
the Statute before a U.S. District Court, as the case may be, to compel 
compliance; or to impose civil penalties under the provisions of section 
46301 of the Statute; or in the case of a willful violation, to impose 
criminal penalties under the provisions of section 46316 of the Statute; 
or to impose other lawful sanctions, including revocation of 
registration.

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended at 60 FR 43527, Aug. 
22, 1995]



        Subpart I_Terms, Conditions, and Limitations of This Part



Sec. 294.80  Waiver of sovereign immunity.

    By accepting an approved registration under this part, a registrant 
waives any right it may possess to assert any defense of sovereign 
immunity in any action or proceeding instituted against it in any court 
or other tribunal in the United States based upon any claim arising out 
of its operations under this part.



Sec. 294.81  Local traffic prohibited.

    (a) Except as set forth in paragraph (b) of this section or Sec. 
294.60, a registrant shall not carry passengers, cargo, or mail between 
two or more United States points for compensation or hire.
    (b) A registrant may grant stopover privileges at any point or 
points in the United States to passengers and their accompanied baggage 
as part of a single continuous operation to or from Canada.

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended by Doc. No. 2006-25691, 
71 FR 49347, Aug. 23, 2006]



Sec. 294.83  Compliance with certain international agreements.

    A registrant shall not operate any aircraft under this part unless 
it:

[[Page 241]]

    (a) Complies with operational safety requirements at least 
equivalent to Annex 6 of the Chicago Convention;
    (b) Complies with all applicable provisions of the Agreement; and
    (c) Complies with all applicable provisions of any treaty, 
convention, or agreement affecting international air transportation to 
which the United States and Canada are parties.



Sec. 294.84  Air competency requirements.

    Registrants shall conform to the airworthiness and airman competency 
requirements prescribed by the Government of Canada for Canadian 
international air service.



Sec. 294.85  Charterworthiness standards.

    (a) Registrants may perform U.S.-originating charters authorized 
under Annex B (III)(A) of the Agreement as follows: Commercial air 
transportation of passengers and their accompanied baggage, and of 
property, on a time, mileage, or trip basis, where the entire planeload 
capacity of one or more aircraft has been engaged by a person for his 
own use or by a person for the transportation of a group of persons and/
or their property, as agent or representative of such group, or other 
small aircraft operations as may be authorized under any amendments, 
supplements, reservations, or supersessions of the Agreement.
    (b) Registrants may perform Canadian-originating charters authorized 
by Annex B (III)(B) of the Agreement and any amendments, supplements, 
reservations or supersessions of it. Such charters may be performed only 
to the extent authorized by the Air Carrier Regulations of the Canadian 
Transport Commission applicable to operations by small aircraft.



Sec. 294.86  Industrial/agricultural/other nontransport air operations prohibited.

    A registrant shall not engage in flights for the purpose of 
industrial or agricultural operations (e.g., crop dusting, pest control, 
pipeline patrol, mapping, surveying, banner towing, skywriting, aerial 
photography) within the United States unless it has obtained a permit 
from the Department under part 375 of this chapter.



Sec. 294.87  Compliance with Canadian licenses.

    A registrant shall not, in the performance of operations authorized 
by this part, use any aircraft or conduct any operations except in 
accordance with the authority and conditions contained in the 
registrant's applicable Canadian licenses.



PART 296_INDIRECT AIR TRANSPORTATION OF PROPERTY--Table of Contents




                            Subpart A_General

Sec.
296.1 Purpose.
296.2 Applicability.
296.3 Indirect cargo air carrier.
296.4 Joint loading.
296.5 Agency relationships.
296.6 Public disclosure of cargo liability limits and insurance.

     Subpart B_Exemption for Indirect Air Transportation of Property

296.10 Exemption from the Statute.

                          Subpart C_Violations

296.20 Enforcement.

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

    Source: ER-1261, 46 FR 54727, Nov. 4, 1981, unless otherwise noted.



                            Subpart A_General



Sec. 296.1  Purpose.

    This part establishes rules for the indirect air transportation of 
property. It creates a class of air carriers to provide this air 
transportation and grants exemptions from certain provisions of the 
Subtitle VII of Title 49 of the United States Code (Transportation).

[ER-1257, 46 FR 52591, Oct. 27, 1981, as amended at 60 FR 43527, Aug. 
22, 1995]



Sec. 296.2  Applicability.

    This part applies to air transportation of property by indirect 
cargo air carriers, and to persons entering into control relationships 
with indirect cargo air carriers.



Sec. 296.3  Indirect cargo air carrier.

    An indirect cargo air carrier is any U.S. citizen who undertakes to 
engage indirectly in air transportation of

[[Page 242]]

property, an