[Title 14 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 1997 Edition]
[From the U.S. Government Printing Office]
14
Aeronautics and Space
[[Page i]]
PARTS 200 TO 1199
Revised as of January 1, 1997
CONTAINING
A CODIFICATION OF DOCUMENTS
OF GENERAL APPLICABILITY
AND FUTURE EFFECT
AS OF JANUARY 1, 1997
With Ancillaries
Published by
the Office of the Federal Register
National Archives and Records
Administration
as a Special Edition of
the Federal Register
[[Page ii]]
U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 1997
For sale by U.S. Government Printing Office
Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328
[[Page iii]]
Table of Contents
Page
Explanation................................................. v
Title 14:
Chapter II--Office of the Secretary, Department of
Transportation (Aviation Proceedings)................. 3
Chapter III--Commercial Space Transportation, Federal
Aviation Administration, Department of Transportation. 587
Finding Aids:
Table of CFR Titles and Chapters.......................... 603
Alphabetical List of Agencies Appearing in the CFR........ 619
List of CFR Sections Affected............................. 629
[[Page iv]]
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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.
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[[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.
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HOW TO USE THE CODE OF FEDERAL REGULATIONS
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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.
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Each volume of the Code contains amendments published in the Federal
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citations for the regulations are referred to by volume number and page
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inserted following the text.
OMB CONTROL NUMBERS
The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires
Federal agencies to display an OMB control number with their information
collection request.
[[Page vi]]
Many agencies have begun publishing numerous OMB control numbers as
amendments to existing regulations in the CFR. These OMB numbers are
placed as close as possible to the applicable recordkeeping or reporting
requirements.
OBSOLETE PROVISIONS
Provisions that become obsolete before the revision date stated on
the cover of each volume are not carried. Code users may find the text
of provisions in effect on a given date in the past by using the
appropriate numerical list of sections affected. For the period before
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Affected'' is published at the end of each CFR volume.
CFR INDEXES AND TABULAR GUIDES
A subject index to the Code of Federal Regulations is contained in a
separate volume, revised annually as of January 1, entitled CFR Index
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The Federal Register Index is issued monthly in cumulative form.
This index is based on a consolidation of the ``Contents'' entries in
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A List of CFR Sections Affected (LSA) is published monthly, keyed to
the revision dates of the 50 CFR titles.
REPUBLICATION OF MATERIAL
There are no restrictions on the republication of material appearing
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INQUIRIES
For a legal interpretation or explanation of any regulation in this
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Director,
Office of the Federal Register.
January 1, 1997.
[[Page vii]]
THIS TITLE
Title 14--Aeronautics and Space is composed of five volumes. The
parts in these volumes are arranged in the following order: parts 1-59,
60-139, 140-199, 200-1199, and part 1200-End. The first three volumes
containing parts 1-199 are comprised of chapter I--Federal Aviation
Administration, Department of Transportation (DOT). The fourth volume
containing parts 200-1199 is comprised of chapter II--Office of the
Secretary, DOT (Aviation Proceedings) and chapter III--Commercial Space
Transportation, Federal Aviation Administration, DOT. The fifth volume
containing part 1200-End is comprised of chapter V--National Aeronautics
and Space Administration. The contents of these volumes represent all
current regulations codified under this title of the CFR as of January
1, 1997.
Redesignation tables appear in the Finding Aids section of the
volume containing parts 60-139.
For this volume, Elizabeth N. Thomas was Chief Editor. The Code of
Federal Regulations publication program is under the direction of
Frances D. McDonald, assisted by Alomha S. Morris.
[[Page viii]]
[[Page 1]]
TITLE 14--AERONAUTICS AND SPACE
(This book contains parts 200 to 1199)
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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 and special services.......... 22
208 Terms, conditions and limitations of
certificates to engage in charter air
transportation.......................... 39
211 Applications for permits to foreign air
carriers................................ 59
212 Charter trips by foreign air carriers....... 65
213 Terms, conditions and limitations of foreign
air carrier permits..................... 84
214 Terms, conditions, and limitations of
foreign air carrier permits authorizing
charter transportation only............. 86
215 Use and change of names of air carriers,
foreign air carriers and commuter air
carriers................................ 86
216 Commingling of blind sector traffic by
foreign air carriers.................... 88
217 Reporting traffic statistics by foreign air
carriers in civilian scheduled, charter,
and nonscheduled services............... 90
218 Lease by foreign air carrier or other
foreign person of aircraft with crew.... 101
221 Tariffs..................................... 102
[[Page 4]]
222 Intermodal cargo services by foreign air
carriers................................ 196
223 Free and reduced-rate transportation........ 201
232 Transportation of mail, review of orders of
Postmaster General...................... 204
234 Airline service quality performance reports. 206
240 Inspection of accounts and property......... 210
241 Uniform system of accounts and reports for
large certificated air carriers......... 211
247 Direct airport-to-airport mileage records... 319
248 Submission of audit reports................. 319
249 Preservation of air carrier records......... 320
250 Oversales................................... 325
252 Smoking aboard aircraft..................... 329
253 Notice of terms of contract of carriage..... 331
254 Domestic baggage liability.................. 333
255 Carrier-owned computer reservations systems. 333
256 Display of joint operations in carrier-owned
computer reservations systems........... 338
271 Guidelines for subsidizing air carriers
providing essential air transportation.. 339
272 Essential air service to the Freely
Associated States....................... 341
291 Cargo operations in interstate air
transportation.......................... 346
292 International cargo transportation.......... 349
294 Canadian charter air taxi operators......... 350
296 Indirect air transportation of property..... 358
297 Foreign air freight forwarders and foreign
cooperative shippers associations....... 360
298 Exemptions for air taxi and commuter air
carrier operations...................... 363
SUBCHAPTER B--PROCEDURAL REGULATIONS
300 Rules of conduct in DOT proceedings under
this chapter............................ 376
302 Rules of practice in proceedings............ 383
303 Review of air carrier agreements............ 453
305 Rules of practice in informal nonpublic
investigations.......................... 458
310 Inspection and copying of DOT opinions,
orders, and records..................... 460
313 Implementation of the Energy Policy and
Conservation Act........................ 464
314 Employee Protection Program................. 466
[[Page 5]]
323 Terminations, suspensions, and reductions of
service................................. 469
325 Essential air service procedures............ 475
SUBCHAPTER C--[RESERVED]
SUBCHAPTER D--SPECIAL REGULATIONS
372 Overseas military personnel charters........ 478
374 Implementation of the Consumer Credit
Protection Act with respect to air
carriers and foreign air carriers....... 485
374a Extension of credit by airlines to Federal
political candidates.................... 486
375 Navigation of foreign civil aircraft within
the United States....................... 490
377 Continuance of expired authorizations by
operation of law pending final
determination of applications for
renewal thereof......................... 501
380 Public charters............................. 503
381 Special event tours......................... 526
382 Nondiscrimination on the basis of disability
in air travel........................... 527
SUBCHAPTER E--ORGANIZATION
385 Staff assignments and review of action under
assignments............................. 543
389 Fees and charges for special services....... 556
SUBCHAPTER F--POLICY STATEMENTS
398 Guidelines for individual determinations of
basic essential air service............. 562
399 Statements of general policy................ 565
[[Page 7]]
SUBCHAPTER A--ECONOMIC REGULATIONS
PART 200--DEFINITIONS AND INSTRUCTIONS--Table of Contents
Sec.
200.1 Terms and definitions.
200.2 Instructions.
Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417, 461.
Sec. 200.1 Terms and definitions.
Unless otherwise specifically stated, words and phrases other than
those listed in this section have the meaning defined in the Statute.
(a) Board or CAB means the Civil Aeronautics Board.
(b) Department or DOT means the Department of Transportation.
(c) Act means the Federal Aviation Act of 1958, as amended.
(d) Section refers to a section of the Statute or a section of the
regulations in this chapter, as indicated by the context. The terms this
section, pursuant to this section, in accordance with the provisions of
this section, and words of similar import when used in this chapter
refer to the section of this subchapter in which such terms appear.
(e) Rule, regulation, and order refer to the rules, regulations, and
orders prescribed by the Board or the Department pursuant to the
Statute.
(f) Statute when used in this chapter means Subtitle VII of Title 49
of the United States Code (Transportation).
(g) FAA means the Federal Aviation Administration, U.S. Department
of Transportation.
(h) BTS means the Bureau of Transportation Statistics, U.S.
Department of Transportation.
[Doc. No. 47939, 57 FR 40100, Sept. 2, 1992, as amended by Amdt. No.
OST-95-397, 60 FR 43523, Aug. 22, 1995; 60 FR 66722, Dec. 26, 1995]
Sec. 200.2 Instructions.
The regulations of the Department may be cited by section numbers.
For example, this regulation may be cited as ``Sec. 200.2 of the
Aviation Economic Regulations.'' The sections contained in the Rules of
Practice may also be cited by appropriate rule numbers. (See Sec. 302.2
of this chapter.) For example, 14 CFR 302.10 may be cited as ``rule 10
of the Rules of Practice.''
[Doc. No. 47939, 57 FR 40100, Sept. 2, 1992]
PART 201--AIR CARRIER AUTHORITY UNDER SUBTITLE VII OF TITLE 49 OF THE UNITED STATES CODE--[AMENDED]--Table of Contents
Subpart A--Application Procedures
Sec.
201.1 Formal requirements.
201.2 Amendments.
201.3 Incorporation by reference.
201.4 General provisions concerning contents.
201.5 Advertising and sales by applicants.
Subpart B--Certificate Terms, Conditions, and Limitations
201.6 Applicability.
201.7 General certificate conditions.
Authority: 5 U.S.C. 1008; 49 U.S.C. Chapters 401, 411, 413, 415,
417.
Source: Docket No. 47582, 57 FR 38765, Aug. 27, 1992, unless
otherwise noted.
Subpart A--Application Procedures
Sec. 201.1 Formal requirements.
(a) Applications for certificates of public convenience and
necessity under section 41102 of the Statute and for interstate all-
cargo air transportation certificates under section 41103 of the Statute
shall meet the requirements set forth in part 302 of this chapter as to
general requirements, execution, number of copies, service, and formal
specifications of papers.
(b) Any person desiring to provide air transportation as a commuter
air carrier must comply with the registration provisions of part 298 of
this chapter and submit data to support a fitness determination in
accordance with part 204 of this chapter. An executed original plus two
(2) true copies of the registration form and fitness data shall be
[[Page 8]]
filed with the Chief, Air Carrier Fitness Division.
(Approved by the Office of Management and Budget under control number
2106-0023)
[Docket No. 47582, 57 FR 38765, Aug. 27, 1992, as amended at 60 FR
43523, Aug. 22, 1995]
Sec. 201.2 Amendments.
If, after receipt of any application, the Department asks the
applicant to supply additional information, such information shall be
furnished in the form of a supplement to the original application.
Sec. 201.3 Incorporation by reference.
Incorporation by reference shall be avoided. However, where two or
more applications are filed by a single carrier, lengthy exhibits or
other documents attached to one may be incorporated in the others by
reference if that procedure will substantially reduce the cost to the
applicant.
Sec. 201.4 General provisions concerning contents.
(a) All pages of an application shall be consecutively numbered, and
the application shall clearly describe and identify each exhibit by a
separate number or symbol. All exhibits shall be deemed to constitute a
part of the application to which they are attached.
(b) All amendments to applications shall be consecutively numbered
and shall comply with the requirements of this part.
(c) Requests for authority to engage in interstate air
transportation shall not be included in the same application with
requests for authority to engage in foreign air transportation.
Similarly, requests for authority to engage in scheduled air
transportation under section 41102 of the Statute shall not be included
in the same application with requests for authority to engage in charter
air transportation under section 41102 of the Statute or with requests
for authority to engage in interstate all-cargo air transportation under
section 41103 of the Statute.
(d) Each application shall specify the type or types of service
(passengers, property or mail) to be rendered and whether such services
are to be rendered on scheduled or charter operations.
(e) Each application for foreign scheduled air transportation shall
include an adequate identification of each route for which a certificate
is desired, including the terminal and intermediate points to be
included in the certificate for which application is made.
(f) Each application shall give full and adequate information with
respect to each of the relevant filing requirements set forth in part
204 of this chapter. In addition, the application may contain such other
information and data as the applicant shall deem necessary or
appropriate in order to acquaint the Department fully with the
particular circumstances of its case; however, the statements contained
in an application shall be restricted to significant and relevant facts.
(Approved by the Office of Management and Budget under control number
2106-0023)
[Docket No. 47582, 57 FR 38765, Aug. 27, 1992, as amended at 60 FR
43523, Aug. 22, 1995]
Sec. 201.5 Advertising and sales by applicants.
(a) An applicant for new or amended certificate or commuter air
carrier authority shall not:
(1) Advertise, list schedules, or accept reservations for the air
transportation covered by its application until the application has been
approved by the Department; or
(2) Accept payment or issue tickets for the air transportation
covered by its application until the authority or amended authority has
become effective or the Department issues a notice authorizing sales.
(b) An applicant for new or amended certificate or commuter air
carrier authority may not advertise or publish schedule listings for the
air transportation covered by its application after the application has
been approved by the Department (but before all authority issued by DOT,
including the FAA, becomes effective) unless such advertising or
schedule listings prominently state: ``This service is subject to
receipt of government operating authority.''
[[Page 9]]
Subpart B--Certificate Terms, Conditions, and Limitations
Sec. 201.6 Applicability.
Unless the certificate or the order authorizing its issuance shall
otherwise provide, such terms, conditions and limitations as are set
forth in this part, and as may from time to time be prescribed by the
Department, shall apply to the exercise of the privileges granted by
each certificate issued under section 41102 or section 41103 of the
Statute.
[Docket No. 47582, 57 FR 38765, Aug. 27, 1992, as amended at 60 FR
43523, Aug. 22, 1995]
Sec. 201.7 General certificate conditions.
(a) It shall be a condition upon the holding of a certificate that
any intentional failure by the holder to comply with any provision of
Statute or any order, rule, or regulation issued thereunder or any term,
condition, or limitation of such certificate shall be a failure to
comply with the terms, conditions, and limitations of the certificate
within the meaning of section 41110 of the Statute even though the
failure to comply occurred outside the territorial limits of the United
States, except to the extent that such failure shall be necessitated by
an obligation, duty, or liability imposed by a foreign country.
(b) Failure to file the reports required by part 241, 291, or 298 of
this chapter shall be sufficient grounds to revoke a certificate.
(c) The authority to transport U.S. mail under a certificate is
permissive, unless the Department, by order or rule, directs a carrier
or class of carriers to transport mail on demand of the U.S. Postal
Service; such certificate confers no right to receive subsidy, for the
carriage of mail or otherwise.
(d) An all-cargo air transportation certificate shall confer no
right to carry passengers, other than cargo attendants accompanying a
shipment, or to engage in any air transportation outside the
geographical scope of interstate cargo transportation. Such certificate
shall not, however, restrict the right of the holder to provide
scheduled, charter, contract, or other transportation of cargo, by air,
within that geographical scope.
(e) It shall be a condition upon the holding of a certificate that
the holder have and maintain in effect and on file with the Department a
signed counterpart of Agreement 18900 (OST Form 4523), and a tariff (for
those carriers otherwise generally required to file tariffs) that
includes its terms, and that the holder comply with all other
requirements of part 203. OST Form 4523 may be obtained from the Office
of Aviation Analysis, Special Authorities Division.
[Docket No. 47582, 57 FR 38765, Aug. 27, 1992, as amended at 60 FR
43523, Aug. 22, 1995]
PART 203--WAIVER OF WARSAW CONVENTION LIABILITY LIMITS AND DEFENSES--Table of Contents
Sec.
203.1 Scope.
203.2 Applicability.
203.3 Filing requirements for adherence to Montreal Agreement.
203.4 Montreal Agreement as part of airline-passenger contract and
conditions of carriage.
203.5 Compliance as condition on operations in air transportation.
Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417.
Source: ER-1324, 48 FR 8044, Feb. 25, 1983, unless otherwise noted.
Sec. 203.1 Scope.
This part requires that certain U.S. and foreign direct air carriers
waive the passenger liability limits and certain carrier defenses in the
Warsaw Convention in accordance with the provisions of Agreement 18900,
dated May 13, 1966, and provides that acceptance of authority for, or
operations by the carrier in, air transportation shall be considered to
act as such a waiver by that carrier.
[ER-1324, 48 FR 8044, Feb. 25, 1983, as amended by Docket No. 47939, 57
FR 40100, Sept. 2, 1992]
Sec. 203.2 Applicability.
This part applies to all direct U.S. and foreign direct air
carriers, except for air taxi operators as defined in part
[[Page 10]]
298 of this chapter that (a) are not commuter air carriers, (b) do not
participate in interline agreements, and (c) do not engage in foreign
air transportation.
Sec. 203.3 Filing requirements for adherence to Montreal Agreement.
All direct U.S. and foreign air carriers shall have and maintain in
effect and on file in the Department's Documentary Services Division
(Docket 17325) on OST Form 4523 a signed counterpart to Agreement 18900,
an agreement relating to liability limitations of the Warsaw Convention
and Hague Protocol approved by CAB Order E-23680, dated May 13, 1966
(the Montreal Agreement), and a signed counterpart of any amendment or
amendments to such Agreement that may be approved by the Department and
to which the air carrier or foreign air carrier becomes a party. U.S.
air taxi operators registering under part 298 of this chapter and
Canadian charter air taxi operators registering under part 294 of this
chapter may comply with this requirement by filing completed OST Forms
4507 and 4523, respectively, with the Department's Office of Aviation
Analysis. Copies of these forms can be obtained from the Office of
Aviation Analysis, Special Authorities Division.
[Docket No. 47939, 57 FR 40100, Sept. 2, 1992, as amended at 60 FR
43523, Aug. 22, 1995]
Sec. 203.4 Montreal Agreement as part of airline-passenger contract and conditions of carriage.
(a) As required by the Montreal Agreement, carriers that are
otherwise generally required to file tariffs shall file with the
Department's Tariffs Division a tariff that includes the provisions of
the counterpart to Agreement 18900.
(b) As further required by that Agreement, each participating
carrier shall include the Agreement's terms as part of its conditions of
carriage. The participating carrier shall give each of its passengers
the notice required by the Montreal Agreement as provided in
Sec. 221.175 of this chapter.
(c) Participation in the Montreal Agreement, whether by signing the
Agreement, filing a signed counterpart to it under Sec. 203.3, or by
operation of law under Sec. 203.5, shall constitute a special agreement
between the carrier and its passengers as a condition of carriage that a
liability limit of not less than $75,000 (U.S.) shall apply under
Article 22(1) of the Warsaw Convention for passenger injury and death.
Such participation also constitutes a waiver of the defense under
Article 20(1) of the Convention that the carrier was not negligent.
(The reporting provisions contained in paragraph (a) were approved by
the Office of Management and Budget under control number 3024-0064.)
[ER-1324, 48 FR 8044, Feb. 25, 1983, as amended by ER-1338, 48 FR 31013,
July 6, 1983; Docket No. 47939, 57 FR 40100, Sept. 2, 1992]
Sec. 203.5 Compliance as condition on operations in air transportation.
It shall be a condition on the authority of all direct U.S. and
foreign carriers to operate in air transportation that they have and
maintain in effect and on file with the Department a signed counterpart
of Agreement 18900, and a tariff (for those carriers otherwise generally
required to file tariffs) that includes its provisions, as required by
this subpart. Notwithstanding any failure to file that counterpart and
such tariff, any such air carrier or foreign air carrier issued license
authority (including exemptions) by the Department or operating in air
transportation shall be deemed to have agreed to the provisions of
Agreement 18900 as fully as if that air carrier or foreign air carrier
had in fact filed a properly executed counterpart to that Agreement and
tariff.
[ER-1324, 48 FR 8044, Feb. 25, 1983, as amended by Docket No. 47939, 57
FR 40100, Sept. 2, 1992]
PART 204--DATA TO SUPPORT FITNESS DETERMINATIONS--Table of Contents
Subpart A--General Provisions
Sec.
204.1 Purpose.
204.2 Definitions.
Subpart B--Filing Requirements
204.3 Applicants for new certificate or commuter air carrier authority.
[[Page 11]]
204.4 Carriers proposing to provide essential air service.
204.5 Certificated and commuter air carriers undergoing or proposing to
undergo substantial change in operations, ownership, or
management.
204.6 Certificated and commuter air carriers proposing a change in
operations, ownership, or management which is not substantial.
204.7 Revocation for dormancy.
Authority: 49 U.S.C. Chapters 401, 411, 417.
Source: Docket No. 47582, 57 FR 38766, Aug. 27, 1992, unless
otherwise noted.
Subpart A--General Provisions
Sec. 204.1 Purpose.
This part sets forth the fitness data that must be submitted by
applicants for certificate authority, by applicants for authority to
provide service as a commuter air carrier to an eligible place, by
carriers proposing to provide essential air transportation, and by
certificated air carriers and commuter air carriers proposing a
substantial change in operations, ownership, or management. This part
also contains the procedures and filing requirements applicable to
carriers that hold dormant authority.
[Docket No. 47582, 57 FR 38766, Aug. 27, 1992, as amended at 60 FR
43523, Aug. 22, 1995]
Sec. 204.2 Definitions.
As used in this part:
(a) All-cargo air carrier or section 41103 carrier means an air
carrier holding an all-cargo air transportation certificate issued under
section 41103 of the Statute authorizing the transportation by aircraft
in interstate air transportation of only property or only mail, or both.
(b) Certificate authority means authority to provide air
transportation granted by the Department of Transportation or Civil
Aeronautics Board in the form of a certificate of public convenience and
necessity under section 41102 of the Statute or an all-cargo air
transportation certificate to perform all-cargo air transportation under
section 41103 of the Statute. Certificated carriers are those that hold
certificate authority.
(c) Citizen of the United States means:
(1) An individual who is a citizen of the United States;
(2) A partnership each of whose partners is an individual who is a
citizen of the United States; or
(3) A corporation or association organized under the laws of the
United States or a State, the District of Columbia, or a territory or
possession of the United States, of which the president and at least
two-thirds of the board of directors and other managing officers are
citizens of the United States, and in which at least 75 percent of the
voting interest is owned or controlled by persons that are citizens of
the United States.
(d) Commuter air carrier means an air carrier holding or seeking
authority under part 298 of this Chapter that carries passengers on at
least five round trips per week on at least one route between two or
more points according to its published flight schedules that specify the
times, days of the week, and places between which those flights are
performed.
(e) Eligible place means a place in the United States that--
(1) Was an eligible point under section 419 of the Federal Aviation
Act of 1958 as in effect before October 1, 1988;
(2) Received scheduled air transportation at any time between
January 1, 1990, and November 4, 1990; and
(3) Is not listed in Department of Transportation Orders 89-9-37 and
89-12-52 as a place ineligible for compensation under Subchapter II of
Chapter 417 of the Statute.
(f) Essential air service is that air transportation which the
Department has found to be essential under Subchapter II of Chapter 417
of the Statute.
(g) Fit means fit, willing, and able to perform the air
transportation in question properly and to conform to the provisions of
the Statute and the rules, regulations and requirements issued under the
Statute.
(h) Interstate air transportation means the transportation of
passengers or property by aircraft as a common carrier for compensation,
or the transportation of mail by aircraft--
(1) Between a place in--
(i) A State, territory, or possession of the United States and a
place in the
[[Page 12]]
District of Columbia or another State, territory, or possession of the
United States;
(ii) Hawaii and another place in Hawaii through the airspace over a
place outside Hawaii;
(iii) The District of Columbia and another place in the District of
Columbia; or
(iv) A territory or possession of the United States and another
place in the same territory or possession; and
(2) When any part of the transportation is by aircraft.
(i) Key personnel include the directors, president, chief executive
officer, chief operating officer, all vice presidents, the directors or
supervisors of operations, maintenance, and finance, and the chief pilot
of the applicant or air carrier, as well as any part-time or full-time
advisors or consultants to the management of the applicant or air
carrier.
(j) Normalized operations are those which are relatively free of
start-up costs and temporary barriers to full-scale operations posed by
the carrier's limited experience.
(k) Relevant corporations are the applicant or air carrier, any
subsidiary thereof, any predecessor thereof (i.e., any air carrier in
which any directors, principal officers or persons having a substantial
interest have or once had a substantial interest), and any company
(including a sole proprietorship or partnership) which has a significant
financial or managerial influence on the applicant or air carrier. The
latter includes:
(1) Any company (including a sole proprietorship or partnership)
holding more than 50 percent of the outstanding voting stock of the
applicant or air carrier; and
(2) Any company (including a sole proprietorship or partnership)
holding between 20 percent and 50 percent of the outstanding voting
stock of the applicant or air carrier as indicated, for example, by 25
percent representation on the board of directors, participation in
policy-making processes, substantial inter-company transactions, or
managerial personnel with common responsibilities in both companies.
(l) Substantial change in operations, ownership, or management
includes, but is not limited to, the following events:
(1) Changes in operations from charter to scheduled service, cargo
to passenger service, short-haul to long-haul service, or (for a
certificated air carrier) small-aircraft to large-aircraft operations;
(2) The filing of a petition for reorganization or a plan of
reorganization under Chapter 11 of the federal bankruptcy laws;
(3) The acquisition by a new shareholder or the accumulation by an
existing shareholder of beneficial control of 10 percent or more of the
outstanding voting stock in the corporation; and
(4) A change in the president, chief executive officer or chief
operating officer, and/or a change in at least half of the other key
personnel within any 12-month period or since its latest fitness review,
whichever is the more recent period.
(m) Substantial interest means beneficial control of 10 percent or
more of the outstanding voting stock.
[Docket No. 47582, 57 FR 38766, Aug. 27, 1992, as amended at 60 FR
43523, Aug. 22, 1995]
Subpart B--Filing Requirements
Sec. 204.3 Applicants for new certificate or commuter air carrier authority.
An applicant for a type of certificate authority it does not
currently hold or for commuter air carrier authority shall file the data
set forth in paragraphs (a) through (v) of this section. In addition,
the Department may require an applicant to provide additional data if
necessary to reach an informed judgment about its fitness. If the
applicant has previously formally filed any of the required data with
the Department or with another Federal agency and they are available to
the Department, and those data continue to reflect the current state of
the carrier's fitness, the applicant may instead identify the data and
provide a citation for the date(s) and place(s) of filing. Prior to
filing any data, the applicant may contact the Air Carrier Fitness
Division to ascertain what data required by this section are already
available to the Department and need not be included in the filing.
[[Page 13]]
Note: If the applicant intends to use as evidence data it has
previously filed pursuant to part 241 reporting requirements and those
data contain errors, the applicant must first file corrected reports in
accordance with Sec. 241.22(g).
(a) The name, address, and telephone number of the applicant.
(b) The form of the applicant's organization.
(c) The State law(s) under which the applicant is organized.
(d) If the applicant is a corporation, a statement provided by the
Office of the Secretary of State, or other agent of the State in which
the applicant is incorporated, certifying that the applicant corporation
is in good standing.
(e) A sworn affidavit stating that the applicant is a citizen of the
United States.
(f) The identity of the key personnel who would be employed by the
applicant, including:
(1) Their names and addresses;
(2) The experience, expertise, and responsibilities of each;
(3) The number of shares of the applicant's voting stock held by
each and the percentage of the total number of such shares issued and
outstanding, and the citizenship and principal business of any person
for whose account, if other than the holder, such interest is held;
(4) The citizenship of each; and
(5) A description of the officerships, directorships, shares of
stock (if 10 percent or more of total voting stock outstanding), and
other interests each holds or has held in any air carrier, foreign air
carrier, common carrier, person substantially engaged in the business of
aeronautics or persons whose principal business (in purpose or fact) is
the holding of stock in or control of any air carrier, common carrier or
person substantially engaged in the business of aeronautics.
(g) A list of all persons having a substantial interest in the
applicant. Such list shall include:
(1) Each person's name, address and citizenship;
(2) The number of shares of the applicant's voting stock held by
each such person and the corresponding percentage of the total number of
such shares issued and outstanding, and the citizenship and principal
business of any person for whose account, if other than the holder, such
interest is held;
(3) If any two or more persons holding a substantial interest in the
applicant are related by blood or marriage, such relationship(s) shall
be included in the list; and
(4) If any person or subsidiary of a person having a substantial
interest in the applicant is or has ever been
(i) An air carrier, a foreign air carrier, a common carrier, or
(ii) Substantially engaged in the business of aeronautics, or
(iii) An officer or director of any such entity, or
(iv) A holder of 10 percent or more of total outstanding voting
stock of any such entity, the list shall describe such relationship(s).
(h) A list of the applicant's subsidiaries, if any, including a
description of each subsidiary's principal business and relationship to
the applicant.
(i) A list of the applicant's shares of stock in, or control of, any
air carrier, foreign air carrier, common carrier, or person
substantially engaged in the business of aeronautics.
(j) To the extent any relevant corporation has been engaged in any
business prior to the filing of the application, each applicant shall
provide:
(1) Copies of the 10K Annual Reports filed in the past 3 years by
any relevant corporation required to file such reports with the
Securities and Exchange Commission, and
(2) Copies of recently filed 10Q Quarterly Reports, as necessary, in
order to show the financial condition and results of operations of the
enterprise current to within 3 months of the date of the filing of the
application.
(k) If 10K Reports are not filed with the Securities and Exchange
Commission, the following, for the 3 most recent calendar or fiscal
years, reflecting the financial condition and results of operations of
the enterprise current to within 3 months of the date of the filing of
the application:
(1) The Balance Sheet of each relevant corporation;
(2) The Income Statement of each relevant corporation;
(3) All footnotes applicable to the financial statements, including:
[[Page 14]]
(i) A statement as to whether the documents were prepared in
accordance with Generally Accepted Accounting Principles, and
(ii) A description of the significant accounting policies of each
relevant corporation, such as for depreciation, amortization of
intangibles, overhauls, unearned revenues, and cost capitalization;
(4) A statement of significant events occurring subsequent to the
most recent Balance Sheet date for each relevant corporation; and
(5) A statement identifying the person who has prepared the
financial statements, his or her accounting qualifications, and any
affiliation he or she has with the applicant.
(l) A list of all actions and outstanding judgments for more than
$5,000 against any relevant corporation, key personnel employed (or to
be employed) by any relevant corporation, or person having a substantial
interest in any relevant corporation, including the amount of each
judgment, the party to whom it is payable, and how long it has been
outstanding.
(m) The number of actions and outstanding judgments of less than
$5,000 against each relevant corporation, key personnel employed (or to
be employed) by any relevant corporation, or person having a substantial
interest in any relevant corporation, and the total amount owed by each
on such judgments.
(n) A description of the applicant's fleet of aircraft, including:
(1) The number of each type of aircraft owned, leased and to be
purchased or leased;
(2) Applicant's plans, including financing plans, for the purchase
or lease of additional aircraft; and
(3) A sworn affidavit stating that each aircraft owned or leased has
been certified by the FAA and currently complies with all FAA safety
standards.
(o) A description of the current status of all pending
investigations, enforcement actions, and formal complaints filed by the
Department, including the FAA, involving the applicant or any relevant
corporation, any personnel employed (or to be employed) by any relevant
corporation or person having a substantial interest in any relevant
corporation, regarding compliance with the Statute or orders, rules,
regulations, or requirements issued pursuant to the Statute, and any
corrective actions taken. (If an applicant has a compliance history that
warrants it, additional information may be required.)
(p) A description of all charges of unfair or deceptive or
anticompetitive business practices, or of fraud, felony or antitrust
violation, brought against any relevant corporation or person having a
substantial interest in any relevant corporation, or member of the key
personnel employed (or to be employed) by any relevant corporation in
the past 10 years. Such descriptions shall include the disposition or
current status of each such proceeding.
(q) A description of any aircraft accidents or incidents (as defined
in the National Transportation Safety Board Regulations, 49 CFR 830.2)
experienced by the applicant, its personnel, or any relevant
corporation, which occurred either during the year preceding the date of
application or at any time in the past and which remain under
investigation by the FAA, the NTSB, or by the company itself, including:
(1) The date of the occurrence;
(2) The type of flight;
(3) The number of passengers and crew on board and an enumeration of
any injuries or fatalities;
(4) A description of any damage to the aircraft;
(5) The FAA and NTSB file numbers and the status of the
investigations, including any enforcement actions initiated against the
carrier or any of its personnel; and
(6) Positive actions taken to prevent recurrence. (If an applicant's
history of accidents or incidents warrants it, additional information
may be required.)
(r) A brief narrative history of the applicant.
(s) A description of all Federal, State and foreign authority under
which the applicant has conducted or is conducting transportation
operations, and the identify of the local FAA office and personnel
responsible for processing an application for any additional FAA
authority needed to conduct the proposed operations.
[[Page 15]]
(t) A description of the service to be operated if the application
is granted, including:
(1) A forecast Balance Sheet for the first normal year ending after
the initially proposed operations have been incorporated, along with the
assumptions underlying the accounts and amounts shown; and
(2) A forecast Income Statement, broken down by quarters, for the
first year ending after the initially proposed operations are
normalized, and an itemization of all pre-operating and start-up costs
associated with the initiation of the proposed service. Such Income
Statement shall include estimated revenue block hours (or airborne
hours, for charter operators) and revenue miles by type of aircraft,
number of passengers and number of tons of mail and cargo to be carried,
transport revenues and an estimate of the traffic which would be
generated in each market receiving the proposed service. Such statements
shall also include a statement as to whether the statements were
prepared on the accrual or cash basis, an explanation of how the
estimated costs and revenues were developed, a description of the manner
in which costs and revenues are allocated, how the underlying traffic
forecasts were made, and what load factor has been assumed for the
average and peak month. Pre-operating and start-up costs should include,
but are not limited to, the following: Obtaining necessary government
approval; establishing stations; introductory advertising; aircraft,
equipment and space facility deposits and rent; training; and salaries
earned prior to start-up.
(u) A signed counterpart of Agreement 18900 (OST Form 4523) as
required by part 203 of this chapter.
(v) The following certification, which shall accompany the
application and all subsequent written submissions filed by the
applicant in connection with its application:
Pursuant to title 18 United States Code section 1001, I [the
individual signing the application, who shall be a principal owner,
senior officer, or internal counsel of the applicant], in my individual
capacity and as the authorized representative of the applicant, have not
in any manner knowingly and willfully falsified, concealed or covered up
any material fact or made any false, fictitious, or fraudulent statement
or knowingly used any documents which contain such statements in
connection with the preparation, filing or prosecution of the
application. I understand that an individual who is found to have
violated the provisions of 18 U.S.C. section 1001 shall be fined nor
more than $10,000 or imprisoned not more than five years, or both.
(The reporting requirements contained in this section were approved by
the Office of Management and Budget under control number 2106-0023)
[Docket No. 47582, 57 FR 38766, Aug. 27, 1992, as amended at 60 FR
43524, Aug. 22, 1995]
Sec. 204.4 Carriers proposing to provide essential air service.
Applicants proposing to provide essential air service have been
divided into two categories, and are subject to differing data
submission requirements as set forth in paragraphs (a) and (b) of this
section. However, if a carrier has previously filed any of the required
data with the Department or other Federal agency and they are available
to the Department, and these data continue to reflect the current state
of the carrier's fitness, the carrier may instead identify the data and
provide a citation for the date and place of filing. All carriers may
contact the Air Carrier Fitness Division to ascertain what information
is already available to the Department and thus may not need to be
resubmitted.
(a) Carriers who propose to begin or expand non-subsidized essential
air service when the incumbent leaves the market must file the following
information:
(1) All of the information required under Sec. 204.3 of this part.
(2) A description of the back-up aircraft available to the
applicant, including:
(i) The number of each type of such aircraft;
(ii) The conditions under which such aircraft will be available to
the carrier;
(iii) The carrier's plans for financing the acquisition or lease of
such additional aircraft; and
(iv) A sworn affidavit stating that all such aircraft have been
certified by the FAA and currently comply with all FAA safety standards.
(3) A description of the fuel available to perform the proposed
essential air
[[Page 16]]
services and the carrier's contracts with fuel suppliers.
(4) The carrier's systemwide on-time and completion record for the
preceding year and, if applicable, in the subject market(s).
(5) A list of the markets the carrier serves and the number of
weekly round trips it provides in each.
(6) A description of the average number of block hours each type of
aircraft is currently flown per day.
(7) An estimate of the impact the proposed essential air service
would have on the carrier's utilization of its aircraft fleet.
(8) A detailed schedule of the service to be provided, including
times of arrivals and departures, the aircraft to be used for each
flight, and the fares to be charged.
(9) A pro-forma income statement for the proposed operation for the
first annual period.
(b) Carriers filing proposals to provide subsidized service in
response to an order inviting proposals shall file:
(1) All of the information required under Sec. 204.3 of this part.
(2) All of the information required under paragraph (a) of this
section.
(3) A forecast Income Statement covering the operations conducted in
essential air service for the first year following the initiation of the
proposed essential services. Such statement shall include:
(i) Subsidy needed;
(ii) Estimated block hours and revenue miles by type of aircraft;
(iii) Total projected revenue including volumes of passengers and
freight by essential air service market and the associated fares and
rates;
(iv) An explanation of the derivation of estimates of operating
expenses; and
(v) A description of the manner in which costs and revenues are
allocated.
(4) A traffic forecast including a load factor analysis on all
segments between the small community and the hub; and an estimate of the
number of seats available to and from the eligible point each day.
(Approved by the Office of Management and Budget under control number
2106-0023)
[Docket No. 47582, 57 FR 38766, Aug. 27, 1992, as amended at 60 FR
43524, Aug. 22, 1995]
Sec. 204.5 Certificated and commuter air carriers undergoing or proposing to undergo substantial change in operations, ownership, or management.
(a) A certificated or commuter air carrier proposing a substantial
change in operations, ownership or management shall file the data set
forth in Sec. 204.3. These data must be submitted in cases where:
(1) The proposed change requires new or amended authority, or
(2) Although the carrier's existing certificate or commuter
authority is adequate for the performance of its planned services, the
change substantially alters the factors upon which its latest fitness
finding is based.
(b) Information which a carrier has previously formally filed with
the Department, or with another Federal agency where they are available
to the Department, which continues to reflect the current state of the
carrier's fitness may be omitted. The carrier instead should identify
the data and provide a citation for the date(s) and place(s) of filing.
Prior to filing any data, the carrier may contact the Department (Air
Carriers Fitness Division) to ascertain what data required by this
section, if any, are already available to the Department or are not
applicable to the substantial change in question and need not be
included in the filing.
(c) Information filings pursuant to this section made to support an
application for new or amended certificate authority shall be filed with
the application and addressed to the Documentary Services Division,
Department of Transportation, 400 Seventh Street, SW., Washington, DC
20590. Information filed in support of a certificated or commuter air
carrier's continuing fitness to operate under its existing authority in
light of substantial changes in its operations, ownership or management
shall be addressed to the Chief, Air Carrier Fitness Division,
Department of Transportation, 400 Seventh Street, SW., Washington, DC
20590.
(Approved by the Office of Management and Budget under control number
2106-0023)
[[Page 17]]
Sec. 204.6 Certificated and commuter air carriers proposing a change in operations, ownership, or management which is not substantial.
Carriers proposing to make a change which would not substantially
affect their operations, management, or ownership, such as certificated
carriers applying for additional authority which would not substantially
change their operations, will be presumed to be fit and need not file
any information relating to their fitness at time of the change.
However, if the Department concludes, from its own analysis or based on
information submitted by third parties, that such change may bring the
carrier's fitness into question, the Department may require the
applicant carrier to file additional information.
Sec. 204.7 Revocation for dormancy.
(a) An air carrier that has not commenced any type of air
transportation operations for which it was found fit, willing, and able
within one year of the date of that finding, or an air carrier that, for
any period of one year after the date of such a finding, has not
provided any type of air transportation for which that kind of finding
is required, is deemed no longer to continue to be fit to provide the
air transportation for which it was found fit and, accordingly, its
authority to provide such air transportation shall be revoked.
(b) An air carrier found fit which commences operations within one
year after being found fit but then ceases operations, shall not resume
operations without first filing all of the data required by Sec. 204.3
at least 45 days before it intends to provide any such air
transportation. Such filings shall be addressed to the Documentary
Services Division, Department of Transportation, 400 Seventh Street,
SW., Washington, DC 20590. The Department will entertain requests for
exemption from this 45-day advance filing requirement for good cause
shown. If there has been no change in fitness data previously formally
filed with the Department, the carrier shall file a sworn statement to
that effect signed by one of its officers. The carrier may contact the
Department (Air Carrier Fitness Division) to ascertain which data are
already available to the Department and need not be refiled. A carrier
to which this paragraph applies shall not provide any air transportation
for which it is required to be found fit, willing, and able until the
Department decides that the carrier continues to be fit, willing, and
able to perform such air transportation. During the pendency of the
Department's consideration of a data submission under this paragraph,
the expiration period set out in paragraph (a) of this section shall be
stayed. If the decision or finding by the Department on the issue of the
carrier's fitness is favorable, the date or that decision or finding
shall be the date considered in applying paragraph (a) of this section.
(c) For purposes of this section, the date of a Department decision
or finding shall be the service date of the Department's order
containing such decision or finding, or, in cases where the Department's
decision or finding is made by letter, the date of such letter.
(d) For purposes of this section, references to operations and to
the providing of air transportation shall refer only to the actual
performance of flight operations under an operating certificate issued
to the carrier by the FAA.
(Approved by the Office of Management and Budget under control number
2106-0023)
PART 205--AIRCRAFT ACCIDENT LIABILITY INSURANCE--Table of Contents
Sec.
205.1 Purpose.
205.2 Applicability.
205.3 Basic requirements.
205.4 Filing of evidence of insurance.
205.5 Minimum coverage.
205.6 Prohibited exclusions of coverage.
205.7 Cancellation, withdrawal, modification, expiration, or
replacement of insurance coverage.
205.8 Cargo liability disclosure statement.
Authority: 49 U.S.C. Chapters 401, 411, 413, 417.
Source: ER-1253, 46 FR 52577, Oct. 27, 1981, unless otherwise noted.
Sec. 205.1 Purpose.
This part contains the rules for aircraft accident liability
insurance coverage needed by U.S. direct air carriers to obtain or to
exercise authority from
[[Page 18]]
the Department to operate in interstate or foreign air transportation,
and by foreign direct air carriers to operate under permit or other
authority in foreign air transportation. It further requires a
disclosure statement to shippers about cargo liability limits and
insurance coverage for U.S. and foreign direct air carriers.
[ER-1253, 46 FR 52577, Oct. 27, 1981, as amended by Docket No. 47939, 57
FR 40100, Sept. 2, 1992; Doc. No. OST-96-1269, 61 FR 19165, May 1, 1996]
Sec. 205.2 Applicability.
These rules apply to all U.S. direct air carriers, including
commuter air carriers and air taxi operators as defined in Sec. 298.2 of
this chapter, and foreign direct air carriers, including Canadian
charter air taxi operators as defined in Sec. 294.2(c) of this chapter.
[Docket No. 47939, 57 FR 40100, Sept. 2, 1992]
Sec. 205.3 Basic requirements.
(a) A U.S. or foreign direct air carrier shall not engage in air
transportation unless it has in effect aircraft accident liability
insurance coverage that meets the requirements of this part for its air
carrier or foreign air carrier operations. The minimum amounts of
coverage required by this part may be provided either by insurance
policies or by self-insurance plans. The currently effective policy of
insurance or complete plan for self-insurance shall be available for
inspection by the Department at the carrier's principal place of
business. The current certificate of insurance or a summary of the
complete self-insurance plan on file with the Department, as required by
Sec. 205.4, shall be available for public inspection at the carrier's
principal place of business.
(b) For purposes of this part, a certificate of insurance is one or
more certificates showing insurance by one or more insurers (excluding
reinsurers) of currently effective and properly endorsed policies of
aircraft accident liability insurance in compliance with this part. When
more than one such insurer is providing coverage, the limits and types
of liability assumed by each insurer (excluding reinsurers) shall be
clearly stated in the certificate of insurance. Insurance policies and
self-insurance plans named in a certificate of insurance that
accompanies an application for initial registration or for operating
authority shall become effective not later than the proposed starting
date for air carrier operations as shown in the application.
(c) The certificate of insurance shall list the types or classes of
aircraft, or the specific aircraft by FAA or foreign government
registration number, with respect to which the policy of insurance
applies, or shall state that the policy applies to all aircraft owned or
operated by the carrier in its air transportation operations. With
respect to certificates of insurance that list aircraft by government
registration number, the policy or self-insurance plan shall state that,
while an aircraft owned or leased by the carrier and declared in the
policy is withdrawn from normal use because of its breakdown, repair, or
servicing, such insurance as is provided by the policy or plan for that
aircraft shall apply also to another aircraft of similar type,
horsepower, and seating capacity, whether or not owned by the insured,
while temporarily used as a substitute aircraft.
(d) Each certificate of insurance shall be signed by an authorized
officer, agent, or other representative of the insurer or the insurance
broker.
(e) Insurance coverage to meet the requirements of this part shall
be obtained from one or more of the following:
(1) An insurer licensed to issue aircraft accident liability
policies in any State, Commonwealth, or Territory of the United States,
or in the District of Columbia;
(2) Surplus line insurers named on a current list of such insurers
issued and approved by the insurance regulatory authority of any State,
Commonwealth, or Territory of the United States or of the District of
Columbia; or
(3) Insurers licensed or approved by a foreign government.
This requirement may be waived by the Department in the public interest.
[ER-1253, 46 FR 52577, Oct. 27, 1981, as amended by Docket No. 47939, 57
FR 40100, Sept. 2, 1992]
[[Page 19]]
Sec. 205.4 Filing of evidence of insurance.
(a) A U.S. or foreign air carrier shall file a certificate of
insurance or a complete plan for self-insurance with the Department's
Office of Aviation Analysis. Each carrier shall ensure that the evidence
of aircraft accident liability coverage filed with the Department is
correct at all times. The Department will normally notify the carrier
within 20 days of receipt if the certificate or plan does not meet the
requirements of this part. The two Certificates of Insurance (OST Form
6410 for U.S. air carriers, including commuter air carriers and air taxi
operators, and OST Form 6411 for foreign air carriers, including
Canadian charter air taxi operators) are available from the Office of
Aviation Analysis. The Department may return the certificate or self-
insurance plan to the carrier if it finds for good cause that such plan
or certificate does not show adequate evidence of insurance coverage
under this part.
(b) If the coverage is by type or class of aircraft or by specific
aircraft, endorsements that add previously unlisted aircraft or aircraft
types or classes to coverage, or that delete listed aircraft, types, or
classes from coverage, shall be filed with the Department's Office of
Aviation Analysis not more than 30 days after the effective date of the
endorsements. Aircraft shall not be listed in the carrier's operations
specifications with the FAA and shall not be operated unless liability
insurance coverage is in force.
(c) When the insured air carrier is a U.S. air taxi operator
operating in the State of Alaska, certificates and endorsements shall be
filed with the Department's Alaska Field Office, 801 B Street, Suite
506, Anchorage, Alaska 99501-3657.
(Approved by the Office of Management and Budget under control number
2106-0030)
[Docket No. 47939, 57 FR 40100, Sept. 2, 1992, as amended by Doc. No.
OST-96-1269, 61 FR 19165, May 1, 1996]
Sec. 205.5 Minimum coverage.
(a) Insurance contracts and self-insurance plans shall provide for
payment on behalf of the carrier, within the specific limits of
liability in this section, of all sums that the carrier shall become
legally obligated to pay as damages, excluding any deductible in the
policy, for bodily injury to or death of a person, or for damage to the
property of others, resulting from the carrier's operation or
maintenance of aircraft in air transportation provided under its
authority from the Department.
(b) U.S. and foreign direct air carriers, including commuter air
carriers but excluding U.S. air taxi operators and Canadian charter air
taxi operators, shall maintain the following coverage:
(1) Third-party aircraft accident liability coverage for bodily
injury to or death of persons, including nonemployee cargo attendants,
other than passengers, and for damage to property, with minimum limits
of $300,000 for any one person in any one occurrence, and a total of
$20,000,000 per involved aircraft for each occurrence, except that for
aircraft of not more than 60 seats or 18,000 pounds maximum payload
capacity, carriers need only maintain coverage of $2,000,000 per
involved aircraft for each occurrence.
(2) Any such carrier providing air transportation for passengers
shall, in addition to the coverage required in paragraph (b)(1) of this
section, maintain aircraft accident liability insurance coverage for
bodily injury to or death of aircraft passengers, with minimum limits of
$300,000 for any one passenger, and a total per involved aircraft for
each occurrence of $300,000 times 75 percent of the number of passenger
seats installed in the aircraft.
(c) U.S. air taxi operators registered under part 298 shall maintain
the following coverage:
(1) Third-party aircraft accident liability coverage for bodily
injury to or death of persons, including nonemployee cargo attendants,
other than passengers, with minimum limits of:
(i) $75,000 for any one person in any one occurrence, and a total of
$300,000 per involved aircraft for each occurrence, and
(ii) A limit of a least $100,000 for each occurrence for loss of or
damage to property.
(2) U.S. air taxi operators carrying passengers in air
transportation shall, in addition to the coverage required in
[[Page 20]]
paragraph (c)(1) of this section, maintain aircraft accident liability
insurance coverage for bodily injury to or death of aircraft passengers,
with minimum limits of $75,000 for any one passenger, and a total per
involved aircraft for each occurrence of $75,000 times 75 percent of the
number of passenger seats installed in the aircraft.
(d) Canadian charter air taxi operators registered under part 294 of
this chapter shall maintain the following coverage:
(1) Third-party aircraft accident liability coverage for bodily
injury to or death of persons, including nonemployee cargo attendants,
other than passengers, and for damage to property, with a minimum
coverage of $75,000 for any one person in any one occurrence, and a
total of $2,000,000 per involved aircraft for each occurrence, except
that Canadian charter air taxi operators operating aircraft of more than
30 seats or 7,500 pounds maximum cargo payload capacity, and a maximum
authorized takeoff weight on wheels not greater than 35,000 pounds shall
maintain coverage for those aircraft of $20,000,000 per involved
aircraft for each occurrence.
(2) Canadian charter air taxi operators engaging in passenger
charter air service under part 294 of this chapter shall, in addition to
the coverage required in paragraph (d)(1) of this section, maintain
aircraft accident liability coverage for bodily injury to or death of
aircraft passengers, with a minimum coverage of $75,000 for any one
passenger and a total per involved aircraft for each occurrence of
$75,000 times 75 percent of the total number of passenger seats
installed in the aircraft.
(e) Notwithstanding paragraphs (b), (c) and (d) of this section, the
carrier may be insured for a combined single limit of liability for each
occurrence. The combined single-limit coverage must be not less than the
combined required minimums for bodily injury and property damage
coverage plus, if the aircraft is used in passenger service, the
required total passenger coverages stipulated in paragraph (b) of this
section for U.S. and foreign direct air carriers and commuter carriers,
paragraph (c) of this section for U.S. air taxi operators, or paragraph
(d) of this section for Canadian charter air taxi operators.\1\ The
single-limit liability policy for the required aircraft accident
liability coverage may be provided by a single policy or by a
combination of primary and excess policies.
---------------------------------------------------------------------------
\1\ For example: the minimum single limit of liability acceptable
for any aircraft in air taxi passenger service with 16 passenger seats
would be computed on the basis of limits set forth in paragraph (c) as
follows: 16 x .75 equals 12; 12 x $75,000 equals $900,000; $900,000
plus $300,000 (nonpassenger liability per occurrence) plus $100,000
(property damage per occurrence) equals $1,300,000. The latter amount is
the minimum in which a single-limit liability policy may be written.
---------------------------------------------------------------------------
(f) The liability coverage shall not be contingent upon the
financial condition, solvency, or freedom from bankruptcy of the
carrier. The limits of the liability for the amounts required by this
part shall apply separately to each occurrence. Any payment made under
the policy or plan because of any one occurrence shall not reduce the
coverage for payment of other damages resulting from any other
occurrence.
[Docket No. 47939, 57 FR 40101, Sept. 2, 1992; 57 FR 52590, Nov. 4,
1992]
Sec. 205.6 Prohibited exclusions of coverage.
(a) No warranty or exclusion in the policy or plan or in any
endorsement or amendment to the policy or plan, nor any violation of the
policy or plan by the carrier, shall remove the liability coverage
required by this part, except as specifically approved by the
Department. This requirement shall not limit the right of insurers to
recover from the carrier for amounts paid.
(b) A policy of insurance or a self-insurance plan required by this
part shall not contain the following exclusions:
(1) Violation of any safety-related requirement imposed by statute
or by rule of a government agency.
(2) Liability assumed by the carrier under an agreement to raise the
liability limitations of the Warsaw Convention by signing a counterpart
to the agreement of carriers (such as the Montreal Agreement, 18900, as
approved by Board Order E-23680, May 13, 1966, agreeing to a limit on
the carrier's liability for injury or death of
[[Page 21]]
passengers of $75,000 per passenger), or any amendment to such agreement
that may be approved by the Department and to which the carrier becomes
a party.
[ER-1253, 46 FR 52577, Oct. 27, 1981, as amended by Docket No. 47939, 57
FR 40100, 40101, Sept. 2, 1992]
Sec. 205.7 Cancellation, withdrawal, modification, expiration, or replacement of insurance coverage.
(a) Each policy of aircraft accident liability insurance and plan
for self insurance shall specify that it shall remain in force, and may
not be replaced, canceled, withdrawn, or in any way modified to reduce
the minimum standards set forth in this part, or to change the extent of
coverage, by the insurer or the carrier, nor expire by its own terms, in
regard to coverage for the carrier in its common carrier operations in
air transportation, until 10 days after written notice by the insurer
(in the event of replacement, by the retiring insurer), or by the
insurer's representative, or by the carrier, describing the change, to
the Department's Office of Aviation Analysis (or, for Alaskan air taxi
operators, to the Department's Alaska Field Office), which 10-day notice
period shall start to run from the date such notice is actually received
at the Department. For purposes of this part, a policy will not be
considered to have expired if the same insurer renews its coverage
without reduction in the extent of coverage or amounts of coverage, and
without a break in coverage, whether or not a new policy is issued, and
notice to the Department is not required in that event. If the coverage
being changed is by type or class of aircraft or by specific aircraft,
endorsements adding or deleting specific aircraft or types or classes of
aircraft, for which prior notice would be required by this paragraph,
shall be filed in accordance with Sec. 205.4(b), and prior notice of the
change need not be given under this paragraph.
(b) The requirements of this section shall not apply if the policy
contains a lesser time period for cancellation in a war risk exclusion.
If the war risk exclusion is activated by the insurer, the insurer or
its representative shall immediately notify the Department.
[Docket No. 47939, 57 FR 40100, 40101, Sept. 2, 1992]
Sec. 205.8 Cargo liability disclosure statement.
Every direct U.S. or foreign air carrier providing air cargo service
in air transportation shall give notice in writing to the shipper, when
a shipment is accepted, of the existence or absence of cargo liability
insurance, and the limits on the extent of its liability, if any. The
notice shall be clearly and conspicuously included on or attached to all
of its rate sheets and airwaybills.
[ER-1282, 47 FR 16173, Apr. 15, 1982]
PART 206--CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY: SPECIAL AUTHORIZATIONS AND EXEMPTIONS--Table of Contents
Sec.
206.1 Emergency transportation.
206.2 Exemption from schedule filing.
206.3 Transportation of newspersons by all-cargo carriers.
206.4 Exemption of air carriers for military transportation.
206.5 Small aircraft operations by certificated carriers.
Authority: 49 U.S.C. Chapters 401, 415, 417, 419.
Sec. 206.1 Emergency transportation.
Notwithstanding the provisions of section 41101 of the Statute, and
any term, condition or limitation attached to the exercise of the
privileges of an air carrier certificate of public convenience and
necessity which prohibits an air carrier from engaging in air
transportation between any points on its route, the air carrier may
carry between such points (a) any person or persons certified by a
physician to be in need of immediate air transportation in order to
secure emergency medical or surgical treatment together with any
necessary attendant or attendants and (b) any medical supplies certified
by a physician as requiring immediate air transportation for the
protection of life. Air carriers offering
[[Page 22]]
to provide this emergency transportation shall file appropriate tariffs
pursuant to Chapter 415 of the Statute.
(Secs. 204, 416, 72 Stat. 743, 771; 49 U.S.C. 1324, 1386)
[ER-261, 24 FR 1860, Mar. 14, 1959, as amended at 60 FR 43524, Aug. 22,
1995]
Sec. 206.2 Exemption from schedule filing.
All air carriers are hereby exempted from the requirements of
section 41902(b) of the Statute, which provides that each air carrier
must periodically provide the Department and the U.S. Postal Service a
listing of all of its regularly operated aircraft schedules and schedule
changes, showing for each schedule the points served and the departure
and arrival times.
[Docket No. 47939, 57 FR 40101, Sept. 2, 1992, as amended at 60 FR
43524, Aug. 22, 1995]
Sec. 206.3 Transportation of newspersons by all-cargo carriers.
Notwithstanding the provisions of section 41101 and Chapter 415 of
the Statute and part 221 of this chapter, an air carrier holding a
certificate of public convenience and necessity for the transportation
of only property and mail may provide transportation to persons on
regularly scheduled cargo flights for the purpose of collecting data for
preparation of feature news, pictorial or like articles provided that
the transportation is limited to the writer, journalist, or photographer
engaged in the preparation of data for use in feature news, pictorial,
or like articles which are to appear in newspapers or magazines, or on
radio or television programs and which will publicize the regularly
scheduled cargo operations of the carrier.
[Docket No. 47939, 57 FR 40102, Sept. 2, 1992, as amended at 60 FR
43524, Aug. 22, 1995]
Sec. 206.4 Exemption of air carriers for military transportation.
Air carriers providing air transportation pursuant to a contract
with the Department of Defense are hereby exempted from Chapter 415 of
the Statute, and from part 221, Secs. 207.4 and 208.32, of this chapter,
with respect to those services.
[Docket No. 47939, 57 FR 40102, Sept. 2, 1992, as amended at 60 FR
43524, Aug. 22, 1995]
Sec. 206.5 Small aircraft operations by certificated carriers.
(a) A carrier holding an effective certificate issued under section
41102 of the Statute, when conducting operations with small aircraft, is
exempt from the requirements of the Statute as set forth in subpart B of
part 298 of this chapter, except section 41708 of the Statute, and is
subject to the requirements set forth in the following provisions of
this chapter:
(1) Part 205, with the minimum coverage requirements of
Sec. 205.5(b),
(2) Part 215,
(3) Part 298, subpart D, Secs. 298.30, and 298.38, and subpart H,
and
(4) Part 298, subpart F, if the certificated carrier conducts
operations with small aircraft only (a certificated carrier conducting
operations with both small and large aircraft is subject only to the
reporting requirements contained in part 241 of this chapter).
(b) If a certificated carrier, when conducting operations with small
aircraft, provides foreign air transportation that includes a segment
for which tariff filing is required and another segment for which tariff
filing is not required, then for through service over that routing the
carrier has the option of filing a tariff or charging the sum of the
applicable local rates, fares, or charges. If the carrier files a tariff
for through service, it is not exempt from Chapter 415 or section 41310
of the Statute for that air transportation.
[Docket No. 47939, 57 FR 40102, Sept. 2, 1992, as amended at 60 FR
43524, Aug. 22, 1995]
PART 207--CHARTER TRIPS AND SPECIAL SERVICES--Table of Contents
Subpart A--General Provisions
Sec.
207.1 Definitions.
207.2 Applicability of part.
207.3 Scope of authorization.
207.4 Payments to persons receiving commissions.
207.4a Written contracts with charterers.
207.7 Charter trips and other special services within the State of
Alaska.
[[Page 23]]
207.8 Notice of proposed special services.
207.10 Prior authorization of long-term wet leases to foreign air
carriers.
207.11 Charter flight limitations.
207.13 Terms of service.
207.14 Substitute transportation in emergencies.
207.16 Waiver.
207.17 Protection of customers' deposits.
207.18 Baggage liability.
207.19 Transportation of persons who may need help during aircraft
evacuation.
Subpart B--Provisions Relating to Pro Rata Charters
207.20 Applicability of subpart.
Requirements Relating to Air Carriers
207.21 Solicitation and formation of a chartering group.
207.22 Pretrip notification and charter contract.
207.24 Statement of Supporting Information.
207.25 Charter trips originating in the United States.
207.26 Air carrier to identify enplanements.
Requirements Relating to Travel Agents
207.31 Statement of Supporting Information.
Requirements Relating to Chartering Organization
207.40 Solicitation of charter participants.
207.41 Passengers on charter flights.
207.42 Participation of immediate families in charter flights.
207.43 Charter costs.
207.44 Statement of charges.
207.45 Passenger lists.
207.46 Application for a charter.
207.47 Statement of Supporting Information.
Subpart C--Provisions Relating to Single Entity Charters
207.50 Applicability of subpart.
207.53 Statement of Supporting Information.
Subpart D--Provisions Relating to Mixed Charters
207.60 Applicable rules.
Subpart E--Direct Sales by Air Carriers
207.70 Applicability of subpart.
207.71 Terms of service.
207.72 Board powers.
Appendix A to Part 207--Route Air Carrier's Surety Bond Under Part 207
of the Economic Regulations of the Civil Aeronautics Board (14
CFR part 207)
Appendix B to Part 207--Statement of Supporting Information
Authority: Secs. 102, 204, 401, 403, 404, 407, 411, 416, 418, 1002
of Pub. L. 85-726, as amended; 72 Stat. 740, 743, 754, 758, 760, 766,
769, 771, 91 Stat. 1284, 72 Stat. 788; 49 U.S.C. 1302, 1324, 1371, 1373,
1374, 1377, 1381, 1386, 1388, 1482, unless otherwise noted.
Source: ER-802, 38 FR 14157, May 30, 1973, unless otherwise noted.
Subpart A--General Provisions
Sec. 207.1 Definitions.
As used in this part, unless the context otherwise requires:
All-cargo carrier means an air carrier holding a certificate of
public convenience and necessity issued pursuant to section 401(d) (1)
or (2), which authorizes the carriage of property only or property and
mail only.
Base revenue plane miles means revenue mileage operated by an air
carrier in scheduled services, extra sections, and on-route charter
trips or special services.
Base revenue seat-mile means the total available revenue seat-miles
on flights operated by an air carrier in scheduled services, extra
sections, and on-route charter trips or special services.
Charter flight means air transportation performed in accordance with
Sec. 207.11.
Charter group means that body of individuals who shall actually
participate in the charter flight.
Charter organization means that organization, group, or other entity
from whose members (and their immediate families) a charter group is
derived.
Charter trip means air transportation performed in accordance with
Sec. 207.11.
Combination carrier means an air carrier holding a certificate of
public convenience and necessity issued pursuant to section 401(d) (1)
or (2) which authorizes the carriage of persons, property and mail or
persons and property only.
Islands of the Caribbean means points in Jamaica, the Bahama
Islands, Bermuda, Haiti, the Dominican Republic, Puerto Rico, the Virgin
Islands, Trinidad and Tobago, the Cayman Islands,
[[Page 24]]
Aruba, the Leeward and Windward Islands, Barbados, and Curacao.
Long-term wet lease means a lease by which the lessor provides both
an aircraft and its crew, which either (a) lasts more than 60 days, or
(b) 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, or
pursuant to contract may be borne, partly by the charter participants
and partly by the charterer.
Point means any airport or place where an aircraft may be landed or
taken off, including the area within a 50-mile radius of such airport or
place.
Pro rata charter means a charter, the cost of which is divided among
the passengers transported.
Single entity charter means a charter, the cost of which is borne by
the charterer and not by individual passengers, directly or indirectly.
Special services are all services rendered in air transportation
which are authorized by section 401(e)(6) of the Act by an air carrier
holding a certificate of public convenience and necessity other than (1)
services rendered in air transportation over the route or routes
designated in its certificate(s), (2) charter services as defined in
this section, and (3) services authorized by special exemption under
section 416(b) of the Act.
Travel agent means any person engaged in the formation of groups for
transportation or in the solicitation or sale of transportation
services.
(Secs. 204, 401, 418, Federal Aviation Act of 1958, as amended, 72 Stat.
743, 754, 91 Stat. 1278, 49 U.S.C. 1326, 1371, 1388)
[ER-802, 38 FR 14157, May 30, 1973, as amended by ER-1075, 43 FR 42740,
Sept. 21, 1978; ER-1190, 45 FR 53363, Aug. 11, 1980; ER-1248, 46 FR
47766, Sept. 30, 1981]
Sec. 207.2 Applicability of part.
This part shall apply to all air carriers (other than Alaskan air
carriers and air carriers certificated for supplemental air service) who
hold currently effective certificates of public convenience and
necessity issued by the Board pursuant to section 401 of the Act.
Sec. 207.3 Scope of authorization.
Charter trips and other special services may be performed by air
carriers, subject to the limitations and regulations set forth in this
part. The limitations and regulations herein specified as applicable to
charter trips shall be applicable to all charter trips regardless of
whether the authority to conduct such trips derives from section
401(e)(6) of the Act or the carrier's certificate of public convenience
and necessity or from a special or general exemption issued by the
Board.
[ER-1190, 45 FR 53363, Aug. 11, 1980]
Sec. 207.4 Payments to persons receiving commissions.
Payments for a U.S. originating charter flight made to any person to
whom the carrier, directly or indirectly, has paid a commission or has
agreed to pay a commission for that flight shall be considered payments
to the carrier.
(Secs. 102, 204, 403, and 416 of the Federal Aviation Act of 1958, as
amended by Pub. L. 95-504, 72 Stat. 740, 743, 758, 771, 92 Stat. 1731,
1732; 49 U.S.C. 1302, 1324, 1373, and 1386)
[ER-1126, 44 FR 33053, June 8, 1979]
Sec. 207.4a Written contracts with charterers.
Every agreement to perform a charter trip, except charters for the
Department of Defense, shall be in writing and signed by an authorized
representative of the air carrier and the charterer prior to operation
of a charter flight: Provided, That where execution of a contract prior
to commencement of flight is impracticable because the charter has been
arranged on short notice, compliance with the provision hereof shall be
effected within seven (7) days after commencement of the flight. The
written agreement shall include, without limitation:
(a) Date and place of execution of the contract or agreement;
(b) Signature, printed or typed name of each signatory, and official
position of each;
(c) Dates of flights and points involved;
(d) Type and capacity of aircraft: Number of passenger seats
available or pounds of cargo capacity;
[[Page 25]]
(e) Rates, fares, and charges applicable to the charter trip,
including the charter price, live and ferry mileage charges, and layover
and other nonflight charges; and
(f) The name and address of either the surety whose bond secures
advance charter payments received by the carrier or of the carrier's
depository bank to which checks or money orders for advance charter
payments are to be made payable as escrow holder, pending completion of
the charter trip.
(g) A statement that unless the charterer files a claim with the
carrier, or, if he is unavailable, with the surety, within sixty (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
charter trip (see Sec. 207.17(e)).
(Secs. 102, 204, 403, and 416 of the Federal Aviation Act of 1958, as
amended by Pub. L. 95-504, 72 Stat. 740, 743, 758, 771, 92 Stat. 1731,
1732; 49 U.S.C. 1302, 1324, 1373, and 1386)
[ER-809, 38 FR 20254, July 30, 1973, as amended by ER-1126, 44 FR 33053,
June 8, 1979]
Sec. 207.7 Charter trips and other special services within the State of Alaska.
An air carrier shall not perform any charter trip or other special
service in interstate air commerce within the State of Alaska.
Sec. 207.8 Notice of proposed special services.
No air carrier shall perform any special service in interstate,
overseas or foreign air transportation unless at the time of filing of a
tariff applicable to such special service or at the time of filing of an
application for a special tariff permission, such air carrier shall have
submitted to the Board a statement setting forth a full description of
the proposed service and shall have mailed copies thereof to the air
carriers authorized by certificates of public convenience and necessity
render service to any point designated to receive the proposed special
service. The proposed special service shall not be inaugurated if prior
to the effective date of the tariff applicable to such special service,
or at the time of action on the application for special tariff
permission, the Board shall have notified such air carrier that the
performance of such special service does not appear to be consistent
with the public interest.
(Approved by the Office of Management and Budget under control number
3024-0011)
[ER-802, 38 FR 14157, May 30, 1973, as amended by ER-1238, 46 FR 43035,
Aug. 26, 1981]
Sec. 207.10 Prior authorization of long-term wet leases to foreign air carriers.
(a) A direct air carrier shall not perform any flights for a direct
foreign air carrier under a long-term wet lease unless it has obtained a
statement of authorization under this section.
(b) Applications for a statement of authorization shall be submitted
in letter form in three copies to the Civil Aeronautics Board, addressed
to the Director, Bureau of International Aviation. A copy of the
application shall also be served on the Federal Aviation Administration,
addressed to the Director of Flight Operations, and on each certificated
air carrier that is authorized to serve the same general area in which
the proposed transportation is to be performed.
(c) The application shall describe the purpose and terms of the wet
lease agreement. It shall also include documentation to establish the
extent to which the country of the lessee's nationality deals with
United States air carriers on the basis of reciprocity for similar wet
leases, if such wet leases are not subject to a bilateral agreement and:
(1) The Board has not established that the country accords
reciprocity,
(2) The Board has found reciprocity defective in the most recent
prior approval application involving the country; or
(3) Changes in reciprocity have occurred since the most recent Board
finding for the country in question.
(d) Applications for a statement of authorization under this section
shall be filed at least 45 calendar days before the date of the first
proposed flight.
(e) Any party 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, and a copy
shall be served on
[[Page 26]]
the applicant air carrier. Each memorandum shall set forth the reasons
why the application should be granted or denied, accompanied by whatever
data, including affidavits, the Board is requested to consider.
(f)(1) Unless otherwise ordered by the Board, each application and
memorandum filed in response will be available for public inspection at
the Regulatory Affairs Division of the Bureau of International Aviation
immediately upon filing. Notice of the filing of all applications will
be published in the Board'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 Board 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.
(g) The Board will issue a statement of authorization if it finds
that the proposed wet lease is in the public interest. Statements of
authorization may be conditioned or limited. In determining the public
interest the Board will consider (but not be limited to) the following
factors:
(1) The extent to which the authority sought is covered by and
consistent with bilateral agreements to which the United States is a
party, or should be so covered;
(2) The extent to which the foreign country involved deals with
United States carriers on the basis of substantial reciprocity; and
(3) Whether the applicant (lessor) or its agent has previously
violated the provisions of this part, or the lessee or its agent has
previously violated the provisions of part 212 or 218 of this chapter.
(h) The Board will publish notice of its actions on applications for
statements of authorization in the Status of Charter Applications
attachment to the Weekly List of Applications Filed. Interested persons
may upon request obtain copies of letters advising applicants of action
taken on their applications.
(Approved by the Office of Management and Budget under control number
3024-0011)
[ER-1248, 46 FR 47766, Sept. 30, 1981, as amended by ER-1238, 46 FR
43035, Aug. 26, 1981]
Sec. 207.11 Charter flight limitations.
(a) Passenger charter flights in air transportation shall be limited
to the following:
(1) Air transportation pursuant to contracts with the Department of
Defense where all of that portion of the capacity configured for
passengers of an aircraft has been engaged by the Department;
(2) Air transportation performed on a time, mileage, or trip basis
where all or part of the capacity of an aircraft has been engaged by any
of the following persons:
(i) By a person for his or her own use, including a direct air
carrier or a direct foreign air carrier, except that long-term wet
leases to foreign air carriers are subject to prior authorization under
Sec. 207.10;
(ii) By a person (no part of whose business is the formation of
groups or the consolidation of shipments for transportation or the
solicitation or sale of transportation services) for the transportation
of a group of persons, as agent or representative of such group;
(iii) By an overseas military personnel charter operator as defined
in part 372 of this chapter.
(iv) By a charter operator or foreign charter operator as defined in
part 380 of this chapter.
(3) Air transportation performed on a time, mileage, or trip basis
by a direct air carrier in accordance with Subpart E of this part.
(b)(1) Each person engaging less than the entire capacity of an
aircraft for the movement of persons and their personal baggage pursuant
to paragraph (a)(2) of this section shall contract and pay for 20 or
more seats.
(2) [Reserved]
(3) This section permits the carriage of charter cargo on the main
deck or in the belly of a passenger charter flight.
[[Page 27]]
(c) Cargo charter flights in air transportation are permitted
without limitation, except that long-term wet leases to foreign air
carriers are subject to prior authorization under Sec. 207.10. Charter
cargo may be transported both on scheduled flights carrying
individually-ticketed and/or individually-waybilled traffic and on
flights carrying charter traffic only.
[ER-1190, 45 FR 53363, Aug. 11, 1980, as amended by ER-1248, 46 FR
47767, Sept. 30, 1981; ER-1276, 47 FR 134, Jan. 5, 1982]
Sec. 207.13 Terms of service.
(a) [Reserved]
(b) The carrier 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 capacity 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 passenger 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 paragraph payment to
the carrier's depository bank, as designated in the charter contract,
shall be deemed payment to the carrier.
(c) Where four or more round trip flights per calendar year are
conducted on behalf of a chartering organization by a carrier or
carriers, one-way passengers shall not be carried except that up to 5
percent of the charter group may be transported one way in each
direction, there shall be no intermingling of passengers and each
planeload group, or less than planeload group (see Sec. 207.11(a)(3)),
shall move as a unit in both directions, except as provided in
Sec. 207.14. This provision shall not be construed as permitting knowing
participation in any plan whereby each leg of a round trip is chartered
separately in order to avoid the 5-percent limitation aforesaid.
(Secs. 102, 204, 401 of the Federal Aviation Act of 1958, as amended, 92
Stat. 1706, 72 Stat. 743, 92 Stat. 1710; 49 U.S.C. 1302, 1324, 1371)
[ER-1145, 44 FR 50595, Aug. 29, 1979, as amended by ER-1276, 47 FR 134,
Jan. 5, 1982]
Sec. 207.14 Substitute transportation in emergencies.
(a) A carrier shall be permitted to transport a passenger on a
charter flight with a group other than his own or on a ferry flight (as
defined in Sec. 241.03 of this subchapter) under the following
circumstances:
(1) [Reserved]
(2) The transportation is for return passage only;
(3) When the passenger is required to return at a different time
than his own charter flight due to emergency circumstances beyond the
passenger's control; and
(4) The charter group with which the passenger is to travel
expresses no objection to his participation in the charter flight.
For the purposes of this paragraph, ``emergency circumstances beyond the
passenger's control'' shall include illness or injury to the passenger
or a member of his immediate family; death of a member of the
passenger's immediate family; or weather conditions or unforeseeable and
unavoidable delays in ground transportation or connecting air
transportation.
[ER-802, 38 FR 14157, May 30, 1973, as amended by ER-1221, 46 FR 28378,
May 26, 1981]
Sec. 207.16 Waiver.
(a) A waiver of any of the provisions of this part may be granted by
the Board upon the submission by an air carrier of a written request
therefor not less than 30 days prior to the flight to which it relates
provided such a waiver is in the public interest and it appears to the
Board that special or unusual circumstances warrant a departure from the
provisions set forth herein. Notwithstanding the foregoing, waiver
applications filed less than 30 days prior to a flight may be accepted
by the Board in emergency situations in which the circumstances
warranting
[[Page 28]]
a waiver did not exist 30 days before the flight.
(b) A request for a waiver of any of the provisions of Sec. 207.25
shall be accompanied by a list of the names, addresses, and telephone
numbers of all the passengers on the flight to which the request
relates.
(Approved by the Office of Management and Budget under control number
3024-0011)
[ER-802, 38 FR 14157, May 30, 1973, as amended by ER-1238, 46 FR 43035,
Aug. 26, 1981]
Sec. 207.17 Protection of customers' deposits.
(a) Except as provided in paragraph (c) of this section, no air
carrier shall perform any charter trip (over 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 air
carrier accept any advance payment in connection with any such charter
trip, unless there is on file with the Board 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 such charter 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
his 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 his 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 his
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, upon the latter's written certification that
the outbound segment of a round-trip charter has been completed, a
specified portion of such escrowed funds representing the amount of the
charter price allocable to such segment.
(3) Refunds to a charterer from sums in the escrow account shall be
paid directly to such charterer or 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 charter for less than
the entire capacity of an aircraft (see Sec. 207.11(c)) 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, savings
and loan institution, or other financial institution insured by the
Federal Deposit Insurance Corporation or the Federal Savings and Loan
Insurance Corporation.
(b) The escrow agreement required under paragraph (a) of this
section shall not be effective until approved by the Board. Claims
against the escrow may be made only with respect to nonperformance 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
Board a surety bond which guarantees to the United States Government the
performance of all charter trips (other than cargo charter trips)
originating in the United
[[Page 29]]
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 the
carrier pursuant to any contract entered into by such carrier after the
execution date of the bond. The amount of such bond shall be unlimited.
Claims under the bond may be made only with respect to the
nonperformance of air transportation.
(d) The bond permitted by paragraph (c) of this section shall be in
the form set forth as Appendix A to this part. Such bond shall be issued
by a bonding or surety company (1) whose surety bonds are accepted by
the Interstate Commerce Commission under 49 CFR 1084.6; or (2) which is
listed in Best's Insurance Reports (Fire and Casualty) with a general
policyholder's rating of ``A'' or better. The bonding or surety company
shall be one legally authorized to issue bonds of that type in the State
in which the carrier is incorporated or in which it maintains its
principal place of business. 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 Board will
notify the route 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 he is unavailable, with
the surety, within sixty (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.
(The reporting and recordkeeping requirements contained in paragraph (a)
were approved by the Office of Management and Budget under control
number 3024-0011.)
[ER-809, 38 FR 20254, July 30, 1973, as amended by ER-1238, 46 FR 43035,
Aug. 26, 1981]
Sec. 207.18 Baggage liability.
Air carriers shall not limit their baggage liability for interstate
and overseas charter flights except as set forth in 14 CFR part 254.
[ER-1311, 48 FR 226, Jan. 4, 1983]
Sec. 207.19 Transportation of persons who may need help during aircraft evacuation.
Except as set forth in part 121 of the Federal Aviation Regulations
(14 CFR part 121), air carriers shall not 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.
(Secs. 102, 204, 403, and 418 of the Federal Aviation Act of 1958, as
amended by Pub. L. 95-504, 72 Stat. 704, 743, 758, 771, 92 Stat. 1731,
1732; 49 U.S.C. 1302, 1324, 1373, and 1386)
[ER-1126, 44 FR 33054, June 8, 1979]
Subpart B--Provisions Relating to Pro Rata Charters
Sec. 207.20 Applicability of subpart.
This subpart sets forth the special rules applicable to pro rata
charters.
[ER-1190, 45 FR 53363, Aug. 11, 1980]
Requirements Relating to Air Carriers
Sec. 207.21 Solicitation and formation of a chartering group.
(a) A carrier shall not engage, directly or indirectly, in any
solicitation of individuals (through personal contact, advertising, or
otherwise) as distinguished from the solicitation of an organization for
a charter trip, except after a charter contract has been signed.
[[Page 30]]
(b) A carrier shall not employ, directly or indirectly, any person
for the purpose of organizing and assembling members of any
organization, club, or other entity into a group to make the charter
flight, except after a charter contract has been signed.
Sec. 207.22 Pretrip notification and charter contract.
(a) Upon a charter flight date being reserved by the carrier or its
agent, the carrier shall provide the prospective charterer with a copy
of this part 207.1 The charter contract shall include a
provision that the charterer, and any agent thereof, shall only act with
regard to the charter in a manner consistent with this part and that the
charterer shall within due time submit to the carrier such information
as specified in Sec. 207.45. The carrier shall also require that the
charterer and any travel agent involved shall furnish it at least 30
days prior to departure of the first flight the statements of supporting
information required in Secs. 207.47 and 207.31, respectively, unless
the charter has been contracted for within 30 days before the date of
departure, in which event the statement and attachments shall be filed
with the carrier on the date the charter contract is executed. In the
event of a substitution of carriers, the carrier with whom the
statements and attachments have been filed may forward them to the
substitute carrier, in which case new statements need not be executed.
---------------------------------------------------------------------------
1 Copies of this part are available by purchase from the
Superintendent of Documents, Washington, D.C. 20402. Single copies will
be furnished without charge on written requests to the Publications
Services Section, Civil Aeronautics Board, Washington, D.C. 20428.
---------------------------------------------------------------------------
(b) The carrier shall attach to its copy of the charter contract a
certification by an officer of the chartering organization, or other
qualified person, that authorizes the person who executes the contract
to do so on behalf of the chartering organization. However,
certification is not required where the charter is based on employment
in one entity, or on employee or student status at a school. If the
charter contract is for the return flight of a one-way charter by the
same charter organization, a copy of the passenger list (Sec. 207.45) of
the outbound charter shall be attached to the charter contract.
[ER-802, 38 FR 14157, May 30, 1973, as amended by ER-1221, 46 FR 28378,
May 26, 1981]
Sec. 207.24 Statement of Supporting Information.
Prior to performing a charter flight, the carrier shall execute, and
require the travel agent (if any) and the charterer to execute, a
Statement of Supporting Information (Appendix B). If a charter contract
covers more than one charter flight, only one statement need be filed:
Provided, however, That separate financial data (see item 13 of
statement) shall be filed for each one-way or roundtrip flight. The
carrier shall require the charterer to annex to the statement copies of
all announcements of the charterer in connection with the charter issued
after the contract is signed.
(Approved by the Office of Management and Budget under control number
3024-0011)
[ER-1221, 46 FR 28378, May 26, 1981, as amended by ER-1238, 46 FR 43035,
Aug. 26, 1981]
Sec. 207.25 Charter trips originating in the United States.
(a) In the case of a charter trip originating in the United States
which includes foreign air transportation, and where separate charter
contracts cover the flight departing from the United States and the
flight returning to the United States, the time by which the carrier to
perform the returning flight, as well as the carrier to perform the
departing flight, must receive full payment of its charter price (or a
satisfactory bond for such payment), in compliance with the requirements
of Sec. 207.13(b), shall be not less than 10 days prior to the departing
flight, for a planeload charter, or not less than 30 days prior to the
departing flight, if the charter is for less than the entire capacity of
an aircraft, pursuant to Sec. 207.11(c).
(b) In addition to requiring timely payment of its charter price (or
the posting of a bond), pursuant to paragraph (a) of this section, the
carrier performing the departing flight from the United States shall
request in writing from the carrier performing the returning flight for
the same chartering
[[Page 31]]
group, and the carrier performing the returning flight shall furnish,
not later than 10 days prior to the scheduled departure of a planeload
charter, or not later than 30 days prior to the scheduled departure of a
less-than-planeload charter, written confirmation that the latter
carrier has also received timely payment of its charter price (or the
posting of a bond), pursuant to paragraph (a) of this section. Both the
request and the confirmation shall contain particulars sufficient to
identify the charter trip, including such details as the date and point
of origin of the departing flight, the date and point of origin of the
returning flight, and the name of the chartering group; and both shall
be accompanied by a passenger list. The confirmation shall also contain
a statement to the effect that the carrier has not previously furnished
such confirmation to any other carrier with respect to the same charter
trip.
(c) The requirements of this section shall apply to all charter
flights scheduled to depart after the effective date hereof: Provided,
however, That with respect to planeload charter flights scheduled to
depart less than 15 days after the effective date hereof, and with
respect to less-than-planeload charter flights scheduled to depart less
than 30 days after the effective date hereof, requirements hereunder as
to advance payments and receipt of written confirmation thereof by the
departing carrier, need not be met within the time specified in this
section but may be met at any time before flight departure.
(d) Every carrier which has entered into a charter contract covering
one-way foreign air transportation from the United States, to be
performed in connection with a pro rata charter trip originating in the
United States, must obtain, before performing such departing flight,
either written confirmation from the returning carrier (as provided in
paragraph (b) or (c) of this section, as the case may be), or a waiver
granted by the Board pursuant to Sec. 207.16, such waiver to be based
either on the grounds set forth in said Sec. 207.16, or on a showing
that the arrangements between the chartering organization and the
charter participants do not involve the provision of return
transportation to the United States.
(e) 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.
(Approved by the Office of Management and Budget under control number
3024-0011)
(Secs. 101(3), 204, 401, 403, 404, 407, 411, 416, 1002 of the Federal
Aviation Act of 1958, as amended, 72 Stat. 737, 743, 754, 758, 760, 766,
769, 771, 788; 49 U.S.C. 1301, 1324, 1371, 1373, 1374, 1377, 1381, 1386,
and 1482)
[ER-802, 38 FR 14157, May 30, 1973, as amended by ER-809, 38 FR 20255,
July 30, 1973; ER-1063, 43 FR 36598, Aug. 18, 1978; ER-1238, 46 FR
43035, Aug. 26, 1981]
Sec. 207.26 Air carrier to identify enplanements.
The carrier shall make reasonable efforts to assure that no person
is enplaned whose name does not appear on the list of passengers
supplied by the charterer under Sec. 207.45.
[ER-1221, 46 FR 28378, May 26, 1981]
Requirements Relating to Travel Agents
Sec. 207.31 Statement of Supporting Information.
Travel agents shall execute, and furnish to foreign air carriers,
section A of Part II of the Statement of Supporting Information
(Appendix B) at such time as required by the carrier to afford it due
time for review thereof.
(Approved by the Office of Management and Budget under control number
3024-0011)
[ER-1221, 46 FR 28378, May 26, 1981, as amended by ER-1238, 46 FR 43035,
Aug. 26, 1981]
Requirements Relating to Chartering Organization
Sec. 207.40 Solicitation of charter participants.
(a) As used in the section, ``solicitation of the general public''
means:
(1) A solicitation going beyond the bona fide members of an
organization (and their immediate families). This includes air
transportation services offered by an air carrier under circumstances in
which the services are advertised in mass media, whether or not the
advertisement is addressed to
[[Page 32]]
members of a specific organization, and regardless of who places or pays
for the advertising. Mass media shall be deemed to include radio and
television, and newspapers and magazines. Advertising in such media as
newsletters or periodicals of membership organizations, industrial plant
newsletters, college radio stations, and college newspapers shall not be
considered advertising in mass media to the extent that;
(i) The advertising is placed in a medium of communication
circulated mainly to members of an organization that would be eligible
to obtain charter service, and
(ii) The advertising states that the charter is open only to members
of the organization referred to in paragraph (a)(1)(i) of this section,
or only to members of a subgroup thereof. In this context, a subgroup
shall be any group with membership drawn primarily from members of the
organization referred to in paragraph (a)(1) (i) of this section:
Provided, That this paragraph shall not be construed as prohibiting air
carrier advertising which offers charter services to bona fide
organizations, without reference to a particular organization or flight.
(2) The solicitation, without limitation, of the members of an
organization so constituted as to ease of admission to membership, and
nature of membership, as to be in substance more in the nature of a
segment of the public than a private entity.
(b) Members of the charter group may be solicited only from among
the bona fide members of an organization, club, or other entity, and
their immediate families, and may not be brought together by means of a
solicitation of the general public. ``Bona fide members'' means those
members of a charter organization who (1) have not joined the
organization merely to participate in the charter as the result of
solicitation of the general public; and (2) are members for a minimum of
6 months prior to the starting flight date. The requirement in paragraph
(b)(2) of this section is not applicable to:
(i) Students and employees of a single school, and immediate
families thereof; or
(ii) Employees of a single Government agency, industrial plant, or
mercantile establishment, and immediate families thereof.
(c) Solicitation of, as well as participation by, members of an
organization with respect to charter flights shall extend only to the
organization, or the particular chapter or unit thereof, which signs the
charter agreement with the air carrier as the charterer.
(d) A charterer shall not advertise or otherwise solicit its members
for any charter until a charter contract has been signed: Provided,
however, That this prohibition shall not extend to oral inquiries or
internal mailings directed to members to determine interest in a charter
flight or charter program so long as no fixed price for air
transportation is held out. After a charter contract is signed, copies
of solicitation material shall be furnished the carrier at the same time
it is distributed to members.
(e) 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
PROGRAM.
[ER-802, 38 FR 14157, May 30, 1973, as amended by ER-1176, 45 FR 40574,
June 16, 1980]
Sec. 207.41 Passengers on charter flights.
Only bona fide members of the charterer, and their immediate
families, may participate as passengers on a charter flight, and the
participants must be members of the specific organization or chapter
which authorized the charter. The charterer must maintain a central
membership list, available for inspection by the carrier or Board
representative, which shows the date each person became a member.3
Where four or more round-trip flights per calendar year are conducted on
behalf of a chartering organization by a carrier or carriers,
intermingling between flights or reforming of planeload
[[Page 33]]
groups, or less than planeload groups, (see Sec. 207.11(c)), shall not
be permitted, and each group must move as a unit in both directions,
except as provided in Sec. 207.14.
---------------------------------------------------------------------------
3 Where the charter is based on employment in one entity
or student or employee status at a school, records of the corporation,
agency or school will suffice to meet the requirements.
(Approved by the Office of Management and Budget under control number
---------------------------------------------------------------------------
3024-0011)
[ER-802, 38 FR 14157, May 30, 1973, as amended by ER-1238, 46 FR 43035,
Aug. 26, 1981]
Sec. 207.42 Participation of immediate families in charter flights.
(a) The immediate family of any bona fide member of a charter
organization may participate in a charter flight.
(b) ``Immediate family'' means only the following persons who are
living in the household of a member of a charter organization, namely,
the spouse, dependent children, and parents, or such member.
Sec. 207.43 Charter costs.
(a) The costs of charter flights shall be prorated equally among all
charter passengers, and no charter passenger shall be allowed free
transportation; except that (1) children under 12 years of age may be
transported at a charge less than the equally prorated charge; and (2)
children under 2 years of age may be transported free of charge.
(b) The charterer shall not make charges to the charter participants
which exceed the actual costs incurred in consummating the charter
arrangements, nor include as a part of the assessment for the charter
flight any charge for purposes of charitable donations. All charges
related to the charter flight arrangements collected from the charter
participants which exceed the actual costs thereof shall be refunded to
the participants in the same ratio as the charges were collected.
[ER-802, 38 FR 14157, May 30, 1973, as amended at 46 FR 31000, June 12,
1981]
Sec. 207.44 Statement of charges.
The chartering organization, in any announcements or statements to
prospective charter participants giving price per seat, shall state that
the seat price is a pro rata share of total charter cost and is subject
to increase or decrease depending on the number of participants. All
announcements shall separately state the cost of ground arrangements, if
any, the cost of air transportation, the administrative expenses of the
charterer, and the total cost of the entire trip. All announcements
shall also identify the carrier, the number of seats available and the
type of aircraft to be used for the charter.
Sec. 207.45 Passenger lists.
(a) Prior to each one-way or round-trip flight, a list shall be
filed by the charterer with the air carrier showing the names,
addresses, and telephone numbers of the persons to be transported,
including standbys who may be transported, specifying the relationship
of each such person to the charterer (by designating opposite his name
one of the three relationship categories hereinafter described), the
date the person joined or last renewed a lapsed membership in the
charter organization, and the designation ``one-way'' in the case of
one-way passengers. The list shall be amended if passengers are added or
dropped before flight.
(b) The relationship of a prospective passenger shall be classified
under one of the following categories and specified on the passenger
list as follows:
(1) A bona fide member of the chartering organization who will have
been a bona fide member of the chartering organization for at least 6
months prior to the starting flight date. Specify on the passenger list
as ``(1) member.''
(2) The spouse, dependent child or parent of a bona fide member who
lives in such member's household. Specify on the passenger list as ``(2)
spouse'' or ``(2) dependent child'' or ``(2) parent.'' Also give name
and address of member relative where such member is not a prospective
passenger.
(3) Bona fide members of entities consisting only of persons
employed by a single Government agency, industrial plant, or mercantile
company or students and employees of a school or persons whose proposed
participation in the charter flight was permitted by the Board pursuant
to request for waiver. Specify on the passenger lists as ``(3) special''
or ``(3) member'' (where participants are from a school group or
[[Page 34]]
from a Government agency, industrial plant or mercantile company).
(c) In the case of a round-trip flight, the above information must
be shown for each leg of the flight and any variations between the
outbound and inbound trips must be explained on the list.
(d) Attached to such list must be a certification, signed by a duly
authorized representative of the charterer, reading:
The attached list of persons includes every individual who may
participate in the charter flight. Every person as identified on the
attached list (1) was a bona fide member of the chartering organization,
and will have been a member for at least 6 months prior to the starting
flight date, or (2) is a bona fide member of an entity consisting of (a)
students and employees of a single school, or (b) employees of a single
Government agency, industrial plant, or mercantile establishment, or (3)
is a person whose participation has been specifically permitted by the
Civil Aeronautics Board, or (4) is the spouse, dependent child, or
parent of a person described hereinbefore and lives in such person's
household.4
4 Whoever, in any matter within the jurisdiction of any
department or agency of the United States, knowingly and willfully
falsifies, conceals, or covers up by any trick, scheme or device a
material fact, or makes any false, fictitious or fraudulent statements
or representations, or makes or uses any false writing or document
knowing the same to contain any false, fictitious or fraudulent
statement of entry, shall be fined not more than $10,000 or imprisoned
not more than 5 years, or both. Title 18, U.S.C. 1001.
---------------------------------------------------------------------------
________________________________________________________________________
(Signature)
(Approved by the Office of Management and Budget under control number
3024-0011)
[ER-802, 38 FR 14157, May 30, 1973, as amended by ER-1238, 46 FR 43035,
Aug. 26, 1981]
Sec. 207.46 Application for a charter.
A chartering organization shall make written application to the air
carrier, setting forth the number of seats desired, points to be
included in the proposed flight or flights, and the dates of departure
for each one-way or round-trip flight, and the number of round-trip
flights which have been conducted for the organization by any carrier or
carriers during the calendar year.
(Approved by the Office of Management and Budget under control number
3024-0011)
[ER-802, 38 FR 14157, May 30, 1973, as amended by ER-1238, 46 FR 43035,
Aug. 26, 1981]
Sec. 207.47 Statement of Supporting Information.
Charterers shall execute and file with the foreign air carrier
section B of part II of the Statement of Supporting Information
(appendix B) at such time as required by the carrier to afford it due
time for review thereof.
(Approved by the Office of Management and Budget under control number
3024-0011)
[ER-1221, 46 FR 28378, May 26, 1981, as amended by ER-1238, 46 FR 43035,
Aug. 26, 1981]
Subpart C--Provisions Relating to Single Entity Charters
Sec. 207.50 Applicability of subpart.
This subpart sets forth the special rules applicable to single
entity charters.
Sec. 207.53 Statement of Supporting Information.
Part I of the Statement of Supporting Information (appendix B) shall
be applicable in the case of single entity charters.
[ER-1221, 46 FR 28378, May 26, 1981]
Subpart D--Provisions Relating to Mixed Charters
Sec. 207.60 Applicable rules.
The rules set forth in Subpart B of this part shall apply in the
case of mixed charters.
Subpart E--Direct Sales by Air Carriers
Authority: Secs. 102, 204, 401, 416 of the Federal Aviation Act of
1958, as amended, 92 Stat. 1706, 72 Stat. 743, 754, 92 Stat. 1731; (49
U.S.C. 1302, 1324, 1371, 1386).
Source: ER-1141, 44 FR 50824, Aug. 29, 1979, unless otherwise noted.
[[Page 35]]
Sec. 207.70 Applicability of subpart.
This subpart applies to direct air carriers that provide charter
trips, including trips with ground accommodations and services, directly
to individuals.
Sec. 207.71 Terms of service.
(a) Charter trips under this subpart shall bear only such
characteristics as are permitted for Public Charters under part 380 of
this chapter, except:
(1) They may be arranged and sold by a direct air carrier;
(2) There is no minimum contract size; and
(3) Each participant contract shall be signed by or on behalf of the
participant not less than 7 days before departure of the outbound
flight.
(b) Each direct air carrier operating a charter trip under this
subpart shall comply with all the requirements and limitations of part
380 of this chapter, Public Charters, applicable to direct carriers and
to charter operators except that:
(1) Those provisions of part 380 of this chapter relating to the
existence of a contract between a charter operator and a direct carrier
do not apply;
(2) Section 380.34 does not apply except as specified in paragraph
(b)(4) of this section.
(3) If a depository agreement is used, it shall comply with
Sec. 380.34a (d) and (f); and
(4) If a security agreement is used, it shall comply with
Sec. 380.34 (c) and (d), and:
(i) If no depository agreement is used, protect charter participant
deposits (including those for ground accommodations and services) and
assure the direct 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 deposits (including those for ground accommodations
and services) and assure the direct 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) For the purposes of this section, ``charter trips'' includes
charter tours with or without ground accommodations and services.
Sec. 207.72 Board powers.
The Board retains, with respect to charters under this subpart, all
powers that it has under part 380 of this chapter with respect to Public
Charters.
Appendix A to Part 207--Route Air Carrier's Surety Bond Under Part 207
of the Economic Regulations of the Civil Aeronautics Board (14 CFR Part
207)
Know all men by these presents, that we ------------(Name of route
air carrier) of ------------(City), ------------(State) 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 sum, as required
by Sec. 207.17(c) of part 207, 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 route air carrier holding a certificate of
public convenience and necessity issued under section 401(d)(1) of the
Federal Aviation Act, is subject to rules and regulations of the Board
relating to security for the protection of charterers of civil aircraft
and has elected to file with the Civil Aeronautics Board 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 charter trips, as defined
in part 372 of the Board's regulations, to be performed, in whole or in
part, by such 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 Board relating to security for the
protection of charterers of civil aircraft for charter trips (other than
cargo charter trips) originating in the United States or of overseas
military personnel charters, and shall inure to the benefit of
[[Page 36]]
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 charterers any sum or
sums for which the Principal may be held legally liable by reason of the
Principal's failure faithfully to perform, fulfill, and carry out all
contracts made by the Principal while this bond is in effect for the
performance of charter trips (other than cargo charter trips)
originating in the United States and of overseas military personnel
charter trips, than this obligation shall be void, otherwise to remain
in full force and effect.
The liability of the Surety with respect to any charterer shall not
exceed the total cost to such charterer for air transportation services
in accordance with his contract with the Principal.
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 Civil Aeronautics Board
forthwith of all suits filed, judgments rendered, and payments made by
said Surety under this bond.
This bond is effective the ---- day of --------, 19----, 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 Civil Aeronautics Board at its office in Washington, D.C.,
such termination to become effective thirty (30) days after actual
receipt of said notice by the Board. The Surety shall not be liable
thereunder for the payment of any 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 said termination
shall not affect the liability of the Surety hereunder for the payment
of such damages arising as the result of contracts for the performance
of air transportation services made by the Principal prior to the date
such termination 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 the claim to the route air carrier, or, if he is
unavailable, to the Surety, and all liability on the bond for such
charter trip shall automatically terminate sixty (60) days after the
cancellation 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 --------, 19----.
PRINCIPAL SURETY
Name------------ Name------------(SEAL)
By---------------- By----------------
(Signature and Title) (Signature and Title)
Witness------------- Witness--------------
Only corporations may qualify to act as surety and they must meet
the requirements set forth in Sec. 207.17(d) of part 207.
[ER-809, 38 FR 20255, July 30, 1973]
Appendix B to Part 207--Statement of Supporting Information\1\
---------------------------------------------------------------------------
\1\ This must be retained by the air carrier for 2 years pursuant to
the requirements of part 249, but open to Board inspection, and to be
filed with the Board on demand.
---------------------------------------------------------------------------
Part I--To be completed by air carrier for each single entity, mixed, or
pro rata charter. (Where more than one round-trip flight is to be
performed under the charter contract, clearly indicate applicability of
answers.)
1. Name of transporting carrier:
........................................................................
2. Commencement date(s) of proposed flight(s):
........................................................................
(a) Going_______________________________________________________________
(b) Returning___________________________________________________________
3. Points to be included in proposed flight(s)
........................................................................
(a) From ------------ to ------------
(b) Returning from ------------ to ------------
(c) Other stops required by charterer: ----
4. (a) Type of aircraft to be used: --------
(b) Seating capacity: ----------------
(c) Number of persons to be transported:
........................................................................
5. Total charter price:
........................................................................
6. (a) Has the carrier paid, or does it contemplate payment of any
commissions, direct or indirect, in connection with the proposed flight?
Yes [ ] No [ ]
(b) If ``yes'' give names and addresses of such recipients and
indicate the amount paid or payable to each recipient. If any commission
to a travel agent exceeds 5 percent of the total charter price, attach a
statement justifying the higher amount under this regulation.
........................................................................
........................................................................
7. (a) Will the carrier or any affiliate provide any services or
perform any functions in addition to the actual air transportation? Yes
[ ] No [ ]
(b) If ``yes'' describe services or functions:
........................................................................
........................................................................
[[Page 37]]
8. Name and address of charterer:
........................................................................
9. If charter is single entity, indicate purpose of flight:
........................................................................
10. On what date was the charter contract executed?
........................................................................
11. If the charter is pro rata, has a copy of part 207 of the Civil
Aeronautics Board's Economic Regulations been mailed to or delivered to
the prospective charterer?
Yes [ ] No [ ]
Part II--To be completed for pro rata or mixed charters only.
Section A--To be supplied by travel agent, or where none, by the air
carrier or an affiliate under its control where either of the latter
performs or provides any travel agency function or service (excluding
air transportation sales but including land tour arrangements).
1. What specific services have been or will be provided by agent to
charterer on a group basis?
........................................................................
........................................................................
2. What specific services have been or will be provided by agent to
individual participants in the proposed charter?
........................................................................
3. Has the agent or, to his knowledge, have any of his principals,
officers, directors, associates or employees compensated any members of
the chartering organization in relation either to the proposed charter
flight or any land tour?
Yes [ ] No [ ]
4. Does the agent have any financial interest in any organization
rendering services to the chartering organization?
Yes [ ] No [ ]
If answer is ``yes'' explain:
........................................................................
........................................................................
Warranty \2\
I, -------------------- (Name) represent and warrant that I have
acted with regard to this charter operation (except to the extent fully
and specifically explained in Part II, Section A) and will act with
regard to such operation in a manner consistent with part 207 of the
Board's economic regulations.
---------------------------------------------------------------------------
\2\ Any air carrier, or any officer, agent, employee, or
representative thereof, who shall, knowingly and willfully, fail or
refuse * * * to keep or preserve accounts, records, and memoranda in the
form and manner prescribed or approved by the Board * * *, or shall,
knowingly and willfully, falsify, mutilate, or alter any such 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. Title 49 U.S.C.
Whoever, in any manner within the jurisdiction of any department or
agency of the United States, knowingly and willfully falsifies,
conceals, or covers up by any trick, scheme or device a material fact,
or makes any false, fictitious or fraudulent statements or
representations, or makes or uses any false writing or document knowing
the same to contain any false, fictitious or fraudulent statement or
entry, shall be fined not more than $10,000 or imprisoned not more than
5 years, or both. Title 18, U.S.C. 1001.
(Date)__________________________________________________________________
........................................................................
(Signature and address of travel agent or, if none, of authorized
official of air carrier where such carrier or an affiliate under its
control performs any travel agency function or service (excluding air
transportation sales but including land tour arrangements).)
Section B--To be supplied by charterer:
1. Description of chartering organization, including its objectives and
purposes:_______________________________________________________________
........................................................................
2. What activities are sponsored by the chartering organization?________
........................................................................
........................................................................
3. When was the organization founded?___________________________________
........................................................................
4. Qualification or requirements for membership in organization and
membership fee, if any:_________________________________________________
........................................................................
5. Has there been any reference to prospective charter flights in
soliciting new members for the charter organization?
Yes [ ] No [ ]
6. State where a list of members is available for inspection.___________
........................................................................
........................................................................
7. Attach list of prospective passengers (including ``standbys'' and
one-way passengers designated as such), showing for each: (a) Name and
address; (b) relationship of such person to chartering organization,
i.e., member, spouse, dependent child, parent or ``special'' (a person
whose proposed participation in the charter flight was permitted by the
Board pursuant to request for waiver); (c) if such person is related to
a member who is not a prospective passenger, the member's name and
address; and (d) date member joined or last renewed a lapsed membership.
(Note: This is a list of prospective passengers and does not
necessarily have to represent the passengers actually to be carried. The
list is to be amended, if passengers are
[[Page 38]]
dropped or added before flights and the certification required by
Sec. 207.45 must be attached to the list.)
8. What are requirements for participation in charter?__________________
........................................................................
9. How were prospective participants for charter solicited (attach any
solicitation material)?_________________________________________________
........................................................................
10. Will there be any participants in the charter flight other than
(1) members of the chartering organization or (2) spouse, dependent
children, and parents of a member of the chartering group residing in
the same household with the member?
Yes [ ] No [ ]
11. Will there be any members of the chartering organization
participating in the charter who will have been members of the
organization for a period of less than 6 months prior to flight
date?3_____________________________________________________________
---------------------------------------------------------------------------
3Not applicable to school charters, nor to charters limited to
employees of a single Government agency, industrial plant, or mercantile
company.
---------------------------------------------------------------------------
Yes [ ] No [ ].
If answer is ``yes'', give names of participants who will not have been
members for 6 months:
........................................................................
12. If there is any intermediary involved in the charter, other than the
travel agent whose participation is described in Part II, Section A,
submit name, address, remuneration, and scope of activity:______________
........................................................................
........................................................................
........................................................................
13. Estimated receipts: ------------ (Pro rata charge) x --------
---- (Number of passengers) = $------------ (Estimated receipts from
charter)
Estimated receipts from other sources, if any:__________________________
Explain:________________________________________________________________
........................................................................
(a) Total receipts: $___________________________________________________
Estimated expenditures, including aircraft charter (separately
itemize air transportation, land tour, and administrative expenses):
Item Amount Payable to
........................................................................
........................................................................
........................................................................
(b) Total expenditures:
$------.................................................................
Explain any difference between (a) and (b):
........................................................................
14. Are any of the expenses included in Item 13 above, to be paid to any
members of the chartering organization?_________________________________
Yes [ ] No [ ]
If ``yes'' state how much, to whom and for what services:
........................................................................
15. Is any member of the chartering organization to receive any
compensation or benefit directly or indirectly from the air carrier, the
travel agent, or any organization providing services in relation to the
air or land portion of the trip? Yes [ ] No [ ] If ``yes'' explain
fully:__________________________________________________________________
........................................................................
........................................................................
16. Will any person in the group (except children under 2 years) be
transported without charge? Yes [ ] No [ ]
17. Will charter costs be divided equally among charter
participants, except to the extent that a lesser charge is made for
children under 12 years old? Yes [ ] No [ ]
18. Separately state for the outbound and inbound flights the number
of one-way passengers anticipated to be transported in each direction:
........................................................................
........................................................................
19. If four or more round trips are contracted for, will each group
move as a unit in both directions? Yes [ ] No [ ]
........................................................................
20. If charters have been performed for organization during past 5
years, give dates and name of carrier performing charters:
........................................................................
........................................................................
21. Has a copy of part 207 ``Charter Trips and Special Services'' of
the Economic Regulations of the Civil Aeronautics Board been received by
the charterer? Yes [ ] No [ ]
22. Attach copies of all announcements of the chartering
organization in connection with the charter issued after the charter
contract is signed.
Warranty of Charterer4
I, -------------------- (Name) and --------------------(Name)
represent and warrant that the charterer has acted with regard to this
charter operation (except to the extent fully and specifically explained
in
[[Page 39]]
Part II, Section B), and will act with regard to such operations, in a
manner consistent with part 207 of the Board's economic regulations. I
(we) further represent and warrant that the charterer has not offered
charter flights simultaneously with the solicitation of membership in
the chartering organization in any mass media advertising or notice or
through direct mailing or public posters. I (we) further represent and
warrant that all charter participants have been informed of eligibility
and cost requirements of part 207 and that a flight may be canceled if
ineligible participants are included.
---------------------------------------------------------------------------
4Whoever, in any matter within the jurisdiction of any
department or agency of the United States knowingly and willfully
falsifies, conceals or covers up by any trick, scheme or device a
material fact, or makes any false, fictitious or fraudulent statements
or representations, or makes or uses any false writing or document
knowing the same to contain any false, fictitious or fraudulent
statement or entry, shall be fined not more than $10,000 or imprisoned
not more than 5 years, or both. Title 18 U.S.C. 1001.
---------------------------------------------------------------------------
(Date)__________________________________________________________________
........................................................................
(Signature--person within organization in charge of charter
arrangements)
........................................................................
(Signature and title of officer. This should be the chief officer of the
chartering organization except in the case of a school charter, in which
case the warranty must be by school official not directly involved in
charter.)
Warranty of Air Carrier \5\
To the best of my knowledge and belief all the information presented
in this statement, including but not limited to, those parts warranted
by the charterer and the travel agent, is true and correct. I represent
and warrant that the carrier has acted with regard to this charter
operation (except to the extent fully and specifically explained in this
statement or any attachment thereto) and will act with regard to such
operation in a manner consistent with part 207 of the Board's economic
regulations.
---------------------------------------------------------------------------
\5\ Any air carrier, or any officer, agent, employee, or
representative thereof, who shall, knowingly and willfully, fail or
refuse * * * to keep or preserve accounts, records, and memoranda in the
form and manner prescribed or approved by the Board * * *, or shall,
knowingly and willfully, falsify, mutilate, or alter any such 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. Title 49 U.S.C.
1472(e).
(Date)__________________________________________________________________
........................................................................
(Signature and title of authorized official of air carrier)
Whoever, in any matter within the jurisdiction of any department or
agency of the United States knowingly and willfully falsifies, conceals
or covers up by any trick, scheme, or device a material fact, or makes
any false, fictitious or fraudulent statements or representations, or
makes or uses any false writing or document knowing the same to contain
any false, fictitious or fraudulent statement or entry, shall be fined
not more than $10,000 or imprisoned not more than 5 years or both. Title
18 U.S.C. 1001.
(Secs. 102, 204, 403, and 416 of the Federal Aviation Act of 1958, as
amended by Pub. L. 95-504, 72 Stat. 740, 743, 758, 771, 92 Stat. 1731,
1732; 49 U.S.C. 1302, 1324, 1373, and 1386)
[ER-802, 38 FR 14157, May 30, 1973, as amended by ER-1126, 44 FR 33054,
June 8, 1979. Redesignated by ER-1221, 46 FR 28378, May 26, 1981]
PART 208--TERMS, CONDITIONS AND LIMITATIONS OF CERTIFICATES TO ENGAGE IN CHARTER AIR TRANSPORTATION--Table of Contents
Subpart A--General Provisions
Sec.
208.1 Applicability.
208.2 Separability.
208.3 Definitions.
208.3a Waiver.
208.4 [Reserved]
208.5 Prior authorization of long-term wet leases to foreign air
carriers.
208.6 Charter flight limitations.
Liability Insurance Requirements; Waiver of Warsaw Convention Liability
Limits
208.10 Applicability of liability insurance requirements.
208.11 Filing requirements for adherence to Montreal Agreement.
Minimum Extent of Service
208.25 Minimum service requirements.
Operations
208.30 Baggage liability.
208.31 Transportation of persons who may need help during aircraft
evacuation.
208.31a Written agreements with ticket agents.
208.31b Written contract with charterers.
208.32 Terms of service.
208.32a Flight delays and substitute air transportation (foreign).
208.33 Flight delays and substitute air transportation (interstate and
overseas).
208.33a Substitution or subcontracting.
208.34-208.35 [Reserved]
208.36 Substitute transportation in emergencies.
208.37 Exemption.
208.38 Suspension of exemption authority.
Protection of Customers' Deposits
208.40 Protection of customers' deposits.
[[Page 40]]
Subpart B--Provisions Relating to Military Charters
208.100 Applicability of subpart.
208.101 [Reserved]
208.102 Substitute service.
208.103 Terms of service.
Subpart B1--Provisions Relating to Military Backhaul Charters
208.150 Military backhaul exemption.
Subpart C--Provisions Relating to Pro Rata Charters
208.200 Applicability of subpart.
Requirements Relating to Air Carriers
208.200a Solicitation and formation of a chartering group.
208.201 Pretrip notification and charter contract.
208.202 [Reserved]
208.202a Statement of Supporting Information.
208.202b Charter trips originating in the United States.
208.202c Air carrier to identify enplanements.
Requirements Relating to Travel Agents
208.203 [Reserved]
208.204 Statement of Supporting Information.
Requirements Relating to the Chartering Organization
208.210 Solicitation of charter participants.
208.211 Passengers on charter flights.
208.212 Participation of immediate families in charter flights.
208.213 Charter costs.
208.214 Statements of charges.
208.215 Passenger lists.
208.216 Application for a charter.
208.217 Statement of Supporting Information.
Subpart D--Provisions Relating to Single Entity Charters
208.300 Applicability of subpart.
208.301 Terms of service.
208.302 [Reserved]
208.303 Statement of Supporting Information.
Subpart E--Provisions Relating to Mixed Charters
208.400 Applicable rules.
Subpart F--Direct Sales by Air Carriers
208.500 Applicability of subpart.
208.501 Terms of service.
208.502 Board powers.
Appendix A to Part 208--Supplemental Air Carriers' Surety Bond Under
part 208 of the Economic Regulations of the Civil Aeronautics
Board (14 CFR part 208)
Appendix B to Part 208--Statement of Supporting Information
Authority: Secs. 101(3), 102, 204, 401, 403, 404, 407, 411, 416,
417, 1002, Pub. L. 85-726, as amended, 72 Stat. 737, 740, 743, 754, 758,
760, 766, 769, 771, 788; 76 Stat. 145; 49 U.S.C. 1301, 1302, 1324, 1371,
1373, 1374, 1377, 1381, 1386, 1387, 1482.
Source: ER-803, 38 FR 14272, May 31, 1973, unless otherwise noted.
Subpart A--General Provisions
Sec. 208.1 Applicability.
This part contains terms, conditions, and limitations on the
operating authority of supplemental air carriers, including substantive
regulations implementing paragraphs (1), (2), and (3) of section 401(n)
of the Act. The requirements of this part shall constitute terms,
conditions, and limitations attached to certificates issued pursuant to
section 401(d)(3) of the Act. The requirements shall also attach to
special operating authorizations issued under section 417 or to
exemptions issued under section 416 of the Act.
Sec. 208.2 Separability.
If any provision of this part or the application thereof to any air
transportation, person, class of persons, or circumstance is held
invalid, neither the remainder of the part nor the application of such
provision to other air transportation, persons, classes of persons, or
circumstances shall be affected thereby.
Sec. 208.3 Definitions.
For the purposes of this part:
(a) Filing shall mean filing in compliance with Sec. 302.3(a) of
this chapter except that provisions in this part which require filing
with Board offices other than the Docket Section shall be controlling.
(b) Supplemental air carrier means an air carrier holding a
certificate issued under section 401(d)(3) of the Act, or a special
operating authorization issued under section 417 of the Act.
[[Page 41]]
(c) Supplemental air transportation means charter flights in air
transportation performed pursuant to a certificate of public convenience
and necessity issued under section 401(d)(3) of the Act (1) authorizing
the holder to engage in supplemental air transportation of persons and
property between any point in any State of the United States or the
District of Columbia, and any other point in any State of the United
States or the District of Columbia (exclusive of air transportation
within the State of Alaska) or in foreign or overseas supplemental air
transportation, or (2) authorizing the holder to engage in supplemental
air transportation of persons and their personal baggage between any
point in any State of the United States or the District of Columbia, on
the one hand, and points in Greenland, Iceland, the Azores, Europe,
Africa, and Asia, as far east as (and including) India, on the other
hand.
(d) Agreement means any oral or written agreement, contract,
understanding, or arrangement, and any amendment, revision,
modification, renewal, extension, cancellation, or termination thereof.
(e) Cargo agent means any person (other than a supplemental air
carrier 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 Board) 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 supplemental air carriers; or
(2) procures or arranges for air transportation of property or
consolidated shipments of property upon aircraft of a supplemental air
carrier by charter, lease, or any other arrangement.
(f) [Reserved]
(g) Ticket agent means any person (other than a supplemental air
carrier or one of its bona fide regular employees) 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 a supplemental air carrier; or (2) procures or arranges
for air transportation of passengers or groups of passengers upon
aircraft of a supplemental air carrier by charter, lease, or any other
arrangement.
(h) Pro rata charter means a charter, the cost of which is divided
among the passengers transported.
(i) Single entity charter means a charter, the cost of which is
borne by the charterer and not by individual passengers, directly or
indirectly.
(j) Mixed charter means a charter, the cost of which is borne, or
pursuant to contract may be borne, partly by the charter participants
and partly by the charterer.
(k) Person means any individual, firm, association, partnership, or
corporation.
(l) Travel agent means any person engaged in the formation of groups
for transportation or in the solicitation or sale of transportation
services.
(m) Charter group means that body of individuals who shall actually
participate in the charter flight.
(n) Charter organization means that organization, group, or other
entity from whose members (and their immediate families) a charter group
is derived.
(o)-(r) [Reserved]
(s) Charter flight means air transportation performed by
supplemental air carriers in accordance with Sec. 208.6.
(t) Substitute service means the performance by an air carrier of
foreign or overseas air transportation, or air transportation between
the 48 contiguous States, on the one hand, and the State of Alaska or
Hawaii, on the other hand, in planeload lots pursuant to an agreement
with another air carrier to fulfill such other air carrier's contractual
obligations to perform such air transportation for the Department of
Defense.
(u) Indirect air carrier means any citizen of the United States
authorized to engage indirectly in air transportation.
(v) Net worth means the net stockholder equity as specified in form
41 balance sheet account 2995 of the Uniform System of Accounts and
Reports.
(w) Long-term wet lease means a lease by which the lessor provides
both an aircraft and its crew, which either (1) lasts more than 60 days,
or (2) is part of a series of such leases that amounts to
[[Page 42]]
a continuing arrangement lasting more than 60 days.
[ER-803, 38 FR 14272, May 31, 1973, as amended by ER-1096, 44 FR 6645,
Feb. 1, 1979; ER-1249, 46 FR 47767, Sept. 30, 1981]
Sec. 208.3a Waiver.
(a) A waiver of any of the provisions of this part may be granted by
the Board upon the submission by an air carrier of a written request
therefor not less than 30 days prior to the flight to which it relates
provided such a waiver is in the public interest and it appears to the
Board that special or unusual circumstances warrant a departure from the
provisions set forth herein. Notwithstanding the foregoing, waiver
applications filed less than 30 days prior to a flight may be accepted
by the Board in emergency situations in which the circumstances
warranting a waiver did not exist 30 days before the flight.
(b) A request for a waiver of any of the provisions of Sec. 208.202b
shall be accompanied by a list of the names, addresses, and telephone
numbers of all the passengers on the flight to which the request
relates.
(Approved by the Office of Management and Budget under control number
3024-0001)
[ER-803, 38 FR 14272, May 31, 1973, as amended by ER-1340, 48 FR 31013,
July 6, 1983]
Sec. 208.4 [Reserved]
Sec. 208.5 Prior authorization of long-term wet leases to foreign air carriers.
(a) A direct air carrier shall not perform any flights for a direct
foreign air carrier under a long-term wet lease unless it has obtained a
statement of authorization under this section.
(b) Applications for a statement of authorization shall be submitted
in letter form in three copies to the Civil Aeronautics Board, addressed
to the Director, Bureau of International Aviation. A copy of the
application shall also be served on the Federal Aviation Administration,
addressed to the Director of Flight Operations, and on each certificated
air carrier that is authorized to serve the same general area in which
the proposed transportation is to be performed.
(c) The application shall describe the purpose and terms of the wet
lease agreement. It shall also include documentation to establish the
extent to which the country of the lessee's nationality deals with
United States air carriers on the basis of reciprocity for similar wet
leases, if such wet leases are not subject to a bilateral agreement and:
(1) The Board has not established that the country accords
reciprocity,
(2) The Board has found reciprocity defective in the most recent
prior approval application involving the country; or
(3) Changes in reciprocity have occurred since the most recent Board
finding for the country in question.
(d) Applications for a statement of authorization under this section
shall be filed at least 45 calendar days before the date of the first
proposed flight.
(e) Any party 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, and a copy
shall be served on the applicant air carrier. Each memorandum shall set
forth the reasons why the application should be granted or denied,
accompanied by whatever data, including affidavits, the Board is
requested to consider.
(f)(1) Unless otherwise ordered by the Board, each application and
memorandum filed in response will be available for public inspection at
the Regulatory Affairs Division of the Bureau of International Aviation
immediately upon filing. Notice of the filing of all applications will
be published in the Board'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 Board 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.
(g) The Board will issue a statement of authorization if it finds
that the proposed wet lease is in the public interest. Statements of
authorization may
[[Page 43]]
be conditioned or limited. In determining the public interest the Board
will consider (but not be limited to) the following factors:
(1) The extent to which the authority sought is covered by and
consistent with bilateral agreements to which the United States is a
party, or should be so covered;
(2) The extent to which the foreign country involved deals with
United States carriers on the basis of substantial reciprocity; and
(3) Whether the applicant (lessor) or its agent has previously
violated the provisions of this part, or the lessee or its agent has
previously violated the provisions of part 212 or 218 of this chapter.
(h) The Board will publish notice of its actions on applications for
statements of authorization in the Status of Charter Applications
attachment to the Weekly List of Applications Filed. Interested persons
may upon request obtain copies of letters advising applicants of action
taken on their applications.
(Approved by the Office of Management and Budget under control number
3024-0001)
[ER-1249, 46 FR 47767, Sept. 30, 1981, as amended by ER-1340, 48 FR
31013, July 6, 1983]
Sec. 208.6 Charter flight limitations.
(a) Passenger charter flights in air transportation shall be limited
to the following:
(1) Air transportation pursuant to contracts with the Department of
Defense where all of that portion of the capacity configured for
passengers of an aircraft has been engaged by the Department;
(2) Air transportation performed on a time, mileage, or trip basis
where all or part of the capacity of an aircraft has been engaged by any
of the following persons:
(i) By a person for his or her own use, including a direct air
carrier or a direct foreign air carrier, except that long-term wet
leases to foreign air carriers are subject to prior authorization under
Sec. 208.5.
(ii) By a person (no part of whose business is the formation of
groups or the consolidation of shipments for transportation or the
solicitation or sale of transportation services) for the transportation
of a group of persons, as agent or representative of such group;
(iii) By an overseas military personnel charter operator as defined
in part 372 of this chapter; or
(iv) By a charter operator or foreign charter operator as defined in
part 380 of this chapter.
(3) Air transportation performed on a time, mileage, or trip basis
by a direct air carrier in accordance with subpart F of this part.
(b)(1) Each person engaging less than the entire capacity of an
aircraft for the movement of persons and their personal baggage pursuant
to paragraph (a)(2) of this section shall contract and pay for 20 or
more seats.
(2) [Reserved]
(3) This section permits the carriage of charter cargo on the main
desk or in the belly of a passenger charter flight.
(c) Cargo charter flights in air transportation are permitted
without limitation, except that long-term wet leases to foreign air
carriers are subject to prior authorization under Sec. 208.5. Charter
cargo may be transported both on scheduled flights carrying
individually-ticketed and/or individually-waybilled traffic and on
flights carrying charter traffic only.
[ER-1190, 45 FR 53363, Aug. 11, 1980, as amended by ER-1249, 46 FR
47768, Sept. 30, 1981; ER-1277, 47 FR 134, Jan. 5, 1982]
Liability Insurance Requirements; Waiver of Warsaw Convention Liability
Limits
Sec. 208.10 Applicability of liability insurance requirements.
No charter air carrier shall engage in 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-1254, 46 FR 52583, Oct. 27, 1981]
Sec. 208.11 Filing requirements for adherence to Montreal Agreement.
It shall be a condition upon the holding of a certificate or other
authority authorizing air transportation that the holder have and
maintain in effect and on file with the Board a signed counterpart of
CAB Agreement 18900 (CAB
[[Page 44]]
Form 263), and comply with all other requirements in part 203 of this
chapter. That form can be obtained from the Publications Services
Division, Civil Aeronautics Board, Washington, D.C. 20428.
(Approved by the Office of Management and Budget under control number
3024-0064)
[ER-1327, 48 FR 8048, Feb. 25, 1983, as amended by ER-1340, 48 FR 31013,
July 6, 1983]
Minimum Extent of Service
Sec. 208.25 Minimum service requirements.
Each supplemental air carrier shall perform services authorized by
its certificate or authority to engage in supplemental air
transportation for at least 500 hours of revenue flight in any two
consecutive calendar quarters. Failure to perform such minimum services
will be deemed to constitute a prima facie case for suspension of the
carrier's operating authority pursuant to the provisions of section
401(n)(5) of the Act: Provided, That the carrier may, within 15 days
after the end of the two consecutive calendar quarters in which such
failure occurred, show unusual circumstances constituting good cause why
its operating authority should not be suspended.
Operations
Sec. 208.30 Baggage liability.
Air carriers shall not limit their baggage liability for interstate
and overseas charter flights except as set forth in 14 CFR part 254.
[ER-1312, 48 FR 227, Jan. 4, 1983; 48 FR 3584, Jan. 26, 1983]
Sec. 208.31 Transportation of persons who may need help during aircraft evacuation.
Except as set forth in part 121 of the Federal Aviation Regulations
(14 CFR part 121), air carriers shall not 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.
[ER-1172, 44 FR 33054, June 8, 1979]
Sec. 208.31a Written agreements with ticket agents.
Each agreement between a supplemental air carrier and any ticket or
cargo agent shall be reduced to writing and signed by all the parties
thereto, if it relates to any of the following subjects:
(a) The furnishing of persons or property for transportation;
(b) The arranging for flights for the accommodation of persons or
property;
(c) The solicitation or generation of passenger or cargo traffic to
be transported;
(d) The charter or lease of aircraft.
Sec. 208.31b Written contract with charterers.
Every agreement to perform a charter trip, except charters for the
Department of Defense, shall be in writing and signed by an authorized
representative of the supplemental air carrier and the charterer prior
to operation of a charter flight: Provided, That where execution of a
contract prior to commencement of flight is impracticable because the
charter has been arranged on short notice, compliance with the provision
hereof shall be effected within seven (7) days after commencement of the
flight. The written agreement shall include without limitation:
(a) Date and place of execution of the contract or agreement;
(b) Signature, printed or typed name of each signatory, and official
position of each;
(c) Dates of flights and points involved;
(d) Type and capacity of aircraft: Number of passenger seats
available or pounds of cargo capacity;
(e) Rates, fares, and charges applicable to the charter trip,
including the charter price, live and ferry mileage charges, and layover
and other nonflight charges;
(f) The name and address of either the surety whose bond secures
advance charter payments received by the carrier or of the carrier's
depository bank to which checks or money orders for advance charter
payments are to be made payable, as escrow holder pending completion of
the charter trip; and
(g) A statement that unless the charterer files a claim with the
carrier,
[[Page 45]]
or, if he is unavailable, with the surety, within sixty (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 charter
trip. (see Sec. 208.40(e)).
[ER-810, 38 FR 20256, July 30, 1973, as amended by ER-1127, 44 FR 33054,
June 8, 1979; 44 FR 40884, July 13, 1979]
Sec. 208.32 Terms of service.
(a)-(b) [Reserved]
(c) Payments for a U.S.-originating charter flight made to any
person to whom the carrier, directly or indirectly, has paid a
commission or has agreed to pay a commission for that flight shall be
considered payments to the carrier.
(d) Each and every contract for a charter to be operated hereunder
shall incorporate the provisions of Secs. 208.32a, 208.33, and 208.33a,
where applicable, concerning insurance and substitute transportation.
(e) The carrier 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 capacity 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 passenger 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 paragraph, payment to
the carrier's depository bank, as designated in the charter contract,
shall be deemed payment to the carrier.
(f) Where four or more round trip flights per calendar year are
conducted on behalf of a chartering organization by a carrier or
carriers, one-way passengers shall not be carried except that up to 5
percent of the charter group may be transported one way in each
direction, there shall be no intermingling of passengers and each
planeload group, or less than planeload group (see Sec. 208.6(a)(3)),
shall move as a unit in both directions, except as provided in
Sec. 208.36. This provision shall not be construed as permitting knowing
participation in any plan whereby each leg of a round trip is chartered
separately in order to avoid the 5-percent limitation aforesaid.
[ER-803, 38 FR 14272, May 31, 1973, as amended by ER-1127, 44 FR 33054,
June 8, 1979; ER-1145, 44 FR 50597, Aug. 29, 1979; ER-1277, 47 FR 134,
Jan. 5, 1982; ER-1286, 47 FR 9819, Mar. 8, 1982]
Sec. 208.32a Flight delays and substitute air transportation (foreign).
Charter air carriers shall comply with the following requirements
for passenger service in foreign air transportation. These requirements
shall be without prejudice and in addition to any other rights or
remedies of passengers under applicable law:
(a) Substitute air transportation. (1) On all charter flights,
unless the air carrier causes an aircraft to finally enplane each
passenger and commence the takeoff procedures at the airport of
departure before the 48th hour following the time scheduled for the
departure of such flight, it shall provide substitute transportation in
accordance with the provisions of this paragraph.
(2) As soon as the air carrier discovers, or should have discovered
by the exercise of reasonable prudence and forethought, that the
departure of any such charter flight will be delayed more than 48 hours,
such air carrier shall arrange for and pay the costs of substitute air
transportation for the charter group on another charter flight, operated
by any other carrier or foreign air carrier.
(3) When neither the charter transportation contracted for nor
substitute transportation has been performed before the expiration of 48
hours following the scheduled departure time of any such charter flight,
the charterer, or his duly authorized agent, may arrange for substitute
air transportation of the members of the charter group, at
[[Page 46]]
economy or tourist class fares, on individually ticketed flights and the
chartered air carrier shall pay the cost of such air transportation to
the substitute air carrier or foreign air carrier.
(4) In determining the period of time during which the departure of
a charter flight has been delayed within the purview of this paragraph,
periods of delay caused by the prohibition of flights to or from the
airport of departure because of weather or other operational conditions
affecting such airport shall be excluded if, and while, the air carrier
has available an airworthy aircraft which is capable of transporting the
charter group in a condition of operational readiness.
(b) Incidental expenses.2 (1) On the return leg of a
charter flight bound from a point outside the country where the charter
originated and is to terminate, unless the air carrier causes an
aircraft to finally enplane each passenger and commence the takeoff
procedures at the airport of departure before the 6th hour following the
time scheduled for the departure of such flight, it shall pay incidental
expenses in accordance with the provisions of this paragraph. Such
payments shall be made at the airport of departure as soon as they
become due to the charterer, or its duly authorized agent, for the
account of each passenger, including infants and children traveling at
reduced fares. In the case of charter flights bound to or from the
United States on the return leg, ``country'' as used in this paragraph
means the 48 contiguous States of the United States.
---------------------------------------------------------------------------
2 Although the requirements with respect to providing
incidental expenses are made expressly applicable only to the return leg
of a charter flight, the air carriers are expected in the case of delay
in departure of the originating leg of a flight, to furnish such
incidental expenses to charter passengers whose homes are not located
within a reasonable distance from the point of origination of the
charter.
---------------------------------------------------------------------------
(2) Such payments shall be made at the rate of $16 for each full 24-
hour period of delay following the scheduled departure time. However,
the sum of $8 shall be paid for each passenger delayed 6 hours following
the scheduled departure time. Thereafter, during the succeeding 18 hours
of delay, an additional sum of $8 shall be paid for each passenger
delayed in installments of $4 for the first and second succeeding 6-hour
period of delay, or any fractional part thereof. If the delay continues
beyond a period of 24 hours following the scheduled departure time, such
payments shall be made in equal installments of $4 for each further 6-
hour period of delay, or any fractional part thereof: Provided, however,
That the air carrier may, at its option, discharge this obligation by
providing free meals and lodging in lieu of making such payments. The
obligation of the air carrier to pay incidental expenses or provide free
meals and lodging shall cease when substitute air transportation is
provided in accordance with the provisions of paragraph (a) of this
section.
[ER-803, 38 FR 14272, May 31, 1973, as amended by ER-1127, 44 FR 33055,
June 8, 1979]
Sec. 208.33 Flight delays and substitute air transportation (interstate and overseas).
Charter air carriers shall comply with the following requirements
for passenger service in interstate and overseas transportation. These
requirements shall be without prejudice and in addition to any other
rights or remedies of passengers under applicable law:
(a) In case of flight delays of more than 6 hours beyond the
departure time stated in the charter contract or 4 hours beyond the time
of departure stated on an individual flight ticket, the carrier, upon
request and at the passenger's or charterer's option (or in case of the
engagement by one charterer of less than the capacity of an aircraft, at
the option of any one charterer), must provide alternative air
transportation at no additional cost to the passenger or charterer, or
immediately refund the full value of the unused ticket or the
unperformed charter contract.
(b) In case of additional flight delays en route exceeding 6 hours
for charter flights or 2 hours for individually ticketed flights, the
carrier must, upon request and at the passenger's or charterer's option
(or in case of the engagement by one charterer of less than
[[Page 47]]
the capacity of an aircraft, at the option of any one charterer),
furnish alternative transportation to the specified destination, or
immediately refund the full value of unperformed transportation. The en
route delays shall be calculated without inclusion of any delay at
departure but all additional delays at intermediate stops en route shall
be added up in determining whether the limit of delay has been reached.
(c) In case of flight cancellations or flight delays, refunds shall
be paid immediately upon presentation of an unused flight coupon or upon
demand of the charterer or his representative (or in case of the
engagement by one charterer of less than the capacity of an aircraft,
upon demand of any one charterer or his representative) to the air
carrier or its agent.
(d) The requirements in paragraphs (a), (b), and (c) of this section
for immediate refunds or alternative transportation shall not apply to
the extent that there is an unavoidable delay due solely to weather.
[ER-803, 38 FR 14272, May 31, 1973, as amended by ER-1127, 44 FR 33055,
June 8, 1979]
Sec. 208.33a Substitution or subcontracting.
Supplemental air carriers may subcontract the performance of
services which they have contracted to perform only to air carriers
authorized by the Board to perform such services.
Secs. 208.34--208.35 [Reserved]
Sec. 208.36 Substitute transportation in emergencies.
(a) A carrier shall be permitted to transport a passenger on a
charter flight with a group other than his own or on a ferry flight (as
defined in Sec. 241.03 of this subchapter) under the following
circumstances:
(1) [Reserved]
(2) The transportation is for return passage only;
(3) When the passenger is required to return at a different time
than his own charter flight due to emergency circumstances beyond the
passenger's control; and
(4) The charter group with which the passenger is to travel
expresses no objection to his participation in the charter flight.
For the purposes of this paragraph, ``emergency circumstances beyond the
passenger's control'' shall include illness or injury to the passenger
or a member of his immediate family; death of a member of the
passenger's immediate family; or weather conditions or unforeseeable and
unavoidable delays in ground transportation or connecting air
transportation.
[ER-803, 38 FR 14272, May 31, 1973, as amended by ER-1222, 46 FR 28379,
May 26, 1981]
Sec. 208.37 Exemption.
Charter air carriers are hereby exempted from section 401(n)(4) of
the Act.
[ER-1142, 44 FR 50825, Aug. 30, 1979]
Sec. 208.38 Suspension of exemption authority.
The Board reserves the power to suspend the exemption authority of
any charter air carrier, without hearing, if it finds that such action
is necessary in order to protect the rights of the traveling public.
[ER-1142, 44 FR 50825, Aug. 30, 1979]
Protection of Customers' Deposits
Sec. 208.40 Protection of customers' deposits.
(a) Except as provided in paragraph (c) of this section, no
supplemental air carrier shall perform any air transportation services
(other than a cargo charter trip) originating in the United States or
any overseas military personnel charter trips, as defined in part 372 of
this chapter, nor shall such air carrier accept any advance payment in
connection with any such charter trip, unless there is on file with the
Board 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
charter 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
[[Page 48]]
money order made payable to the depository bank. Such check or money
order and any cash received by the carrier from a charterer (or his
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 his 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 his
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 written certification by the carrier that such segment has
been completed.
(3) Refunds to a charterer from sums in the escrow account shall be
paid directly to such charterer or 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 charter for less than
the entire capacity of an aircraft (see Sec. 208.6 (c)) 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, savings
and loan institution, or other financial institution insured by the
Federal Deposit Insurance Corporation or the Federal Savings and Loan
Insurance Corporation.
(b) The escrow agreement required under paragraph (a) of this
section shall not be effective until approved by the Board. Claims
against the escrow may be made only with respect to nonperformance 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
Board a surety bond which guarantees to the United States Government the
performance of all air transportation services (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 the carrier pursuant to contracts
entered into by such carrier after the execution date of the bond. The
amount of such bond shall be unlimited. Claims under the bond may be
made only with respect to the nonperformance of air transportation.
(d) The bond permitted by paragraph (a) of this section shall be in
the form set forth as Appendix A to this part. Such bond shall be issued
by a bonding or surety company (1) whose surety bonds are accepted by
the Interstate Commerce Commission under 49 CFR 1084.6; or (2) which is
listed in Best's Insurance Reports (Fire and Casualty) with a general
policyholders' rating of ``A'' or better. The bonding or surety company
shall be one legally authorized to issue bonds of that type in the State
in which the carrier is incorporated or in which it maintains its
principal place of business. 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 Board will
notify the supplemental air carrier, by registered or certified mail,
stating the deficiencies of the bond. Unless such
[[Page 49]]
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 he is unavailable, with
the surety, within sixty (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.
(Approved by the Office of Management and Budget under control number
3024-0001)
[ER-810, 38 FR 20256, July 30, 1973, as amended by ER-1340, 48 FR 31013,
July 6, 1983]
Subpart B--Provisions Relating to Military Charters
Sec. 208.100 Applicability of subpart.
This subpart sets forth the special rules applicable to military
charters.
Sec. 208.101 [Reserved]
Sec. 208.102 Substitute service.
Supplemental air carriers are authorized to provide ``substitute
service'' as defined in this part, subject to the provisions of part 288
of this chapter.
Sec. 208.103 Terms of service.
The provisions of Sec. 208.32(d) shall apply to charters under this
subpart.
[ER-1127, 44 FR 33055, June 8, 1979]
Subpart B1--Provisions Relating to Military Backhaul Charters
Sec. 208.150 Military backhaul exemption.
Subject to the provisions of this part and all other applicable
rules, regulations, conditions, or requirements, supplemental air
carriers are hereby exempted from the provisions of section 401 of the
Act to the extent necessary to permit them to engage in overseas or
foreign ``supplemental air transportation'' on the reverse leg of a
charter performed in the opposite direction under a contract with the
Department of Defense calling for one-way service.
Subpart C--Provisions Relating to Pro Rata Charters
Sec. 208.200 Applicability of subpart.
This subpart sets forth the special rules applicable to pro rata
charters.
Requirements Relating to Air Carriers
Sec. 208.200a Solicitation and formation of a chartering group.
(a) A carrier shall not engage, directly or indirectly, in any
solicitation of individuals (through personal contact, advertising, or
otherwise) as distinguished from the solicitation of an organization for
a charter trip, except after a charter contract has been signed.
(b) A carrier shall not employ, directly or indirectly, any person
for the purpose of organizing and assembling members of any
organization, club, or other entity into a group to make the charter
flight, except after a charter contract has been signed.
Sec. 208.201 Pretrip notification and charter contract.
(a) Upon a charter flight date being reserved by the carrier or its
agent, the carrier shall provide the prospective charterer with a copy
of this part 208.3 The charter contract shall include a
provision that the charterer, and any agent thereof, shall only act with
regard to the charter in a manner consistent with this part and that the
charterer shall within due time submit to the carrier such information
as specified in Sec. 208.215. The carrier shall also require that the
charterer and any travel agent involved shall furnish it at least 30
days prior to departure of the first flight the statements of supporting
information required in Secs. 208.217 and 208.204, respectively, unless
the charter has been contracted for within
[[Page 50]]
30 days before the date of departure, in which event the statement and
attachments shall be filed with the carrier on the date the charter
contract is executed. In the event of a substitution of carriers, the
carrier with whom the statements and attachments have been filed may
forward them to the substitute carrier, in which case new statements
need not be executed.
---------------------------------------------------------------------------
3Copies of this part are available by purchase from the
Superintendent of Documents, Washington, D.C. 20402. Single copies will
be furnished without charge on written request to the Publications
Service Section, Civil Aeronautics Board, Washington, D.C. 20428.
---------------------------------------------------------------------------
(b) The carrier shall attach to its copy of the charter contract a
certification by an officer of the chartering organization, or other
qualified person, that authorizes the person who executes the contract
to so do on behalf of the chartering organization. However,
certification is not required where the charter is based on employment
in one entity, or on employee or student status at a school. If the
charter contract is for the return flight of a one-way charter by the
same charter organization, a copy of the passenger list (Sec. 208.215)
of the outbound charter shall be attached to the charter contract.
[ER-803, 38 FR 14272, May 31, 1973, as amended by ER-1222, 46 FR 28379,
May 26, 1981]
Sec. 208.202 [Reserved]
Sec. 208.202a Statement of Supporting Information.
Prior to performing a charter flight, the carrier shall execute, and
require the travel agent (if any) and the charterer to execute a
Statement of Supporting Information (Appendix B). If a charter contract
covers more than one charter flight, only one statement need be filed:
Provided, however, That separate financial data (see item 13 of
statement) shall be filed for each one-way or round-trip flight. The
carrier shall require the charterer to annex to the statement copies of
all announcements of the charterer in connection with the charter issued
after the contract is signed.
(Approved by the Office of Management and Budget under control number
3024-0001)
[ER-1222, 46 FR 28379, May 26, 1981, as amended by ER-1340, 48 FR 31013,
July 6, 1983]
Sec. 208.202b Charter trips originating in the United States.
(a) In the case of a charter trip originating in the United States
which includes foreign air transportation, and where separate charter
contracts cover the flight departing from the United States and the
flight returning to the United States, the time by which the carrier to
perform the returning flight, as well as the carrier to perform the
departing flight, must receive full payment of its charter price (or a
satisfactory bond for such payment), in compliance with the requirements
of Sec. 208.32(e), shall be not less than 10 days prior to the departing
flight.
(b) In addition to requiring timely payment of its charter price (or
the posting of a bond), pursuant to paragraph (a) of this section, the
carrier performing the departing flight from the United States shall
request in writing from the carrier performing the returning flight for
the same chartering group, and the carrier performing the returning
flight shall furnish, not later than 10 days prior to the scheduled
departure, written confirmation that the latter carrier has also
received timely payment of its charter price (or the posting of a bond),
pursuant to paragraph (a) of this section. Both the request and the
confirmation shall contain particulars sufficient to identify the
charter trip, including such details as the date and point of origin of
the departing flight, the date and point of origin of the returning
flight, and the name of the chartering group; and both shall be
accompanied by a passenger list. The confirmation shall also contain a
statement to the effect that the carrier has not previously furnished
such confirmation to any other carrier with respect to the same charter
trip.
(c) The requirements of this section shall apply to all charter
flights scheduled to depart after the effective date hereof: Provided,
however, That with respect to planeload charter flights scheduled to
depart less than 15 days after the effective date hereof, and with
respect to less-than-planeload charter flights scheduled to depart less
than 30 days after the effective date hereof, requirements hereunder as
to advance payments and receipt of written confirmation thereof by the
departing carrier, need not be met within the time specified in this
section but may be met at any time before flight departure.
[[Page 51]]
(d) Every carrier which has entered into a charter contract covering
only one-way foreign air transportation from the United States, to be
performed in connection with a pro rata charter trip originating in the
United States, must obtain, before performing such departing flight,
either written confirmation from the returning carrier (as provided in
paragraph (b) or (c) of this section, as the case may be), or a waiver
granted by the Board pursuant to Sec. 208.3a, such waiver to be based
either on the grounds set forth in said Sec. 208.3a, or on a showing
that the arrangements between the chartering organization and the
charter participants do not involve the provision of return
transportation to the United States.
(e) 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.
(Approved by the Office of Management and Budget under control number
3024-0001)
[ER-803, 38 FR 14272, May 31, 1973, as amended by ER-810, 38 FR 20257,
July 30, 1973; ER-1064, 43 FR 36599, Aug. 18, 1978; ER-1340, 48 FR
31013, July 6, 1983]
Sec. 208.202c Air carrier to identify enplanements.
The carrier shall make reasonable efforts to assure that no person
is enplaned whose name does not appear on the list of passengers
supplied by the charterer under Sec. 208.215.
[ER-1222, 46 FR 28379, May 26, 1981]
Requirements Relating to Travel Agents
Sec. 208.203 [Reserved]
Sec. 208.204 Statement of Supporting Information.
Travel agents shall execute, and furnish to foreign air carriers,
section A of part II of the Statement of Supporting Information
(appendix B) at such time as required by the carrier to afford it due
time for review thereof.
(Approved by the Office of Management and Budget under control number
3024-0001)
[ER-1222, 46 FR 28379, May 26, 1981, as amended by ER-1340, 48 FR 31013,
July 6, 1983]
Requirements Relating to the Chartering Organization
Sec. 208.210 Solicitation of charter participants.
(a) As used in this section, ``solicitation of the general public''
means:
(1) A solicitation going beyond the bona fide members of an
organization (and their immediate families). This includes air
transportation services offered by an air carrier under circumstances in
which the services are advertised in mass media, whether or not the
advertisement is addressed to members of a specific organization, and
regardless of who places or pays for the advertising. Mass media shall
be deemed to include radio and television, and newspapers and magazines.
Advertising in such media as newsletters or periodicals of membership
organizations, industrial plant newsletters, college radio stations, and
college newspapers shall not be considered advertising in mass media to
the extent that
(i) The advertising is placed in a medium of communication
circulated mainly to members of an organization that would be eligible
to obtain charter service, and
(ii) The advertising states that the charter is open only to members
of the organization referred to in paragraph (a)(1)(i) of this section,
or only to members of a subgroup thereof. In this context, a subgroup
shall be any group with membership drawn primarily from members of the
organization referred to in paragraph (a)(1)(i) of this section:
Provided, That this paragraph shall not be construed as prohibiting air
carrier advertising which offers charter services to bona fide
organizations, without reference to a particular organization or flight.
(2) The solicitation, without limitation of the members of an
organization so constituted as to ease the admission to membership, and
nature of membership, as to be in substance more in the nature of a
segment of the public than a private entity.
(b) Members of the charter group may be solicited only from among
the bona fide members of an organization, club, or other entity, and
their immediate families, and may not be brought together by means of a
solicitation of
[[Page 52]]
the general public. ``Bona fide members'' means those members of a
charter organization who:
(1) Have not joined the organization merely to participate in the
charter as the result of solicitation of the general public; and (2) are
members for a minimum of 6 months prior to the starting flight date. The
requirement in paragraph (b)(2) of this section is not applicable to:
(i) Students and employees of a single school, and immediate
families thereof; or
(ii) Employees of a single Government agency, industrial plant, or
mercantile establishment, and immediate families thereof.
(c) Solicitation of, as well as participation by, members of an
organization with respect to charter flights shall extend only to the
organization, or the particular chapter or unit thereof, which signs the
charter agreement with the air carrier as the charterer.
(d) A charterer shall not advertise or otherwise solicit its members
for any charter until a charter contract has been signed: Provided,
however, That this prohibition shall not extend to oral inquiries or
internal mailings directed to members to determine interest in a charter
flight or charter program so long as no fixed price for air
transportation is held out. After a charter contract is signed, copies
of solicitation material shall be furnished the carrier at the same time
it is distributed to members.
(e) 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
PROGRAM.
[ER-803, 38 FR 14272, May 31, 1973, as amended by ER-1177, 45 FR 40575,
June 16, 1980]
Sec. 208.211 Passengers on charter flights.
Only bona fide members of the charterer, and their immediate
families, may participate as passengers of a charter flight, and the
participants must be members of the specific organization or chapter
which authorized the charter. The charterer must maintain a central
membership list, available for inspection by the carrier or Board
representative, which shows the date each person became a member.\5\
Where four or more round-trip flights per calendar year are conducted on
behalf of a chartering organization by a carrier or carriers,
intermingling between flights or reforming of planeload groups, or less
than planeload groups (see Sec. 208.6(c)), shall not be permitted, and
each group must move as a unit in both directions, except as provided in
Sec. 208.36.
---------------------------------------------------------------------------
\5\Where the charter is based on employment in one entity or student
or employee status at a school, records of the corporation, agency or
school will suffice to meet the requirements
---------------------------------------------------------------------------
Sec. 208.212 Participation of immediate families in charter flights.
(a) The immediate family of any bona fide member of a charter
organization may participate in a charter flight.
(b) ``Immediate family'' means only the following persons who are
living in the household of a member of a charter organization, namely,
the spouse, dependent children, and parents, of such member.
Sec. 208.213 Charter costs.
(a) The costs of charter flights shall be prorated equally among all
charter passengers and no charter passenger shall be allowed free
transportation; except that: (1) Children under 12 years of age may be
transported at a charge less than the equally prorated charge; (2)
children under 2 years of age may be transported free of charge.
(b) The charter shall not make charges to the charter participants
which exceed the actual costs incurred in consummating the charter
arrangements, nor include as a part of the assessment for the charter
flight any charge for purposes of charitable donations. All charges
related to the charter flight arrangements collected from the charter
participants which exceed the actual costs thereof shall be refunded to
the participants in the same ratio as the charges were collected.
[ER-803, 38 FR 14272, May 31, 1973, as amended by ER-1225, 46 FR 31000,
June 12, 1981]
[[Page 53]]
Sec. 208.214 Statements of charges.
The chartering organization, in any announcements or statements to
prospective charter participants giving price per seat, shall state that
the seat price is a pro rata share of total charter cost and is subject
to increase or decrease depending on the number of participants. All
announcements shall separately state the cost of ground arrangements, if
any, the cost of air transportation, the administrative expenses of the
charterer, and the total cost of the entire trip. All announcements
shall also identify the carrier, the number of seats available, and the
type of aircraft to be used for the charter.
Sec. 208.215 Passenger lists.
(a) Prior to each one-way or round-trip flight, a list shall be
filed by the charterer with the air carrier showing the names,
addresses, and telephone numbers of the persons to be transported,
including standbys who may be transported, specifying the relationship
of each such person to the charterer (by designating opposite his name
one of the three relationship categories hereinafter described), the
date the person joined or last renewed a lapsed membership in the
charter organization, and the designation ``one-way'' in the case of
one-way passengers. The list shall be amended if passengers are added or
dropped before flight.
(b) The relationship of a prospective passenger shall be classified
under one of the following categories and specified on the passenger
list as follows:
(1) A bona fide member of the chartering organization who will have
been a bona fide member of the chartering organization for at least 6
months prior to the starting flight date. Specify on the passenger list
as ``(1) member.''
(2) The spouse, dependent child, or parent of a bona fide member who
lives in such member's household. Specify on the passenger list as ``(2)
spouse'' or ``(2) dependent child'' or ``(2) parent.'' Also give name
and address of member relative where such member is not a prospective
passenger.
(3) Bona fide members of entities consisting only of persons
employed by a single Government agency, industrial plant, or mercantile
company, or students and employees of a school or persons whose proposed
participation in the charter flight was permitted by the Board pursuant
to request for waiver. Specify on the passenger lists as ``(3) special''
or ``(3) member'' (where participants are from a school group or from a
Government agency, industrial plant, or mercantile company).
(c) In the case of a round-trip flight, the above information must
be shown for each leg of the flight and any variations between the
outbound and inbound trips must be explained on the list.
(d) Attached to such list must be a certification, signed by a duly
authorized representative of the charterer, reading:
The attached list of persons includes every individual who may
participate in the charter flight. Every person as identified on the
attached list (1) was a bona fide member of the chartering organization,
and will have been a member for at least 6 months prior to the starting
flight date, or (2) is a bona fide member of an entity consisting of (a)
students and employees of a single school, or (b) employees of a single
Government agency, industrial plant, or merchantile establishment, or
(3) is a person whose participation has been specifically permitted by
the Civil Aeronautics Board, or (4) is the spouse, dependent child, or
parent of a person described hereinbefore and lives in such person's
household.\6\
---------------------------------------------------------------------------
\6\ Whoever, in any matter within the jurisdiction of any department
or agency of the United States, knowingly and willfully falsifies,
conceals, or covers up by any trick, scheme, or device a material fact,
or makes any false, fictitious, or fraudulent statements or
representations, or makes or uses any false writing or documents knowing
the same to contain any false, fictitious, or fraudulent statement or
entry, shall be fined not more than $10,000 or imprisioned not more than
5 years or both. Title 18, U.S.C. 1001.
--------------------(Signature)
Sec. 208.216 Application for a charter.
A chartering organization shall make written application to the air
carrier, setting forth the number of seats desired, points to be
included in the proposed flight or flights, the dates of departure for
each one-way or round-trip flight, and the number of round-trip flights
which have been conducted for
[[Page 54]]
the organization by any carrier or carriers during the calendar year.
(Approved by the Office of Management and Budget under control number
3024-0001)
[ER-803, 38 FR 14272, May 31, 1973, as amended by ER-1340, 48 FR 31013,
July 6, 1983]
Sec. 208.217 Statement of Supporting Information.
Charterers shall execute and file with the foreign air carrier
section B of part II of the Statement of Supporting Information
(appendix B) at such time as required by the carrier to afford it due
time for review thereof.
[ER-1222, 46 FR 28379, May 26, 1981]
Subpart D--Provisions Relating to Single Entity Charters
Sec. 208.300 Applicability of subpart.
This subpart sets forth the special rules applicable to single
entity charters.
Sec. 208.301 Terms of service.
The provisions of subpart A of this part, except paragraph (f) of
Sec. 208.32, shall apply to charters under this subpart.
[ER-1210, 46 FR 10457, Feb. 3, 1981]
Sec. 208.302 [Reserved]
Sec. 208.303 Statement of Supporting Information.
Part I of the Statement of Supporting Information (appendix B) shall
be applicable in the case of single entity charters.
[ER-1222, 46 FR 28379, May 26, 1981]
Subpart E--Provisions Relating to Mixed Charters
Sec. 208.400 Applicable rules.
The rules set forth in subpart C of this part shall apply in the
case of mixed charters.
Subpart F--Direct Sales by Air Carriers
Source: ER-1142, 44 FR 50825, Aug. 30, 1979, unless otherwise noted.
Sec. 208.500 Applicability of subpart.
This subpart applies to direct air carriers that provide charter
trips, including trips with ground accommodations and services, directly
to individuals.
Sec. 208.501 Terms of service.
(a) Charter trips under this subpart shall bear only such
characteristics as are permitted for Public Charters under part 380 of
this chapter, except:
(1) They may be arranged and sold by a direct air carrier;
(2) There is no minimum contract size; and
(3) Each participant contract shall be signed by or on behalf of the
participant not less than 7 days before scheduled departure of the
outbound flight.
(b) Each direct air carrier operating a charter trip under this
subpart shall comply with all the requirements and limitations of part
380 of this chapter, Public Charters, applicable to direct carriers and
to charter operators except that:
(1) Those provisions of part 380 relating to the existence of a
contract between a charter operator and a direct carrier do not apply;
(2) Section 380.34 does not apply except as specified in paragraph
(b)(4) of this section.
(3) If a depository agreement is used, it shall comply with
Sec. 380.34a (d) and (f); and
(4) If a security agreement is used, it shall comply with
Sec. 380.34 (c) and (d), and:
(i) If no depository agreement is used, protect charter participant
deposits (including those for ground accommodations and services) and
assure the direct 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 deposits (including those for ground accommodations
and services) and assure the direct air carrier's contractual and
regulatory responsibilities to charter participants in the amount of at
least $10,000 times the
[[Page 55]]
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) For the purposes of this section, ``charter trip'' includes
charter tours with or without ground accommodations and services.
Sec. 208.502 Board powers.
The Board retains, with respect to charters under this subpart, all
powers that it has under part 380 of this chapter with respect to Public
Charters.
Appendix A to Part 208--Supplemental Air Carriers' Surety Bond Under
part 208 of the Economic Regulations of the Civil Aeronautics Board (14
CFR part 208)
Know all men by these present, that we --------------------(Name of
supplemental air carrier) of ------------(City) ------------ (State) 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 Sec. 208.40(c) of part 208, 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 supplemental air carrier holding a
certificate of public convenience and necessity issued under section
401(d)(3) of the Federal Aviation Act, is subject to rules and
regulations of the Board relating to security for the protection of
charterers of civil aircraft and has elected to file with the Civil
Aeronautics Board such a bond as will guarantee to the United States
Government the performance of all air transportation services (other
than cargo charter trips) originating in the United States and of all
overseas military personnel charter trips, as defined in part 372 of the
Board's regulations, to be performed, in whole or in part, by such
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 Board relating to security for the
protection of charterers of civil aircraft for charter trips (other than
cargo charter trips) originating in the United States and of overseas
military personnel charters and shall inure to the benefit of any and
all such charters 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 charters 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 air transportation services (other than cargo charter
trips) originating in the United States and of overseas military
personnel charter trips, than this obligation shall be void, otherwise
to remain in full force and effect.
The liability of the Surety with respect to any charterer shall not
exceed the total cost to such charterer for air transportation services
in accordance with his contract with the Principal.
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 Civil Aeronautics Board
forthwith of all suits filed, judgments rendered, and payments made by
said Surety under this bond.
This bond is effective the ---- day of ------------, 19----, 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 Civil Aeronautics Board at its office in
Washington, D.C., such termination to become effective thirty (30) days
after actual receipt of such notice by the Board. The Surety shall not
be liable hereunder for the payment of any 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
prior to the date such termination 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 the claim to the
supplemental air carrier, or, if he is unavailable, to the Surety, and
all liability on the bond for such charter trip shall automatically
terminate sixty (60) days after the cancellation date thereof except for
claims filed within the time provided herein.
[[Page 56]]
In witness whereof, the said Principal and Surety have executed this
instrument on the ---- day of ------------, 19----.
PRINCIPAL
Name____________________________________________________________________
By ----------------------(Signature and Title)
Witness_________________________________________________________________
SURETY
Name ------------------------(SEAL)
By --------------------(Signature and Title)
Witness_________________________________________________________________
Only corporations may qualify to act as Surety and they must meet
the requirements set forth in Sec. 208.40(d) of part 208.
[ER-810, 38 FR 20257, July 30, 1973]
Appendix B to Part 208--Statement of Supporting Information \1\
Part I--To be completed by air carrier for each single entity,
mixed, or pro rata charter. (Where more than one round-trip flight is to
be performed under the charter, clearly indicate applicability of
answers.)
---------------------------------------------------------------------------
\1\ This must be retained by the air carrier for 2 years pursuant to
the requirements of part 249, but open to Board inspection, and to be
filed with the Board on demand.
1. Name of transporting carrier:________________________________________
........................................................................
2. Commencement date(s) of proposed flight(s):__________________________
........................................................................
(a) Going_______________________________________________________________
(b) Returning___________________________________________________________
3. Points to be included in proposed flight(s):_________________________
........................................................................
(a) From________________________________________________________________
to______________________________________________________________________
(b) Returning from______________________________________________________
to______________________________________________________________________
(c) Other stops required by charterer:__________________________________
........................................................................
4. (a) Type of aircraft to be used:_____________________________________
........................................................................
(b) Seating capacity:___________________________________________________
(c) Number of persons to be transported:________________________________
........................................................................
5. Total charter price:_________________________________________________
........................................................................
6. (a) Has the carrier paid, or does it contemplate payment of any
commissions, direct or indirect, in connection with the proposed flight?
Yes [ ] No [ ]
(b) If ``yes'' give names and addresses of such recipients and
indicate the amount paid or payable to each recipient. If any commission
to a travel agent exceeds 5 percent of the total charter price, attach a
statement justifying the higher amount under this regulation.
........................................................................
........................................................................
7. (a) Will the carrier or any affiliate provide any services or
perform any functions in addition to the actual air transportation? Yes
[ ] No [ ]
(b) If ``Yes'' describe services or functions:__________________________
........................................................................
........................................................................
8. Name and address of charterer:_______________________________________
........................................................................
........................................................................
9. If charter is single entity, indicate purpose of flight:_____________
........................................................................
10. On what date was the charter contract executed?_____________________
........................................................................
11. If the charter is pro rata, has a copy of part 208 of the Civil
Aeronautics Board's economic regulations been mailed to or delivered to
the prospective charterer?
Yes [ ] No [ ]
Part II--To be completed for pro rata or mixed charters only.
Sections A--To be supplied by travel agent, or where none, by the air
carrier or an affiliate under its control where either of the latter
performs or provides any travel agency function or service (excluding
air transportation sales but including land tour arrangements).
1. What specific services have been or will be provided by agent to
charterer on a group basis?_____________________________________________
........................................................................
........................................................................
2. What specific services have been or will be provided by agent to
individual participants in the proposed charter?________________________
........................................................................
3. Has the agent or, to his knowledge, have any of his principals,
officers, directors, associates or employees compensated any member of
the chartering organization in relation either to the proposed charter
flight or any land tour? Yes [ ] No [ ]
4. Does the agent have any financial interest in any organization
rendering services to the chartering organization?
Yes [ ] No [ ]. If answer is ``yes'' explain:
........................................................................
........................................................................
Warranty \2\
I, --------------------(Name) represent and warrant that I have
acted with regard to this
[[Page 57]]
charter operation (except to the extent fully and specifically explained
in part II, section A) and will act with regard to such operation in a
manner consistent with part 208 of the Board's economic regulations.
---------------------------------------------------------------------------
\2\ Any air carrier, or any officer, agent, employee, or
representative thereof, who shall, knowingly and willfully, fail or
refuse * * * to keep or preserve accounts, records, and memoranda in the
form and manner prescribed or approved by the Board * * *, or shall,
knowingly and willfully, falsify, mutilate, or alter any such 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. Title 49 U.S.C.,
1472(e).
Whoever, in any matter within the jurisdiction of any department or
agency of the United States, knowingly and willfully falsifies,
conceals, or covers up by any trick, scheme or device a material fact,
or makes any false, fictitious or fraudulent statements or
representations, or makes or uses any false writing or document knowing
the same to contain any false, fictitious or fraudulent statement or
entry, shall be fined not more than $10,000 or imprisoned not more than
5 years, or both. Title 18, U.S.C., 1001.
---------------------------------------------------------------------------
(Date)__________________________________________________________________
........................................................................
(Signature and address of travel agent or, if none, of authorized
official of air carrier where such carrier or an affiliate under its
control performs any travel agency function or service (excluding air
transportation sales but including land tour arrangements).)
Section B--To be supplied by charterer:
1. Description of chartering organization, including its objective and
purposes:_______________________________________________________________
........................................................................
2. What activities are sponsored by the chartering organization?________
........................................................................
........................................................................
3. When was the organization founded?___________________________________
4. Qualification or requirements for membership in organization and
membership fee, if any:_________________________________________________
........................................................................
........................................................................
5. Has there been any reference to prospective charter flights in
soliciting new members for the charter organization?
Yes [ ] No [ ]
6. State where a list of members is available for inspection.___________
........................................................................
7. Attach list of prospective passengers (including ``standbys'' and
one-way passengers designated as such), showing for each: (a) Name,
address, and telephone number; (b) relationship of such person to
chartering organization, i.e., member, spouse, dependent child, parent
or ``special'' (a person whose proposed participation in the charter
flight was permitted by the Board pursuant to request for waiver); (c)
if such person is related to a member who is not a prospective
passenger, the member's name, address, and telephone number; and (d)
date member joined or last renewed a lapsed membership. (Note: This is a
list of prospective passengers, and does not necessarily have to
represent the passengers actually to be carried. The list is to the
amended, if passengers are dropped or added before flights and the
certification required by Sec. 208.215 must be attached to the list.)
8. What are requirements for participation in charter?__________________
........................................................................
9. How were prospective participants for charter solicited (attach any
solicitation material)?_________________________________________________
........................................................................
10. Will there be any participants in the charter flight other than
(1) members of the chartering organization or (2) spouse, dependent
children, and parents of a member of the chartering group residing in
the same household with the member?
Yes [ ] No [ ]
11. Will there by any members of the charter organization participating
in the charter who will have been members of the organization for a
period of less than 6 months prior to flight date? \3\ Yes [ ] No [ ].
If answer is ``yes,'' give names of participants who will not have been
members for 6 months:___________________________________________________
---------------------------------------------------------------------------
\3\ Not applicable to school charters, nor to charters limited to
employees of a single Government agency, industrial plant or mercantile
company.
---------------------------------------------------------------------------
........................................................................
12. If there is any intermediary involved in the charter, other than the
travel agent whose participation is described in part II, section A,
submit name, address, remuneration, and scope of activity:______________
........................................................................
........................................................................
13. Estimated receipts: ------------ (Pro rata charge) x ----------
-- (No. of passengers)=$------------ (Estimated receipts from charter).
Estimated receipts from other sources, if any:__________________________
........................................................................
Explain:________________________________________________________________
........................................................................
(a) Total receipts. $------------Estimated expenditures, including
aircraft charter (separately itemize air transportation, land tour, and
administrative expenses):
Item Amount Payable to
........................................................................
........................................................................
........................................................................
(b) Total expenditures: $------_________________________________________
Explain any difference between (a) and (b):_____________________________
........................................................................
........................................................................
14. Are any of the expenses included in item 13 above, to be paid to any
members of the chartering organization? Yes [ ] No [ ]. If
[[Page 58]]
``yes'' state how much, to whom and for what services:__________________
........................................................................
15. Is any member of the chartering organization to receive any
compensation or benefit directly or indirectly from the air carrier, the
travel agent, or any organization providing services in relation to the
air or land portion of the trip? Yes [ ] No [ ]. If ``yes'' explain
fully:__________________________________________________________________
........................................................................
........................................................................
16. Will any person in the group (except children under 2 years) be
transported without charge? Yes [ ] No [ ]
17. Will charter costs be divided equally among charter
participants, except to the extent that a lesser charge is made for
children under 12 years old? Yes [ ] No [ ]
18. Separately state for the outbound and inbound flights the number of
one-way passengers anticipated to be transported in each direction:_____
........................................................................
19. If four or more round trips are contracted for, will each group
move as a unit in both directions? Yes [ ] No [ ]
........................................................................
20. If charters have been performed for organization during past 5
years, give dates and name of carrier performing charters:
........................................................................
........................................................................
21. Has a copy of part 208 ``Terms, Conditions and Limitations of
Certificates to engage in Supplemental Air Transportation,'' of the
economic regulations of the Civil Aeronautics Board been received by the
charterer? Yes [ ] No [ ]
22. Attach copies of all announcements of the chartering
organization in connection with the charter issued after the charter
contract is signed.
Warranty of Charterer \4\
I, -------------------- (Name) and -------------------- (Name)
represent and warrant that the charterer has acted with regard to this
charter operation explained in part II, section B), and will act with
regard to such operation, in a manner consistent with part 208 of the
Board's Economic Regulations. I (we) further represent and warrant that
the charterer has not offered charter flights simultaneously with the
solicitation of membership in the chartering organization in any mass
media advertising or notice or through direct mailing or public posters.
I (we) further represent and warrant that all charter participants have
been informed of eligibility and cost requirements of part 208 and that
a flight may be canceled if ineligible participants are included.
---------------------------------------------------------------------------
\4\ Whoever, in any matter within the jurisdiction of any department
or agency of the United States knowingly and willfully falsifies,
conceals, or covers up by any trick, scheme or device a material fact,
or makes any false, fictitious or fraudulent statements or
representations, or makes or uses any false writing or document knowing
the same to contain any false, fictitious or fraudulent statement or
entry, shall be fined not more than $10,000 or imprisoned not more than
5 years, or both. Title 18, U.S.C., 1001.
---------------------------------------------------------------------------
(Date)__________________________________________________________________
........................................................................
(Signature--person within organization in charge of charter
arrangements)
........................................................................
(Signature and title of officer. This should be the chief officer of the
chartering organization except in the case of a school charter, in which
case the warranty must be by school official not directly involved in
charter.)
Warranty of Air Carrier \5\
---------------------------------------------------------------------------
\5\ Any air carrier, or any officer, agent, employee, or
representative thereof, who shall, knowingly and willfully, fail or
refuse * * * to keep or preserve accounts, records, and memoranda in the
form and manner prescribed or approved by the Board * * *, or shall,
knowingly and willfully, falsify, mutilate, or alter any such 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. (49 U.S.C.
1472(e)).
---------------------------------------------------------------------------
To the best of my knowledge and belief all the information presented
in this statement, including but not limited to, those parts warranted
by the charterer and the travel agent, is true and correct. I represent
and warrant that the carrier has acted with regard to this charter
operation (except to the extent fully and specifically explained in this
statement or any attachment thereto) and will act with regard to such
operation in a manner consistent with part 208 of the Board's economic
regulations.
(Date)__________________________________________________________________
........................................................................
(Signature and title of authorized official of air carrier)
Whoever, in any matter within the jurisdiction of any department or
agency of the United States knowingly and willfully falsifies, conceals,
or covers up by any trick, scheme, or device a material fact, or makes
any false, fictitious, or fraudulent statements or representations, or
makes or uses any false writing or document knowing the same to contain
any false, fictitious, or fraudulent statement or entry, shall be fined
[[Page 59]]
not more than $10,000 or imprisoned not more than 5 years, or both. (18
U.S.C. 1001).
[ER-803, 38 FR 14272, May 31, 1973, as amended by ER-1127, 44 FR 33055,
June 8, 1979. Redesignated by ER-1222, 46 FR 28379, May 26, 1981]
PART 211--APPLICATIONS FOR PERMITS TO FOREIGN AIR CARRIERS--Table of Contents
Subpart A--General
Sec.
211.1 Purpose.
211.2 Applicability.
Subpart B--General Requirements
211.10 Filing specifications.
211.11 Verification.
211.12 Filing and service.
211.13 Amendments to applications.
211.14 Incorporation by reference.
211.15 Statements of fact.
211.16 Oral hearing.
Subpart C--Information Requirements
211.20 Initial foreign air carrier permit or transfer of a permit.
211.21 Amendments or renewal of foreign air carrier permits.
Subpart D--Freely Associated State Air Carriers
211.30 Eligibility.
211.31 Application.
211.32 Issuance of permit.
211.33 Interstate and interstate authority.
211.34 Other permits.
211.35 Termination of eligibility.
Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417.
Source: ER-1386, 49 FR 33439, Aug. 23, 1984, unless otherwise noted.
Editorial Note: Nomenclature changes to part 211 appear at 61 FR
34725, July 3, 1996.
Subpart A--General
Sec. 211.1 Purpose.
This part sets forth the filing and evidence requirements for
foreign air carriers applying for authority to engage in foreign air
transportation under section 41301 of Title 49 of the United States Code
(Transportation).
(Approved by the Office of Management and Budget under control number
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR
50027, Dec. 26, 1984]
Sec. 211.2 Applicability.
(a) Except as provided in paragraph (b) of this section, this part
applies to all foreign air carriers seeking initial foreign air carrier
permits or the transfer, renewal, or amendment of an existing foreign
air carrier permit.
(b) Canadian charter air taxi operators, foreign indirect air
carriers of property, and foreign charter operators are not required to
submit applications under this part. Instead, Canadian charter air taxi
operators shall register under part 294 of this chapter, foreign
indirect air carriers of property shall register under part 297 of this
chapter, 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
[[Page 60]]
clearly describe and identify each exhibit by a separate number or
symbol. All exhibits are part of the application to which they are
attached.
(d) Applications shall state all weights, measures and monetary
units in U.S. terms, and all text in English.
(Approved by the Office of Management and Budget under control number
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR
50027, Dec. 26, 1984; 61 FR 34725, July 3, 1996]
Sec. 211.11 Verification.
Applications shall be verified and subscribed and sworn to before a
Notary Public or other officer authorized to administer oaths in the
jurisdiction in which the application is executed. An application
verified before a United States consular officer meets the requirements
of this section.
(Approved by the Office of Management and Budget under control number
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR
50027, Dec. 26, 1984]
Sec. 211.12 Filing and service.
All types of applications for foreign air carrier permits (initial,
renewal, amendment, or transfer) are filed as of the date the
applications are received at the Department's Docket Facility. Each
applicant shall serve those persons as required in part 302, subpart Q,
of this chapter.
(Approved by the Office of Management and Budget under control number
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR
50027, Dec. 26, 1984]
Sec. 211.13 Amendments to applications.
An applicant shall submit any information required by this part that
is omitted from the original application, or any additional information,
as an amendment to the original application. Applicants shall
consecutively number amendments to applications and shall comply with
the requirements of this subpart.
(Approved by the Office of Management and Budget under control number
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR
50027, Dec. 26, 1984]
Sec. 211.14 Incorporation by reference.
Where two or more applications are filed by a single carrier, the
applicant may incorporate lengthy exhibits, or other documents, attached
to one application into others by reference. The applicant may not
incorporate by reference and update any information from a previous
docket unless submitted within the past 2 years. The applicant must
identify the docket, and the page number or exhibit number being
incorporated, and state that there has been no change in that
information since submitting the original information.
(Approved by the Office of Management and Budget under control number
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR
50027, Dec. 26, 1984]
Sec. 211.15 Statements of fact.
The applicant shall include only significant and relevant facts in
an application. Each application shall contain adequate information with
respect to the evidence required in subpart C of this part. The
application may contain 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
[[Page 61]]
the applicant is unable to respond to an item, the application shall
contain an explanation, and include substitute information most closely
approximating the information requested. The Department may require an
applicant to provide additional information as necessary.
(a) State the name and address of the applicant, the nature of its
organization (individual, partnership, corporation, etc.), and, if other
than an individual, the name of the country under the laws of which it
is organized and the statutory citation of such laws, if any.
(b) State the name and official address of the government air
transport authority of applicant's country of citizenship having
regulatory jurisdiction over applicant.
(c) Supply the following information regarding the services
proposed:
(1) A complete statement of the authority sought; and
(2) A description of the services proposed, specifying:
(i) The point or points in the United States proposed to be served:
(ii) The frequency of service planned at the start of operations,
indicating any seasonal variations; whether the service proposed is to
be scheduled, nonscheduled or charter; whether the service would be
passenger, or property and mail, or a combination; and the type of
equipment (and configuration) to be used; and
(iii) A service schedule stating the manner in which the service
will be operated (e.g., nonstop or multi-stop, and the identity of
proposed intermediate traffic and nontraffic points).
(d) Provide the names, addresses (both residence and business), and
citizenship of all Directors, Officers and key management personnel,
including the President, Vice Presidents, the Directors or Supervisors
of Operations, Maintenance, and Finance, and the chief pilot and chief
inspector. Indicate whether any of these persons are related by blood or
marriage.
(e) Provide the names and citizenship of all persons holding five
percent (5%) or more of the capital stock or capital of the applicant.
Also indicate the number and percentage of shares of stock or percentage
of capital held by each. If five percent or more of the applicant's
stock is held by a corporation or partnership, set forth the name and
citizenship of each person holding five percent or more of the entire
capital stock or capital of that corporation or partnership and the
respective interest of each. If any shares are held for the benefit of
another person, give the name and citizenship of that person.
(f) If the applicant is not wholly owned by its homeland government,
state whether the applicant (each officer, director, manager, or holder
of five percent or more of the capital stock) holds any interest
directly or indirectly (through brokers or holding companies) in any of
the entities listed below. If no interest is held, so state.
(1) Any U.S. carrier;
(2) Any other foreign air carrier;
(3) Any persons engaged in the business of aeronautics; and
(4) Any common carrier, or any person whose principal business is
the holding of stock in, or control of, any air carrier.
(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
[[Page 62]]
each officer, director and key management personnel, emphasizing any air
transportation experience.
(k) Provide a list of the aircraft owned, leased and operated by the
applicant. State each aircraft registration number and the country of
registration. If leased, state the address and citizenship of each
lessor. Describe any plans for the acquisition or lease of additional
aircraft if the present permit application is granted as proposed. If
any of the listed aircraft will not be used exclusively by the
applicant, explain its proposed use. State whether any aircraft are or
will be wet-leased.
(l) State where and by whom the maintenance of the aircraft is or
will be performed. State whether the applicant's maintenance program
complies with the provisions of ICAO Pilots and Airmen Annexes 1, 6
(Part 1) and 7. Also state whether the applicant's home country is a
contracting State to the Convention on International Civil Aviation.
(m) Briefly describe any agreements or cooperative working
arrangements (e.g., block-space, wet-lease), both oral and written,
entered with and between the applicant, or on behalf of the applicant,
and any U.S. or foreign air carrier, affecting the proposed services to
the United States that are not on file with the Department. If there are
no such agreements, so state.
(n) Supply financial data summaries, setting forth in U.S. dollars
the applicant's profit and loss statements and balance sheets for the 2
most recent available years (calendar or fiscal). These summaries must
be accompanied by a statement from the applicant's official responsible
for preparation of the summaries that the submissions are complete and
accurate. These summaries must include the following data, but need not
be more detailed than the financial data summaries published by ICAO:
(1) The profit and loss summary shall identify:
(i) Total air transport operating revenues (separated into three
categories: passenger, cargo, and other transport revenues);
(ii) Total air transport operating expenses;
(iii) Operating result (difference between (i) and (ii));
(iv) Non-operating items; and
(v) Profit or loss after income taxes.
(2) The balance sheet summary shall state and identify:
(i) Current assets;
(ii) Flight equipment (after depreciation);
(iii) Other assets;
(iv) Total assets (sum of (i) through (iii));
(v) Current liabilities;
(vi) Other liabilities;
(vii) Long-term debt;
(viii) Capital stock;
(ix) Retained earnings (balance including capital surplus); and
(x) Total liabilities and equity (sum of (v) through (ix)).
(o) Describe the amount, type and reason for financial assistance
received or expected from the applicant's home government, if any.
(p) Submit an estimate showing the total traffic and the financial
results of the proposed services for the first full year of normal
operations and the supporting data employed to calculate the financial
forecast.
(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.
[[Page 63]]
(t) Submit 3 completed copies of OST Form 4523 (Waiver of liability
limits under the Warsaw Convention).
(Approved by the Office of Management and Budget under control number
3024-0068)
[ER-1386, 49 FR 33439, Aug. 23, 1984, as amended by ER-1397, 49 FR
50027, Dec. 26, 1984; 61 FR 34725, July 3, 1996]
Sec. 211.21 Amendments or renewal of foreign air carrier permits.
A person applying for an amendment or renewal of a foreign air
carrier permit shall submit the information listed below. The applicant
must comply fully with this requirement. If the applicant is unable to
respond to an item, the application shall contain an explanation and
include substitute information most closely approximating the
information requested. The Department may require an applicant to
provide any additional information necessary.
(a) The information required in paragraphs (a), (b), (i), (o), (q),
(r), and (s), of Sec. 211.20.
(b) Except if seeking renewal of existing authority, the information
specified in paragraphs (c) and (p) of Sec. 211.20 regarding the new or
altered services proposed to be operated.
(c) If the financial material for the applicant on file with the
Department is more than 2 years old, financial summaries setting forth,
in U.S. dollars, the applicant's profit and loss statements and balance
sheets for the 2 most recent available years (calendar or fiscal) as
required in paragraph (n) of Sec. 211.20, together with the statement of
completeness and accuracy required by that paragraph. If the financial
material on file with the Department is 2 years old or less, the
applicant may incorporate that information by reference as described in
Sec. 211.14 of this part.
(d) If the ownership and control of the applicant are substantially
unchanged, so state. If a change has occurred, the applicant shall
respond to the paragraph in Sec. 211.20 that most closely relates to the
change that has taken place.
(e) A statement that applicant's maintenance program continues to
comply with the provisions of ICAO Pilots and Airmen Annexes 1, 6 (Part
1) and 7.
[ER-1386, 49 FR 33439, Aug. 23, 1984]
Subpart D--Freely Associated State Air Carriers
Source: Amdt. No. 211-18, 52 FR 5442, Feb. 22, 1987, unless
otherwise noted.
Editorial Note: Nomenclature changes to subpart D appear at 61 FR
34725, July 3, 1996.
Sec. 211.30 Eligibility.
Foreign carriers owned and controlled by citizens of the Federated
States of Micronesia, the Marshall Islands, Palau and/or the United
States may, in accordance with the provisions of paragraph 5(b) of
Article IX of the Federal Programs and Services Agreement, implementing
section 221(a)(5) of the Compact of Free Association between the United
States and those governments, apply for authority as ``Freely Associated
State Air Carriers.'' The permit application for such authority shall be
labeled on the front page, ``Application for Freely Associated State
Foreign Air Carrier Permit.''
Sec. 211.31 Application.
The application shall include, in addition to other requirements of
this 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
[[Page 64]]
concerned have consented to the carrier's operation as a ``Freely
Associated State Air Carrier.''
Sec. 211.32 Issuance of permit.
If the Department is satisfied that the applicant meets the
requirements of Sec. 211.31 (a) through (e), and that grant of all or
part of the requested authority would otherwise be in the public
interest, the Department may, subject to Presidential review under
section 801(a) of the Federal Aviation Act, issue a ``Freely Associated
State Foreign Air Carrier Permit'' to the applicant, including such
terms, conditions or limitations as the Department may find to be in the
public interest.
Sec. 211.33 Interstate and interstate authority.
(a) An application under this subpart may include a request, in
addition to other foreign air transportation, for authority to engage in
interstate air transportation between Guam, the Commonwealth of the
Northern Mariana Islands and Honolulu, Hawaii, and interstate air
transportation within the Commonwealth of the Northern Mariana Islands.
A request for all or part of such limited interstate air transportation
authority shall be supported by documentation establishing:
(1) The impact of such interstate air transportation services on the
economic projections of the carrier's proposed operations;
(2) The need for such proposed interstate air transportation by the
affected U.S. points;
(3) The economic impact of such interstate air transportation on
services provided by other carriers providing essential air
transportation services to eligible Freely Associated State points
within the scope of part 272 of this chapter.
(b) The Department may grant a Freely Associated State Air Carrier
authority to engage in all or part of the interstate air transportation
requested in paragraph (a) of this section provided that the Department
finds:
(1) That grant of such interstate air transportation authority would
be in furtherance of the objectives of the Compact of Free Association
and related agreements between the United States and the Freely
Associated States, and would otherwise be in the public interest; and
(2) That grant of such interstate air transportation authority would
not significantly impair the economic viability of existing services
providing essential air transportation to any eligible Freely Associated
State point within the scope of part 272 of this chapter, or
significantly increase compensation that may be required to maintain any
such essential air transportation.
(c) The Department may, at any time, subject to Presidential review
under section 41307, suspend, modify, or revoke such interstate
authority if it concludes that the requirements specified in paragraph
(b) of this section are not then being met.
[Amdt. No. 211-18, 52 FR 5442, Feb. 22, 1987]
Sec. 211.34 Other permits.
Nothing in this section shall be construed as limiting the authority
of the Department to issue a foreign air carrier permit, other than a
Freely Associated State Foreign Air Carrier Permit, to a carrier owned
or controlled, in whole or in part, by citizens of the Federated States
of Micronesia, the Marshall Islands or Palau, that does not meet the
requirements of this section.
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
[[Page 65]]
is conferred by such permits for purposes specified in those
subparagraphs.
[Amdt. No. 211-18, 52 FR 5442, Feb. 22, 1987]
PART 212--CHARTER TRIPS BY FOREIGN AIR CARRIERS--Table of Contents
Subpart A--General Provisions
Sec.
212.1 Applicability.
212.2 Definitions.
212.3 Charter flight limitations.
212.4 Prior authorization requirements.
212.5 Application for authorization.
212.6 Issuance of authorization.
212.7 Written contracts with charterers.
212.8 Terms of service.
212.9 Substitute transportation in emergencies.
212.10 Payments to persons receiving commissions.
212.11 Filing requirements for adherence to Montreal Agreement.
212.12 Protection of customers' deposits.
212.13--212.14 [Reserved]
212.15 Waiver.
Subpart B--Provisions Relating to Pro Rata Charters
212.20 Applicability of subpart.
Requirements Relating to Foreign Air Carriers
212.21 Solicitation and formation of a chartering group.
212.22 Pretrip notification and charter contract.
212.23 [Reserved]
212.24 Statement of Supporting Information.
212.25 Charter trips originating in the United States.
212.26 Foreign air carrier to identify enplanements.
Requirements Relating to Travel Agents
212.30 [Reserved]
212.31 Statement of Supporting Information.
Requirements Relating to the Chartering Organization
212.40 Solicitation of charter participants.
212.41 Passengers on charter flights.
212.42 Participation of immediate families in charter flights.
212.43 Charter costs.
212.44 Statement of charges.
212.45 Passenger lists.
212.46 Application for a charter.
212.47 Statement of Supporting Information.
Subpart C--Provisions Relating to Single Entity Charters
212.50 Applicability of subpart.
212.51--212.52 [Reserved]
212.53 Statement of Supporting Information.
Subpart D--Provisions Relating to Mixed Charters
212.60 Applicable rules.
Subpart E--Direct Sales by Foreign Air Carriers
212.70 Applicability of subpart.
212.71 Terms of service.
212.72 Board powers.
Appendix A to Part 212--Foreign Route Air Carrier's Surety Bond Under
part 212 of the Economic Regulations of the Civil Aeronautics
Board (14 CFR part 212)
Appendix B to Part 212--Statement of Supporting Information
Appendix C to Part 212--CAB Form 433
Authority: Secs. 101(3), 102, 204, 401, 402, 403, 404, 407, 411,
416, 1002, Pub. L. 85-726, as amended, 72 Stat. 737, 740, 743, 754, 757,
758, 760, 766, 769, 771, 788; 49 U.S.C. 1301, 1302, 1324, 1371, 1372,
1373, 1374, 1377, 1381, 1386, 1482.
Source: ER-686, 36 FR 7449, Apr. 20, 1971, unless otherwise noted.
Subpart A--General Provisions
Source: ER-1220, 46 FR 28371, May 26, 1981, unless otherwise noted.
Sec. 212.1 Applicability.
This part applies to foreign air carriers that have a section 402
permit or an exemption authorizing direct foreign air transportation on
a charter basis. Nothing in this part gives authority to operate a type
or level of service not authorized by permit or exemption.
Sec. 212.2 Definitions.
For the purposes of this part:
Charter, charter flight, or charter trip means air transportation
performed pursuant to Sec. 212.3.
Charter organization means that organization, group, or other entity
from whose members (and their immediate families) a charter group is
derived.
Third freedom charter means a charter carrying traffic that
originates in the
[[Page 66]]
country of the carrier's nationality and terminates in another country.
Fourth freedom charter means a charter carrying traffic that
terminates in the country of the carrier's nationality and originates in
another country.
Fifth freedom charter means a charter carrying traffic that
originates and terminates in countries other than the country of the
carrier's nationality, regardless of whether the flight operates via the
home country.
Long-term wet lease means a lease by which the lessor provides both
an aircraft and its crew, which either (a) lasts more than 60 days, or
(b) 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, or
pursuant to contract may be borne, partly by the charter participants
and partly by the charterer.
Pro rata charter means a charter the cost of which is divided among
the passengers transported.
Single entity charter means a charter the cost of which is borne by
the charterer and not by individual passengers, directly or indirectly.
Travel agent means any person engaged in the formation of groups for
transportation or in the solicitation or sale of transportation
services.
[ER-1220, 46 FR 28371, May 26, 1981, as amended by ER-1247, 46 FR 47769,
Sept. 30, 1981]
Sec. 212.3 Charter flight limitations.
(a) Passenger charter flights by foreign air carriers in foreign air
transportation shall be limited to the movement of persons or their
baggage on a time, mileage, or trip basis:
(1) Where all or part of an aircraft has been engaged by any of the
following persons:
(i) By a person for his or her own use, including a direct air
carrier or a direct foreign air carrier whether or not the charter is a
wet lease for the carriage of commercial traffic;
(ii) By a person (no part whose business is the formation of groups
for transportation or the consolidation of shipments for transportation
or solicitation or sale of transportation services) for the
transportation of a group of persons as agent or representative of such
group;
(iii) By an overseas military personnel charter operator as defined
in part 372 of this chapter; or
(iv) By a charter operator or foreign charter operator as defined in
part 380 of this chapter.
(2) In accordance with subpart E.
(b)(1) Each person engaging less than the entire capacity of an
aircraft for the movement of persons and their personal baggage pursuant
to paragraph (a)(1) of this section shall contract and pay for 20 or
more seats.
(2) This section permits the carriage of charter cargo on the main
deck or in the belly of a passenger charter flight.
(c) Cargo charter flights in foreign air transportation by a foreign
air carrier are permitted without limitation, except as set forth in
Sec. 212.4. Charter cargo may be transported both on scheduled flights
carrying individually-ticketed and/or individually waybilled traffic and
on flights carrying charter traffic only.
[ER-1220, 46 FR 28371, May 26, 1981, as amended by ER-1247, 46 FR 47769,
Sept. 30, 1981; ER-1275, 47 FR 137, Jan. 5, 1982]
Sec. 212.4 Prior authorization requirements.
(a) A foreign air carrier shall not perform any charter trip for
which a statement of authorization is required until one has been
granted by the Board. In addition, if the carrier is one that is
required to obtain a statement of authorization under paragraph (e) of
this section, neither it, nor any charter operator, travel agent, or any
other person shall advertise or sell, or allow others to advertise or
sell, any passenger charter services except those that have been
specifically authorized by the Board.
(b) Foreign air carriers shall obtain a statement of authorization
for each:
(1) Fifth freedom charter flight to or from the United States,
(2) Long-term wet lease to a direct air carrier or direct foreign
air carrier,
(3) Charter flight for which the Board specially requires prior
authorization under paragraph (e) or (f) of this section, or
[[Page 67]]
(4) Flight carrying both charter and scheduled passenger traffic
(hereafter ``part charter'').
(c) [Reserved]
(d) The Board 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. 212.6. The Board may revoke any authority granted under this
paragraph at any time without hearing.
(e) The Board 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 Board 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 United States air carriers,
(2) Has, over the objection of U.S. government, denied rights of a
United States 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.
(f) The Board, in the interest of national security, may require the
airline(s) of some countries to obtain a statement of authorization
before operating any charter over U.S. territory.
[ER-1220, 46 FR 28371, May 26, 1981, as amended by ER-1247, 46 FR 47769,
Sept. 30, 1981; ER-1275, 47 FR 137, Jan. 5, 1982; ER-1357, 48 FR 36447,
Aug. 11, 1983]
Sec. 212.5 Application for authorization.
(a) Application for a statement of authorization shall be submitted
on CAB Form 433 (Appendix C), except that for part charters or long-term
wet leases the application may be submitted in letter form. An
application for a long-term wet lease shall describe the purpose and
terms of the wet lease agreement. Applications shall be submitted in
three copies to the Civil Aeronautics Board, addressed to the Director,
Bureau of International Aviation. Upon a showing of good cause, the
application may be transmitted by cablegram or telegram or may be made
by telephone.
(b) A copy of the application for a long-term wet lease to a direct
air carrier or direct foreign air carrier shall also be served on the
Federal Aviation Administration, addressed to the Director of Flight
Operations, and on each certificated air carrier that is authorized to
serve the same general area in which the proposed transportation is to
be performed.
(c) The application shall include documentation to establish the
extent to which the country of the applicant's nationality (and, in the
case of a long-term wet lease, the country of the lessee's nationality)
deals with United States air carriers on the basis of reciprocity for
similar flights, if such flights are not subject to a bilateral
agreement and:
(1) The Board has not established that the country accords
reciprocity,
(2) The Board has found reciprocity defective in the most recent
prior approval application involving the country, or
(3) Changes in reciprocity have occurred since the most recent Board
finding for the country in question.
(d)(1) Applications shall be filed at least 5 business days before
commencement of the proposed flight, except as specified in paragraphs
(d)(2) and (d)(3) of this section. Late applications may be considered
by the Board upon a showing of good cause for the lateness.
(2) Applications for a part charter or for a long-term wet lease to
a direct air carrier or direct foreign air carrier shall be filed at
least 45 days before the date of the first proposed flight.
(3) Applications specially required under Sec. 212.4(e) shall be
filed at least 30 calendar days before the proposed flight, unless
otherwise specified by the Board.
(4) Applications required by a Board order under Sec. 212.4(f) shall
be filed at least 14 calendar days before the proposed flight, unless
otherwise specified by the Board.
(5) Where an application is required by more than one provision of
this part
[[Page 68]]
and/or order of the Board, only one application need be filed, but it
must conform to the earliest applicable filing deadline.
(e)(1) Any party 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, whichever is earlier. Memoranda will be
considered to the extent practicable; the Board may act on an
application without waiting for supporting or opposing memoranda to be
filed.
(2) Each memorandum shall set forth the reasons why the applications
should be granted or denied, accompanied by whatever data, including
affidavits, the Board is requested to consider.
(3) A copy of each memorandum shall be served on the foreign air
carrier applying for approval.
(f)(1) Unless otherwise ordered by the Board, each application and
memorandum filed in response shall be available for public inspection at
the Regulatory Affairs Division of the Bureau of International Aviation
immediately upon filing. Notice of the filing of all applications shall
be published in the Board'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 Board 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.
(Approved by the Office of Management and Budget under control number
3024-0015)
[ER-1220, 46 FR 28371, May 26, 1981, as amended by ER-1247, 46 FR 47769,
Sept. 30, 1981; ER-1275, 47 FR 137, Jan. 5, 1982; ER-1341, 48 FR 31014,
July 6, 1983]
Sec. 212.6 Issuance of authorization.
(a) The Board will issue a statement of authorization if it finds
that the proposed charter trip 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 Board will consider (but
not be limited to) the following factors.
(1) The extent to which the authority sought is covered by and
consistent with bilateral agreements to which the United States is a
party.
(2) The extent to which the country of the carrier's nationality
(and, in the case of a long-term wet lease, the country of the lessee's
nationality) deals with United States air carriers on the basis of
substantial reciprocity.
(3) Whether the foreign air carrier or its agent or the charterer or
its agent has previously violated the provisions of this part.
(4) Where the application concerns a long-term wet lease:
(i) Whether the foreign air carrier or its agent or the lessee
(charterer) or its agent has previously violated the provisions of part
207, 208, or 218 of this chapter.
(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 applicant owns or controls the lessee, or
is owned or controlled by the lessee.
(c) The Board will submit any denial of an authorization
specifically required under Sec. 212.4(e) 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 Board where the application for authorization is not
timely or properly filed. Denial of a late-filed application need not be
submitted to the President.
(d) The Board will publish notice of its actions on applications for
statements of authorization in the Status of Charter Applications
attachment to the Weekly List of Applications Filed. Interested persons
may upon request obtain copies of letters or endorsed forms advising
applicants of action taken on their applications.
[ER-1220, 46 FR 28371, May 26, 1981, as amended by ER-1247, 46 FR 47770,
Sept. 30, 1981]
[[Page 69]]
Sec. 212.7 Written contracts with charterers.
Every agreement to perform a charter trip shall be in writing and
signed by an authorized representative of the foreign air carrier and
the charterer prior to operation of a charter flight: Provided, That
where execution of a contract prior to commencement of flight is
impracticable because the charter has been arranged on short notice,
compliance with the provision hereof shall be effected within 7 days
after commencement of the flight. The written agreement shall include,
without limitation:
(a) Date and place of execution of the contract or agreement;
(b) Signature, printed or typed name of each signatory, and official
position of each;
(c) Dates of flights and points involved;
(d) Type of aircraft and its capacity stated as the number of
passenger seats or pounds of cargo capacity available;
(e) Rates, fares, and charges applicable to the charter trip,
including the charter price, live and ferry mileage charges, and layover
and other nonflight charges;
(f) The name and address of either the surety whose bond secures
advance charter payments received by the carrier, or of the carrier's
depository bank to which checks or money orders for the advance charter
payments are to be made payable as escrow holder pending completion of
the charter trip; and
(g) 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
charter trip (see Sec. 212.12(c)).
(Approved by the Office of Management and Budget under control number
3024-0036)
[ER-1220, 46 FR 28371, May 26, 1981, as amended by ER-1341, 48 FR 31014,
July 6, 1983]
Sec. 212.8 Terms of service.
(a) The carrier 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 capacity 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 passenger 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.
(b) Where four or more round trip flights per calendar year are
conducted on behalf of a chartering organization by a carrier or
carriers, one-way passengers shall not be carried except that up to 5
percent of the charter group may be transported one way in each
direction, there shall be no intermingling of passengers, and each group
shall move as a unit in both directions, except as provided in
Sec. 212.9. This provision shall not be construed as permitting knowing
participation in any plan whereby each leg of a round trip is chartered
separately in order to avoid this 5 percent limitation.
[ER-1220, 46 FR 28371, May 26, 1981, as amended by ER-1275, 47 FR 137,
Jan. 5, 1982]
Sec. 212.9 Substitute transportation in emergencies.
(a) A carrier shall be permitted to transport a passenger on a
charter flight with a group other than his or her own or on a ferry
flight (as defined in Sec. 241.03 of this chapter) under the following
circumstances:
(1) The transportation is for return passage only;
(2) The passenger is required to return at a time different from
that of his or her own charter flight due to emergency circumstances
beyond the passenger's control; and
[[Page 70]]
(3) The charter group with which the passenger is to travel
expresses no objection to his or her participation in the charter
flight.
(b) For the purposes of this section, ``emergency circumstances
beyond the passenger's control'' include, but are not limited to,
illness or injury to the passenger or a member of his or her immediate
family, death of a member of the passenger's immediate family, or
weather conditions or unforeseeable and unavoidable delays in ground
transportation or connecting air transportation.
Sec. 212.10 Payments to persons receiving commissions.
Payments for a U.S.-originating charter flight made to any person to
whom the carrier, directly or indirectly, has paid a commission or has
agreed to pay a commission for that flight shall be considered payments
to the carrier.
Sec. 212.11 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 charter air
transportation that the holder have and maintain in effect and on file
with the Board a signed counterpart of CAB Agreement 18900 (CAB Form
263), and comply with all other requirements of part 203 of this
chapter. That form can be obtained from the Publications Services
Division, Civil Aeronautics Board, Washington, D.C. 20428.
(Approved by the Office of Management and Budget under control number
3024-0064)
[ER-1329, 48 FR 8049, Feb. 25, 1983, as amended by ER-1341, 48 FR 31014,
July 6, 1983]
Sec. 212.12 Protection of customers' deposits.
(a) Except as provided in paragraph (c) of this section, no 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 Board 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 charter 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
his agent) shall be deposited in, or mailed to, the bank no later than
the close of the business day following the receipt of the check or
money order or the cash, along with a statement showing the name and
address of the charterer (or its agent): Provided, however, That where
the charter transportation to be performed by a carrier is sold through
a travel agent, the agent may be authorized by the carrier to deduct its
commission and remit the balance of the advance payment to the carrier
either by check or money order made payable to the designated bank.
(2) The bank shall pay over to the carrier escrowed funds with
respect to a specific charter only after the carrier has certified in
writing to the bank that such charter has been completed: Provided,
however, That the bank may be required by the terms of the agreement to
pay over to the carrier a specified portion of such escrowed funds, as
payment for the performance of the outbound segment of a round-trip
charter upon the carrier's written certification that such segment has
been so completed.
(3) Refunds to a charterer from sums in the escrow account shall be
paid directly to such charterer or 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
[[Page 71]]
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, savings
and loan association, or other financial institution insured by the
Federal Deposit Insurance Corporation or the Federal Savings and Loan
Insurance Corporation.
(b) The escrow agreement required under paragraph (a) shall not be
effective until approved by the Board. Claims against the escrow may be
made only with respect to the nonperformance 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
Board a surety bond which 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, to be performed, in whole or in
part, by such carrier pursuant to any contracts entered into by such
carrier, after the execution date of the bond. The amount of such bond
shall be unlimited. Claims under the bond may be made only with respect
to the nonperformance of air transportation.
(d) The bond permitted by this section shall be in the form set
forth as Appendix A to this part. Such bond shall be issued by a bonding
or surety company (1) whose surety bonds are accepted by the Interstate
Commerce Commission under 49 CFR 1084.6; or (2) which is listed in
Best's Insurance Reports (Fire and Casualty) with a general
policyholders' rating of ``A'' or better. 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 agent
designated by the carrier under section 1005(b) of the Act to receive
service of notices, process and other documents issued by or filed with
the Board. 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 Board will notify the foreign charter 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.
(Approved by the Office of Management and Budget under control number
3024-0036)
[ER-1220, 46 FR 28371, May 26, 1981, as amended by ER-1341, 48 FR 31014,
July 6, 1983]
Secs. 212.13--212.14 [Reserved]
Sec. 212.15 Waiver.
(a) A waiver of any of the provisions of this part may be granted by
the Board upon the submission by a foreign air carrier of a written
request therefor not less than 30 days prior to the flight to which it
relates, provided such a waiver is in the public interest and it appears
to the Board that special or unusual circumstances warrant a departure
from the provisions set forth herein. Notwithstanding the foregoing,
waiver applications filed less than 30 days prior to a flight may be
accepted by the Board in emergency situations in which the circumstances
warranting a waiver did not exist 30 days before the flight.
[[Page 72]]
(b) A request for a waiver of any of the provisions of Sec. 212.25
shall be accompanied by a list of the names, addresses, and telephone
numbers of all the passengers on the flight to which the request
relates.
(Approved by the Office of Management and Budget under control number
3024-0036)
[ER-1220, 46 FR 28371, May 26, 1981, as amended by ER-1341, 48 FR 31014,
July 6, 1983]
Subpart B--Provisions Relating to Pro Rata Charters
Sec. 212.20 Applicability of subpart.
This subpart sets forth the special rules applicable to pro rata
charters.
[ER-1220, 46 FR 28375, May 26, 1981]
Requirements Relating to Foreign Air Carriers
Sec. 212.21 Solicitation and formation of a chartering group.
(a) A carrier shall not engage, directly or indirectly, in any
solicitation of individuals (through personal contact, advertising, or
otherwise) as distinguished from the solicitation of an organization for
a charter trip, except after a charter contract has been signed.
(b) A carrier shall not employ, directly or indirectly, any person
for the purpose of organizing and assembling members of any
organization, club, or other entity into a group to make the charter
flight, except after a charter contract has been signed.
Sec. 212.22 Pretrip notification and charter contract.
(a) Upon a charter flight date being reserved by the carrier or its
agent the carrier shall provide the prospective charterer with a copy of
this part 212.2 The charter contract shall include a
provision that the charterer, and any agent thereof, shall only act with
regard to the charter in a manner consistent with this part and that the
charterer shall within due time submit to the carrier such information
as specified in Sec. 212.45. The carrier shall also require that the
charterer and any travel agent involved shall furnish it at least 30
days prior to departure of the first flight the statements of Supporting
Information required in Secs. 212.47 and 212.31, respectively, unless
the charter has been contracted for within 30 days before the date of
departure, in which event the statement and attachments shall be filed
with the carrier on the date the charter contract is executed. In the
event of a substitution of carriers, the carrier with whom the
statements and attachments have been filed may forward them to the
substitute carrier, in which case new statements need not be executed.
---------------------------------------------------------------------------
2Copies of this part are available by purchase from the
Superintendent of Documents, Washington, D.C. 20402. Single copies will
be furnished without charge on written requests to the Publications
Services Section, Civil Aeronautics Board, Washington, D.C. 20428.
---------------------------------------------------------------------------
(b) The carrier shall attach to its copy of the charter contract a
certification by an officer of the chartering organization, or other
qualified person, that authorizes the person who executes the contract
to do so on behalf of the chartering organization. However,
certification is not required where the charter is based on employment
in one entity, or on employee or student status at a school. If the
charter contract is for the return flight of a one-way charter by the
same charter organization, a copy of the passenger list (Sec. 212.45) of
the outbound charter shall be attached to the charter contract.
[ER-686, 36 FR 7449, Apr. 20, 1971, as amended by ER-1220, 46 FR 28375,
May 26, 1981]
Sec. 212.23 [Reserved]
Sec. 212.24 Statement of Supporting Information.
Prior to performing a charter flight, the carrier shall execute, and
require the travel agent (if any) and the charterer to execute a
Statement of Supporting Information (Appendix B). If a charter contract
covers more than one charter flight, only one statement need be filed:
Provided, however, That separate financial data (see item 13 of
statement) shall be filed for each one-way or round-trip flight. The
carrier shall require the charterer to annex to the statement copies of
all announcements of the charterer in connection
[[Page 73]]
with the charter issued after the contract is signed.
(Approved by the Office of Management and Budget under control number
3024-0036)
[ER-1220, 46 FR 28375, May 26, 1981, as amended by ER-1341, 48 FR 31014,
July 6, 1983]
Sec. 212.25 Charter trips originating in the United States.
(a) In the case of a charter trip originating in the United States
which includes foreign air transportation, and where separate charter
contracts cover the flight departing from the United States and the
flight returning to the United States, the time by which the carrier to
perform the returning flight, as well as the carrier to perform the
departing flight, must receive full payment of its charter price (or a
satisfactory bond for such payment), in compliance with the requirements
of Sec. 212.8(a) shall be not less than 10 days prior to the departing
flight.
(b) In addition to requiring timely payment of its charter price (or
the posting of a bond), pursuant to paragraph (a) of this section, the
carrier performing the departing flight from the United States shall
request in writing from the carrier performing the returning flight for
the same chartering group, and the carrier performing the returning
flight shall furnish, not later than 10 days prior to the scheduled
departure, written confirmation that the latter carrier has also
received timely payment of its charter price (or the posting of a bond),
pursuant to paragraph (a) of this section. Both the request and the
confirmation shall contain particulars sufficient to identify the
charter trip, including such details as the date and point of origin of
the departing flight, the date and point of origin of the returning
flight, and the name of the chartering group; and both shall be
accompanied by a passenger list. The confirmation shall also contain a
statement to the effect that the carrier has not previously furnished
such confirmation to any other carrier with respect to the same trip.
(c) [Reserved]
(d) Every carrier which has entered into a charter contract covering
only one-way foreign air transportation from the United States, to be
performed in connection with a pro rata charter trip originating in the
United States, must obtain, before performing such departing flight,
either written confirmation from the returning carrier (as provided in
paragraph (b) of this section), or a waiver granted by the Board
pursuant to Sec. 212.15, such waiver to be based either on the grounds
set forth in said Sec. 212.15, or on a showing that the arrangements
between the chartering organization and the charter participants do not
involve the provision of return transportation to the United States.
(e) 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.
(Approved by the Office of Management and Budget under control number
3024-0036)
(Interpret or apply sec. 102, as amended, 72 Stat. 740; 49 U.S.C. 1302;
secs. 101(3), 204, 401, 403, 404, 407, 411, 416, 1002; 72 Stat. 737,
754, 758, 760, 766, 769, 771, 788 (49 U.S.C. 1301, 1324, 1371, 1373,
1374, 1377, 1381, 1386, 1482))
[ER-742, 37 FR 11239, June 6, 1972, as amended by ER-811, 38 FR 20259,
July 30, 1973; ER-1065, 43 FR 36600, Aug. 18, 1978; ER-1220, 46 FR
28375, May 26, 1981; ER-1341, 48 FR 31014, July 6, 1983]
Sec. 212.26 Foreign air carrier to identify enplanements.
The carrier shall make reasonable efforts to assure that no person
is enplaned whose name does not appear on the list of passengers
supplied by the charterer under Sec. 212.45.
[ER-1220, 46 FR 28375, May 26, 1981]
Requirements Relating to Travel Agents
Sec. 212.30 [Reserved]
Sec. 212.31 Statement of Supporting Information.
Travel agents shall execute, and furnish to foreign air carriers,
section A of Part II of the Statement of Supporting Information
(Appendix B) at such time as required by the carrier to afford it due
time for review thereof.
(Approved by the Office of Management and Budget under control number
3024-0036)
[ER-1220, 46 FR 28375, May 26, 1981, as amended by ER-1341, 48 FR 31014,
July 6, 1983]
[[Page 74]]
Requirements Relating to the Chartering Organization
Sec. 212.40 Solicitation of charter participants.
(a) As used in this section, ``solicitation of the general public''
means:
(1) A solicitation going beyond the bona fide members of an
organization (and their immediate families). This includes air
transportation services offered by a foreign air carrier under
circumstances in which the services are advertised in mass media,
whether or not the advertisement is addressed to members of a specific
organization, and regardless of who places or pays for the advertising.
Mass media shall be deemed to include radio and television, and
newspapers and magazines. Advertising in such media as newsletters or
periodicals of membership organizations, industrial plant newsletters,
college radio stations, and college newspapers shall not be considered
advertising in mass media to the extent that
(i) The advertising is placed in a medium of communication
circulated mainly to members of an organization that would be eligible
to obtain charter service, and
(ii) The advertising states that the charter is open only to members
of the organization referred to in paragraph (a)(1)(i) of this section,
or only to members of a subgroup thereof. In this context, a subgroup
shall be any group with membership drawn primarily from members of the
organization referred to in paragraph (a)(1)(i) of this section:
Provided, That this paragraph shall not be construed as prohibiting air
carrier advertising which offers charter services to bona fide
organizations, without reference to a particular organization or flight.
(2) The solicitation, without limitation, of the members of an
organization so constituted as to ease of admission to membership, and
nature of membership, as to be in substance more in the nature of a
segment of the public than a private entity.
(b) Members of the charter group may be solicited only from among
the bonafide members of an organization, club, or other entity, and
their immediate families, and may not be brought together by means of a
solicitation of the general public. ``Bona fide members'' means those
members of a charter organization who (1) have not joined the
organization merely to participate in the charter as the result of
solicitation of the general public; and (2) are members for a minimum of
6 months prior to the starting flight date. The requirement in paragraph
(b)(2) of this section is not applicable to;
(i) Students and employees of a single school, and immediate
families thereof; or
(ii) Employees of a single Government agency, industrial plant, or
mercantile establishment, and immediate families thereof.
(c) Solicitation of, as well as participation by, members of an
organization with respect to charter flights shall extend only to the
organization, or the particular chapter or unit thereof, which signs the
charter agreement with the carrier as the charterer.
(d) A charterer shall not advertise or otherwise solicit its members
for any charter until a charter contract has been signed: Provided,
however, That this prohibition shall not extend to oral inquiries or
internal mailings directed to members to determine interest in a charter
flight or charter program so long as no fixed price for air
transportation is held out. After a charter contract is signed, copies
of solicitation material shall be furnished the carrier at the same time
it is distributed to members.
(e) 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
PROGRAM.
[ER-686, 36 FR 7449, Apr. 20, 1971, as amended by ER-1178, 45 FR 40575,
June 16, 1980]
Sec. 212.41 Passengers on charter flights.
Only bona fide members of the charterer, and their immediate
families may participate as passengers on a charter flight, and the
participants must be members of the specific organization or chapter
which authorized
[[Page 75]]
the charter. The charterer must maintain a central membership list,
available for inspection by the carrier or Board representative, which
shows the date each person became a member.4 Where four or
more round-trip flights per calendar year are conducted on behalf of a
chartering organization by a carrier or carriers, intermingling between
flights or reforming of groups shall not be permitted, and each group
must move as a unit in both directions, except as provided in
Sec. 212.9.
---------------------------------------------------------------------------
4 Where the charter is based on employment in one entity
or student or employee status at a school, records of the corporation,
agency, or school will suffice to meet the requirements.
[ER-686, 36 FR 7449, Apr. 20, 1971, as amended by ER-1220, 46 FR 28375,
May 26, 1981]
Sec. 212.42 Participation of immediate families in charter flights.
(a) The immediate family of any bona fide member of a charter
organization may participate in a charter flight.
(b) ``Immediate family'' means only the following persons who are
living in the household of a member of a charter organization, namely,
the spouse, dependent children, and parents, of such member.
Sec. 212.43 Charter costs.
(a) The costs of charter flights shall be prorated equally among all
charter passengers, and no charter passenger shall be allowed free
transportation except that (1) children under 12 years of age may be
transported at a charge less than the equally prorated charge; and (2)
children under 2 years of age may be transported free of charge.
(b) The charterer shall not make charges to the charter participants
which exceed the actual costs incurred in consummating the charter
arrangements, nor include as a part of the assessment for the charter
flight any charge for purposes of charitable donations. All charges
related to the charter flight arrangements collected from the charter
participants which exceed the actual costs thereof shall be refunded to
the participants in the same ratio as the charges were collected.
[ER-686, 36 FR 7449, Apr. 20, 1971, as amended by ER-1226, 46 FR 31000,
June 12, 1981]
Sec. 212.44 Statement of charges.
The chartering organization, in any announcements or statements to
prospective charter participants giving price per seat, shall state that
the seat price is a pro rata share of total charter cost and is subject
to increase or decrease depending on the number of participants. All
announcements shall separately state the cost of ground arrangements, if
any, the cost of air transportation, the administrative expenses of the
charterer, and the total cost of the entire trip. All announcements
shall also identify the carrier, the number of seats available and the
type of aircraft to be used for the charter.
Sec. 212.45 Passenger lists.
(a) Prior to each one-way or round-trip flight, a list shall be
filed by the charterer with the foreign air carrier showing the names,
addresses, and telephone numbers of the persons to be transported,
including standbys who may be transported, specifying the relationship
of each person to charterer (by designating opposite his name one of the
three relationships categories hereinafter described), the date the
person joined or last renewed a lapsed membership in the charter
organization, and the designation ``one-way'' in the case of one-way
passengers. The list shall be amended if passengers are added or dropped
before flight.
(b) The relationship of a prospective passenger shall be classified
under one of the following categories and specified on the passenger
list as follows:
(1) A bona fide member of the chartering organization who will have
been a bona fide member of the chartering organization for at least 6
months prior to the starting flight date. Specify on the passenger list
as ``(1) member.''
(2) The spouse, dependent child, or parent of a bona fide member who
lives in such member's household. Specify on the passenger lists as
``(2) spouse'' or ``(2) dependent child'' or ``(2) parent.'' Also give
name and address of
[[Page 76]]
member relative where such member is not a prospective passenger.
(3) Bona fide members of entities consisting only of persons
employed by a single Government agency, industrial plant, or mercantile
company or students and employees of a school, or persons whose proposed
participation in the charter flight was permitted by the Board pursuant
to request for waiver. Specify on the passenger lists as ``(3) special''
or ``(3) member'' (where participants are from a school group or from a
Government agency, industrial plant or mercantile company).
(c) In the case of a round-trip flight, the above information must
be shown for each leg of the flight and any variations between the
outbound and inbound trips must be explained on the list.
(d) Attached to such list must be a certification, signed by a duly
authorized representative of the charterer, reading:
The attached list of persons includes every individual who may
participate in the charter flight. Every person as identified on the
attached list (1) was a bona fide member of the chartering organization,
and will have been a member for at least 6 months prior to the starting
flight date, or (2) is a bona fide member of an entity consisting of (a)
students and employees of a single school, or (b) employees of a single
Government agency, industrial plant, or mercantile establishment, or (3)
is a person whose participation has been specifically permitted by the
Civil Aeronautics Board, or (4) is the spouse, dependent child, or
parent of a person described hereinbefore and lives in such person's
household.5
5 Whoever, in any matter within the jurisdiction of any
department or agency of the United States, knowingly and willfully
falsifies, conceals, or covers up by any trick, scheme or device a
material fact, or makes any false, fictitious or fraudulent statements
or representations, or makes or uses any false writing or document
knowing the same to contain any false, fictitious or fraudulent
statement or entry, shall be fined not more than $10,000 or imprisoned
not more than 5 years, or both. Title 18, U.S.C., 1001.
---------------------------------------------------------------------------
(Signature)_____________________________________________________________
(Approved by the Office of Management and Budget under control number
3024-0036)
[ER-686, 36 FR 7449, Apr. 20, 1971, as amended by ER-776, 37 FR 24167,
Nov. 15, 1972; ER-1341, 48 FR 31014, July 6, 1983]
Sec. 212.46 Application for a charter.
A chartering organization shall make written application to the
foreign air carrier, setting forth the number of seats desired, points
to be included in the proposed flight or flights, the dates of departure
of each one-way or round-trip flight, and the number of round-trip
flights which have been conducted for the organization by any carrier or
carriers during the calendar year.
(Approved by the Office of Management and Budget under control number
3024-0036)
[ER-686, 36 FR 7449, Apr. 20, 1971, as amended by ER-1341, 48 FR 31014,
July 6, 1983]
Sec. 212.47 Statement of Supporting Information.
Charterers shall execute and file with the foreign air carrier
section B of Part II of the Statement of Supporting Information
(Appendix B) at such time as required by the carrier to afford it due
time for review thereof.
(Approved by the Office of Management and Budget under control number
3024-0036)
[ER-1220, 46 FR 28375, May 26, 1981, as amended by ER-1341, 48 FR 31014,
July 6, 1983]
Subpart C--Provisions Relating to Single Entity Charters
Sec. 212.50 Applicability of subpart.
This subpart sets forth the special rules applicable to single
entity charters.
Secs. 212.51--212.52 [Reserved]
Sec. 212.53 Statement of Supporting Information.
Part I of the Statement of Supporting Information (Appendix B) shall
be applicable in the case of single entity charters.
(Approved by the Office of Management and Budget under control number
3024-0036)
[ER-1220, 46 FR 28375, May 26, 1981, as amended by ER-1341, 48 FR 31014,
July 6, 1983]
Subpart D--Provisions Relating to Mixed Charters
Sec. 212.60 Applicable rules.
The rules set forth in subpart B of this part shall apply in the
case of mixed charters.
[[Page 77]]
Subpart E--Direct Sales by Foreign Air Carriers
Authority: Secs. 102, 204, 402, 416 of the Federal Aviation Act of
1958, as amended, 92 Stat. 1706, 72 Stat. 743, 757, 92 Stat. 1731; (49
U.S.C. 1302, 1324, 1372, 1386).
Source: ER-1143, 44 FR 50826, Aug. 30, 1979, unless otherwise noted.
Sec. 212.70 Applicability of subpart.
This subpart applies to direct foreign air carriers that provide
charter trips, including trips with ground accommodations and services,
directly to individuals.
Sec. 212.71 Terms of service.
(a) Charter trips under this subpart shall bear only such
characteristics as are permitted for Public Charters under part 380 of
this chapter, except:
(1) They may be arranged and sold by a direct foreign air carrier;
(2) There is no minimum contract size; and
(3) Each participant contract shall be signed by or on behalf of the
participant not less than 7 days before scheduled departure of the
outbound flight.
(b) Each direct foreign air carrier operating a charter trip under
this subpart shall comply with all the requirements and limitations of
part 380 of this chapter, Public Charters, applicable to direct foreign
air carriers and to foreign charter operators except that:
(1) Those provisions of part 380 relating to the existence of a
contract between a charter operator and a direct carrier do not apply;
(2) Section 380.34 does not apply except as specified in paragraph
(b)(4) of this section.
(3) If a depository agreement is used, it shall comply with
Sec. 380.34a(d) and (f); and
(4) If a security agreement is used, it shall comply with
Sec. 380.34(c) and (d), and:
(i) If no depository agreement is used, protect charter participant
deposits (including those for ground accommodations and services) and
assure the direct 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 deposits (including those for ground accommodations
and services) and assure the direct 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) For the purposes of this section, ``charter trip'' includes
charter tours with or without ground accommodations and services.
Sec. 212.72 Board powers.
The Board retains, with respect to charters under this subpart, all
powers that it has under part 380 of this chapter with respect to Public
Charters.
Appendix A to Part 212--Foreign Route Air Carrier's Surety Bond Under
part 212 of the Economic Regulations of the Civil Aeronautics Board (14
CFR part 212)
Know all men by these presents, that we ---------------- (Name of
foreign route air carrier) of ------------ (City), ------------ (State)
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 Sec. 212.15(c) of part 212, 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 foreign route air carrier holding a permit
issued under section 402 of the Federal Aviation Act, authorizing it to
engage in charter trips in foreign air transportation, is subject to
rules and regulations of the Board relating to security for the
protection of characters of civil aircraft and has elected to file with
the Civil Aeronautics Board 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 part 372 of the
[[Page 78]]
Board's Regulations to be performed, in whole or in part, by such
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 Board relating to security for the
protection of charterers of civil aircraft for charter trips (other than
cargo charter trips) originating in the United States or of overseas
military personnel charter trips and shall inure to the benefit of any
and all such charterers to whom the Principal may be held legally liable
for any of the damages herein described.
Now, therefore, the condition of this obligation is such that if the
Principal shall pay or cause to be paid to such charterer any sum or
sums for which the Principal may be held legally liable by reason of the
Principal's failure faithfully to perform, fulfill, and carry out all
contracts made by the Principal while this bond is in effect for the
performance of charter trips (other than cargo charter trips)
originating in the United States and of overseas military personnel
charter trips, than this obligation shall be void, otherwise to remain
in full force and effect.
The liability of the Surety with respect to any charterer shall not
exceed the total cost to such charterer for air transportation services
in accordance with his contract with the Principal.
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 Civil Aeronautics Board
forthwith of all suits filed, judgments rendered, and payments made by
said Surety under this bond.
This bond is effective the ---- day of -------- 19----, 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 Civil Aeronautics Board at its office in Washington, D.C.,
such termination to become effective thirty (30) days after the actual
receipt of such notice by the Board. The Surety shall not be liable
hereunder for the payment of any 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 prior
to the date such termination 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 the claim to the foreign route air
carrier, or, if he is unavailable, to the Surety, and all liability on
the bond for such charter trip shall automatically terminate sixty (60)
days after the cancellation 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 ---- days of --------, 19----.
Principal
Name____________________________________________________________________
By ------------------(Signature and Title)
Witness_________________________________________________________________
Surety
Name____________________________________________________________________
By ------------------(Signature and Title)
Witness_________________________________________________________________
Only corporations may qualify to act as surety and they must meet
the requirements set forth in Sec. 212.15(d) of part 212.
[ER-811, 38 FR 20260, July 30, 1973]
Appendix B to Part 212--Statement of Supporting Information \1\
Part I--To be completed by air carrier for each single entity, mixed, or
pro rata charter. (Where more than one round-trip flight is to
be performed under the charter contract, clearly indicate
applicability of answers.)
---------------------------------------------------------------------------
\1\ This must be retained by the air carrier for 2 years pursuant to
the requirements of part 249, but open to Board inspection, and to be
filed with the Board on demand.
---------------------------------------------------------------------------
1. Name of transporting carrier:________________________________________
2. Commencement date(s) of proposed flight(s):__________________________
........................................................................
(a) Going_______________________________________________________________
(b) Returning___________________________________________________________
3. Points to be included in proposed flight(s):_________________________
........................................................................
(a) From ------------ to ------------
(b) Returning from ------------ to ------------
(c) Other stops required by charterer:__________________________________
........................................................................
4. (a) Type of aircraft to be used:
........................................................................
(b) Seating capacity:___________________________________________________
(c) Number of persons to be transported:________________________________
........................................................................
(5) Total charter price:________________________________________________
........................................................................
[[Page 79]]
6. (a) Has the carrier paid, or does it contemplate payment of any
commissions, direct or indirect, in connection with the proposed flight?
Yes [ ] No [ ]
(b) If ``yes'' give names and addresses of such recipients and
indicate the amount paid or payable to each recipient. If any commission
to a travel agent exceeds 5 percent of the total charter price, attach a
statement justifying the higher amount under this regulation.
........................................................................
........................................................................
7. (a) Will the carrier or any affiliate provide any services or
perform any functions in addition to the actual air transportation? Yes
[ ] No [ ]
(b) If ``yes'' describe services or functions:
........................................................................
........................................................................
8. Name and address of charterer:
........................................................................
9. If charter is single entity, indicate purpose of flight:_____________
........................................................................
10. On what date was the charter contract executed?_____________________
........................................................................
11. If the charter is pro rata, has a copy of part 212 of the Civil
Aeronautics Board's Economic Regulations been mailed to or delivered to
the prospective charterer? Yes [ ] No [ ]
Part II--To be completed for pro rata or mixed charters only.
Section A--To be supplied by travel agent, or where none, by the air
carrier or an affiliate under its control where either of the latter
performs or provides any travel agency function or service (excluding
air transportation sales but including land tour arrangements).
1. What specific services have been or will be provided by agent to
charterer on a group basis?_____________________________________________
........................................................................
2. What specific services have been or will be provided by agent to
individual participants in the proposed charter?________________________
........................................................................
3. Has the agent or, to his knowledge, have any of his principals,
officers, directors, associates or employees compensated any member of
the chartering organization in relation either to the proposed charter
flight or any land tour? Yes [ ] No [ ]
4. Does the agent have any financial interest in any organization
rendering services to the chartering organization? Yes [ ] No [ ] If
answer is ``yes'' explain:______________________________________________
........................................................................
Warranty \2\
I, --------------------(Name) represent and
---------------------------------------------------------------------------
\2\ Whoever, in any matter within the jurisdiction of any department
or agency of the United States, knowingly and willfully falsifies,
conceals, or covers up by any trick, scheme or device a material fact,
or makes any false, fictitious or fraudulent statements or
representations, or makes or uses any false writing or document knowing
the same to contain any false, fictitious or fraudulent statement or
entry, shall be fined not more than $10,000 or imprisoned not more than
5 years, or both. Title 18, U.S.C., 1001.
---------------------------------------------------------------------------
warrant that I have acted with regard to this charter operation (except
to the extent fully and specifically explained in Part II, Section A)
and will act with regard to such operation in a manner consistent with
part 212 of the Board's Economic Regulations.
(Date)__________________________________________________________________
........................................................................
(Signature and address of travel agent or, if none, of authorized
official of air carrier where such carrier or an affiliate under its
control performs any travel agency function or service (excluding air
transportation sales but including land tour arrangements).)
Section B--To be supplied by charterer:
1. Description of chartering organization, including its objectives
and purposes:
........................................................................
2. What activities are sponsored by the chartering organization?
........................................................................
........................................................................
3. When was the organization founded?
........................................................................
4. Qualification or requirements for membership in organization and
membership fee, if any:_________________________________________________
........................................................................
5. Has there been any reference to prospective charter flights in
soliciting new members for the charter organization? Yes [ ] No [ ]
6. State where a list of members is available for inspection.___________
........................................................................
7. Attach list of prospective passengers (including ``standbys'' and
one-way passengers designated as such), showing for each: (a) name,
address, and telephone number; (b) relationship of such person to
chartering organization, i.e., member, spouse, dependent child, parent
or ``special'' (a person whose proposed participation in the charter
flight was permitted by the Board pursuant to request for waiver); (c)
if such person is related to a member who is not a prospective
passenger, the member's name, address, and telephone number; and (d)
date member joined or last renewed a lapsed membership.
[[Page 80]]
Note: This is a list of prospective passengers and does not
necessarily have to represent the passengers actually to be carried. The
list is to be amended, if passengers are dropped or added before flights
and the certification required by Sec. 212.45 must be attached to the
list.
8. What are requirements for participation in charter?__________________
........................................................................
9. How were prospective participants for charter solicited (attach any
solicitation material)?_________________________________________________
........................................................................
10. Will there be any participants in the charter flight other than
(1) members of the chartering organization or (2) spouse, dependent
children, and parents of a member of the chartering group residing in
the same household with the member? Yes [ ] No [ ]
11. Will there be any members of the chartering organization
participating in the charter who will have been members of the
organization for a period of less than 6 months prior to flight date?
\3\ Yes [ ] No [ ] If answer is ``yes'', give names of participants who
will not have been members for 6 months:________________________________
---------------------------------------------------------------------------
\3\ Not applicable to school charters, nor to charters limited to
employees of a single Government agency, industrial plant or mercantile
company.
---------------------------------------------------------------------------
........................................................................
12. If there is any intermediary involved in the charter, other than the
travel agent whose participation is described in Part II, Section A,
submit name, address, remuneration, and scope of activity:______________
........................................................................
........................................................................
13. Estimated receipts: ------------ (Pro rata charge) x --------
---- (No. of passengers) = $------------ (Estimated receipts from
charter)
Estimated receipts from other sources, if any:__________________________
........................................................................
Explain:________________________________________________________________
........................................................................
(a) Total receipts: $------.
Estimated expenditures, including aircraft charter (separately
itemize air transportation, land tour, and administrative expenses):
Item Amount Payable to
........................................................................
........................................................................
........................................................................
(b) Total expenditures: $------.
Explain any difference between (a) and (b):_____________________________
........................................................................
14. Are any of the expenses included in Item 13 above, to be paid to any
members of the chartering organization? Yes [ ] No [ ] If ``yes'' state
how much, to whom and for what services:________________________________
........................................................................
15. Is any member of the chartering organization to receive any
compensation or benefit directly or indirectly from the air carrier, the
travel agent, or any organization providing services in relation to the
air or land portion of the trip? Yes [ ] No [ ]
If ``yes'' explain fully:_______________________________________________
........................................................................
........................................................................
16. Will any person in the group (except children under 2 years) be
transported without charge? Yes [ ] No [ ]
17. Will charter costs be divided equally among charter
participants, except to the extent that a lesser charge is made for
children under 12 years old? Yes [ ] No [ ]
18. Separately state for the outbound and inbound flights the number of
one-way passengers anticipated to be transported in each direction:_____
........................................................................
19. If four or more round trips are contracted for, will each group
move as a unit in both directions? Yes [ ] No [ ]
........................................................................
20. If charters have been performed for organization during past 5
years, give dates and name of carrier performing charters:
........................................................................
........................................................................
21. Has a copy of Part 212 ``Charter Trips by Foreign Air Carriers''
of the Economic Regulations of the Civil Aeronautics Board been received
by the charterer? Yes [ ] No [ ]
22. Attach copies of all announcements of the chartering
organization in connection with the charter issued after the charter
contract is signed.
Warranty of Charterer 4
I, -------------------- (Name) and
---------------------------------------------------------------------------
\4\Whoever, in any matter within the jurisdiction of any department
or agency of the United States knowingly and willfully falsifies,
conceals, or covers up by any trick, scheme, or device a material fact,
or makes any false, fictitious, or fraudulent statements or
representations, or makes or uses any false writing or document knowing
the same to contain any false, fictitious, or fraudulent statement or
entry, shall be fined not more than $10,000 or imprisoned not more than
5 years, or both. Title 18, U.S.C., 1001.
---------------------------------------------------------------------------
--------------------(Name) represent and warrant that the charterer has
acted with regard to this charter operation (except to the extent fully
and specifically explained in Part II, Section B), and will act with
regard to such operation, in a manner consistent with part 212 of the
Board's economic regulations. I (we) further represent and warrant that
the charterer has not offered charter
[[Page 81]]
flights simultaneously with the solicitation of membership in the
chartering organization in any mass media advertising or notice or
through direct mailing or public posters. I (we) further represent and
warrant that all charter participants have been informed of eligibility
and cost requirements of part 212 and that a flight may be canceled if
ineligible participants are included.
(Date)__________________________________________________________________
........................................................................
(Signature--person within organization in charge of charter
arrangements)
........................................................................
(Signature and title of officer. This should be the chief officer of the
chartering organization except in the case of a school charter, in which
case the warranty must be by a school official not directly involved in
charter.)
Warranty of Air Carrier4
To the best of my knowledge and belief all the information
presented in this statement, including but not limited to, those parts
warranted by the charterer and the travel agent, is true and correct. I
represent and warrant that the carrier has acted with regard to this
charter operation (except to the extent fully and specifically explained
in this statement or any attachment thereto) and will act with regard to
such operation in a manner consistent with part 212 of the Board's
Economic Regulations.
(Date)__________________________________________________________________
........................................................................
(Signature and title of authorized official of aircarrier)
(Secs. 102, 204, 403, and 416 of the Federal Aviation Act of 1958, as
amended by Pub. L. 95-504, 72 Stat. 740, 743, 758, and 771, 92 Stat.
1731, 1732; 49 U.S.C. 1302, 1324, 1373, and 1386)
[ER-686, 36 FR 7449, Apr. 20, 1971, as amended by ER-776, 37 FR 24167,
Nov. 15, 1972; ER-1128, 44 FR 33055, June 8, 1979. Redesignated by ER-
1220, 46 FR 28375, May 26, 1981]
[[Page 82]]
APPENDIX C TO PART 212--CAB FORM 433
[GRAPHIC] [TIFF OMITTED] TC30SE91.020
[[Page 83]]
[GRAPHIC] [TIFF OMITTED] TC30SE91.021
[ER-1220, 46 FR 28376, May 26, 1981]
[[Page 84]]
PART 213--TERMS, CONDITIONS AND LIMITATIONS OF FOREIGN AIR CARRIER PERMITS--Table of Contents
Sec.
213.1 Applicability.
213.2 Reports of traffic data.
213.3 Filing and approval of schedules.
213.4 [Reserved]
213.5 Filing and service of schedules and applications for approval of
schedules; procedure thereon.
213.6 Compliance.
213.7 Filing requirements for adherence to Montreal Agreement.
Authority: 49 U.S.C. Chapters 401, 411, 413, 415, 417.
Source: ER-624, 35 FR 8881, June 9, 1970, unless otherwise noted.
Editorial Note: Nomenclature changes to part 213 appear at 61 FR
34725, July 3, 1996.
Sec. 213.1 Applicability.
This regulation sets forth terms, conditions, and limitations
applicable to foreign air carrier permits issued under section 41302 of
Title 49 of the United States Code (Transportation) authorizing
scheduled foreign air transportation. Unless such permits or the orders
issuing such permits otherwise provide, the exercises of the privileges
to engage in scheduled foreign air transportation granted by any such
permit shall be subject to the terms, conditions, and limitations as are
set forth in this part, and as may from time to time be prescribed by
the Department.
[ER-680, 36 FR 7306, Apr. 17, 1971, as amended at 61 FR 34725, July 3,
1996]
Sec. 213.2 Reports of traffic data.
The Department may at any time require any foreign air carrier to
file with the Department traffic data disclosing the nature and extent
of such carrier's engagement in transportation between points in the
United States and points outside thereof. The Department will specify
the traffic data required in each such instance. Interested persons
seeking reconsideration of a Department determination under this section
may file a petition pursuant to Rule 37 of part 302 within 10 days after
Department action.
Sec. 213.3 Filing and approval of schedules.
(a) In the absence of provisions to the contrary in the permit and
of Department action pursuant to this section, a foreign air carrier may
determine the schedules (including type of equipment used) pursuant to
which it engages in transportation between points in the United States
and points outside thereof.
(b) In the case of a foreign air carrier permit for scheduled air
transportation which is not the subject of an air transport agreement
between the United States and the government of the holder, the
Department, if it finds that the public interest so requires, may with
or without hearing order the foreign air carrier to file with it within
7 days after service of such order, an original and three copies of any
or all of its existing schedules of service between any point in the
United States and any point outside thereof, and may require such
carrier thereafter to file an original and three copies of any proposed
schedules of service between such points at least 30 days prior to the
date of inauguration of such service. Such schedules shall contain all
schedules of aircraft which are or will be operated by such carrier
between each pair of points set forth in the order, the type of
equipment used or to be used, the time of arrival and departure at each
point, the frequency of each schedule, 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
[[Page 85]]
in such air transport agreement, of any U.S. air carrier designated
thereunder with respect to flight operations to, from, through, or over
the territory of such foreign government.
(d) The carrier may continue to operate existing schedules, and may
inaugurate operations under proposed schedules 30 days after the filing
of such schedules with the Department, unless the Department with or
without hearing issues an order, subject to stay or disapproval by the
President of the United States within 10 days after adoption, notifying
the carrier that such operations, or any part of them, may be contrary
to applicable law or may adversely affect the public interest. If the
notification pertains to a proposed schedule, service under such
schedule shall not be inaugurated; if the notification pertains to
existing schedules, service under such schedules shall be discontinued
on the date specified in the Department's order. Such date shall be not
less than ten days after adoption of the Department's order unless
affirmative Presidential approval is obtained at an earlier date.
(e) No petitions for reconsideration may be filed with respect to
Department orders issued pursuant to paragraph (b), (c), or (d) of this
section. Nevertheless, if the Department serves a notification under
paragraph (d) of this section, the carrier may make application to the
Department for approval of any or all existing or proposed schedules,
pursuant to the provisions of Sec. 213.5. The Department may with or
without hearing withdraw, in whole or in part, its notification at any
time and may permit existing or proposed schedules to be operated for
such period or periods as the Department may determine.
(f) The date of service on a foreign air carrier of orders and
notifications pursuant to this section shall be the date of mailing
thereof, by certified or registered mail, to the agent designated by the
foreign air carrier pursuant to 49 U.S.C. 46103 or, if the foreign air
carrier has failed to designate an agent, the date of mailing by
registered air mail to the foreign air carrier's home office.
[ER-624, 35 FR 8881, June 9, 1970, as amended by ER-870, 39 FR 30843,
Aug. 26, 1974; ER-1107, 47 FR 46495, Oct. 19, 1982; 61 FR 34725, July 3,
1996]
Sec. 213.4 [Reserved]
Sec. 213.5 Filing and service of schedules and applications for approval of schedules; procedure thereon.
(a) Number of copies and certificate of service. An original and
three copies of each schedule, and an original and seven (7) copies of
application for approval of schedules (Sec. 213.3(e)) shall be filed
with the Department, each setting forth the names and addresses of the
persons, if any, required to be served, and stating that service has
been made on all such persons by personal service or by registered or
certified mail (if the addressee is located within the United States,
its territories and possessions) or by registered air mail (if the
addressee is located outside the United States, its territories and
possessions) and the date of such service. In the case of service by
mail, the date of mailing shall be considered the date of service.
(b) Pleadings by interested persons. Any interested person may file
and serve upon the foreign air carrier a memorandum in opposition to, or
in support of, schedules or an application for approval of schedules
within 10 days of the filing opposed or supported. All memoranda shall
set forth in detail the 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
[[Page 86]]
persons seeking reconsideration of the Department's determination on an
application approval of schedules may file a petition pursuant to Rule
37 of part 302 of this chapter within 10 days of Department action. Any
interested person may file an answer in opposition to, or in support of,
the petition within 10 days after it is filed. An executed original and
19 copies of such petition for reconsideration or memorandum shall be
filed with the Docket Facility. All petitions for reconsideration shall
contain a certificate of service in the form prescribed by paragraph (a)
of this section. Unless ordered by the Department upon application or
upon its own motion, further pleadings will not be entertained.
[ER-624, 35 FR 8881, June 9, 1970, as amended by ER-644, 35 FR 14382,
Sept. 12, 1970; 61 FR 34725, July 3, 1996]
Sec. 213.6 Compliance.
Any violation by the foreign air carrier of applicable provisions of
Subtitle VII of Title 49 of the U.S. Code or of orders, rules or
regulations issued thereunder, or of the terms, conditions or
limitations applicable to the exercise of the privileges granted by the
permit shall constitute a failure to comply with the terms, conditions
and limitations of such permit: Provided, That upon a showing that a
violation of a provision not mandatorily prescribed by law resulted from
the observance by the holder of an obligation, duty or liability imposed
by a foreign country, the Department may excuse the violation.
[ER-624, 35 FR 8881, June 9, 1970, as amended at 61 FR 34725, July 3,
1996]
Sec. 213.7 Filing requirements for adherence to Montreal Agreement.
It shall be a condition upon the holding of a foreign air carrier
permit or other authority authorizing direct foreign scheduled air
transportation that the holder have and maintain in effect and on file
with the Department a signed counterpart of Agreement 18900 (OST Form
4523), and a tariff (for those carriers otherwise generally required to
file tariffs) that includes its provisions, and comply with all other
requirements of part 203 of this chapter. That form can be obtained from
the Foreign Air Carrier Licensing Division (X-45), Office of
International Aviation, Department of Transportation, 400 Seventh
Street, SW., Washington, DC 20590.
(Approved by the Office of Management and Budget under control number
3024-0064)
[ER-1330, 48 FR 8050, Feb. 25, 1983, as amended by ER-1346, 48 FR 31014,
July 6, 1983; 61 FR 34725, July 3, 1996]
PART 214--TERMS, CONDITIONS, AND LIMITATIONS OF FOREIGN AIR CARRIER PERMITS AUTHORIZING CHARTER TRANSPORTATION ONLY--Table of Contents
Sec.
214.1 Applicability.
214.2 Terms of service.
Sec. 214.1 Applicability.
This part establishes the terms, conditions, and limitations
applicable to charter foreign air transportation pursuant to foreign air
carrier permits authorizing the holder to engage in charter
transportation only.
(Secs. 204, 402, Pub. L. 85-726, as amended, 72 Stat. 743, 757; 49
U.S.C. 1324, 1371)
[ER-1223, 46 FR 28379, May 26, 1981]
Sec. 214.2 Terms of service.
Charter air transportation under this part shall be performed in
accordance 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.
[[Page 87]]
Source: 53 FR 17923, May 19, 1988, unless otherwise noted.
Sec. 215.1 Applicability.
This part applies to all certified air carriers, commuter air
carriers, and foreign direct air carriers and to initial or amended
applications for authority, applications for certificate or permit
transfers or reissuances, and registration of business names.
Sec. 215.2 Purpose.
This part sets rules under which direct air carriers may use the
names in their operating authorizations and change those names. It
further provides for notification to air carriers that may be affected
by the use by other air carriers of the same or similar names. Its
purpose is to place the responsibility for resolving private disputes
about the use of similar names with the air carriers involved, through
recourse to the trade names statutes and the courts. These rules do not
preclude Department intervention or enforcement action should there be
evidence of a significant potential for, or of actual, public confusion.
Sec. 215.3 Use of name.
In holding out to the public and in performing air transportation
services, a direct air carrier or foreign direct air carrier subject to
this part shall use only the name in which its operating authorization
is issued or trade name is registered, and shall not operate or hold out
to the public in a name not acknowledged by the Department to be so
registered. Except as provided in Secs. 221.21(J) and 221.35(d) of this
chapter, minor variations in the use of this name, including
abbreviations, contractions, initial letters, or other variations of the
name that are identifiable with the authorized name, are permitted.
Slogans and service marks shall not be considered names for the purpose
of this part, and their use is not restricted.
Sec. 215.4 Change of name or use of trade name.
(a) Registrations. Any air carrier subject to this part that desires
to change the name in which its operating authorization has been issued,
or to use a trade name, or to obtain initial operating authority must
register the name with the Department. The Department will construe any
application for initial, reissued, or transferred authority, a well as
any commuter air carrier registration or amendment filed under part 298,
as containing a ``registration'' of the intended name. A separate name
registration document need not be filed. A carrier registering use of a
trade name, without seeking reissuance of its underlying certificate or
foreign air carrier permit or exemption authority, must file a statement
that complies with Secs. 302.3 and 302.4 of this chapter registering its
intended name with the Air Carrier Fitness Division if it is a U.S.
certificated or commuter carrier, or within the Licensing Division if it
is a foreign air carrier.
(b) Montreal Agreement. Each registration under this section shall
be accompanied by three copies of a counterpart to the Montreal
Agreement (Agreement 18900) (OST Form 4523) signed by the carrier using
the proposed name. Upon arrival of the application, the Department will
place a copy of the signed OST form 4523 in Docket 17325.
(Reporting and recordkeeping requirements in paragraph (b) were approved
by the Office of Management and Budget under control number 3024-0064.)
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.
[[Page 88]]
Sec. 215.6 Acknowledgment of registration.
After completion of the filing and notification requirements of this
part, the Department may acknowledge the registration by notice in the
action granting the application for initial operating authority,
transfer, or reissuance or in approving the commuter registration, or by
separate notice in the case of use of a trade name. Non-action under
this provision shall not be construed as an adjudication of any rights
or liabilities.
PART 216--COMMINGLING OF BLIND SECTOR TRAFFIC BY FOREIGN AIR CARRIERS--Table of Contents
Sec.
216.1 Definitions.
216.2 Applicability.
216.3 Prohibition.
216.4 Special authorizations.
216.5 Existing permits.
216.6 Existing unauthorized operations.
Authority: Sec. 204(a), 72 Stat. 743; 49 U.S.C. 1324(a). Interpret
or apply secs. 402 and 1108(b), 72 Stat. 757, 798; 49 U.S.C. 1372,
1508(b).
Source: ER-525, 33 FR 692, Jan. 19, 1968, unless otherwise noted.
Sec. 216.1 Definitions.
(a) As used in this part, unless the context otherwise requires:
Act means the Federal Aviation Act of 1958, as amended.
Blind sector traffic means revenue traffic, carried by a foreign air
carrier on a flight operating in air transportation, which is enplaned
at one foreign point and deplaned at another foreign point, where at
least one of such points is not named as a terminal or intermediate
point in the carrier's applicable foreign air carrier permit.
Note: This definition shall not be deemed to include the carriage of
authorized beyond homeland traffic (i.e., traffic carried between a
point named in a carrier's foreign air carrier permit and a point beyond
a homeland terminal point authorized under such permit).
Revenue traffic means persons, property or mail carried for
compensation or hire.
(b) Terms defined in section 101 of the Act have the meaning
expressed in such definitions.
Sec. 216.2 Applicability.
This part sets forth the requirements applicable to foreign air
carriers for obtaining a Special Authorization from the Board with
respect to any deviation from an authorized foreign air transportation
route for the purpose of commingling blind sector traffic with air
transportation traffic carried pursuant to a foreign air carrier permit
issued by the Board. The deviation by a foreign air carrier from its
authorized route for the purpose of combined carriage to or from the
United States of nonrevenue or other traffic, the carriage of which does
not constitute engaging in foreign air transportation, is governed by
the provisions of part 375 of this chapter.
Sec. 216.3 Prohibition.
No foreign air carrier shall carry any blind sector traffic, as
defined in this part, on any flight operating in air transportation
pursuant to the authority of a foreign air carrier permit issued under
section 402 of the Act, unless the combined carriage of such traffic has
been specifically authorized by such permit, or by a Special
Authorization issued under Sec. 216.4.
Sec. 216.4 Special authorizations.
(a) Applications. Any foreign air carrier may apply to the Board for
a Special Authorization, as required by this part, for the carriage of
blind sector traffic on a particular flight, series of flights, or for a
specified or indefinite period of time between specified points.
Applications shall be submitted directly to the Board, addressed to the
attention of the Director, Bureau of International Aviation. One
original and two copies in conformity with the requirements of
Secs. 302.3(b) and 302.4 (b) and (c) of this chapter shall be filed. The
applications shall contain a proper identification of the applicant; the
flight or flights upon which it is proposed to carry such blind sector
traffic, including routing, nontraffic stops, and dates or duration of
the authority sought; a full description of such traffic, and points
between which such
[[Page 89]]
traffic will be carried; information or documentation as to whether the
country of which the applicant is a national grants reciprocal
privileges to U.S. carriers; and the reasons for requesting such
authorization together with such additional information as will
establish that the grant of such authority will otherwise be in the
public interest. Such additional information as may be specifically
requested by the Board shall also be furnished.
(b) Service. Applications shall be served upon each direct U.S. air
carrier certificated to engage in individually ticketed or waybilled
foreign air transportation over any portion of the route to which the
application pertains, and on such other persons as the Board may
require, and proof of such service shall accompany the application as
provided in Sec. 302.8 of this chapter. Notice of such applications
shall also be published in the Board's Weekly List of Applications
Filed.
(c) Memoranda in support or opposition. Any interested person may
file a memorandum in support of or in opposition to the grant of an
application. Such memorandum shall set forth in detail the reasons why
it is believed that the application should be granted or denied and
shall be accompanied by such data, including affidavits, which it is
desired that the Board consider. Copies of the memorandum shall be
served upon the applicant. Nothing in this subparagraph shall be deemed
to preclude the Board from granting or denying an application when the
circumstances so warrant without awaiting the filing of memoranda in
support of or in opposition to the application.
(d) Time for filing. (1) Applications seeking authority to engage in
blind sector operations for a period of 3 months or longer, shall be
submitted at least 60 days in advance of the proposed commencement of
such operations. Memoranda in response to such an application shall be
submitted within 15 days after the date of filing thereof.
(2) Applications seeking authority to engage in blind sector
operations for a period less than three months shall be filed at least
20 days in advance of the proposed commencement of such operations, and
memoranda in response thereto within 7 days after the date of filing
thereof: Provided, That the Board may consider late filed applications
upon a showing of good cause for failure to adhere to this requirement.
(e) General procedural requirements. Except as otherwise provided
herein, the provisions of part 302, subpart A, of this chapter shall
apply to the extent applicable.
(f) Issuance of Special Authorization. A Special Authorization
authorizing the carriage of blind sector traffic will be issued only if
the Board finds that the proposed carriage is fully consistent with
applicable law and this part, and that grant of such authority would be
in the public interest. The application may be granted or denied in
whole or in part without hearing, and a Special Authorization made
subject to any conditions or limitations, to the extent that such action
is deemed by the Board to be in the public interest. Special
Authorizations are not transferable.
(g) Nature of the privilege conferred. A Special Authorization
issued pursuant to this section shall constitute a privilege conferred
upon a carrier, which may be enjoyed only to the extent that its
continued exercise remains in the interest of the public. Accordingly,
any Special Authorization issued pursuant to this section may be
revoked, suspended, amended or restricted without hearing.
(Sec. 204(a) of the Federal Aviation Act of 1958, as amended, 72 Stat.
743 (49 U.S.C. 1324); Reorganization Plan No. 3 of 1961, 75 Stat. 837,
26 FR 5989 (49 U.S.C. 1324 (note)))
[ER-525, 33 FR 692, Jan. 19, 1968, as amended by ER-910, 40 FR 23844,
June 3, 1975; ER-1060, 43 FR 34117, Aug. 3, 1978]
Sec. 216.5 Existing permits.
``Foreign aircraft permits'' issued by the Board under the
provisions of part 375 of the Board's Special Regulations, authorizing
the combined carriage of blind sector traffic as defined in this part,
shall continue in effect in accordance with their terms until their
expiration date unless sooner terminated, revoked or modified by the
Board. Such permits shall, upon the effective date of this part, be
deemed to constitute a Special Authorization issued pursuant to
Sec. 216.4.
[[Page 90]]
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.